Why Silvergate Capital Stock Was Tumbling Again This Week
As it did last week, Silvergate Capital's (NYSE: SI) stock took a fairly hard fall over the past five trading days. According to data compiled by S&P Global Market Intelligence, the bank with a heavy cryptocurrency habit saw its share price decline by more than 13% over the period, compounding the 19% drop of the previous week.
Silvergate continues to be under fire not only for its involvement in digital money, but its business relationship with entities connected with failed cryptocurrency exchange FTX. The fallout from that collapse continues to damage nearly every asset related to cryptos; while in many ways Silvergate functions as a traditional bank, it is more strongly identified with cryptocurrency in the minds of many investors.
Adding to those concerns, over the course of the week two analysts from prominent financial institutions cut their price targets on the lender's stock. On Tuesday, JPMorgan Chase's Steven Alexopoulos enacted a 40% chop, to $30 per share from his previous $50. Wells Fargo prognosticator Jared Shaw's slice wasn't as deep but it was a slice nevertheless, to $27 from $30.
Source Fool.com
