The agricultural company priced the public offering of 20 million shares at $1.00 a share. Ceres expects to receive about $20 million in gross proceeds from the offering before deducting underwriting expenses and commissions and offering expenses. The company will use the proceeds from the offering for general corporate uses including working capital.
Ceres expects to offering to close on or about March 10.
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Separately, TheStreet Ratings team rates CERES INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CERES INC (CERE) a SELL. This is driven by several weaknesses, which we believe should 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 we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, deteriorating net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CERES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Looking at the price performance of CERE's shares over the past 12 months, there is not much good news to report: the stock is down 62.29%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The change in net income from the same quarter one year ago has exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has decreased by 19.0% when compared to the same quarter one year ago, dropping from -$6.89 million to -$8.21 million.
- CERES INC's earnings per share declined by 17.9% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CERES INC reported poor results of -$1.31 versus -$1.22 in the prior year. This year, the market expects an improvement in earnings (-$1.08 versus -$1.31).
- CERE, with its very weak revenue results, has greatly underperformed against the industry average of 3.8%. Since the same quarter one year prior, revenues plummeted by 61.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: CERE Ratings Report