Shares of

DryShips

(DRYS) - Get Report

continued to plunge Monday for the second straight session, following the company's announcement of a stock offering that would be highly dilutive to shareholders.

News of the offering led to a slew of downgrades on DryShips stock since Friday.

The company's shares were changing hands in frantic action late in the session Monday at $6.71, down $1.29, or 16%. Volume was 61 million shares, double the daily average of nearly 30 million. The stock fell 17% on Friday.

DryShips said on Friday that it plans to raise $475 million through the sale of common stock in an at-the-market offering that would dilute the company's shares by 25%. It would be the drybulk carrier's third ATM offering since November.

Credit Suisse

(CS) - Get Report

, Cantor Fitzgerald, Oppenheimer and Jeffrey & Co. all cut their ratings on the stock in response.

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