Why Silvergate Capital Stock Had a Wacky Wednesday
Silvergate Capital (NYSE: SI) stock experienced a few bumps and pops on Hump Day, at one point rising 4% over its closing price Tuesday before settling to a nearly 5% loss. That's down to the usual volatility of cryptocurrency-related assets, but it was also due to an influential investment bank's latest take on the specialty lender's stock.
Sentiment on Silvergate, a bank that operates a trading platform for institutional investors that allows them to trade to and from cryptocurrency exchanges, is frequently influenced by how investors feel about coins and tokens generally. These have generally risen in price over the past few days. Due to that, at least some investors were bullish on crypto-related assets like Silvergate -- hence the peaks in its share price Wednesday.
But this couldn't quite overcome a recommendation downgrade, and from a high-profile company at that. After market hours on Tuesday, Goldman Sachs (NYSE: GS) analyst Will Nance reduced his recommendation on Silvergate stock to neutral from his previous buy. Rubbing salt in the sore, Nance also drastically reduced his price target to $64 per share from the preceding $108.
Source Fool.com
