NEW YORK (TheStreet) -- Shares of Rice Energy (RICE) are slumping, down 5.81% to $23.66 on heavy volume in late morning trading Wednesday after the company priced its secondary offering of common stock.
The independent natural gas and oil company announced that it has priced an underwritten public offering of 6 million shares of its common stock owned by NGP Rice Holdings LLC at $24.20 per share.
The selling stockholders have also granted a 30-day option for underwriters to purchase up to an additional 900,000 shares.
Goldman Sachs & Co. and Citigroup are acting as joint book-running managers of the offering.
The selling stockholder will receive the net proceeds from the offering.
Yesterday, Rice Energy had its price target raised by analysts at Stephens to $28 from $22. The firm maintained its "overweight" rating.
About 3.37 million shares have exchanged hands as of 11:26 a.m. ET today, compared to its average trading volume of about 1.64 million shares a day.
Canonsburg, Pa.-based Rice Energy is an independent natural gas and oil company engaged in the acquisition, exploration and development of natural gas and oil properties in the Appalachian Basin.
Separately, TheStreet Ratings team rates RICE ENERGY INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate RICE ENERGY INC (RICE) a SELL. This is driven by a few notable 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 generally disappointing historical performance in the stock itself, deteriorating net income and feeble growth in its earnings per share."