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'New CEO, old issues': Wolverine stock selloff continues after 3 analyst rating cuts

Published 11/08/2023, 11:14 pm
© Reuters.

At least 3 Wall Street analysts lowered their ratings on Wolverine World Wide (NYSE:WWW) in response to the company’s Q2 results and management change.

Wolverine shares fell 25.7% on Thursday after the company slashed its full-year guidance, citing revenue deceleration. Additionally, the company announced that its Board of Directors has appointed Christopher Hufnagel, President of Wolverine, as President, Chief Executive Officer, and a member of the Board of Directors, effective immediately.

“We have little confidence that WWW will achieve the planned 12% operating margin in FY24, given the current weakness in its wholesale & DTC segments,” said Williams Trading analysts in a downgrade note.

They cut the rating to Hold from Buy with a price target nearly halved to $12 per share.

Similarly, Seaport Research analysts said they lost confidence in WWW, hence the downgrade to Neutral.

“All told, we have lots of questions, and questions don’t instill confidence,” the analysts wrote in a note.

BNP Exane analysts also cut the stock’s rating.

Ultimately, WWW shares trade a further 3% lower on Friday.

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