Why Camping World Stock Plummeted by Nearly 12% Today

Mere days after delivering a market-pleasing quarterly earnings report, Camping World Holdings (NYSE: CWH) posted news that wiped smiles off many investor faces. The company is floating a somewhat complicated new stock issue priced quite modestly, and this drove the stock's price down by almost 12% on Thursday. That was a far steeper drop than the 1.9% slip of the S&P 500 index.After market close on Wednesday, Camping World announced the secondary share issue and set a price for the flotation. The outdoor goods retailer is offering just over 14.6 million shares of its class A common stock to the public at a price of $20.50 apiece. That's more than $3 per share lower than the stock's price on Wednesday, the day after those quarterly earnings figures were published. As usual with such financing moves, Camping World has granted the issue's underwriters a 30-day option to purchase additional stock. That syndicate, led by Goldman Sachs and JPMorgan Chase, will be able to collectively buy up to almost 2.2 million shares.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool