Signet Jewelers (NYSE:SIG) for Thursday concerning a downgrade hit SIG stock hard.
The Signet Jewelers downgrade news comes from Wells Fargo analyst Ike Boruchow. This saw him dropping the stock down to a new rating of “Underweight.” The previous rating for the stock was “Equalweight.”
Unfortunately for SIG stock, the bad news doesn’t just stop at a downgrade. Boruchow also introduces a new price target of $12 per share for the stock. That’s a 25% decline from the previous price target of $16 per share. It’s also 44.80% lower than the stock’s previous closing price of $21.74.
Why exactly does the Wells Fargo analyst have such a bearish take on SIG stock? It looks like he wasn’t dazzled by the company’s most current year as it struggled to turn its business around through its “Path to Brilliance” plan.
Of course, it isn’t just concerns about 2019 that are behind the downgrade for SIG stock. Boruchow also worries that the company’s main business will continue to struggle in the current year, reports The Motley Fool.
The new rating for SIG stock did some major damage on Thursday. This Signet Jewelers news was able to drag the stock back down to below $20 per share when markets closed. The stock had previously been trading for more than $20 per share in roughly the last month.
SIG stock closed out the day down 12.93% on Thursday.
As of this writing, William White did not hold a position in any of the aforementioned securities.