Shares of Corning Inc (NYSE:GLW) are trading lower Monday afternoon amid investor concerns over potential share dilution from a massive equity program.
- Corning stock is taking a hit today. What’s weighing on GLW shares?
$2 Billion Offering Triggers Short-Term Dilution Fears
Corning has entered into an equity distribution agreement with Goldman Sachs to sell up to $2 billion of common stock through an at-the-market program. The prospective share issuance has sparked investor concerns regarding near-term share dilution and valuation overhang.
Management specified that net proceeds will be used for general corporate purposes, including capital expenditures, strategic investments in optical capacity, debt reduction and dividend payments.
GLW Shares Slide Monday Afternoon
GLW Price Action: Corning shares were down 12.68% at $145.30 at the time of publication on Monday, according to Benzinga Pro data.
Image: Shutterstock
