Shares of Deckers Outdoor, the maker of Ugg boots, dropped more than 7 percent on Monday after Marcato Capital Management exited their stake in the company.
Marcato held an 8.5 percent stake in Deckers Outdoor as of Jan. 19, according to a 13D filing. The activist fund's exit comes after its board nominees were not elected in December so it appears to be moving on and that is not making some shareholders happy.
The stock was up more than 21 percent prior to Monday's drop and hit a 52-week high last week.
Deckers' shares also fell after a downgrade from Pivotal Research. Analyst Mitch Kummetz lowered his rating on Deckers to hold from buy and trimmed the price target to $108 from $122.
"The company will be lapping some tough numbers in FY19, and history tells us that this stock is not best owned following a good winter season," Kummetz said in a note.