The value of Consolidated Communications Holdings Inc.'s (NASDAQ:CNSL) small cap stock dropped during trading on Wednesday, as the company was downgraded by financial analysts following less-than estimated earnings for the first quarter.
Zolmax News reported that analysts at DA Davidson lowered their price target for shares of Consolidated Comms after seeing the first quarter data for the company and speculating that higher interest rates will affect its potential for growth in the coming year.
The company's stock dropped $1.44 to $14.39 at 11:13 a.m., a decline of 9 percent for the communications company.
Although the drop during morning trading represented downward-adjusted investor sentiment regarding the company, Consolidated Comms remained optimistic about the value of its shares in the near future.
According to a release, the company was still able to report positive revenue flow and a reduction in debt for the first quarter despite coming in below estimates.
"The first quarter included $4.8 million in transaction related expenses that, pursuant to our credit agreement, were added back as adjustments to EBITDA. Also, during the quarter, we reduced our debt by $2.2 million through our first quarterly amortization payment and contributed $1.9 million to the pension plan," said Steve Childers, Chief Financial Officer.