NEW YORK (TheStreet) -- PBF Energy (PBF) stock is sliding on Thursday after the company priced its previously-announced secondary offering of 18 million shares of common stock. Selling stockholders The Blackstone Group and First Reserve Management will receive all proceeds of the offering, approximately totaling $540 million.
Citigroup and Deutsche Bank Securities are underwriters of the offering, which is expected to close June 17.
By midmorning, shares had slipped 4.7% to $29.92. Trading volume of 2.3 million was nearly double its three-month daily average.
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TheStreet Ratings team rates PBF ENERGY INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PBF ENERGY INC (PBF) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: