Peloton shares bounce back from decline after news of new stock offering

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Shares of Peloton Interactive Inc. PTON, +4.76% reversed course to bounce 4.9% in morning trading Tuesday, even after the home fitness company said the stock offering announced earlier had priced 7.6% below current levels. The rally reverses a loss of as much as 7.3% in premarket trading, when the launch of the stock offering was announced. The company raised about $1.1 billion, as it sold 23.91 million Class A shares at a price of $46.00 a share. That price was 3.1% below Monday’s closing price of $47.47, and below the recent price of about $49.77. The offering represented 8.7% of the Class A shares outstanding as of Oct. 29. The stock, which closed Monday at a 17-month low, has plunged 67.2% year to date, while the S&P 500 SPX, +0.21% has gained 25.1%.

This article was originally published by Marketwatch.com. Read the original article here.

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