Why Shineco (SISI) Stock Is Down 50%

Shineco Inc SISI shares are trading lower by 53.6% to $0.98 during Friday’s session after the company announced pricing of a $2 million underwritten public offering.

The company earlier said its public offering of 1,869,160 shares of common stock will be at $1.07 per share, totaling approximately $2 million before expenses. The company also granted underwriters a 45-day option to purchase an additional 280,374 shares to cover over-allotments.

The offering is set to close on July 15, pending customary closing conditions. EF Hutton LLC is the sole book-running manager for the offering.

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Should I Sell My SISI Stock?

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

Shares of Shineco have decreased by 65.71% in the past year. An investor who bought shares of Shineco at the beginning of the year would take a loss of $0.24 per share if they sold it today. The stock has fallen 74.12% over the past month, meaning an investor who bought shares on Jun. 1 would see a capital loss of $1.19.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Shineco stock currently has an RSI of 40.41, indicating neutral conditions.

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SISI has a 52-week high of $4.90 and a 52-week low of $0.61.