Leap Gets Hammered After Downgrade, 1Q Loss

Here’s the power of news. Today, Leap Wireless International (LEAP) got downgraded to a hold by Citi. If that wasn’t enough, it was also cut from the company’s “Top Picks Live” listing. Analysts cite a lack in material catalysts and the 27% increase in share price this year. It’s been given it a target around $20.

It was expected as the company posted a loss of 90 cents per share, which is 30% off of conservative expectations. While revenue increased, Leap’s operating costs shot up as well. Share holders were all too eager to dump Leap today. The stock got hammered by $2.52 per share, which is a 15% loss. Given that it’s a Friday, the selloff might be (emphasis on “might be”) premature and we might see an uptick come Monday’s trading session.

As of this writing, Leap is trading at $14.26. It has a 52-week high of $42.47 and 52-week low of $11.98. It’s certainly within striking range of its 52-week low.