Why Shoals Technologies Stock Dived by 14% on Tuesday

High on the list of Top Investor Annoyances is share dilution, which is why stocks of companies that announce new share issues often get punished by the market. Such was the case on Tuesday with solar-energy systems specialist Shoals Technologies Group (NASDAQ: SHLS). Shares closed the day down by slightly more than 14%.

On Monday, after market close (which is often when such things are announced), Shoals said that nearly 13.4 million shares of its Class A common stock are to be sold in a public offering. Of that total, just under 8.4 million shares are to be offered by the company itself, with the remainder being divested by investor Oaktree Capital Management and Shoals' general counsel Mehgan Peetz.

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Source Fool.com