: Silvergate Capital stock falls another 8.5%; JPMorgan downgrades company to neutral

Silvergate Capital Corp. SI stock shed an additional 8.5% in premarket trades on Friday, on top of a nearly 43% loss on Thursday after a warning from the company on its drop in deposits and a 40% headcount reduction. J.P.Morgan analysts downgraded Silvergate Capital to neutral from overweight and cut their price target on the stock to $14 from $33. Analysts noted that the company’s $4.7 billion reduction in average deposits from digital asset customers was “well above even the high-end of the range” under various stress scenarios. “While one could argue that the shares remain cheap on the surface, given the wildcards associated with the medium- as well as long-term impacts to the business, we see upside potential being fairly limited until the earnings power of the franchise is better understood,” J.P.Morgan analysts said Friday.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.