Benzinga - Shares of heavily shorted Silvergate Capital Corp (NYSE: SI) are plunging Thursday after the company delayed the filing of its Form 10-K with the SEC.
What Happened: Silvergate has notified the SEC that it's unable to file its annual report for 2022 because it requires additional time to perform analysis, record journal entries related to subsequent events and to complete management’s evaluation of internal controls over financial reporting.
Additionally, Silvergate said it needs time to allow its independent registered public accounting firm to complete certain audit procedures.
"The Company is currently analyzing certain regulatory and other inquiries and investigations that are pending," the regulatory filing states.
Silvergate said it's working diligently to file as soon as possible, but does not expect to be in a position to file by the extension date of March 16.
Silvergate is a provider of various financial infrastructure solutions and services. Its customers include U.S. exchanges and global investors in the digital currency industry.
Following the news, Canaccord Genuity analyst Joseph Vafi downgraded Silvergate from Buy to Hold and lowered the price target from $25 to $9. JPMorgan analyst Steven Alexopoulos also downgraded the stock from Neutral to Underweight.
Silvergate is one of the most heavily shorted U.S. stocks. S3 Partners estimates that short interest has climbed to 82%, per Reuters.
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SI Price Action: Silvergate shares are making new 52-week lows on Thursday.
The stock was down 42.9% at $7.73 at time of publication, according to Benzinga Pro.
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