Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of executive search firm Heidrick & Struggles (NASDAQ:HSII) fell 17% today after announcing a CEO transition.
So what: CEO L. Kevin Kelly is stepping down as CEO, and Jory Marino will step in on an interim basis while the company searches for a new CEO. Management also said it won't continue to pursue a sale of its business, which is likely the biggest thing weighing on shares today.
Now what: It was only a little over a month ago that management said Heidrick & Struggles may be for sale, so the quick turnaround caught investors by surprise. It's also never a good sign when your leadership goes through big changes, although Kelly is going to stay with the company at a lower level. With shares trading at 20 times forward earnings, and uncertainty for the company going forward, I don't see this as a buy sign right now.
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