Nuvalent Inc (NUVL) shares took a dip on Tuesday, falling by 6.56% to $104.81, following the announcement of a sizable $500 million public offering. The company plans to issue 5 million common shares at $100 per share, with the offering expected to close on September 18th, subject to customary closing conditions.
This offering is anticipated to bring in gross proceeds of roughly $500 million for Nuvalent, before accounting for expenses. The underwriters have also been granted a 30-day option to purchase up to 750,000 additional shares of Class A common stock at the same public offering price, minus underwriting discounts and commissions. J.P. Morgan, TD Cowen, Jefferies, and Stifel are acting as joint book-running managers for the offering.
Despite the recent dip, NUVL stock has shown impressive growth in the past year, increasing by 138.18%. An investor who bought shares of Nuvalent at the beginning of the year would be sitting on a profit of $28.82 per share if they sold today. The stock’s momentum has continued in recent weeks, climbing by 40.12% over the past month. This means an investor who bought shares on August 1st would see a capital gain of $31.76.
Nuvalent shares have an all-time high of $112.17, representing a potential 6.91% upside from current levels. While the recent offering may have contributed to the share price drop, it’s important to remember the company’s strong performance in recent months.
Investors considering their next move with NUVL should carefully consider their own investment goals and risk tolerance. This includes evaluating their time horizon, unrealized gains, and total return on their investment.
For those interested in diving deeper into the technical analysis of NUVL, Benzinga Pro offers advanced charting and analysis tools, along with stock data. You can try it for free. According to Benzinga Pro, NUVL has a 52-week high of $113.51 and a 52-week low of $39.93.
