PAR - Why Par Technology Stock Crashed on Tuesday
Par Technology (NYSE: PAR) has announced its intent to sell 1.5 million shares of additional stock and issue $200 million in aggregate principal amount of convertible senior notes due in 2027. The notes can be converted to cash, shares of Par stock, or a combination of the two prior to the close of business on April 15, 2027.
Following the news on Monday, Par Technology's stock price was trading down 14% as of 11:17 a.m. EDT on Tuesday. Investors typically frown on additional stock sales. While selling additional stock helps raise cash that can be reinvested for growth, it also dilutes existing shareholders' investment, since it increases the total shares outstanding, and therefore makes each dollar of future earnings per share worth less to investors.
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Why Par Technology Stock Crashed on Tuesday