What happened 

Shares of industrial supplier Forterra Inc (NASDAQ:FRTA) dropped as much as 13.9% in trading Tuesday after a slew of analyst downgrades. At 11:50 a.m. EDT, shares were still down 13% on the day. 

So what

Citi and SunTrust lowered their rating on Forterra from buy to neutral, and SunTrust lowered its price target to $14 per share. RBC Capital also lowered its rating to market perform. 

Water coming from a pipe.

Image source: Getty Images.

These downgrades come a day after the stock plunged because of declining earnings. In the first quarter, new loss was $0.35 per share, and the company showed no organic growth, which is a terrible sign for any business. 

Now what

Analyst downgrades aren't in and of themselves a reason to change your opinion on a stock, but the fact that they helped drive a slide in Forterra's stock after a weak earnings report isn't great news for the company. 

The major concern long term is that Forterra has $1.26 billion in debt, declining margins, and growing losses. That's enough to send me running from a stock whether analysts downgrade it or not. 

Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.