News of Comscore securing a big private placement investment didn’t help its stock price on Tuesday, as the media measurement company shares sank a whopping 18% on Tuesday to close at $6.10.
Comscore entered into a definitive agreement with an unnamed institutional investor, securing an initial cash investment of approximately $20 million — with the potential to increase to approximately $50 million within 12 months.
One report blamed the stock plunge on the deal priced at a discount to Comscore’s closing stock price of last Friday. Wall Street analysts have projected a rising stock price near $20 for Comscore within the year.
Comscore said that in the $20 million private deal for common stock it will be sold at $7.33 per share, a 5.4% discount to the closing price of Comscore's common stock as of June 21, 2019.
The company has been trending down for some time -- with its stock price falling 26% over the last five days, losing 41% over the month and giving up 71% since the start of the year.
In April, two senior executives departed Comscore -- Bryan Wiener, CEO of the company (who was succeeded by Dale Fuller as interim CEO) and Sarah Hofstetter, president of Comscore.
Competitive media-measurement company Nielsen Holdings' price was unchanged on Tuesday -- closing at $21.99, although in after-market trading, Nielsen's shares dipped 1.6%.