Kforce (KFRC) shares plummeted 5% in pre-market trading on Wednesday following a significant target price cut by UBS. The investment bank reduced its price target for Kforce from $40 to $34.5, sparking a sell-off among investors.

A target price reduction by a major financial institution like UBS often signals decreased confidence in a company's near-term growth prospects or overall valuation. This adjustment can lead investors to reassess their positions, potentially triggering a wave of selling as market participants align their expectations with the new outlook.

The pre-market drop highlights the immediate impact of analyst actions on stock prices. As the regular trading session approaches, market participants will be closely watching to see if Kforce can recover from this early setback or if the downward pressure will persist throughout the day.