Shares of AngioDynamics (ANGO +4.84%) were sinking 13.1% as of 11:02 a.m. ET. The sell-off came after the medical technology company announced its third-quarter results before the market open.
Those results were actually quite good. AngioDynamics reported Q3 revenue of $79.4 million, up 8.8% year-over-year on a pro forma basis and higher than the consensus Wall Street estimate of $76.4 million. The company posted an adjusted loss of $59,000, which amounted to roughly $0.00 per share. Analysts expected an adjusted net loss of $0.10 per share.
So why did this medical device stock sell off so heavily? Probably because AngioDynamics announced the unexpected retirement of CEO Jim Clemmer.
NASDAQ: ANGO
Key Data Points
Investors dislike uncertainty
Clemmer has led AngioDynamics since 2016. In a statement released in the company's Q3 press release, he said, "After ten years at AngioDynamics, I feel ready to move on to the next chapter of my life."
His decision to retire surprised investors – and, seemingly, AngioDynamics' board of directors as well. The board didn't have a successor already lined up. Instead, it has formed a search committee to "conduct a comprehensive search" for the next CEO, with assistance from an executive search firm.
Investors dislike uncertainty. Clemmer's departure creates uncertainty for AngioDynamics.
Image source: Getty Images.
Buy on the dip?
However, Clemmer doesn't seem to be abandoning ship because he's concerned that it's sinking. He will continue to lead the company until his replacement is found.
Also, aside from the news about Clemmer, things appear to be looking up for AngioDynamics. The company increased its net sales and adjusted EBITDA guidance for fiscal year 2026. It recently received U.S. Food and Drug Administration (FDA) clearance for a modified AlphaVac F1885 System and two FDA Investigational Device Exemption (IDE) approvals.
Should investors buy this stock on the dip? I think the sell-off is overdone. However, other stocks offer more attractive risk-reward propositions, in my view.
