Why JetBlue Stock Is Down Today
Shares of JetBlue Airways (NASDAQ: JBLU) fell 7% at the open on Wednesday after the airline announced a secondary offering. Selling more stock is by definition dilutive to existing holders, but in this airline's case, investors can't be too upset that JetBlue is adding to its liquidity.
The carrier said Wednesday morning it would raise about $500 million by selling 36.5 million shares at $14.40 each. That's a small addition to the 270 million shares already outstanding, but secondary offerings by their nature make each slice of the overall pie a bit smaller and tend to cause downward pressure on share price.
Image source: JetBlue Airways.
Source Fool.com
