FSLY - Why Lumber Liquidators Holdings Progressive and Fastly Slumped Today
Friday was relatively quiet on Wall Street, with most major benchmark indexes finishing the day close to where they started it. Market participants seemed reasonably comfortable with the immediate prospects for the market amid rising expectations about the likelihood of a resolution to the U.S.-China trade dispute. Moreover, the Federal Reserve appears likely to give the economy another boost this month. Yet some stocks lost significant ground Friday due to company-specific factors. Lumber Liquidators Holdings (NYSE: LL), Progressive (NYSE: PGR), and Fastly (NYSE: FSLY) were among the worst performers. Here's why they did so poorly.
Shares of Lumber Liquidators Holdings lost more than 13% as investors evaluated the diminishing chances that it would get taken private. Earlier this month, shareholders in the flooring specialist got excited when founder Thomas Sullivan said he was looking at possibly doing a leveraged buyout of the company. However, Lumber Liquidators share price climbed significantly in the days that followed, and Sullivan said Friday that they had risen too high for him to contemplate a buyout. The stock finished the day close to where it started the month, at the lower end of the trading range in which it has been mired for close to five years.
Image source: Lumber Liquidators.