Shares of online home goods retailer Overstock (NASDAQ: OSTK) fell 7.94% in the morning session after analyst Peter Keith of Piper Sandler downgraded the stock's rating from Overweight (Buy) to Neutral (Hold) and lowered the price target from $29 to $19. The target price implies an 8% premium compared to the current price.
What is the market telling us:
Overstock's shares are very volatile and over the last year have had 55 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Overstock is down 5.46% since the beginning of the year, and at $17.78 per share it is trading 54.5% below its 52-week high of $39.10 from May 2022. Investors who bought $1,000 worth of Overstock's shares 5 years ago would now be looking at an investment worth $481.78.
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