Shares of Lear Corporation (NYSE: LEA) plummeted 5.67% during intraday trading on Friday, following the company's filing for a mixed shelf offering.
The filing, which did not disclose the size of the offering, allows Lear to sell various types of securities over time, potentially diluting existing shareholders. The news overshadowed the company's earlier release of second-quarter financial results that beat analyst estimates and an upward revision to its full-year guidance.
The shelf offering introduces uncertainty about future share issuance, leading to the sell-off in Lear's stock despite the positive earnings report.
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