Why Agilon Health Shares Are Sliding After Hours

Agilon Health Inc AGL shares are moving lower in Monday's after-hours session after the company announced a secondary offering. 

What Happened: Agilon plans to offer 70 million shares of its common stock in a secondary public offering from selling stockholder CD&R Vector Holdings, L.P. The selling stockholder expects to grant the underwriters a 30-day option to purchase up to an additional 10.5 million shares.

In addition to the offering, Agilon said it intends to purchase approximately $200 million of common stock from the underwriters at the same price per share of the offering. The company said it will fund the purchase with cash on hand. 

Agilon Health aims to empower physicians to transform health care by accelerating physicians transition to a value-based model of care for senior patients.

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AGL Price Action: Agilon shares were down 7.43% after hours at $22.04 at the time of writing, according to Benzinga Pro. 

Photo: Julio César Velásquez Mejía from Pixabay.