Beaten-up ASX 200 stock jumps 14% on CEO resignation

Healius Ltd (ASX: HLS) shares are storming higher on Tuesday morning.

In early trade, the beaten-up ASX 200 stock is up 14% to $1.28.

Why is this ASX 200 stock jumping?

Investors have been buying the healthcare company’s shares this morning after it announced the exit of its CEO, Maxine Jaquet.

According to the release, Jaquet has left Healius with immediate effect and has been replaced by its chief financial officer, Paul Anderson.

While a company’s shares will often come under significant pressure when a CEO leaves abruptly, it seems that the market is cheering on this exit on this occasion. After all, since Ms Jaquet was elevated to the CEO role in March 2023, the ASX 200 stock had lost over half of its value.

It’s possible the market believes a change of leadership was needed to get the company back on the right path.

Strategic review

In other news, the company has announced that it will now commence a wide-ranging strategic review of its structure and assets.

It will engage investment banking advisors to help undertake the review alongside management and the Board of Healius.

The company’s new CEO, Paul Anderson, will lead the strategic review, which is aimed at maximising shareholder value in a changing diagnostics market. It will be undertaken in conjunction with the ongoing Pathology Transformation Reset Program.

Healius’ interim chair, Ms Kate McKenzie, believes Anderson is the right person to lead to review. She said:

Paul is an experienced business leader with an extensive background in industries facing significant disruption. He has strong credentials to lead the strategic review of Healius and we are pleased he has agreed to take on the CEO role as we plan and execute this next stage for our business.

The post Beaten-up ASX 200 stock jumps 14% on CEO resignation appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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