Dixie Stock Falls but Firm Issues 'Strong Buy'

New York, NY, May 13, 2014 -- Analyst Raymond James issued a "strong buy" on the stock of the Dixie Group Tuesday a day after the stock took a sharp tumble.

The rating came a day after stock of the Chattanooga, Tennessee-based carpet company fell from $13.13 to $11 per share on strong volume. Dixie announced Monday that it would fell 2.5 million additional shares of common stock, which could balloon to more than 2.8 million. That could raise more than $25 million for Dixie, which would help it pay for the acquistion of Atlas Carpet Mills.

The stock price has fallen from a high of $18.14 on April 2.