Why iRobot Stock Was Up 12% Last Month
Shares of autonomous vacuum cleaner company (NASDAQ: IRBT) were up 12.3% during May, according to data provided by S&P Global Market Intelligence. While that was enough to outpace the nearly 5% for the S 500, shareholders might still be disappointed with the final outcome of the month considering the stock was up more than 50% at one point.
It's hard to pinpoint the biggest factor that sent iRobot up more than 50% in early May but it was possibly the news of its new CEO. Earlier this year, founder and former CEO Colin Angle stepped down, noting that someone else was needed who knew how to turn around a business. On May 7, the company hired Gary Cohen as its new CEO.
iRobot needs a turnaround, and financial results for the first quarter of 2024, also released on May 7, illustrate some of the problems. The company's revenue fell 6% year over year and it had positive cash from operations of $1 million -- those numbers don't seem frightfully bad in isolation. But iRobot only had positive cash flow because it received $75 million from Amazon when its planned acquisition of the company fell through.
Source Fool.com
