Shares of MicroVision (NASDAQ:MVIS) are getting pummeled in morning trading on Tuesday. MVIS stock was down nearly 11% by 7:30 a.m. Eastern.
The decline follows an announcement today by the laser beam scanning (LBS) technology maker of a $140 million at-the-market (ATM) equity offering agreement with Craig-Hallum Capital Group. The shares will be offered under the company’s Feb. 16, 2021 shelf registration.
The drop is unusual, as ATM offerings typically prompt a minimal, 1%-3%, decline in the share price. Issuers can raise capital through such an offering by trickling the shares into the market, usually without a significant impact on the stock price. Not so, apparently, with MVIS stock today.
“I am proud of the progress our company has made advancing our automotive lidar program. We look forward to more broadly promoting our technology to OEM and Tier 1 suppliers and publicly testing our sensor with external test-site partners,” said Sumit Sharma, MicroVision CEO. “A strong balance sheet gives our potential customers and partners confidence that MicroVision is a capable and trusted long-term supplier.”
MVIS Stock Buoyed By Self-Driving Forecasts
Redmond, Washington-based MicroVision is among a handful of tradable firms specializing in lidar (light detection and ranging). Investors who see a strong future for self-driving technology have been drawn to MVIS stock.
MicroVision offers LBS technology under the brand name PicoP. This technology enables MicroVision to create high-resolution miniature projection displays and lidar sensors.
A report published by Fortune Business Insights projects that the global lidar market will reach a whopping $6.71 billion by the year 2026. On top of that, the industry is expected to expand at a compound annual growth rate (CAGR) of 22.7%. Among the cited growth catalysts is “increasing investment in research and development [which] has yielded several new and innovative products.”
All that wouldn’t seem to support investors dumping MVIS stock this morning.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News and as a buyside equity research editor. His Substack newsletter, TLV Strategist, covers the Israel business scene.