Mobileye Global Inc (NASDAQ:MBLY) shares are trading lower Thursday after the company announced a secondary offering of 50 million shares.
What Happened: Mobileye priced a secondary offering of 50 million shares by an Intel Corp (NASDAQ:INTC) subsidiary at $16.50 per share. The wholly owned Intel subsidiary, Intel Overseas Funding Corp, also granted the underwriters a 30-day option to purchase up to an additional 7.5 million shares of Mobileye Class A common stock.
The offering is expected to close on July 11. Upon closing, the Intel subsidiary plans to convert an additional 50 million shares of Mobileye’s Class B common stock into Class A common stock.
Concurrent with the closing, Mobileye agreed to repurchase approximately 6.23 million shares at the same price being paid by the underwriters of the offering. Mobileye is not selling any shares in the offering and will not receive any proceeds.
Mobileye said earlier this week that it expects second-quarter revenue to be in the range of $502 million to $506 million versus estimates of $463.26 million, according to Benzinga Pro. The company scheduled its second-quarter results for before the market open on July 24.
How To Buy MBLY Stock
By now you're likely curious about how to participate in the market for Mobileye Global – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
MBLY Price Action: Mobileye shares were down 3.49% at $16.72 at the time of publication Thursday, according to Benzinga Pro.
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