Eastgroup Properties (EGP) has disclosed a new risk, in the Share Price & Shareholder Rights category.
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Eastgroup Properties faces a considerable business risk with its financing strategy, which hinges on the delicate balance between equity and debt. The company’s SEC-registered indefinite equity offerings, particularly under its Current 2023 ATM Program, may lead to market dilution and adversely impact the common stock’s value, should a substantial number of shares be released. Without preemptive rights, existing shareholders could see their investments diluted. Furthermore, unpredictable market conditions and the timing and nature of future offerings add an element of uncertainty, potentially eroding shareholder value and market price stability.
The average EGP stock price target is $191.50, implying 3.56% upside potential.
To learn more about Eastgroup Properties’ risk factors, click here.
