Dense-Pac Stock Falls as Rating Is Lowered

Dense-Pac Microsystems Inc. stock slumped Tuesday in heavy trading after an analyst downgraded the Garden Grove company’s shares from “strong buy” to “buy.”

The shares fell 23%, or $3.50, to $11.94 in heavy trading on the Nasdaq market. Nearly 3 million shares changed hands, compared with average daily volume of 633,433 shares over the last three months. Despite the decline, the stock’s value has increased fivefold over the last 12 months.

The analyst who lowered the rating, Eric Gomberg at Thomas Weisel Partners, said he still expects the stock to reach $18 within six months.

Dense-Pac makes high-density memory systems.