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Secondary Offering Sets Back Acacia Communications, Inc. (ACIA) Stock

Acacia Communications, Inc. (ACIA) is having a down day, but has still had an epic run since its May IPO

Sep 26, 2016 at 3:12 PM
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Networking stock Acacia Communications, Inc. (NASDAQ:ACIA) ranks among the worst performers on the Nasdaq today. Specifically, the shares are down 9.5% at $107.97, as Wall Street reacts negatively to the firm's updated guidance and its filing for a $450 million secondary offering.

At its intraday low, ACIA was down nearly 11%, landing it on the short-sale restricted list. However, 19% of the stock's float is already dedicated to short interest -- suggesting at least one group of traders is likely cheering the steep pullback.

On the other hand, the brokerage crowd is extremely optimistic toward ACIA. All five analysts tracking the shares have doled out a "buy" or better recommendation.

Based on Acacia Communications, Inc.'s (NASDAQ:ACIA) strong technical track record, this optimism shouldn't catch anyone by surprise. Even after accounting for today's losses, the shares have more than quadrupled in value relative to their initial public offering (IPO) price of $23 in mid-May.

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