FuelCell Energy (FCEL) shares took a beating in Wednesday's premarket session, dropping more than 18% after the company announced an upsized stock offering at a discount. The move sparked fears of shareholder dilution, especially after the stock's strong run over the past year.

The broader market wasn't helping either. With Nasdaq futures down 1.41% and S&P 500 futures off 1.02%, it was a risk-off kind of morning.

FuelCell Prices Upsized Offering

FuelCell Energy priced 10.71 million shares at $21.00 each, expecting to rake in $225 million before fees. That's up from the originally planned $200 million. The company is selling all the shares itself.

Use of Proceeds

The company plans to use the net proceeds for capital expenditures tied to manufacturing capacity expansion, working capital, and general corporate purposes. The offering is expected to close on or about July 9, 2026.

Technical Picture Remains Positive

Despite the selloff, FuelCell Energy still trades above its longer-term moving averages. The stock is about 5.5% above its 50-day simple moving average of $19.97, and well above its 100-day SMA of $13.73 and 200-day SMA of $10.96.

But near-term momentum has weakened. FCEL has fallen roughly 8% below its 20-day SMA of $22.90. The relative strength index sits at 53.50, indicating neutral momentum — the stock is cooling off after a strong run, not crashing into oversold territory.

The longer-term trend remains constructive. The 20-day SMA is still above the 50-day SMA, and the 50-day is above the 200-day SMA, following a golden cross formed in October 2025.

Traders will likely watch the $18.50 area closely. That level previously attracted buyers and could serve as important support if selling continues.

FuelCell Energy Price Action

FuelCell Energy shares were down 18.14% at $21.25 during premarket trading on Wednesday, according to market data.