Canaccord Financial Falls After Analyst Downgrade: Toronto Mover
Canaccord fell 6.4 percent to C$7.15 at 1:23 p.m. in Toronto. Earlier it touched C$7.02, the biggest intraday drop since Aug. 9. About 117,000 shares changed hands, 61 percent of the three-month daily average.
Phil Hardie, an analyst at Scotiabank Global Banking and Markets, downgraded the shares of Toronto-based Canaccord to sector perform, the equivalent of a hold. Hardie, the No. 1- ranked analyst on the stock according to the Bloomberg Absolute Return Rank, declined to immediately share the research report, citing company policy.
Canaccord will post results for its fiscal third quarter on Feb. 6. The brokerage posted its third straight quarterly loss in November as it absorbed costs from closing wealth-management offices as equity-trading volumes slumped.
Canaccord is expected to earn 15 cents a share in the third quarter, the average estimate of three analysts polled by Bloomberg. That compares to 1 cent a share in the previous period.
Scott Davidson, a Canaccord spokesman, declined to comment on the stock decline.