Why Allbirds Stock Tumbled From the Sky on Monday
Allbirds (NASDAQ: BIRD) stock lost quite a bit of altitude on Monday, falling by more than 6% against the over-1% gain of the S&P 500 index. The culprit was a price target cut from an analyst, which leached value from the already low-priced shares.
Stifel's (NYSE: SF) Jim Duffy was the cutter; he trimmed $1 per share off his price target. While that isn't a huge amount in the grand scheme of things, it matters with Allbirds. Since Duffy's previous level was $4, his adjustment means a 25% reduction. Meanwhile, he's maintaining his hold recommendation on the shares.
The reasoning behind the analyst's latest move wasn't immediately clear, but it comes barely over a month after he enacted a similar price target cut. In mid-November, in the wake of Allbirds' latest quarterly earnings report, Duffy reduced his level to that $4 per share from his preceding $5.
Source Fool.com
