American Superconductor Cashes In On Stock Rally, Raises $115.5 Million Via Equity Offering

American Superconductor Corp. AMSC shares fell sharply on Wednesday after the company announced that it has priced its underwritten public offering of 4,125,000 shares at $28 each, aiming to raise approximately $115.5 million in gross proceeds before expenses.

The company intends to use the proceeds for general corporate purposes, including working capital and potential strategic acquisitions.

AMSC also granted underwriters a 30-day option to purchase up to 618,750 additional shares at the offering price, less underwriting discounts and commissions. The offering is expected to close around June 12, pending customary conditions.

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AMSC’s Recent Earnings and Forecast

The offering comes shortly after AMSC reported strong fourth-quarter results in mid-May. The company posted earnings of 13 cents per share, beating the consensus estimate of 10 cents. Revenue rose to $66.7 million, a sharp increase from $42 million in the same quarter a year ago.

CEO Daniel P. McGahn said the results marked the company’s third consecutive profitable quarter and a seventh straight quarter of positive operating cash flow. AMSC booked $75 million in new orders during the period, boosting its year-end backlog to nearly $320 million.

For the first quarter, the company expects adjusted earnings of 10 cents per share and revenue between $64 million and $68 million, roughly in line with analysts’ projections.

Stock Performance Snapshot

AMSC shares dropped about 15% following the offering announcement. The stock has a 52-week high of $38.02 and a low of $13.98. It fell approximately 63% from its November high to its April low but has since rebounded nearly 120%. Shares are up around 14.7% year to date and currently trade about 30% above the 50-day simple moving average.

Sector-relevant ETFs include the iShares Global Clean Energy ETF ICLN and Invesco WilderHill Clean Energy ETF PBW.

Price Action: AMSC shares are trading lower by 15.5% to $29.10 at last check Wednesday.

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