What Happened?
Shares of power resiliency solutions provider American Superconductor (NASDAQ:AMSC) fell 13.2% in the afternoon session after the company announced an underwritten public offering of 4.1 million shares of its common stock for $28 per share. AMSC expects the gross proceeds from this offering to be $115,500,000. Notably, before the announcement, AMSC had roughly 40m shares outstanding, which means the stock sale could significantly raise the supply. This could have a negative impact on its stock price as the increase in the supply of outstanding shares dilutes the ownership of existing shareholders.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy American Superconductor? Access our full analysis report here, it’s free.
What The Market Is Telling Us
American Superconductor’s shares are extremely volatile and have had 76 moves greater than 5% over the last year. But moves this big are rare even for American Superconductor and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 15 days ago when the stock gained 6% on the news that the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
American Superconductor is up 17.2% since the beginning of the year, but at $29.95 per share, it is still trading 18.6% below its 52-week high of $36.81 from November 2024. Investors who bought $1,000 worth of American Superconductor’s shares 5 years ago would now be looking at an investment worth $4,285.
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