Here's Why Redfin Stock Crashed 16% in October
Shares of Redfin (NASDAQ: RDFN) fell 16.3% in October, according to data provided by S&P Global Market Intelligence. That looks bad in isolation. But for perspective, the stock has still more than doubled year to date and is up more than 300% from March lows. That's a strong run over a short time, so it's not surprising to see it pull back a little, especially considering the market was down in October as well.
That's not to say nothing happened for Redfin during the month. The stock started falling after the company announced a new financing deal, perhaps suggesting existing shareholders weren't keen on the arrangement. Redfin offered $575 million in convertible senior notes. These notes will mature in October 2025 but could convert to Redfin common stock if the price per share is above $72.51. The company could redeem these notes before that happens.
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Source Fool.com
