Ixia (XXIA) shares dipped more than 8 percent in early Wednesday trading. The provider of test equipment for high-speed networks said it intends to sell $125 million principal amount of convertible senior notes due 2015.
According to Ixia, the notes, whose net proceeds will be used for general corporate purposes, potential future acquisitions and strategic transactions, will be convertible into the co.’s common stock. The interest rate, conversion rate and other terms of the notes will be determined at the time of pricing of the offering, the co. said.
Technically speaking, the shares of XXIA are up more than 132% since the beginning of the year. The equity has been uptrending since July, when it put in a bottom at the mid – $8 level. Today, however, XXIA is pulling back, currently trading near session lows of $14.60 (-7.01%).
XXIA trades at a forward multiple of 19.04 and a PEG ratio of 3.06. The stock’s volume has swelled to 2x the stock’s daily average. More than 730,000 XXIA shares have already traded hands compared to a daily average of around 349,000.
Ixia is currently trading above its 50-day moving average of $14.62 and below its 200-day moving average of $11.09.
At last check, XXIA shares were down $1.02 to $14.84, a loss of 6.2%.
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