Why is the ARB Corporation (ASX:ARB) share price sliding 9% today?

ARB shares are having a shocker of a day. We take a closer look…

The ARB Corporation Limited (ASX: ARB) share price is plummeting today after reaching a 52-week high last week.

At the time of writing, ARB shares are down 8.92%, swapping hands at $48.11 apiece. For comparison, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.36% to 7,420.5.

Let's take a look at what may be weighing on the four-wheel-drive accessories company's shares.

a man frustrated looking at the engine of his car

Image source: Getty Images

What's going on at ARB?

There's been no news out of the company since November. However, investors may be reacting to two new broker tips on the ARB share price released today.

Credit Suisse has downgraded its recommendation on the share price to underperform with a price target of $38 per share. That's 21% less than the ARB share price at the time of writing.

Meanwhile, the team at JP Morgan has upgraded its share price guidance to underweight today with a price target of $35. This is more than 27% lower than the current price.

In the list of analysts covering ARB provided by Bloomberg Intelligence, 40% have the company as a buy, 40% have it a sell, and 20% have it as a hold.

This comes after Wilsons gave the shares an overweight rating with a price target of $57 back in October.

Today's fall comes after the ARB share price hit a 52-week high of $54.53 last week on January 4.

Looking at the wider market, the S&P/ASX200 Consumer Discretionary Index (ASX: XDJ) is currently down 0.3%, while the S&P/ASX200 Consumer Staples Index (ASX: XSJ) is down 1.63%.

ARB share price snapshot

In the past 12 months, the ARB share price has soared by around 54%. The share price low during that time was $31.10 on 15 January 2021.

ARB shares are down 7.2% in the past week, and 6.7% in the past month.

ARB commands a market capitalisation of roughly $4.3 billion at the time of writing.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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