Patriot National Inc (PN) Shares Fall After Company Announces $50 Million Sale of Common Stock

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Patriot National Inc (NYSE:PN) is trading down significantly today, after the company announced a $50 million sale of common stock, which will be used to raise money for future acquisitions and growth of the company. The deal sees shares of common stock and warrants to purchase stock being sold to select investors.

“We appreciate the support of the investors who participated in our offering and their confidence in our plans for continued strong growth,” CEO Steven Mariano said in a statement. “We plan to maintain a strong balance sheet and to use the proceeds of this offering to finance future growth, including strategic acquisitions.”

Mariano himself will sell 2.5 million shares of stock worth around $30 million. The stock is down 13.22% or $1.03 following the news, hitting $6.76 per share. About 1.36M shares traded hands or 685.41% up from the average. PN has declined 47.22% since May 12, 2015 and is downtrending. It has underperformed the S&P500 by 43.55%.

From a total of 2 analysts covering Patriot National (NYSE:PN) stock, 2 rate it a “Buy”, 0 a “Sell”, and 0 a “Hold”. This means that 100% of the ratings are positive. The highest target price is $21 while the lowest target price is $20. The mean of all analyst targets is $20.50 which is 203.25% above today’s ($6.76) stock price. Patriot National was the topic of 2 analyst reports since August 12, 2015 according to the firm StockzIntelligence Inc. Compass Point initiated shares on December 4 with a “Buy” rating.

Patriot National, Inc. is a national well-known provider of outsourcing solutions within the workers’ compensation marketplace for insurance companies, employers, local governments and reinsurance captives. The company has a market cap of $205.85 million. The Firm offers two types of services: brokerage, underwriting and policyholder services , and claims administration services. It currently has negative earnings. It also provides claims investigations, loss control service administration, claimant transportation and translation, claims subrogation services, healthcare cost containment services, claim lien negotiation services and reinsurance management services.

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