James River Group shares plunge over 20% on Wednesday, stock rating, price target revised down after company cancels auto insurance for Rasier LLC

James River Group Holdings Ltd (JRVR) said that it intended to cancel all insurance policies issued to Rasier LLC, Uber’s commercial auto business, and also JRVR’s most important customer. The announcement led to downward revisions of the stock’s rating and price target by at least two brokerage firms.

Shares of James River Group Holdings Ltd closed lower for a third consecutive trading session on NASDAQ on Wednesday. It has also been the steepest daily loss this stock ever recorded. The shares went down 22.60% ($11.06) to $37.88, after touching an intraday low at $36.42, or a price level not seen since January 15th ($36.32).

Shares of James River Group Holdings Ltd have risen 3.67% so far this year, following an 8.67% drop in 2018.

SunTrust Robinson Humphrey cut its rating on James River Group’s stock from “Buy” to “Hold” and slashed its 12-month price target from $55 to $40, as it cited “new assumptions regarding core profitability” and concerns over the company’s “future trajectory”.

At the same time, B. Riley FBR cut its rating on the stock from “Neutral” to “Sell” and lowered its price target from $45 to $40, while stressing that “concern around reserve adequacy is likely to remain an overhang on shares given the termination of the Uber relationship.”

Analyst stock price forecast and recommendation

According to CNN Money, the 5 analysts, offering 12-month forecasts regarding James River Group Holdings’ stock price, have a median target of $48.00, with a high estimate of $50.00 and a low estimate of $40.00. The median estimate represents a 26.72% upside compared to the closing price of $37.88 on October 9th.

The same media also reported that at least 4 out of 6 surveyed investment analysts had rated James River Group Holdings’ stock as “Hold”, while 1 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.