RadioShack Shorting Out After Analyst Comments and Poor Earnings
Janney Montgomery Scott downgrades RadioShack Corp. (NYSE:RSH) from Buy to Neutral. The company stock faded rapidly today, down 29 percent to $7.27 before 10:00 o’clock. Analyst David Strasser, at Janney Montgomery Scott, said, “RadioShack is seeing a somewhat dramatic shift to a structurally lower gross margin and we are unclear where this shift will bottom out…” as he downgraded RSH.
Preliminary earnings trail analysts estimates and the company has decided to suspend share repurchases. According to RadioShack’s chief executive, James Gooch, the stock buyback suspension “for the near-term” will allow the company to spend more on its business and mobile phones. The company still plans to pay a quarterly dividend and fourth quarter results are due February 21.
Here’s how shares are trading now:
RadioShack Corp. (NYSE:RSH): RSH shares recently traded at $7.17, down $3.06, or 29.91%. They have traded in a 52-week range of $9.15 to $16.70. Volume today was 34,506,678 shares versus a 3-month average volume of 2,614,760 shares. The company’s trailing P/E is 6.49, while trailing earnings are $1.11 per share.
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