Why Guardant Health Shares Fell Today

Shares of Guardant Health (NASDAQ: GH) were falling 9.6% lower as of 3:40 p.m. EST on Monday. The decline came after the liquid biopsy leader filed a shelf registration statement with the Securities and Exchange Commission (SEC). Shelf registration statements are used to register a future public stock offering without having to specify details of how many shares will be sold and exactly when they will be offered for sale.

It's neither surprising nor concerning that Guardant Health filed with the SEC to conduct a public stock offering at some point down the road. The healthcare stock has more than doubled since early 2019 and is holding up pretty well despite the overall market uncertainty this year. The company also still isn't profitable yet, so raising cash through stock offerings is an easy way to fund operations until it reaches breakeven.

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Source Fool.com