Why Hain Celestial Group Stock Dropped Over 15% in Morning Trading
Shares of Hain Celestial Group (NASDAQ: HAIN), a maker of organic and natural consumer-goods products, fell more than 15% in early trading on Jan. 18. The reason for the drop was a company news release outlining a CFO transition. Only that bit of the release probably wasn't what got investors so upset. In this case, the subtext matters.
Current CFO Javier Idrovo has announced his intention to leave Hain Celestial on Feb. 4 so he can pursue another opportunity. He will be replaced by Chris Bellairs, who has held leadership positions at a number of consumer-products companies in the past. His previous experience includes operating in the role of CFO. This news probably isn't material enough to result in a double-digit price decline but was conveniently used as the headline of the company's news release. The second bit of news, relegated to a third subhead in the release, was an update on the company's fiscal second-quarter 2022 results. This is most likely what spooked investors.
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Source Fool.com
