Why EnerNOC's Shares Plunged 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 EnerNOC dropped as much as 20% today after the stock was downgraded by an analyst.
So what:Credit Suisse was the culprit today, downgrading the stock from outperform to neutral. For a bit of perspective, the stock was upgraded by Pacific Crest, downgraded by Zacks, and had its price target increased from $17 to $18.50 by JPMorgan all in the month of May.
Now what: If you need a reason why we at The Motley Fool don't take analyst upgrades and downgrades very seriously, then EnerNOC's price action today is exhibit No. 1. Is the company really worth nearly $100 million less today than it was yesterday? Not to a long-term investor, so I don't think today's move changes the investment thesis, and if you're bullish (which I'm not) this should be viewed as a discount more than a reason to panic today.
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The article Why EnerNOC's Shares Plunged Today originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends EnerNOC. The Motley Fool owns shares of EnerNOC. 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.
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