SoFi (SOFI) shareholders are on high alert after shares sank by 15.3% on Tuesday. The firm unexpectedly hurt its shareholders by offering a massive $750 million convertible senior notes. This is a 61,713,287 share dilution.
SOFI stock looked like it would break out above $9.00. This stalled days before the offering.
UnitedHealth (UNH) fell from $530 to $473 in recent weeks. Hackers in a forum claimed that UNH paid a $22 million ransom in a bid to recover sensitive healthcare data. The firm is focusing its efforts on investigating the matter and recovering from the hack. The disruption is costly to its business.
Value Traps
Pfizer (PFE), whose stock pays a lofty dividend yielding 6.53%, is trying to find support at $26. The firm still counts on Covid vaccine sales as part of its growth strategy. The CDC Chief expects another Covid shot update this year. This would help boost Pfizer’s revenue during the next flu season.
PFE stock looks like a value trap at this time.
Humana (HUM) traded at a 52-week low. UNH’s hack is a potential headwind for Human’s quarter.
Lithium miner Albemarle (ALB) dropped by 17.87% yesterday. Its plan to raise a substantial $1.75 billion in depositary shares is worrisome. It needs the funds for lithium projects. Costs may rise amid inflation. A supply glut in lithium is an even bigger risk factor for ALB stock.
