Blue Nile Down After Analyst Downgrade
Shares of online jewelry from Blue Nile Inc. fell Tuesday after a research analyst downgraded the stock to “sell,” saying the company’s very likely to be under pressure this year.
Mile shares declined $2.95, or 5.3 percent, to $53.16. In the past year has been trading between $36.66 and $106.16.
In a note to investors analyst Time Boyd changed his rating and lowered his target price for the stock to $40 which was once at $48.
“Our basic rationale is as follows: although men will almost certainly continue to purchase diamond engagement rings for their fiancees, they are on average likely to spend less than they might have a year or two ago,” he said.
Analyst attribute this to a lot of different factors, such as lack of job security and a decline in spending because of the slowing of the growth of the U.S economic statues. He has also noticed that high-end jewelry retailers such as Tiffany & Co., have been feeling lots of selling pressure since the most recent U.S recession in 2001.
Boyd had upgraded Nile’s stock to “Neutral” on January 16.
The analyst believe that a review of the 2008 estimate for the company are to high and said that increase in the share price since mid-January represent a good time to sell or make your shares smaller.
Since January 15, the stocks lowest close in 8 months, it has risen almost 9 percent.