Why Aldeyra Therapeutics Stock Is Jumping Today
Shares of Aldeyra Therapeutics (NASDAQ: ALDX) were jumping 8.5% higher as of 11:01 a.m. EST on Thursday after soaring as much as 15.3% earlier in the day. The gain came after the company announced the pricing of a public stock offering. Aldeyra plans to sell more than 6.8 million shares at a price of $9.50 per share.
Don't biotech stocks usually fall after announcements of secondary stock offerings? Yes. Investors typically aren't happy campers knowing that more shares on the market will dilute the value of their existing shares. However, sometimes shares of biotechs with dilution-causing stock offerings on the way move higher, just as we're seeing with Aldeyra today.
The most likely reason behind Aldeyra's jump is that investors remain really confident about the company's long-term prospects. Aldeyra's stock offering will raise gross proceeds of around $65 million. The biotech intends to use the money generated in large part to fund development of its lead pipeline candidate, reproxalap.
Source Fool.com
