Dilution Tracker Review – Is It Worth Using?

Dilution Tracker is a unique tool that helps investors monitor share dilution and the impact it can have on a stock’s price. The platform provides data that investors typically have to dig deep to obtain, such as how many shares a company has offered through outstanding warrants or convertible notes. It also highlights upcoming offerings that you may be able to trade around.

In our Dilution Tracker review, we’ll explore everything this platform can do and help you decide if it’s right for you.

Dilution Tracker Pricing Options

Dilution Tracker costs $60 per month or $468 per year. You can try out the platform free for 7 days.

Dilution Tracker also provides a limited free account. You cannot view Dilution Tracker’s dilution ratings, but you can access some of the metrics that go into them. These include a company’s cash runway and historical outstanding shares.

Dilution Tracker Features

Dilution Ratings and Analysis

Dilution Tracker provides share dilution data for more than 2,300 US stocks, most of which are small and mid-cap stocks. For every stock the platform tracks, it assigns an overall dilution risk from low to high. This is broken down into four sub-ratings, each on a low to high scale:

Offering ability: Measures a company’s ability to offer discounted shares with a shelf or S-1 offering. 

Dilution amount excluding shelf: Measures a company’s potential to dilute shares through warrants, convertible notes, S-1 offerings, and at-the-market agreements.

Historical: Measures growth in a company’s outstanding shares over the past three years.

Cash need: Measures a company’s cash runways based on cash on hand relative to operating cash flow.

Based on these metrics, an investor can quickly assess whether a company is likely to significantly dilute existing shares. A chart displays the company’s number of outstanding shares over time and potential outstanding shares after accounting for warrants and convertible notes. Additionally, Dilution Tracker has details about all of the company’s warrants and convertible notes, including when they were issued, their exercise or conversion prices, and who owns them.

Dilution Tracker also has a company-specific feed for press releases, a database of SEC filings, and a breakdown of each stock’s institutional ownership.

New and Upcoming Share Offerings

Moreover, Dilution Tracker keeps track of new, upcoming, and in-progress dilutions. The platform has a list of new S-1 filings that includes the anticipated deal size and pricing information once it becomes available. It also tracks completed offerings for small and nano-cap companies so traders can monitor a company’s complete history of capital raises. Another list tracks upcoming and completed reverse stock splits, including the split ratio and new float.

Alerts

Dilution Tracker offers a variety of customizable alerts that traders can use to stay informed about new offerings. You can create a custom list of tickers for alerts and receive email or SMS notifications about new offering-related press releases or S-1 filings. You can also opt into alerts for financial filings (including 8-K forms) and ownership filings (including 13-D forms).

Dilution Education

For traders and investors who are new to thinking about share dilution and its potential impact on stock prices, Dilution Tracker has a helpful knowledge base. A series of short guides explain how S-1 filings and warrants work, how dilution affects share prices, and more. The guides assume a strong investing background, which makes sense given that most traders interested in following dilution will be relatively experienced.

Dilution Tracker Platform Differentiators

Dilution Tracker is a very unique platform. There are surprisingly few tools for proactively monitoring stock dilution among small and mid-cap companies. Traders are heavily reliant on press releases, SEC filings, or post-dilution data.

Dilution Tracker aggregates press releases, SEC filings, and financial data to paint a picture of what companies are most and least likely to dilute shares. The platform’s dilution metric ratings are straightforward to interpret and offer a jumping-off point for traders who want to trade around stock dilution.

What Type of Trader is Dilution Tracker Best For?

Dilution Tracker can be extremely useful for both traders and investors.

First, the software can be used by short sellers who want to actively trade around new offerings and other share dilution events. Dilution Tracker can be used to build a watchlist of companies that are likely to dilute their shares and thus see their stock prices fall. It can also be used to inform short bets on companies that are struggling financially or running low on cash.

Dilution Tracker can also be used by long-term investors who want to ensure that they aren’t at risk of significant dilution. The platform makes it easy to determine whether a company has the potential to dilute shares through shelf offerings, warrants, or convertible notes as well as whether the company needs to raise cash quickly based on its current cash flow. Bullish investors could even incorporate Dilution Tracker into a checklist of fundamental metrics when evaluating companies.

Although Dilution Tracker is very simple to use, it’s best suited for advanced traders and investors. Share dilution is not only complex, but also intertwined with a company’s financial position and management. Investors should have a strong understanding of a company’s fundamentals before worrying too much about dilution.