Trading Concept
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Trading Concept
No Result
View All Result
Home Trading News

Peloton nets $1.07 billion after offering 23.9 million shares at $46 each

by
November 16, 2021
in Trading News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

Bank of England chief tempers talk of a pause or pivot in rate hikes

Ford is set to report results after the bell. Here’s what Wall Street expects

Cari Gundee rides her Peloton exercise bike at her home on April 06, 2020 in San Anselmo, California.

Ezra Shaw | Getty Images

Peloton shares were rising Tuesday even after the company announced it was planning to raise $1.07 billion through a new stock offering that values its shares at a discount to its current trading price.

Notably, the offering of 23.9 million shares at $46 each comes just a few weeks after Peloton said it had no reason to raise additional funds.

In its announcement Tuesday, the connected fitness equipment maker said the proceeds would be used for general corporate purposes, including the construction or expansion of facilities, acquisitions and investments in new products and technologies.

The decision to raise money comes as Peloton is seeing slowing momentum for its products. Stock offerings are often pursued by public companies to take advantage of a growing share price, but Peloton’s market value has plunged this year. Its share price is down about 66% year to date.

Peloton shares initially fell 7% in premarket trading Tuesday on the news, but were recently up more than 8%. The stock had closed Monday down 3.5% at $47.49 — slightly above the public offering price — after touching a 52-week low of $46.70 earlier in the day.

BMO Capital Markets analyst Simeon Siegel told clients that he doesn’t see an end in sight for Peloton’s cash burn, and he also raised concerns about management’s sudden reversal over plans to raise cash.

“You have to ask if lowering guidance shortly after introducing it, and raising capital shortly after it wasn’t necessary begins to appear a trend rather than a one-off,” Siegel said in an interview.

When the company reported a wider-than-expected loss in its fiscal first quarter earlier this month, it also slashed its outlook for revenue for the year by as much as $1 billion.

Peloton has poured money into marketing, launching new products and bolstering its supply chain. As consumers cool on at-home fitness, however, analysts and investors worry those investments might have been ill-timed. It has also put a temporary freeze on hiring to try to reel in expenses.

Peloton expects the stock offering to close on Thursday. Affiliates of Durable Capital Partners and TCV, and accounts advised by T. Rowe Price Associate have expressed an interest in purchasing shares, Peloton said.

The company is planning to grant the offering’s underwriters a 30-day option to purchase up to another $150 million in stock, or about 3.3 million Class A shares, at the public offering price, less discounts and commissions.

Find the full press release from Peloton here.

ShareTweetPin

Related Posts

Bank of England chief tempers talk of a pause or pivot in rate hikes

by
February 2, 2023
0

Governor of the Bank of England Andrew Bailey has talked down expectations that the central bank is readying to pause...

Ford is set to report results after the bell. Here’s what Wall Street expects

by
February 2, 2023
0

In this article F Follow your favorite stocksCREATE FREE ACCOUNT Ford CEO Jim Farley takes off his mask at the...

Bitcoin is overdue for a pause before bullish trend continues, says Wolfe Research

by
February 2, 2023
0

Bitcoin has rallied more than 40% since the start of the year, quickly paring losses from its disastrous 2022. However,...

Alphabet set to report fourth-quarter results after the close

by
February 2, 2023
0

In this article GOOGLGOOG Follow your favorite stocksCREATE FREE ACCOUNT Sundar Pichai, chief executive officer of Alphabet Inc., speaks during...

Meta shares rocket 25%, on pace for the best day in a decade

by
February 2, 2023
0

In this article META Follow your favorite stocksCREATE FREE ACCOUNT Visitors take photos in front of Meta (Facebook) sign in...

Next Post

Stocks rise on signs of consumer strength despite rising prices, Home Depot leads Dow higher

Why more iconic companies like GE and J&J may be about to get smaller

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:



By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • WHO says Covid vaccine booster programs will prolong pandemic

    0 shares
    Share 0 Tweet 0
  • Forget Tesla — this auto stock is the one to buy right now, analyst says

    0 shares
    Share 0 Tweet 0
  • Spin or Split? AT&T Has a Big Decision to Make on Discovery Stake.

    0 shares
    Share 0 Tweet 0
  • Here’s how Carl Icahn is positioning for a possible recession in America

    0 shares
    Share 0 Tweet 0
  • Some lawmakers and their families are betting thousands of dollars on crypto

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by tradingconcept.net
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

All rights reserved by www.tradingconcept.net