Why Armada Hoffler Properties Shares Are Falling

Armada Hoffler Properties Inc AHH shares are trading lower by 8.39% to $10.87 during Thursday’s session after the company announced the pricing of an underwritten offering of 9 million shares of its stock for the total proceeds of approximately $94.5 million.

The offering is set to close on September 27, pending standard closing conditions. Additionally, the company has granted underwriters a 30-day option to buy up to 1.35 million more shares.

Armada Hoffler plans to use the proceeds to repay loans on several properties and reduce its revolving credit facility, with any remaining funds allocated to general corporate purposes and working capital.

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Is AHH 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 Armada Hoffler Properties‘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. Armada Hoffler Properties does pay a dividend, which yields 6.94% per year as of the closing price on Sep. 26, 2024. 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.

For example, if you're looking to earn an annualized return of 14.32%, you'll need to buy a share of ARMOUR Residential REIT by the Oct. 15, 2024. Once done, you can expect to receive a nominal payout of $0.24 on Oct. 30, 2024.

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 Armada Hoffler Properties 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, AHH has a 52-week high of $13.11 and a 52-week low of $9.81.