Relay Therapeutics Inc (RLAY) shares took a significant hit on Wednesday, dropping by 17.8% to $7.40. The decline came on the heels of the company’s announcement of a $200 million stock offering. This offering involves 28.57 million shares of common stock at a price of $7.00 per share, aiming to raise approximately $200 million before any fees. To further sweeten the deal, the company has granted underwriters a 30-day option to purchase an additional 4.29 million shares.
Leading the offering are financial giants Goldman Sachs, TD Cowen, Stifel, and BofA Securities, with Raymond James serving as a co-manager. The offering is anticipated to be finalized around September 12th, subject to customary closing conditions.
Naturally, investors are pondering the implications of this offering on RLAY’s future performance. The stock’s Relative Strength Index (RSI) currently stands at 75.61, indicating overbought conditions. This suggests that the stock may be ripe for a correction, which could contribute to the recent decline.
When considering whether to hold or sell RLAY stock, investors should carefully weigh factors like their investment timeframe, unrealized gains, and total return. Over the past year, Relay Therapeutics shares have shed 20.97% of their value. An investor who acquired shares at the beginning of the year would face a loss of $4.36 per share if they sold today. While the stock has shown an uptick of 14.33% over the past month, meaning an investor who bought on August 1st would see a capital loss of $0.13. Despite this recent volatility, it’s worth noting that Relay Therapeutics shares have an all-time high of $37.41, representing a potential upside of 398.8% from current levels.
In the broader market landscape, investors are also keeping a close eye on how the stock offering may affect RLAY’s overall performance. The stock has a 52-week high of $12.14 and a 52-week low of $5.70, highlighting the stock’s volatility.
As always, investors should conduct thorough research and consult with a financial advisor before making any investment decisions.
