Helios Tech falls after placing CEO on leave pending investigation

Helios Technologies

09/07/2024 13:04

(Updates, adds KeyBanc commentary)
    ** Helios Technologies'  HLIO.N  shares down 6% premarket
volume to $43.56, over four-month low, after board puts CEO on
leave
    ** Engineered motion control and electronic controls tech co
late Mon said placed CEO Josef Matosevic on paid leave effective
July 1 while it conducts investigation into allegations of
potential violation of its code of business conduct and ethics
    ** Sarasota, Fla-based firm appointed Sean Bagan as interim
president and CEO in addition to his CFO role
    ** Matosevic's alleged conduct is not related to, and does
not impact, co's strategy or financial reporting, Helios said
    ** KeyBanc analyst team led by Jeffrey Hammond downgraded
HLIO to "sector weight" from "overweight"
    ** Uncertainty around future leadership is "an overhang that
is difficult to ignore", KeyBanc said, especially as co shifts
from a component to systems provider alongside less predictable
short-cycle backdrop, including softening in agriculture and
construction sectors
    ** HLIO shares, which had fallen past three sessions, are up
2% YTD through Mon. Stock was trading around $65 a year ago

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))