Shares of Veritone, Inc. (NASDAQ:VERI) are falling Thursday after the California-based company announced an equity offering.
What To Know: Veritone, which builds AI tools for enterprise companies, entered into a definitive agreement to offer and sell approximately 12.86 million shares of its common stock at $5.83 per share.
Veritone’s stock was down more than 18% following the news, according to Benzinga Pro.
The company anticipates gross proceeds of $75 million from the offering. Net proceeds are expected to be used for working capital and general corporate purposes. The common stock offering is expected to close on Friday.
Veritone had approximately $13.57 million of total cash and cash equivalents as of June 30, according to the company’s latest earnings report. Veritone is due to report third-quarter results on Nov. 6. Analysts expect the company to report a loss of 16 cents per share and revenue of $28.69 million.
VERI Analysis: Technical indicators suggest that Veritone stock is currently in an overbought condition, as reflected by an RSI of 78.34. This level often signals that a correction may be imminent, particularly after such a sharp decline from the previous close of $8.39. The price is notably above both the 50-day moving average at $3.90 and the 200-day moving average at $2.71, indicating strong upward momentum over the medium to long term.
VERI Price Action: Veritone shares were down 18.36% at $6.85 at the time of publication on Thursday. The stock is trading within its 52-week range of $1.22 to $9.42.
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