Hawaiian Electric Industries, Inc. (HE) shares are taking a hit on Tuesday after the company announced a secondary offering of a hefty 54 million shares of its common stock at a price of $9.25 per share. This move comes as the company prepares for the financial impact of the devastating Maui wildfires.
The offering is expected to close on September 25th, subject to customary closing conditions. Hawaiian Electric plans to use the net proceeds to contribute to the anticipated Maui wildfire tort litigation settlement and for general corporate purposes. This means they’re preparing for potential legal claims related to the wildfires.
The news has sent HE stock tumbling, with trading volume surging as investors react to the news. The stock is currently trading below its 50-day moving average of $13.25 and is nearing its 52-week low of $7.60.
So, what does this mean for HE stock in the future? While Wall Street analysts have an average 12-month price target of $15.00 for Hawaiian Electric Indus, it’s important to note that no analysts currently have a positive rating on the stock. Three analysts have neutral ratings, and one has a negative rating.
While the average analyst price target suggests potential upside, the current market sentiment is clearly influenced by the wildfire litigation and the company’s financial position.
It’s a challenging time for Hawaiian Electric, and the stock’s future performance remains uncertain. Investors will be watching closely to see how the company navigates the legal and financial complexities surrounding the Maui wildfires.
