LuxUrban Hotels Inc (NASDAQ:LUXH) shares are trading lower by 41.6% to $0.26 during Tuesday's session after the company announced the pricing of its public offering of 30.50 million common shares at $0.25 per share.

The underwriters have a 45-day option to buy an additional 4.575 million shares at the same price. Roth Capital Partners is the sole book-running manager, with Alexander Capital, L.P. as the co-manager.

The offering is expected to close around May 23, subject to customary conditions. The proceeds will be used for working capital and general corporate purposes.

Should I Sell My LUXH Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of LuxUrban Hotels have decreased by 92.73% in the past year. An investor who bought shares of LuxUrban Hotels at the beginning of the year would take a loss of $5.42 per share if they sold it today. The stock has fallen 71.62% over the past month, meaning an investor who bought shares on Apr. 1 would see a capital loss of $1.15.

LuxUrban Hotels shares have an all-time high of $6.61, representing 2398.11% upside from current levels.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. LuxUrban Hotels stock currently has an RSI of 27.64, indicating oversold conditions.

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LUXH has a 52-week high of $6.88 and a 52-week low of $0.24.