LifeStance Health shares fall after secondary offering pricing
Updated
Updated · MarketWatch · May 8
LifeStance Health shares fall after secondary offering pricing
9 articles · Updated · MarketWatch · May 8
The stock dropped 9.5% to $8.01 in premarket trading after certain stockholders agreed to sell 35 million shares at $8.15 each.
LifeStance said selling stockholders will receive all proceeds, while it agreed to repurchase 6 million shares from underwriter J.P. Morgan, subject to the deal closing.
The company provides virtual and in-person outpatient mental health care, and its shares had risen nearly 30% over the previous three months through Thursday's close.
Why did LifeStance stock plummet despite the company reporting record profits and a strong future outlook?
Insiders just sold millions in shares. Is this a warning sign for the entire telehealth industry's growth?