Michaels (MIK) Stock Plummets on Secondary Offering

Shares of Michaels (MIK) fell today after the company announced it priced an offering of 11 million shares.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of Michaels (MIK) - Get Report  closed down 6.06% to $27.13 today on heavy trading volume after the company announced it priced a previously-disclosed secondary offering of 11 million shares of common stock at $27.85 per share.

The company will not receive the proceeds from the offering but it will all go to the selling stockholders, according to a company statement.

Michaels will purchase 1 million of the 11 million shares offered to the public from the underwriter, Morgan Stanley.

The company anticipates the deal will close on July 18.

Michaels is an Irving, TX-based crafts retailer. Today, 8.5 million shares of the company were traded vs. the stock's average of 1.41 million per day.

Separately, TheStreet Ratings rated this stock as a "sell" with a ratings score of D+.

This is driven by a few notable weaknesses, which TheStreet Ratings believe sshould have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks TheStreet Ratings covers. The area that TheStreet Ratings feels has been the company's primary weakness has been its poor profit margins.

You can view the full analysis from the report here: MIK

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

Loading ...