Don't let it get away!
Keep track of the stocks that matter to you.
Help yourself with the Fool's FREE and easy new watchlist service today.
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of giant tire manufacturer Titan International (NYSE: TWI ) fell 13% today after being downgraded by analysts.
So what: Jefferies downgraded the stock from buy to hold, citing the probability of profit and sales pressure. William Blair also downgraded the stock to market perform and lowered its price target to $21.
Now what: At The Motley Fool, we don't take analyst upgrades or downgrades very seriously because they just don't have much incentive to get ratings right. What we do know is that shares currently trade at 12 times trailing earnings, which isn't a bad value if revenue is at least flat. But the price of raw materials miners around the world are producing have been down and it wouldn't be surprising to see a decline in revenue. The spending spree in mining may be over and that would be a good reason to sell the stock today, not just the downgrade of two analysts.
Interested in more info on Titan International? Add it to your Watchlist by clicking here.