Chemours stock sinks following top executives' suspension
Shares of the Chemours Company (CC) are plunging on Thursday afternoon after the company suspended three top executives, including CEO Mark Newman. The chemical giant also delayed issuing its fourth quarter report for the second time this month.
Yahoo Finance Anchors Josh Lipton and Julie Hyman break down the questions these developments raise for investors.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Nicholas Jacobino
Video Transcript
JOSH LIPTON: All right, let's end here on another stock that is down big today for sure. Shares of Chemours Company sinking after the company suspended three top executives, including the CEO Mark Newman. Company put off reporting its fourth quarter results for the second time this month. So this stock is getting hammered today and for good reason.
So titanium dioxide maker CEO, CFO placed on leave, Julie. Sounds like this is due to an accounting concerns per reports. So now the company is saying, OK, we're going to delay reporting our Q4 results again, second time this month.
JULIE HYMAN: Yeah, and the first delay raised some eyebrows, but this now raising even more. The chief accounting officer, by the way, also one of those who is taking a leave of absence here. And not only does it seem to be a delay here and some questions about accounting, it also has to do with reports into the company's ethics hotline.
And so that's also why you're seeing such a dramatic reaction in the shares because investors are saying, well, what does that mean? It raises a lot of questions about what exactly is being examined here. So that's something that we're going to presumably continue to dig into and get information about.
The audited results, by the way, not expected to come for 15 days according to Chemours. So you know, I think watch this space. This is definitely a developing story.
JOSH LIPTON: And analysts, by the way, are pulling out their red pencils and making changes. BMO, for instance, double downgrades to underperform. That's not a move you often see too often. And with this move today, by the way, that stock is down about 40% already this year.
