Why FuelCell Energy Stock Is Bouncing Back Today
Shares of hydrogen fuel cell pioneer FuelCell Energy (NASDAQ: FCEL) recovered off their (very low) lows of Wednesday to close the day down "only" 20%. It was a curious result -- and matters only grew more curious on Thursday. The stock kept climbing back from its declines, and as of 1:45 p.m., EST, was trading up by 5.3%.
As you may be aware, FuelCell Energy effectively shot itself in the foot, stock-price-wise, on Wednesday, announcing plans to raise about $162.5 million in cash via a stock sale. But beyond issuing new stock, some company insiders will be selling a large cache of shares at the same time.
The announced sales cover a total of up to 39.7 million shares, divided roughly 63% to 37% between the newly issued shares (sold to raise cash for the company) and existing shares (sold by insiders to raise cash for themselves). It's a plan that has both good and bad aspects for FuelCell Energy and its investors.
Source Fool.com
