What Happened?

Shares of vehicle systems manufacturer Commercial Vehicle Group (NASDAQ:CVGI) fell 23.2% in the pre-market session after the company reported weak third-quarter earnings. Revenue declined significantly year on year due to what management considered a global softening in customer demand. As a result, the company provided underwhelming outlook as its full-year revenue and EBITDA guidance fell short of Wall Street's estimates. Overall, this quarter could have been better.

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What The Market Is Telling Us

Commercial Vehicle Group’s shares are very volatile and have had 26 moves greater than 5% over the last year. But moves this big are rare even for Commercial Vehicle Group and indicate this news significantly impacted the market’s perception of the business.

Commercial Vehicle Group is down 65.2% since the beginning of the year, and at $2.40 per share, it is trading 66.8% below its 52-week high of $7.21 from December 2023. Investors who bought $1,000 worth of Commercial Vehicle Group’s shares 5 years ago would now be looking at an investment worth $317.22.

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