Why Fortress Biotech (FBIO) Stock Is Getting Hammered

Fortress Biotech Inc FBIO shares are trading lower by 18.5% to $1.49 Friday afternoon after the company announced the pricing of a $8 million registered direct offering and concurrent private placements.

What Happened: Fortress Biotech announced on Thursday that it entered into securities purchase agreements with healthcare-focused institutional investors to sell 3,939,394 shares of common stock at $1.65 per share in a direct offering.

Additionally, the company issued warrants to purchase up to 3,939,394 shares at $1.84 per share, exercisable in six months, expiring in five and a half years. In a separate private placement, the company’s Chairman, CEO and President purchased 763,359 shares and warrants at $1.84 per share.

The offerings will raise approximately $8 million in gross proceeds, aimed at general corporate use. A.G.P./Alliance Global Partners is acting as the sole placement agent, and the offerings are expected to close around September 23, 2024.

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Should I Sell My FBIO Stock?

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

Shares of Fortress Biotech have decreased by 67.86% in the past year. An investor who bought shares of Fortress Biotech at the beginning of the year would take a loss of $1.22 per share if they sold it today. The stock has fallen 29.9% over the past month, meaning an investor who bought shares on Aug. 1 would see a capital loss of $0.44.

Fortress Biotech shares have an all-time high of $54.75, representing 3637.2% 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. Fortress Biotech stock currently has an RSI of 48.73, indicating neutral conditions.

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FBIO has a 52-week high of $5.28 and a 52-week low of $1.25.