Century Aluminum (CENX) shares plummeted 13.40% in Tuesday's trading session, extending losses that began in pre-market trading. The dramatic decline came on the heels of a significant block trade announcement that rattled investors.
The aluminum producer faced intense selling pressure after news broke of a 9 million share block trade priced at $30.65 per share. This pricing was at the bottom of the anticipated deal range of $30.65 to $31.65, suggesting weaker demand for Century Aluminum shares. Morgan Stanley acted as the sole book-running manager for the offering.
The market's reaction to this large-scale sale was swift and severe, with investors interpreting it as a potential sign of insider selling or institutional investors reducing their positions in the company. The lower-than-expected pricing of the block trade raised concerns about Century Aluminum's near-term prospects and overall market sentiment towards the stock. As trading continued throughout the day, the sell-off intensified, resulting in the significant 13.40% drop.
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