SBC Medical Group Holdings Incorporated (NASDAQ:SBC) saw its stock plummet 5.33% during Wednesday's intraday trading session, as investors reacted to concerns over the company's share dilution and potential underlying earnings weakness.
According to a recent analysis, SBC Medical Group expanded its number of outstanding shares by a staggering 1,772% over the past year. This significant dilution has resulted in the company's net income being split among a much larger number of shares, impacting the earnings per share (EPS) growth.
While the company reported a 75% increase in net income over the last twelve months, its EPS growth was only 70% during the same period. This disparity raised concerns that SBC Medical Group's underlying earnings power might be lower than its statutory profit suggests, potentially impacting future share price growth.