Dallas, Texas 11/07/2013 (Financialstrend) – The $153 million market capped truck and utility vehicles company Accuride Corp. (ACW:NYSE) stock has been bleeding red ever since it announced its third quarter operations results before markets opened on November 1. Since then the stock has plummeted by 27.8% during trading last week.
Post the tepid results, rating agency B.Riley downgraded the stock to a neutral from earlier buy rating. More damaging was the close to 40% drop in the price target announced by the firm. The new price target is $4.25 per share from the previous $7. The rating downgrade came on November 4 and was followed by an additional 7.7% melt down in its market value. At close of business on November 6, the stock is trading at $3.22 almost 53% down from its 52 week high pricing of $6.88 per share.
The deluge in the value of the stock was triggered by lacklustre third quarter results the company announced last Friday. It reported loss per share of $0.28 while analysts had been expecting loss per share to come in around $0.10. It reported revenue of $155.3 million while Wall Street was expecting revenue to come in at $170.6 million.
Summing up the sever head winds the firm is facing at the market place Richard Dauch who is the president and chief executive officer has been quoted as saying, “We did face challenges in the quarter. Weaker than expected commercial vehicle volumes are impacting both our Wheels and Gunite business, while softness in the global mining and construction industry is significantly impacting our Brillion business. Near-term, we expect this weak demand to continue as we head into 2014. We are currently experiencing low capacity utilization rates in all of our businesses units.” With most of these challenges continuing to impact the firm well into the 4Q investors are abandoning the stock in droves.