Please ensure Javascript is enabled for purposes of website accessibility

Why Personalis Stock Dropped Today

By Prosper Junior Bakiny - Updated Jan 27, 2021 at 3:55PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company announced the pricing of a public offering of common stock.

What happened?

Shares of Personalis (PSNL -2.74%) are down by 12.1% as of 3:48 p.m. EST on Wednesday, after dropping by as much as 15.1%. Investors are selling off the company's stock following its announcement of the pricing of a public offering of common stock. Personalis has been on fire on the market of late, rising by over 210% in the past year even after today's plunge. The genomics company decided to profit from its recent run by raising some capital.

So what

Personalis is offering 3.95 million shares of its common stock for $38 per share. The healthcare company is also granting underwriters a 30-day option to acquire an additional 592,500 shares at the public offering price. Personalis' stock was worth $42.47 at the end of yesterday's trading session, but the company's shares are now exchanging hands for $37.12 apiece. Personalis expects to collect $150.1 million in gross proceeds from this public offering of common stock.

Microscopic view of a cancer cell.

Image source: Getty Images.

Now what

Personalis has several growth opportunities at its disposal. For instance, the company launched NeXT Liquid Biopsy last year. Liquid biopsies are tests that allow physicians to look for cancer cells from tumors in samples of blood from patients. They provide several advantages over tissue biopsies, including helping detect cancer faster and improving health outcomes. This market will continue to grow at a decent clip, and although there are scores of competitors in the space, Personalis is looking to carve out a niche for itself. If the company is successful, its recent run on the market could continue. In short, investors would do well to keep a close eye on Personalis. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Personalis, Inc. Stock Quote
Personalis, Inc.
PSNL
$4.26 (-2.74%) $0.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
331%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/20/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.