Shares of Simmons First National (SFNC) tumbled 5.28% in after-hours trading on Monday, following the company's announcement of a significant stock offering. The sharp decline came as investors reacted to the potential dilution of existing shares.

According to an SEC filing, Simmons First National Corp has filed for an offering of up to $250 million of Class A Common Stock. This move, while potentially bolstering the company's capital position, has raised concerns among shareholders about the impact on their existing holdings. The size of the offering represents a substantial amount relative to the company's market capitalization, which likely contributed to the negative market reaction.

The stock offering news comes on a day when analysts had expressed cautious optimism about Simmons First National. Earlier in the day, Robert W. Baird maintained a Hold rating on the stock with a price target of $23.00, while D.A. Davidson also kept a Hold rating, raising their price target to $21.00 from $19.00. Despite these neutral stances from analysts, the after-hours stock plunge suggests that investors are more concerned about the immediate impact of the potential share dilution than the company's long-term prospects.