NEW YORK (TheStreet) -- Shares of Vectrus (VEC) - Get Report were plunging 44.73% to $15.27 on heavy trading volume late Friday afternoon after the company's contract proposal was rejected by the U.S. Army.
The Colorado Springs-based company applied to offer comprehensive support services to the U.S. Army facilities in Kuwait.
Vectrus was the incumbent contractor providing the services under the Kuwait Base Operations and Security Support Services contract which runs through Dec. 28, the company said in a statement.
Vectrus is reviewing the Army's decision and will determine its impact as additional information is provided.
The company provides various logistics and supply chain management services to the U.S. government.
More than 2.33 million of the company's shares have changed hands so far today vs. its average volume of 111,148 shares per day.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
The team rates Vectrus as a Hold with a ratings score of C. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, it also finds weaknesses including weak operating cash flow and poor profit margins.
You can view the full analysis from the report here: VEC