Why J.Jill Stock Is Falling Sharply

J. Jill JILL shares are trading lower after by 19% to $32.03 during Thursday’s session the company announced the pricing of a public offering of 2 million common stock at $31 per share.

J.Jill and its largest stockholder, an affiliate of TowerBrook Capital Partners L.P., are each offering 1 million shares. Additionally, the selling stockholder has granted underwriters a 30-day option to purchase up to 300,000 more shares. The offering is expected to close on June 14, subject to customary conditions.

J.Jill anticipates gross proceeds of $31.0 million from its share of the offering, which will be used for debt repayment and general corporate purposes. The company will not receive proceeds from the shares sold by the selling stockholder.

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Should I Sell My JILL Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of J.Jill have increased by 55.31% in the past year. An investor who bought shares of J.Jill at the beginning of the year would make a profit of $6.82 per share if they sold it today. The stock has risen 1.51% over the past month, meaning an investor who bought shares on May. 1 would see a capital gain of $5.28.

J.Jill shares have an all-time high of $39.55, representing 22.9% upside from current levels.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. J.Jill stock currently has an RSI of 82.51, indicating overbought conditions.

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JILL has a 52-week high of $40.61 and a 52-week low of $18.85.