Nestle (NSRGY) stock slipped on Tuesday after the CEO of the candy and coffee company was fired over an inappropriate relationship. Nestle CEO Laurent Freixe was dismissed from the company without an exit package over an undisclosed romantic relationship with a direct subordinate. This was in violation of the company’s Code of Business Conduct.
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Nestle’s Chairman Paul Bulcke and Lead Independent Director Pablo Isla conducted an investigation into Freixe with the help of outside counsel. Bulcke noted that the ousting of Freixe “was a necessary decision” and that “values and governance are strong foundations of our company.” He also thanked Freixe for his years of service at the company.
Alongside the departure of Freixe, Nestle also announced the appointment of Philipp Navratil as the company’s new CEO. Navratil brings with him over 20 years of experience at Nestle, having joined the company in 2001 as an internal auditor. He most recently joined the company’s board at the start of the year.
Nestle Stock Movement Today
Nestle stock was down 0.4% on Tuesday, but remained up 17.09% year-to-date. Even so, traders will note that NSRGY stock has fallen 12.24% over the past 12 months. Nestle’s fall has come during a tough year for international companies, largely due to inflation, tariffs, and other economic factors.
Today’s trading volume was muted, as some 105,000 shares changed hands, compared to a three-month daily average of about 665,000 units.
Is Nestle Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Nestle is Hold, based on one Hold rating over the past three months. With that comes an average NSRGY stock price target of $104.70, representing a potential 11.66% upside for the shares.
