Why the Costa share price tumbled lower again today

The Costa Group Holdings Ltd (ASX:CGC) share price dropped lower on Monday after announcing the resignation of its CFO…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Costa Group Holdings Ltd (ASX: CGC) share price has been on the move on Monday morning.

After initially sliding 2% lower in early trade, the horticulture company's shares are now flat at $2.44.

Why is the Costa share price on the move?

Investors were selling the embattled company's shares this morning after it announced the exit of one of its executives.

According to an announcement, Costa's chief financial officer, Linda Kow, has announced her resignation from the role.

Ms Kow intends to step down from the role on May 1 2020 after almost a decade with the company.

Costa's CEO, Harry Debney, said: "Linda has been with the business through various iterations, including family ownership, private equity and public ownership. During this time, Linda has played a major role in helping to transform and build the Costa business and establish its current growth trajectory.

"On behalf of the Board and Executive, I want to thank Linda for her contribution to the company. I wish her all the very best in her future career endeavours," said Mr Debney.

Mr Debney also advised that a recruitment process for a new chief financial officer will commence in the near future.

A series of downgrades.

No reason was given for the resignation of Ms Kow. But it certainly hasn't been an easy 12 months for the chief financial officer.

Over the last 12 months Costa has downgraded its earnings guidance no less than four times. This has weighed heavily on the Costa's share price in 2019, leading to a 12-month decline of 63%.

The most recent downgrade was for its calendar year 2019 guidance. This has been revised to an adjusted net profit of just $28 million, compared to its previous guidance of $57 million to $66 million.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Fallers

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why EOS, Humm, Pantoro Gold, and Robex shares are dropping today

These shares are having a tough time on hump day. But why?

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why Endeavour, GQG Partners, Kingsgate, and Super Retail shares are dropping today

These shares are having a poor session on Tuesday. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why 4DMedical, DroneShield, Super Retail, and Tamboran shares are falling today

These shares are having a tough start to the week. But why?

Read more »

a business man in a suit holds his hand over his eyes as he bows his head in a defeated post suggesting regret and remorse.
Share Fallers

Why Core Lithium, Paladin Energy, Pro Medicus, and Rio Tinto shares are dropping today

These shares are ending the week in the red. But why?

Read more »

Bored man sitting at his desk with his laptop.
Share Fallers

Why Ansell, Elsight, Ramelius, and SGH shares are falling today

These shares are missing out on the market's move higher on Thursday.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Bellevue Gold, Harvey Norman, Karoon Energy, and Westpac shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why Andean Silver, CBA, Life360, and Silex shares are dropping today

These shares are out of form on Tuesday. But why?

Read more »

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

Why 4DMedical, Coronado Global, Metallium, and WiseTech Global shares are falling today

These shares are starting the week in the red. But why?

Read more »