Why Pagaya Technologies Stock Tumbled 22% Today
Pagaya Technologies (NASDAQ: PGY) stock crashed 22.5% through 10:45 a.m. ET on Thursday after the financial artificial intelligence (AI) company announced it will raise at least $95 million from a new stock offering.
Pagaya actually warned investors the offering was coming yesterday, but today it revealed the price.
That price will be $12.70 per share, which is 18% less than what this AI stock cost just yesterday. And between the offering itself and the overallotment option its underwriters will invoke, Pagaya could sell up to 8.6 million ordinary shares of stock at this price. That's more than the 7.5 million shares it said it would sell yesterday (including overallotment). What's more, these are all supersized shares, issued after the company shrank its share count by 12x with a 1-for-12 reverse stock split on March 8.
Source Fool.com
