Why Owlet's Shares Plunged 26.1% Today

Shares of baby technology stock Owlet (NYSE: OWLT) dropped as much as 28.5% in trading on Wednesday after insiders registered to sell shares and warrants. Shares closed trading off 27.6% and saw momentum lower all day. 

Owlet filed a prospectus with the Securities and Exchange Commission that related to the sale of up to 77.4 million shares of stock, 6.6 million warrants, and the issuance of up to 18.1 million shares of stock if warrants are exercised. The company itself is not selling any of these securities; rather, security holders like Fidelity, Sandbridge Capital, and venture capital firm Eclipse Ventures are.

Image source: Owlet.

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Source Fool.com