Why NextEra Energy Stock Is Falling Today
Shares of NextEra Energy (NYSE: NEE) slipped 4.6% in early trading Tuesday morning as investors reacted to the latest announcement from the clean energy giant.
NextEra Energy has announced plans to sell equity units worth $2 billion to investment banks Wells Fargo Securities and BofA Securities priced at $50 per unit. Since equity unit offerings combine debt and common stock, each equity unit will serve as a contract for the buyers to purchase shares of NextEra Energy no later than June 1, 2027, and an interest on a debenture.
Without getting into the technicalities, investors understand that NextEra Energy will eventually sell shares worth billions of dollars. Since a stock issue typically dilutes the wealth of existing shareholders, the clean energy stock is falling today.
Source Fool.com
