Shares of Pier 1 Imports Inc. slumped 7% in active morning trade toward a four-month closing low, after the home-goods retailer reported disappointing fiscal first-quarter results and provided a downbeat outlook. Volume reached 4.2 million shares within the first hour of trade, compared with the full-day average of about 2.6 million shares. Credit Suisse analyst Seth Sigman kept his rating at neutral but trimmed his stock price target to $4.50, which is 11% below current levels, from $5. "The key investment consideration is whether [Pier 1] can effectively strike a balance between sales and margins, in an environment where demand seems to be moderating and competition increasing," Sigman wrote in a note to clients. The stock, on track to close at the lowest level since Feb. 29, has tumbled 27% over the past three months, while the S&P 500 has gained 0.4%.
Copyright © 2016 MarketWatch, Inc.