SVB Financial (NASDAQ:SIVB) stock continues to fall on Friday after the company revealed plans for a public offering to raise funds.
News of that offering sent shares of SIVB stock 60.4% lower during normal trading hours on Thursday. That came alongside 33 million shares changing hands as investors sold the stock. To put that in perspective, the company’s daily average trading volume is closer to 1.5 million shares.
And it looks like the company’s stock is going to keep heading lower if today’s pre-market movement is anything to go by. As of this writing, shares of SIVB stock are down another 44.1%. That comes as some 10 million units of the stock have already changed hands today.
Why The Negative Reaction?
SVB Financial shattered the confidence shareholders had in the company when it announced the $2.25 billion stock offering. That includes venture capital investors expressing concerns over the company’s securities following the news.
This even resulted in SVB Financial holding a call with clients following yesterday’s drop in price. During that call, company CEO Greg Becker tried to ease investors’ fears to prevent further damage to the stock. However, today’s movement shows that this didn’t work as hoped.
Investors keeping an eye on the stock market will want to know about other hot stories on Friday!
Luckily, we’ve got them covered without deep dives into the market today. A few examples include why shares of Barnes & Noble Education (NYSE:BNED) and Molecular Templates (NASDAQ:MTEM) stock are rising, as well as the biggest pre-market stock movers this morning. All that news is ready to go below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.