Why Owens & Minor Stock Dropped 7% Today
Shares of medical and surgical equipment manufacturer Owens & Minor (NYSE: OMI) closed 7.1% lower Wednesday after the company filed a Form S-8 registration statement with the Securities and Exchange Commission.
As described in an attached letter from its legal counsel, Owens & Minor is registering 1 million new shares for issuance to its employees under its 2021 Teammate Stock Purchase Plan.
Investors seem to be treating the filing as if it were referring simply to a dilutive stock issuance, but if that's the case, they may be making a mistake. For one thing, the size of the issuance is not large: only about 1.3% of all shares that will be outstanding even if the stock purchase plan is implemented in full. This doesn't seem to justify the 7.1% hit the stock took today.
Source Fool.com
