Evaluating FLY Stock's Actual Performance

• Since its Aug. 7 IPO, Firefly Aerospace's shares person declined sharply.

• The stock's returns for first-day investors are adjacent worse, particularly compared to the broader market.

• Many stocks suffer wealth successful the months pursuing their IPOs.

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The banal for abstraction exertion specializer Firefly Aerospace (NASDAQ: FLY) changeable up similar a rocket connected its caller August archetypal nationalist offering (IPO) date, closing 34.1% higher connected its archetypal time of nationalist trading.

But however has the institution been doing since? Should aboriginal investors beryllium pleased? And what astir those who didn't bargain successful early: Is it already excessively late?

Here's however Firefly investments person truly done.

Firefly primitively projected a per-share archetypal nationalist offering (IPO) terms of $35 to $39. Later, the institution accrued the projected scope to betwixt $41 a stock and $43 a share. However, the shares yet went nationalist connected Aug. 7 astatine $45 a share, which gave the fledgling institution a marketplace headdress of much than $6.4 billion.

Since its IPO, though, Firefly's banal has been connected a downward trajectory. It's presently trading for $19.91 a share, down 55.6% from its IPO price.

Houston, we person a problem.

Meanwhile, the broader market, arsenic measured by the S&P 500 index, is up 8.2% implicit the aforesaid clip frame, meaning IPO investors successful Firefly are presently losing to the marketplace by 63.8 percent points.

Keep successful caput that precise fewer investors really managed to wage Firefly's $45 a stock IPO price, due to the fact that arsenic soon arsenic the banal started trading, it changeable up to $70 a share, concisely hitting an intraday precocious of $73.80 a stock earlier closing retired its archetypal time astatine $60.35 a share, giving the institution a marketplace headdress of $8.8 billion. Practically everyone who bought shares connected the unfastened marketplace connected the archetypal time paid astatine slightest $60.35 apiece for their shares.

Those stockholders are successful adjacent worse signifier than those who bought astatine the IPO price. At its existent price, Firefly's shares are down 67% from its Aug. 7 close, meaning astir first-day investors are already losing to the S&P 500 by much than 75 percent points.

Not lone person the prices of Firefly investors' shares declined sharply since its IPO, but the underlying worth of those shares has besides been diluted. On the IPO date, Firefly had 146.5 cardinal shares outstanding. Since then, however, the institution has issued astir 13 cardinal further shares, astir of which were utilized to wage for the acquisition of defence bundle institution SciTec. That's an 8.7% summation successful stock count, which makes each existing banal stock a spot little valuable.