Quotient Ltd (QTNT) Stock Plunges After Announcement of Secondary Offering Emerges


Quotient Ltd (NASDAQ:QTNT) shares have fallen 15% in the pre-market this morning after the company announced the pricing of a new stock offering. The public offering will be for 4,444,445 ordinary shares at a price of $9.00 per share.

The additional funding raised by Quotient Ltd (NASDAQ:QTNT) will equate to about $36.9 million, and should go a long way in helping the company move forward in a more reliable manner. Additionally, Quotient has granted J.P. Morgan Securities LLC, the acting underwriter for the offering, the option of purchasing up to an additional 666,666 shares. The offering is expected to close on or around February 10, 2016.

The stock closed at $10.3 during the last trading session. It is down 31.33% since July 1, 2015 and is downtrending. It has underperformed the S&P500 by 24.03%.

From a total of 2 analysts covering Quotient (NASDAQ:QTNT) 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 $30 while the lowest target price is $18. The mean of all analyst targets is $24.67 which is 139.51% above today’s ($10.3) stock price. Quotient was the topic of 3 analyst reports since August 11, 2015 according to the firm StockzIntelligence Inc. UBS maintained shares on November 4 with a “Buy” rating. Jefferies initiated QTNT stock in a recent report from August 11 with a “Buy” rating.

The institutional sentiment decreased to 1.11 in Q2 2015. It’s down 0.56, from 1.67 in 2015Q2. The ratio dived, as 3 funds sold all their Quotient Ltd shares they owned while 6 reduced their positions. 2 funds bought stakes while 8 increased their total positions. Institutions now own 7.88 million shares which is 22.22% more than the previous share count of 6.45 million in 2015Q2.

Sio Capital Management Llc holds 11.42% of its total portfolio in Quotient Ltd, equating to 1.58 million shares. Cormorant Asset Management Llc owns 1.12 million shares representing 2.32% of their total US portfolio. Moreover, Foresite Capital Management Ii Llc has 1.15% of their total portfolio invested in the company, equating to 291,229 shares. The New York-based Perceptive Advisors Llc has a total of 0.83% of their portfolio invested in the stock. Visium Asset Management Lp, a New York-based fund reported 1.67 million shares owned.

Quotient Limited is a commercial-stage diagnostics company. The company has a market cap of $215.90 million. The Firm is focused on blood grouping and serological disease screening. It currently has negative earnings. Blood grouping involves specific procedures performed at donor or patient testing laboratories to characterize blood, which includes antigen typing and antibody identification.