NEW YORK (TheStreet) -- Shares of Southwestern Energy (SWN) - Get Report are tumbling 3.56% to $13.40 in high trading volume this afternoon following an offering of common stock announced this morning.
Nearly 58 million shares have traded hands so far today, more than 4 times the stock's average of 14.05 million shares per day.
Since the initial offering this morning, Southwestern Energy has increased the number of common shares to 86 million from the 75 million shares announced previously.
The company expects $1.1 billion in gross proceeds from the offering. Money from the sales will be used to repay $350 million of a $750 million debt incurred in the fall of 2015.
The new common shares will join about 392.7 million shares currently outstanding, representing a 21% increase in shares.
Separately, TheStreet Ratings rated this stock as a "sell" with a ratings score of D.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk.
You can view the full analysis from the report here: SWN
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.