ShiftPixy Stock Is Tumbling Tuesday: Here's Why

ShiftPixy Inc PIXY shares are trading lower Tuesday after the company announced the pricing of a $5 million offering.

What Happened: ShiftPixy has announced the pricing of its “reasonable best efforts” offering of 1,176,470 units. The units will be offered for $4.25 per unit and priced at-the-market under Nasdaq rules. Each unit consists of one share of common stock and one common warrant, which is immediately exercisable at a price of $4.25 per share and has a term of five years.

The human capital management platform company said it anticipates gross proceeds of $5 million. Net proceeds will be used for general corporate purposes, including working capital. The offering is expected to close on or about March 21.

See Also: Why National CineMedia Shares Are Surging Today

Is PIXY 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 ShiftPixy‘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. ShiftPixy 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 7.47%, you'll need to buy a share of NewtekOne by March 28, 2024. Once done, you can expect to receive a nominal payout of $0.19 on April 15, 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 ShiftPixy 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.

PIXY Price Action: ShiftPixy shares were down 18.8% at $5.52 at the time of publication, according to Benzinga Pro.

Photo: Pexels from Pixabay.