Britt Reynolds, former president and CEO of Medical Facilities Corp., left the company and stepped down as a board member earlier in June. Investors weighed in on how the departure could impact MFC shares, according to Argus Leader.
Here are five highlights:
1. A company spokesperson did not give reason for Mr. Reynolds's departure.
2. Following the news, the company's shares fell by more than 5 percent.
3. Argus Leader reports MFC's shares have trended lower since April after health systems announced plans to open orthopedic-focused hospitals, which will increase competition in Sioux Falls, S.D. MFC owns a 51 percent controlling interest in Sioux Falls Specialty Hospital.
4. For every ownership unit a physician has in Sioux Falls Specialty Hospital, the value is falling by $8,000 a unit.
5. Canaccord Genuity analysts said Mr. Reynolds' exit may serve to the stock's detriment. In an advisory where Canaccord Genuity lowered its MFC recommendation, the company wrote, "We believe this is unfortunate timing, as MFC has recently struggled with operating margin headwinds. If the CEO departure relates to performance, we believe that the company could be in for several bumpy quarters."