Why Is Intensity Therapeutics Stock (INTS) Down 50% Today?

Business Insider

a day ago

Intensity Therapeutics (INTS) stock plummeted on Thursday after the late-stage clinical biotechnology company announced details of a public offering for its shares. It will sell 6,675,000 shares of INTS stock for 30 cents each, raising net proceeds of $2,002,500. There's also a 45-day option for book-running manager ThinkEquity to acquire another 1,001,250 shares at that price.
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Intensity Therapeutics already has plans for the money it will raise from this offering. The company intends to use it to fund its INVINCIBLE-3 and INVINCIBLE-4 studies, general corporate purposes, and working capital.
It makes sense that INTS stock would drop after the pricing of this public offering. The 30-cent share price is well below the stock's prior closing price of 58 cents. Additionally, the new shares being offered will dilute the stakes of current shareholders in the company.
Intensity Therapeutics Stock Movement Today
INTS stock was down 49.02% as of Thursday morning, following a 15.11% rally yesterday. The stock is also down 67.1% year-to-date and 87.89% over the past 12 months. Yesterday's rise also came with heavy trading, as 5.72 million shares traded, compared to a three-month daily average of 908,000 units.
Is Intensity Therapeutics Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts' consensus rating for Intensity Therapeutics is Moderate Buy, based on two Buy and one Sell rating over the past three months. With that comes an average INTS stock price target of $3.75, representing a potential 547.67% upside for the shares.