Newport Corp., an Irvine maker of machines used to build fiber-optic components, said Thursday that the company and existing stockholders plan to sell 3.1 million shares.
The stock has climbed almost 16-fold in the past year on demand for equipment that automates the production of optical parts. But it dropped $13.69 a share Thursday to close at $82.44 in Nasdaq trading.
The company, which has 28.7 million shares outstanding, said in a press release that it has filed a regulatory report to sell 3 million shares and that existing stockholders filed to sell 100,000 shares.
"The stock doesn't trade a lot, and now the market has to absorb additional shares," said Doug MacKay, co-manager of the $1.3-billion Red Oak Technology Select Fund, which owns about 80,000 Newport shares. Stocks tend to sell off, he said, when additional shares are poised to come on the market.