Last Call: Nautilus plunges after downgrade

Analyst Rommel Dionisio downgraded the stock to "Hold" from "Buy." He maintained his price target of $6.

Nautilus is more sensitive to rising freight costs and raw materials prices than other companies selling discretionary items because of its use of metal and its need to ship large, heavy equipment, Dionisio said in a note.

Customer spending has also dipped due to the tightening credit market.

The company's new CEO has said he will unveil a restructuring program during his second-quarter earnings call, which analysts believe will include staff cuts and other cost-saving initiatives.

But given a recent upturn in the stock, Dionisio said he believes much of the expected savings have already been priced into the stock.

The Vancouver, Wash.-based company is scheduled to report second-quarter results after the market closes on July 31.

Shares fell 96 cents, or 15.8 percent, to $5.11 Monday. Over the past year, the stock has traded in a range of $3 to $10.41.