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Auctioneer of used industrial equipment hammered by stock downgrade

A Caterpillar wheel loader gets its tires kicked at a California auction

Shares of Ritchie Bros. Auctioneers Inc. slumped 5% Tuesday, as analysts highlighted a series of headwinds facing the company after its strong share-price performance of the past few years.

Ritchie Bros. RBA, -5.69% specializes in auctions of used industrial equipment, such as the diggers and dozers used in construction, agriculture and mining. Its website reveals a healthy lineup of auctions of tractors, trucks and hydraulic excavators that are scheduled for the coming months.

Last week, the company completed its final auction of the year, and revealed gross auction proceeds of $4.3 billion for 2016, lagging analyst estimates. Raymond James downgraded the stock to market perform from outperform on the news, and lowered its stock price target to $35 from $42, which is slightly above today’s price of $34 and change.

“We maintain a generally positive view of the long-term outlook for the IronPlanet (IP) acquisition and the whole multi-channel strategy, but we are formally taking a pause on this stock in light of mounting near-term...