Why Fidelis Insurance Holdings Plunged This Week
Shares of Fidelis Insurance Holdings (NYSE: FIHL) were falling this week, down 12% through Thursday trading, according to data from S&P Global Market Intelligence.
This week's move was likely due to the company announcing a secondary stock offering to the public. But the sale isn't a dilutive equity raise; rather, the offering is by current large shareholders of the newly public stock.
Public company investors never like to see major shareholders cashing out, especially with a stock that trades as cheaply as Fidelis. But the sale might not be an indication that anything is wrong, and thus, the sell-off could be an opportunity for savvy investors.
Source Fool.com
