Why Ecovyst Stock Dropped as Much as 19% Today
Shares of basic materials producer Ecovyst (NYSE: ECVT), which describes itself as a provider of specialty catalysts and services, fell sharply on Thursday, dropping as much as 19%. By roughly 2:30 p.m. ET today, the stock was still lower by a huge 18%, so most of the drop seems to be sticking. That's not surprising, however, given the news flow over the last couple of days.
On Wednesday after the market close, Ecovyst announced that a large shareholder would be selling 12 million shares. The underwriters were given the option to increase that sum by 1.8 million shares.
The key here is that this was not the company selling stock, so it isn't going to see any cash from this transaction. In fact, the company planned to buy half of the stock being sold, or 6 million shares, so it was actually going to have to spend money on this deal.
Source Fool.com
