Why 4D Molecular Therapeutics (FDMT) Stock Is Diving

4D Molecular Therapeutics Inc FDMT shares are trading lower by 11.7% to $28.33 Wednesday afternoon after the company announced an upsized underwritten public offering comprising 6,586,015 shares of common stock priced at $29.50 per share, along with pre-funded warrants to purchase 3,583,476 shares at a price of $29.4999 per warrant.

The offering includes a 30-day option for underwriters to purchase up to an additional 1,525,423 shares. The gross proceeds are estimated to be around $300 million before deducting underwriting discounts, commissions, and other expenses.

The offering, managed by Goldman Sachs & Co. LLC, BofA Securities, Jefferies and Barclays, is expected to close on February 9, subject to customary closing conditions.

Is FDMT 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 4D Molecular Therapeutics‘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. 4D Molecular Therapeutics FDMT does not pay a dividend, but obviously has a few ways it can return value to shareholders. 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 11.65%, you'll need to buy a share of Pioneer Floating Rate by the 15th February, 2024. Once done, you can expect to receive a nominal payout of $0.09 on 29th February, 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 4D Molecular Therapeutics 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, FDMT has a 52-week high of $35.61 and a 52-week low of $9.44.