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Hardware & electrical equipment

Logitech shares sink on news of CEO departure, Citi downgrade

Logitech International SA (USA) (NASDAQ:LOGI) shares fell sharply in early trade after the company announced that president and CEO Bracken Darrell was leaving the company to “pursue another opportunity,” effective immediately.

The company’s US-listed shares traded 12% down at $56.58 by mid-morning.

In a statement, the Swiss multinational manufacturer of computer peripherals and software said board member Guy Gecht will become interim CEO while a global search of internal and external candidates is conducted. Darrell will remain with the company over the coming month to ensure a seamless transition, it added.

“As an experienced CEO, and member of Logitech’s board since 2019, Guy has a deep understanding of Logitech and its strategy, and is well-placed as interim CEO to oversee the continued execution of the company’s strategy,” commented Logitech chairperson Wendy Becker.

“We thank Bracken for his leadership during an exciting era of transformation at Logitech. Over his ten years as CEO, Bracken oversaw a period of consistent growth and helped to transform Logitech into an award-winning design company known for its unparalleled product innovation.”

Meanwhile, CNBC reported that Citi downgraded the stock to ‘Neutral’ from ‘Buy,’ saying the company needs to provide more clarity about its long-term plans after the leadership change.

Contact the author at stephen.gunnion@proactiveinvestors.com

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