Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Noodles & Co NDLS shares were trading lower $7.82 (28 percent) at $19.92 in Friday's session. The catalyst for the decline is a Q4 earnings miss ($0.13 vs. $0.14) on lower-than-expected revenue ($108.50 million vs. $110.7 million).
In addition, Janney Capital downgraded the issue from Buy to Neutral and lowered its price target from $31.00 to $24.00.
The Street was leaning the wrong way in the issue as it rallied to $27.93 in Thursday's session, its highest level since it peaked on August 5 at $28.32.
After a disastrous after-hours and pre-market trading, the issue declined all the way to $20.20 just before the opening bell. After a brief pop to $20.76, the waves of selling continued taking it as low as $19.75. Since reaching the depressed level, it rebounded to $20.22, but has been unable to maintain the $20.00 level.
Another possible support level for Noodles & Co may be its October low at $18.58.
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