What Happened?
Shares of engineered components manufacturer for critical industries ITT Inc. (NYSE: ITT) fell 6.3% in the afternoon session after the company announced it commenced an underwritten public offering of 7 million shares of its common stock. The company stated the proceeds from this offering were intended to help fund its previously announced acquisition of SPX FLOW for a total of $4.775 billion. Stock offerings often cause a company's share price to drop because the issuance of new shares can dilute the ownership percentage of existing shareholders. In addition to the initial shares, ITT also expected to grant the underwriters a 30-day option to purchase up to 1,050,000 additional shares of its common stock.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy ITT? Access our full analysis report here.
What Is The Market Telling Us
ITT’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
ITT is up 20.3% since the beginning of the year, but at $170.56 per share, it is still trading 12.7% below its 52-week high of $195.47 from October 2025. Investors who bought $1,000 worth of ITT’s shares 5 years ago would now be looking at an investment worth $2,231.
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