Image source: Getty Images.

What happened

Shares of Ocwen Financial Corp. (OCN 0.93%) are trading down by about 11% at 11:45 a.m. EST on Thursday after a downgrade by Compass Point Research.

So what

A sharp price decline at Ocwen appears to be the result of a simple ratings change by research group Compass Point Research. Market news site reported that Compass Point Research downgraded Ocwen from buy to neutral on Thursday, reversing a September 2016 upgrade.

The research outfit also downgraded Nationstar Mortgage Holdings (NYSE: NSM), which has ties to Ocwen, to a sell recommendation from a neutral one, resulting in a 6% share-price slide on Thursday.

Now what

With a 10-to-1 levered balance sheet, and few concentrated stock owners, it doesn't take much more than a sneeze to send Ocwen's share price flying higher or plunging lower. Selling may have been magnified by investors seeking to protect their gains after shares rallied by nearly 400% from the stock's July 2016 lows.