Bluebird Bio (BLUE) Crashes After Announcing New Share Issue

As reported by Barrons's: "Bluebird Bio stock is sinking early Wednesday after the biotech announced a proposed public offering of 20 million shares. In a press release Wednesday, Bluebird ( ticker: BLUE ) said it also plans to give underwriters a 30-day option to purchase three million more shares." For more coverage, read the full article here. On the back of this news, bluebird bio sank -9.7% to a price of $6.58.

bluebird bio, Inc., a biotechnology company, researches, develops, and commercializes transformative gene therapies for severe genetic diseases. The company belongs to the Healthcare sector, which has an average price to earnings (P/E) ratio of 13.21 and an average price to book (P/B) ratio of 4.07. In contrast, bluebird bio has a trailing 12 month P/E ratio of -0.7 and a P/B ratio of 0.3.

At today's price of $6.58 per share, bluebird bio is -13.03% away from its target price of $7.56, and on average, analysts give the stock a rating of hold. 39.9% of the company's shares are linked to short positions, and 82.2% of the shares are owned by institutional investors.

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