Why Ocugen (OCGN) Stock Is Falling

Ocugen Inc OCGN shares are trading lower by 11% to $1.25 Thursday morning after the company announced the pricing of its public offering of 30,434,783 shares of common stock at $1.15 per share, aiming to raise $35 million before expenses.

The company has also given the underwriter a 30-day option to purchase up to 4,565,217 additional shares at the same price. The offering is expected to close around August 2, 2024, pending customary conditions.

Proceeds from the offering will be used for general corporate purposes, capital expenditures, working capital and administrative expenses.

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Is OCGN 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 Ocugen‘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. Ocugen 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 13.52%, you'll need to buy a share of Neuberger Berman by the Aug. 14, 2024. Once done, you can expect to receive a nominal payout of $0.09 on Aug. 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 Ocugen 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.

OCGN has a 52-week high of $2.10 and a 52-week low of $0.34.