AeroVironment's stock plunged 11% due to secondary offering and notes, raising concerns about dilution.

AeroVironment, a military drone specialist, saw its stock decline by over 11% after announcing a secondary share offering and convertible senior notes. The company plans to sell 3.5 million shares at $248 each and issue $650 million in notes with a 0% interest rate. Investors are concerned about potential dilution, but AeroVironment expects to raise $1.47 billion to pay off debt and expand manufacturing capacity. Despite the stock drop, the company’s strong performance in combat drones and a growing backlog suggest it remains a solid investment option.

Read more at Nasdaq.: Why AeroVironment Stock Plunged This Week