Zillow: Underwriters Exercise Option To Buy Shares

Zillow (NASDAQ:Z) stock has dropped about 8% since the news of the secondary public offering. The secondary share offering, to raise about 250 million USD is viewed as diluting the earnings of the existing share-holders. Zillow.com had announced a secondary public offering of 2.5 million shares with an option for the underwriters to purchase additional 750K shares in the company. The underwriter group has exercised this option and will be purchasing these additional shares from Zillow at $82 per share. This gesture of confidence from the underwriters will probably help the stock gain some lost ground. We believe these additional shares result in further dilution for Zillow investors. We the Bulls at Amigo have not been bullish on Zillow.

To see Zillow’s latest stock price movement, click here (NASDAQ:Z)

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Virendra Singh Chauhan Virendra Singh Chauhan   on Amigobulls :

Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice.

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