Himax Technologies, Inc. (ADR) (NASDAQ: HIMX) is having an incredibly rough time in the pre-market trading hours this morning, and for good reason. Early this morning, a highly trusted analyst downgraded the stock, suggesting a massive downside. Of course, this led to fear among investors, causing the stock to fall dramatically and prompting our partners at Trade Ideas to alert us to the losses. At the moment (9:12), HIMX is trading at $7.61 per share after a loss of $0.40 per share or 4.99% thus far today.
HIMX Falls On Oppenheimer Downgrade
As mentioned above, Himax Technologies is having an incredibly rough time in the market at the moment after news broke of a key downgrade. According to various reports, Oppenheimer has made the decision to downgrade the stock. Ultimately, the rating on the stock was cut to an underperform. However, that's not the worst news.
The worst news comes by way of the price target. In cutting the rating on HIMX, Oppenheimer also cut the price target on the stock to $4 per share. Considering that last night's closing price on the stock was $8.01, that's a massive hit. In fact, it represents a downside of about 50.6% suggesting that in a relatively short period of time, HIMX will lose half of its value!
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on HIMX. In particular, we're interested in following the company to see if its sales and earnings reports are going to be so bad that investors push the stock to half of what it closed at yesterday in the coming year or so. Nonetheless, we'll continue to follow the story closely and bring it to you as it breaks!
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