Flux Power (FLUX) stock was hit hard on Friday after the lithium-ion energy storage solutions company announced the pricing of an underwritten public offering for its shares. The company will sell 3.84 million shares of FLUX stock at a price of $2.50 each. It has also granted underwriters a 30-day option to acquire another 576,000 shares at the public offering price. Lake Street Capital Markets, LLC is the sole book-running manager for the offering.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Flux Power expects gross proceeds from the offering to be $9.6 million. It also said this offering is expected to close on November 3, 2025. The company doesn’t say what it plans to do with the money raised from this public offering, but it will likely go toward general corporate purposes.
Investors will note that the Flux Power public offering comes shortly after it regained compliance with Nasdaq listing requirements. This happened on October 20, when the company’s market value of listed securities was able to at least reach $35 million. That’s something traders will keep in mind before considering a stake in FLUX stock.
Flux Power Stock Movement Today
Flux Power stock was down 26.5% in pre-market trading on Friday, following a 13.27% drop yesterday. However, the stock has rallied 131.65% year-to-date and 30.71% over the past 12 months.
The drop in Flux Power’s stock price makes sense. The company’s public offering has priced its shares well below its closing price yesterday, offering a discount for investors. Additionally, the increased shares being sold dilute the stakes of current shareholders.
Is Flux Power Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Flux Power is Moderate Buy, based on two Buy ratings over the past three months. With that comes an average FLUX stock price target of $7, representing a potential 91.26% upside for the shares.
