Dallas, Texas 04/16/2014 (FINANCIALSTRENDS) – Castlight Health Inc (NYSE:CSLT) jumped up by 7.6 percent during trading on 15th April after the cloud based health care application software provider announced that it would be releasing operational results from its first quarter operations ending 31st March on 7th May. This would be the first earnings call that the small capped software firm would be hosting after going public on 14th March accompanied by huge media coverage.
Since then the stock has been struggling to maintain its IPO price points and has come down by close to 56 percent since its public trading debut. The San Francisco based application software provider had issued 12.76 million shares of its common shares classified as class B through the Initial public offering and had priced the same at $16 per share. It has set aside 1.66 million shares towards covering the underwriters in the event of over subscription.
Castlight Health Inc (NYSE:CSLT) had retained the services of banking majors Morgan Stanley & Co. LLC and Goldman, Sachs & Co as its co-book running managers. It had also appointed trading houses “Allen & Company LLC, Stifel, Nicolaus & Company, Incorporated, Canaccord Genuity Inc. and Raymond James & Associates, Inc” as the co-managers of this offering.
The recent sell off in the stock of this newly traded company has occurred in the back drop of the larger markets coming under pricing pressure. Since the beginning of April, the both the S&P 500 index and the Dow Jones have retreated from the near high price points they had enjoyed over the past few weeks. This has been caused by investors taking cautious stand with respect to high evaluations of the tech stock in comparison to the 1Q earnings which are to be released soon. The newly traded stock get compared with their older peers in this context and hence end up on the sell side of the investor list.