Celsius Downgraded by Deutsche Bank, Shares Fall Over 5% in Pre-Market

Celsius Holdings Inc. shares moved lower in early trading Thursday, interrupting a rebound that had lasted several weeks. The decline followed a rating downgrade by Wall Street investment bank Deutsche Bank.

Here's what investors need to know.

Celsius Holdings stock is under pressure today. What is dragging down CELH shares?

Deutsche Bank Downgrade Triggers Pre-Market Selling Pressure

The main catalyst for Thursday's decline was a downgrade by Deutsche Bank, which lowered its rating on Celsius Holdings from "Buy" to "Hold."

The bank noted that execution headwinds have persisted since the company's second-quarter earnings report released on August 6. Celsius reported quarterly revenue of $817.9 million, with sales of its flagship brand falling 11.7% year-over-year.

Recent Institutional Inflows and Management Changes Face Test

The pullback interrupted a recent rally that had been fueled by a regulatory filing on August 13 showing Ranger Investment Management L.P. had established a new position of 465,470 shares, as well as a management restructuring announced on August 10 that promoted Tyler Bohannon to Chief Commercial Officer.

Thursday's downgrade highlights that despite contributions from newly integrated brands such as Alani Nu and Rockstar Energy to the product portfolio, investors may remain cautious about the core brand's growth trajectory and inventory rebalancing in the second half of the year.

CELH Shares Decline Thursday Morning

CELH share price movement: Pre-market trading data on Thursday showed Celsius Holdings shares down 5.22% at $33.38.