One Reason Mobileye (MBLY) Stock Is Slipping Today
NEW YORK (TheStreet) -- Shares of Mobileye (MBLY) are slipping, down 1.39% to $41.05 in early market trading Monday, after the vision-based driver assistance systems developer filed to sell 14.5 million of its ordinary shares for selling shareholders in a preliminary prospectus.
According to an SEC filing, the company will not receive any proceeds from the sale of shares.
Mobileye noted that its last reported sales price of ordinary shares was $41.63 per share on March 13, 2015.
The company added, "We are an 'emerging growth company' as that term is used in the Jumpstart Our Business Startups Act of 2012 and, as such, have elected to comply with certain reduced public company reporting requirements in this prospectus and in future filings with the Securities and Exchange Commission."
Israel-based Mobileye designs and develops software and related technologies for camera-based advanced driver assistance systems that can perform detailed interpretations of the visual field in order to anticipate possible collisions with other vehicles, pedestrians, cyclists, animals, debris or other obstacles.
Insight from TheStreet's Research Team:
Mobileye is a part of Bryan Ashenberg's GrowthSeeker.com Portfolio. Here is what Ashenberg had to say about the stock in a recent alert:
This morning, model portfolio holding Mobileye (MBLY) announced that it would indeed be going ahead with its rumored secondary offering.
The company is offering 14.5 million shares, all of which are secondary shares. The company is not selling any primary stock. The shares will surely be pressured this morning on the news, but we believe the price disruption will not last and are actually looking forward to a time when investors can focus again on the company's sparkling fundamental outlook.
We would be opportunistic buyers of any material weakness and point to the stock's recent bounce as indicative of the true positive momentum the shares should see once the overhang of secondary shares is removed.
- Bryan Ashenberg & TheStreet Research Team, 'Mobileye To Proceed with Secondary' originally published 3/16/2015 on GrowthSeeker.com.
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