I believe the stock offering was priced at $40.50 in order to create tremendous resistance at $40.00. The new $40.50 stockholders will gobble up any shares under $40. I'm sure these "insiders" were counting (maybe hoping) on perhaps a $10 per share increase to above $50 per share by the end of the year, then sell in January. They are not going to sell in a panic if the stock drops below $40.
Who know what tomorrow has in-store with our market's uncertainty day-in and day-out, but after seeing this news ($40.50 a share) I must say that I regret covering my short position today at $41.04, because I see more down side coming (at least to $40.50).