Shares of Stamford-based Eagle Bulk plunged nearly 20% in morning trading on the Nasdaq, apparently feeling the impact of an $88m fundraiser concluded in July.
Finance sources said more than 29 million Eagle Shares issued in connection with the summer private placement were blocked from trading for a mandatory six-month period that expired today.
Investors got in for $3 a share but in the meantime Eagle stock had firmed to a close of $6.46 on Thursday.
Cashing out
Many of those investors thus jumped at the chance to double their money, creating downward pressure on the stock.
The Gary Vogel-led bulker owner was at $5.18 in late-morning trading, off $1.28 or 19.7% on the day. More than 1.6 million shares already had traded hands, easily exceeding the average volume of 755,000 shares for an entire day.
In the absence of any other news affecting the company, observers said the trading deadline clearly was the catalyst for the drop.
Other bulker owners gain
Virtually all of Eagle’s dry-bulk peers were trading up on the day, with Diana Shipping leading the way with a gain of more than 8%.
Eagle used the July private placement to raise growth capital, which already has been used for its first bulker acquisitions since 2010.
