Common Stock Offering Crashes Capstone
Capstone Turbine Corporation (NASDAQ:CPST)’s stock has plummeted by more than 24% after the company announced an offering of common stock and warrants. The company announced an underwriting deal to sell 2.7 million shares of its common stock through a public offering. The company will also offer pre-funded Series B warrants purchasing a maximum of 5.515 million shares. The offering also includes Series A warrants to acquire 4.107 million shares. The microturbine energy company intends to use the funds generated from the offering for general capital requirements and corporate purposes. Shares of Capstone are still up by 33% year-to-date. Overall, three hedge funds in our system held stakes in Capstone Turbine Corporation (NASDAQ:CPST) at the end of the fourth quarter.
Preliminary Q1 Results Weigh Down Applied Optoelectronics
Applied Optoelectronics Inc (NASDAQ:AAOI)’s stock has declined by approximately 25% after the company announced its preliminary results for the first quarter of 2016. The company expects non-GAAP EPS of $0.04-to-$0.06, which is well below the consensus of $0.23 and the company’s own initial guidance for the quarter of $0.21-to-$0.28. Sales are expected to fall between $50.00 million and $50.50 million, which would represent about 65% growth year-over-year and fall within the company’s original guidance of $50.00 million-to-$54.00 million. In a statement, Dr. Thompson Lin, CEO of Applied Optoelectronics Inc (NASDAQ:AAOI), said that the performance was mainly affected due to higher-than-expected cost of goods sold and research and development costs.
A total of 14 hedge funds in our database held positions in Applied Optoelectronics Inc (NASDAQ:AAOI) worth about $72.8 million at the end of 2015. Bernard Selz’s Selz Capital was one of the notable shareholders of the company, with ownership of 305,000 shares.
Ratings Downgrade Sours Investors on ADTRAN
Shares of ADTRAN, Inc. (NASDAQ:ADTN) have tumbled by 8% today following Goldman Sachs downgrading the communications equipment company to ‘Sell’ from ‘Neutral’ in a report yesterday. The investment bank set a price target of $17 on the stock, down from $18 previously. The company recently announced that its Board of Directors declared a cash dividend of $0.09 per common share, which is to be paid to shareholders of record on April 28. The company also reported its first quarter results last week, which amounted to a 0.4% year-over-year revenue decline to $142.2 million, which nonetheless beat estimates of $141 million.
14 funds in our system held long positions in ADTRAN, Inc. (NASDAQ:ADTN) at the end of December worth $94.3 million. Ken Griffin‘s Citadel Investment Group held one of the largest positions in the company, which totaled 817,584 shares.