Why Carnival Stock Is Sinking Today

Why Carnival Stock Is Sinking Today

Carnival Corp CCL shares are trading lower Thursday after the company announced a $1 billion common stock offering. The offering of 102,139,621 shares of common stock was priced at $9.95 per share.

Carnival said it will offer $1 billion of company shares and intends to grant underwriters a 30-day option to buy up to $150 million of additional shares. The cruise line company expects to use the proceeds for general corporate purposes, which "could include addressing 2023 debt maturities."

Several cruise companies traded higher earlier this week after the U.S. Center for Disease Control put an end to its COVID-19 program for cruise ships, which included mandatory testing and quarantine requirements. 

Carnival is one of the world's largest leisure travel companies with a portfolio of nine cruise lines.

See Also: Here Are 25 Stocks Moving In Thursday's Pre-Market Session

CCL Price Action: Carnival has a 52-week high of $27.39 and a 52-week low of $8.10.

The stock was down 11.7% at $9.79 at press time, according to data from Benzinga Pro.

Photo: courtesy of Carnival.

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