Sarepta Therapeutics Inc (NASDAQ: SRPT) shares
have had an extremely volatile after-hours session following news of a $37.5 million offering.
Immediately following the company press release, shares
plunged to an after-hours low at $15.50. Shortly after, the stock had trimmed those losses and turned positive from the close,
touching an extended-hour high around $20.47.
About 50 minutes after the press release, Sarepta shares last traded at $19.25, down nearly a percent from Wednesday's
close.
The offering has caused confusion among investors and traders frequenting social networks like Twitter and
StockTwits.
Below are a number of tweets which leaned more toward the bullish side:
- Would Sarepta still ask for investor $$ if they thought Eteplirsen wouldnt get AA?
- a raise was always on cards if anyone had looked at their balance sheet. In a way it is a +ve as it signals an implicit
AA
- The plan for approval.. They know!!!
- theres no way they would get any bidders if the FDA wasnt on their side
- done all the time to raise cash and will be considered positive
- Share dilution extremely minimal and reduces liquidity risk
- Another way to look at it is that $35m in new money believes in an approval
Tweets from several traders who were more negative:
- Some heavy puts are being bought. It might drop to $10 before moving up.
- if they were confident it would go to 100.00 they would've delayed dilution. they can make it through this and next quarter
easily
- think management would've decided on the offering before the decision if they truly believed it would get approved?
Mixed/confused sentiment:
- has enough cash to get through AA process. Why sell shares to get half a quarter in cash? Does not compute
- really not that big of a raise. May be dangerous to read too much into it. But seems scary to me. Crazy year so far.
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