NEW YORK (TheStreet) -- Oasis Petroleum (OAS) - Get Report shares are tumbling 7.52% to $4.92 on Thursday after the oil company announced earlier today that it was selling 34 million shares to partly fund a reduced 2016 capital budget.
Oasis granted the underwriter a 30-day option to purchase up to 5.1 million additional shares of common stock. The offering is expected to close on February 2.
Shares dove following this announcement as investors focus on the offering's dilutive effect, Reuters reports.
This action comes as oil producers are looking to counter their shrinking cash flows from declining oil prices.
Earlier today, Wunderlich downgraded the stock to "hold" from "buy" and Sterne Agee CRT also lowered its rating to "neutral" from "buy."
Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C-.
The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow.
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.
You can view the full analysis from the report here: OAS