Please ensure Javascript is enabled for purposes of website accessibility

Why Celsius Holdings Stock Crashed Thursday

By Howard Smith - Jun 10, 2021 at 1:43PM

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 pricing on its public share offering.

What happened

Celsius Holdings (CELH 1.99%) announced pricing on a sale of common stock yesterday, and the market revalued shares accordingly today. As of 1:20 p.m. EDT, shares of the fitness and health drink maker were down almost 15%. 

So what

Celsius said a sale of more than 6.5 million shares of common stock would be priced at $62.5 per share. That represents a 14% discount to Wednesday's closing price. But the price is also more than 30% higher than where the stock traded one month ago. Only 1 million of the shares are being offered by the company, with the balance coming from other selling shareholders. 

A person in a gym drinking a fitness drink.

Image source: Getty Images.

Now what

The stock has marched higher over the past month after the Florida-based maker of drinks used by athletes and fitness buffs reported revenue in its first quarter ended March 31 jumped 78% over the year-ago quarter, led by sales growth in North America. The company also was selected to join the S&P SmallCap 600 index.

Sales in the company's U.S. home market more than doubled in the first quarter compared to the prior year's quarter, making up almost 80% of total revenue. International sales grew 25% in the same period.

Celsius said the funds received from its portion of the sale will be used for general corporate purposes. Shares of the fast-growing company are up more than 600% in the last year, as it gains popularity and has expanded its list of retail and distribution partners.

Howard Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Celsius Holdings, Inc. The Motley Fool has a disclosure policy.

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

Celsius Holdings, Inc. Stock Quote
Celsius Holdings, Inc.
CELH
$105.16 (1.99%) $2.05

*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 analyst team.

Stock Advisor Returns
389%
 
S&P 500 Returns
125%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/12/2022.

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.