Skechers USA Inc. (NYSE: SKX) is getting railroaded today on massive trading volume. Susquehanna Financial Group cut its analyst rating on the shoe-maker down to “Neutral†from “Positive.â€
What is amazing is that shares opened positive on the day and then around 1PM EST shares fell of a cliff. The stock at 2:52 PM EST has seen 11.8% drop to $23.21 versus yesterday’s close of $26.34 and versus today’s high of $26.85. There have also been a whopping 5.8 million shares traded. The average volume is 1.875 million shares and the 52-week range is $16.39 to $44.90.
You don’t normally see a firm rating from Susquehanna take out more than 10% from a share price because its analyst team doesn’t like what it sees. The firm noted that there was a significant increase in discounts on sales over Labor Day and that slow units ales are also being seen. More importantly, low valuations should limit the downside risks per the research.
Almost 12% of a drop is not exactly a “limited downside†scenario.
JON C. OGG
Powered By iWebRSS.com
No comments:
Post a Comment