Shares of ArcSight, Inc. (ARST) dropped 14 percent to $17.51 intraday on Wednesday, posting the biggest decline in the Russell 2000 Index after the developer of computer security software was downgraded by Needham & Co. analyst Scott Zeller.
According to Zeller, the company — considered as the most scalable solution in the SIEM market — faces a number of factors which could slow growth, in particular increased competition and “scalability/sales infrastructure/partnership challenges.”
ArcSight was downgraded to ‘Hold’ from ‘Buy’.
ARST is down $1.63, or 7.84%, to $19.17 rtq (real time quotes) at 12:36 E.T. in Nasdaq composite trading.