Why RxSight (RXST) Shares Are Falling

RxSight Inc RXST shares are roughly flat following earlier weakness during Thursday's session after the company announced pricing of its $100 million proposed public offering of common stock.

The company plans to sell 1,785,714 shares of common stock at $56.00 per share, with an option for underwriters to purchase an additional 267,857 shares. Gross proceeds are estimated at around $100 million. The offering is expected to close on May 13.

BofA Securities is the lead bookrunning manager, with J.P. Morgan as a bookrunning manager and BTIG as co-manager. RxSight intends to use the proceeds for commercial expansion, international growth, product development, research and general corporate purposes.

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Should I Sell My RXST Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of RxSight RXST have gained 162.63% year to date. This compares to the average annual return of 55.93%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. RxSight stock currently has an RSI of 71.81, indicating overbought conditions.

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RXST has a 52-week high of $66.54 and a 52-week low of $18.72.