As if the equities correction and economic concerns weren't enough to battle, Spectra Energy (NYSE:SE) now has the additional and unfortunate burden of fighting through the downgrade today by Jefferies Group from "hold" to "underperform."
By the end of the session, Spectra gave up 8.24 percent, or $1.74, falling to $19.37 a share. That's the highest percentage drop they've experienced since November 20.
The primary motivator behind the downgrade was based upon lower earning per share estimates. EPS was adjusted to 10 cents on the downside from the projected oil prices being down from previous estimates. EPS for Spectra are now forecast to come in at $1.35.
Original EPS guidance from Spectra was based on oil being $80 a barrel. Jeffries decision was based on oil prices per barrel falling to $77. Their price target was also lowered to $18 a share.
Volume was heavy for Spectra on the news, reaching 13,128,230, over four times the 3-month average of 3,263,980.
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