AudioEye Stock Price Drops After Secondary Offering Announcement
AudioEye Inc. (AEYE) shares experienced a significant decline on Thursday, dropping by 22.3% to $21.11. This drop followed the company's announcement of a secondary offering of up to 1.25 million shares.
The offering, priced at $24.00 per share, is being managed by Needham & Company and Roth Capital Partners. It is expected to close on December 6th, pending customary conditions. The underwriters have the option to purchase an additional 187,500 shares at the same price within 30 days.
Importantly, AudioEye will not receive any proceeds from this offering. All proceeds will go to the selling stockholders.
This news has likely sparked curiosity among investors about how to participate in the AudioEye market, whether by purchasing shares or attempting to short the company.
Buying AudioEye Shares
If you're interested in buying AudioEye shares, you can typically do so through a brokerage account. Many platforms allow you to purchase fractional shares, enabling you to own portions of a stock without buying an entire share. This is particularly helpful for high-priced stocks like Berkshire Hathaway, which can cost thousands of dollars per share.
As of this writing, AudioEye is trading at $21.82. This means that $100 would allow you to purchase 4.58 shares of the stock.
Shorting AudioEye Stock
Shorting a stock is a more complex process that involves borrowing shares from a broker and selling them in the market. You then aim to repurchase the shares at a lower price later, returning them to the broker and profiting from the difference. This strategy is riskier than simply buying shares, as you are essentially betting that the stock price will decline.
If you're interested in shorting AudioEye, you'll need access to an options trading platform or a broker who allows short selling. Alternatively, you can consider buying a put option or selling a call option at a strike price above the current market price. Both of these options allow you to profit from a decline in the share price.
Historical Price Data
For further context, it's worth noting that AudioEye has a 52-week high of $34.85 and a 52-week low of $4.01. This information can help you assess the current price in relation to its recent historical performance.