NEW YORK (TheStreet) -- Fortress Investment Group (FIG), the first publicly traded U.S. private-equity and hedge-fund manager, fell 3.35% to $8.09 at 10:13 a.m. on Thursday after news that four of the company's top executives would sell 25.7 million shares, approximately 10% of their interest, in an underwritten public stock sale.
The offering is the first major share disposal by those inside the company since its first went public seven years ago, according to Bloomberg. The move comes after Fortress shares have increase almost nine-fold from their low in 2008. Co-founders Wesley R. Edens and Randal A. Nardone and senior executives Peter L. Briger Jr. and Michael E. Novogratz should earn approximately $215 million from the deal.
Fortress also announced Wednesday an underwritten public offering to sell 28,280,000 shares with a 30-day option to purchase up to an additional 4,242,000 shares.
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TheStreet Ratings team rates FORTRESS INVESTMENT GRP LLC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate FORTRESS INVESTMENT GRP LLC (FIG) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, attractive valuation levels, expanding profit margins and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."