Why Pineapple Energy (PEGY) Stock Is Down 21%

Pineapple Energy Inc PEGY shares are trading lower by 21.9% to $5.13 during Tuesday’s session. The company announced it entered into a market offering agreement with Roth Capital Partners for up to $10 million.

What To Know: Under this agreement, Pineapple Energy can sell up to $10 million worth of its common stock at any time through “At The Market” (ATM) offerings. These sales will be made under the company’s existing registration statement filed with the SEC in 2022.

Pineapple says the company is not obligated to sell any shares, and there is no guarantee of the amount, price or timing of sales.

Either party may suspend or terminate the agreement, and Roth Capital will receive a 3% commission on sales, with additional legal cost reimbursements capped at $50,000.

Read Also: ‘Nvidia, Own It, Don’t Trade It:’ Jim Cramer Questions Short-Sellers As Stock Hits New Highs — Tech Bull Dan Ives Celebrates With Trophies

Should I Sell My PEGY Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

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PEGY has a 52-week high of $734.92 and a 52-week low of $4.68.