Cytokinetics, Inc. (NASDAQ:CYTK) shares are trading lower by 17.6% to $48.83 during Thursday's session after the company announced the pricing of a public offering of 9,803,922 shares of its common stock at $51.00 per share, expecting to raise approximately $500 million before expenses.
The offering is set to close on May 28, 2024, pending standard conditions. Additionally, Cytokinetics has granted the underwriters a 30-day option to buy up to an extra 1,470,588 shares at the same price.
J.P. Morgan, Goldman Sachs and Morgan Stanley are managing the offering.
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Is CYTK A Good Stock To Buy?
An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Cytokinetics's page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.
These are known as capital allocation programs. Cytokinetics does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.
Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Cytokinetics will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.
According to data from Benzinga Pro, CYTK has a 52-week high of $110.25 and a 52-week low of $25.98.