The cyber security software company, Symantec Corp. faced a steep downfall in the shares, which made the biggest depletion in a single day since 17 years and the second-biggest downfall as a public firm in 29 years.
The plunge of 35% took place as a result of the internal audit conducted by the committee. Apart from the steep downfall, the company has forecasted a weak outcome of SYMC -33.10% for the current fiscal year as well as the quarter.
Even five of the analysts have also downgraded the ratings of the stocks associated with the Symantec Corp. As per FactSet, out of 30 analysts, 23 have rated the stocks to hold, 4 have rated it to buy, and only 3 called it for the sell.
As per a BTIG analyst Joel Fishbein, the fact that Symantec had declined all the callbacks and had refused to take questions amid the earning calls of the company had disturbed him deeply. This compelled him to downgrade the stocks from buy to neutral.
The annual as well as the quarterly outlook came out to be lower than expected and were a surprise to Fishbein as Symantec was projected to making some progress in the enterprise section of the business.
He further said that as per the guidance of the fiscal year 19 and quarter 1, the Q1 implied a depreciation of 20% and 10% to 11% decline for the fiscal year 2019. This made the analyst wondered regarding the other changes going in the company apart from the accounting downfall.
The stock of Symantec is trading at an all low since June 2016, which is 39% down for the last 12 months, while the S&P 500 SPX, +0.17% has gained by 13%.
He also mentioned that the company has been offering the plans for further reduction of the debts in the fiscal year 2019.