Shares of WCI Communities Inc., a Florida home builder whose chairman is billionaire Carl Icahn, fell to the lowest level in almost four months after brokerage Raymond James cut its rating and said the company might have to file for bankruptcy protection.
WCI tumbled 22 cents, or 8.4%, to $2.40 on Thursday, the lowest since Jan. 11. The shares touched $2.10 during trading.
"We believe bankruptcy risk is now a likely potential outcome," Raymond James analyst Paul Puryear wrote in a report. "In our view, time is not on WCI's side and the clock is ticking loudly."