What Happened?
Shares of socially responsible bank Amalgamated Financial (NASDAQ: AMAL) fell 5.8% in the afternoon session after an analyst at Piper Sandler downgraded the stock to “Underweight” from “Neutral,” citing potential political and regulatory pressures. The investment firm also slashed its price target to $27 from $34.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Amalgamated Financial? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Amalgamated Financial’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Amalgamated Financial is down 17.2% since the beginning of the year, and at $27.47 per share, it is trading 28% below its 52-week high of $38.13 from November 2024. Investors who bought $1,000 worth of Amalgamated Financial’s shares 5 years ago would now be looking at an investment worth $2,370.
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