PTLO - Why Portillo's Stock Got Raked Over the Coals Tuesday Morning -- and What Investors Got Wrong
Shares of Portillo 's (NASDAQ: PTLO) plunged on Tuesday, with the stock falling as much as 10% early in the session. As of 1:37 p.m. ET, the stock was still down 8.5%.
That catalyst the crushed the fast-casual restaurant stock was the announcement of a secondary stock offering -- but the devil's in the details, and it really isn't what investors think.
Portillo's announced a secondary offering of 8 million shares of its Class A common stock, which is expected to raise roughly $183 million. Underwriters also have the option to purchase up to 1.2 million additional shares within 30 days.
For further details see:
Why Portillo's Stock Got Raked Over the Coals Tuesday Morning -- and What Investors Got Wrong