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.
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Fool contributor Travis Hoium has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.