Why Tile Shop Holdings, Veritone, and Intra-Cellular Therapies Slumped Today
Wednesday was a good day for the stock market, as investors celebrated the potential gains in profit if the proposed Trump tax plan becomes law. With the proposal including dramatically lower corporate tax rates and special maximum rates on pass-through business entities, bullish investors are hopeful that the stimulus to corporations' bottom lines will be enough to create large boosts to share prices. Yet even with major benchmarks climbing toward record highs, downbeat news from several companies weighed down some of the positive spirit. Tile Shop Holdings (NASDAQ: TTS), Veritone (NASDAQ: VERI), and Intra-Cellular Therapies (NASDAQ: ITCI) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of Tile Shop Holdings sank nearly 17% after the company got an unfavorable review from a major stock analyst company. Analysts at Piper Jaffray downgraded the stock of the home-improvement retail specialist from overweight to neutral, citing poor business performance during the first part of 2017 and expectations for continued weakness in the immediate future. The analysts also reduced their price target on the stock, but today's drop takes Tile Shop Holdings shares well below that level. If the company can overcome some of its near-term headwinds and remain on course with a broader strategic vision, then Tile Shop could make today's drop look short-sighted from traders without a long-range perspective.
Image source: Tile Shop.
Source: Fool.com