Why Shares of Albemarle Slumped This Week
Shares in lithium producer Albemarle (NYSE: ALB) were down by 14.1% in the week to Friday morning. The move comes in a week when Albemarle announced an offering of $1.75 billion in depositary shares on Monday and then increased the offering to $2 billion on Wednesday.
The issuance puts the stock price under pressure as investors start pricing in a dilution of equity in the future when the shares are converted into common stock.
According to the press release, Albemarle intends to use the proceeds for "general corporate purposes," including "construction and expansion of lithium operations in Australia and China that are significantly progressed or near completion" and repaying "outstanding commercial paper."
Source Fool.com
Albemarle Corp Stock
€121.46
1.830%
With 26 Buy predictions and 3 Sell predictions Albemarle Corp is one of the favorites of our community.
With a target price of 175 € there is a positive potential of 44.08% for Albemarle Corp compared to the current price of 121.46 €.
