Joby Aviation (JOBY) Stock Is Falling -- Here's Why?
Oct. 8 Joby Aviation 
JOBY shares fell about 8% in early Wednesday trading after the electric air taxi developer priced its latest underwritten stock offering.
The Santa Cruzbased company will issue 30.5 million common shares at $16.85 each, aiming to raise roughly $513.9 million in gross proceeds. Joby has also given the underwriter a 30-day option to purchase up to 4.58 million additional shares.
Joby said it plans to use the proceeds, along with existing cash and short-term investments, to advance aircraft certification and manufacturing, prepare for commercial operations, and support general corporate needs.
Morgan Stanley is serving as the book-running manager for the offering, which is expected to close on Oct. 9, subject to customary conditions.
A registration statement for the sale was filed with the U.S. Securities and Exchange Commission in October 2024 and became effective upon submission. The company said the offering will be conducted solely through an official prospectus available on the SEC's website.
Is JOBY Stock a Buy?
Based on the one year price targets offered by 5 analysts, the average target price for Joby Aviation Inc is $11.60 with a high estimate of $22.00 and a low estimate of $6.00. The average target implies a downside of -38.66% from the current price of $18.91.
Based on the consensus recommendation from 9 brokerage firms, Joby Aviation Inc's JOBY average brokerage recommendation is currently 3.1, indicating a "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.