Why Is CF Bankshares (CFBK) Stock Down 19% Today?


  • CF Bankshares (CFBK) stock is down Friday on a public offering.
  • Details of the offering are still unknown.
  • Even so, investors have concerns about the stock offering
CFBK Stock - Why Is CF Bankshares (CFBK) Stock Down 19% Today?

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CF Bankshares (NASDAQ:CFBK) stock is down on Friday after the bank holding company launched a public offering of its shares this morning.

That public offering is tied to a filing with the Securities and Exchange Commission (SEC) made on April 15. At that time, the company said it intended to offer up to $35 million worth of CFBK stock to investors.

What’s still unclear as of this writing is what the company has priced shares in this offering at. The only thing it notes in its April 15 filing is its stock price of $18.75 on April 10. That doesn’t tell us how many investors are paying for shares in this latest offering.

CF Bankshares will likely follow up on its effectiveness filing with more details today. That should include the total number of shares being sold in this offering and what they are priced at.

What This Means for CFBK Stock

Public offerings often don’t sit well with investors for a couple of reasons. The first is that it increases the total number of outstanding shares on the market. This also dilutes the stocks of current holders of CFBK stock.

The other concern investors have is a public offering devaluing a company’s shares. This is due to public offerings typically selling new shares at a discounted price. Both of these factors explain why shares of CFBK are falling today.

CFBK stock is down 19% as of Friday morning.

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On the date of publication, William White 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.

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