Why Party City Holdco Inc Stock Slipped Today
Shares of Party City Holdco Inc (NYSE: PRTY) were putting on a frowny face today after the celebration-themed retailer announced a secondary offering. As a result, the stock finished Friday down 7.5% after trading down as much as 13.3% earlier in the session.
Image source: Party City.
Party City said 10 million shares of stock owned by other shareholders would go on sale and that the company would buy 2.5 million shares from Goldman Sachs, which is underwriting the sale. While this type of secondary offering doesn't dilute current shareholder stock, that a large investor is dumping the stock seemed to spook investors, especially as the retailer is struggling with the broader challenges weighing on the retail industry.
Source: Fool.com
