Blue Apron Drops After Offering Priced at Discount
(Bloomberg) -- Blue Apron shares tumbled on Wednesday, with the stock on track for its sixth straight daily drop after Bloomberg reported that an offering of 15 million shares was priced at a discount to the Tuesday close.
Shares dropped as much as 15 percent, or about 19 cents, to $1.10, putting it on track for its biggest one-day percentage decline since August. The at-home meal-kit delivery company has lost more than a quarter of its value over the past six sessions.
The offering was priced at $1.15 a share, according to Bloomberg, which cited a person familiar with the matter. That represents a discount of nearly 11 percent to the Tuesday closing price of $1.29.
Separately, Weight Watchers International late Tuesday gave a full-year forecast that was sharply below expectations. Blue Apron has a partnership with WW, which in January the company said had seen “higher-than-expected demand to date.”
Despite the recent losses in Blue Apron, the stock remains up about 70 percent from a record low that was hit in December, a rally that was in large part fueled by the WW partnership, as well as stronger-than-expected fourth-quarter results. The longer-term trend remains negative, however, as shares are down more than 70 percent from a peak in July.
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