ShiftPixy Inc ( PIXY ) shares are trading lower Tuesday after the company announced the pricing of a $5 million offering.

What Happened: ShiftPixy ( PIXY ) has announced the pricing of its “reasonable best efforts” offering of 1,176,470 units. The units will be offered for $4.25 per unit and priced at-the-market under Nasdaq rules. Each unit consists of one share of common stock and one common warrant, which is immediately exercisable at a price of $4.25 per share and has a term of five years.

The human capital management platform company said it anticipates gross proceeds of $5 million. Net proceeds will be used for general corporate purposes, including working capital. The offering is expected to close on or about March 21.

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Is PIXY A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like ShiftPixy ( PIXY )‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. ShiftPixy ( PIXY ) does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 7.47%, you'll need to buy a share of NewtekOne by March 28, 2024. Once done, you can expect to receive a nominal payout of $0.19 on April 15, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on ShiftPixy ( PIXY ) will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

PIXY Price Action: ShiftPixy ( PIXY ) shares were down 18.8% at $5.52 at the time of publication, according to Benzinga Pro.