What happened
Charlotte's Web Holdings (CWBHF -3.23%) stock had a Tuesday to forget. The cannabidiol (CBD) products specialist saw its shares close the day more than 4% lower, despite the fact that it effected not one but two C-suite transitions.
So what
The upper managerial ranks at Charlotte's Web will look quite different in the very near future. Tuesday morning, the company announced that it had appointed a new CFO and COO, both of whom are internal hires.
Image source: Getty Images.
The former is Lindsey Jensen, an executive who has been with Charlotte's Web since 2019 -- a relatively long tenure for the still-young company. Most recently, she had served as its vice president of finance, sales, and operations. Previous to her time at Charlotte's Web, she served in executive positions throughout the consumer packaged-goods industry at companies such as WhiteWave Foods (now known as Danone North America).
Appointment No. 2 is that of Jared Stanley, who takes the reins of COO. Stanley is not only a veteran of the company; he is also a co-founder.
Now what
The stock sell-off after the announcement crossed the wires was counter-intuitive. Investors are often pleased when a company promotes from within, as this can indicate that the rising-through-the-ranks executives believe in the business' mission and potential. In Jensen's case particularly, she is not only a Charlotte's Web veteran but also a seasoned executive who's spent years in the corporate trenches.
It's possible that shareholders are hungrier for news that indicates Charlotte's Web is advancing on other fronts besides executive appointments, though. The cannabis industry that the company is lumped in with is notoriously unprofitable, and Charlotte's Web hasn't really been successful in bucking this trend -- the company continues to burn through cash, and it's consistently posted net losses of late.
