Celsius Holdings Inc. (NASDAQ:CELH) stock surged Friday after Rockstar Energy founder Russ Savage disclosed a 4.7% activist stake.
Savage told CNBC he controls over 12 million in company stock, worth approximately $300 million at current market levels.
Executive Ouster Demanded
Savage, who founded Rockstar in 2001 and sold it to PepsiCo Inc. in 2020 for over $4 billion, urged leadership changes following the second-quarter earnings report. "The CEO, the COO, the brand manager and the marketing manager all need to be fired," Savage told CNBC.
Celsius Company Statement
Celsius addressed Savage’s comments in an official statement Friday. "We welcome ideas that are potentially value-creating from all Celsius Holdings shareholders," a company spokesperson said in a statement.
"We remain focused on executing our total energy portfolio strategy to drive durable, long-term growth. Members of our Board and management team have engaged with Russ Savage many times over the past several years."
Analyst Price Forecasts
Wall Street analysts adjusted their price forecast for the stock on Friday, with Piper Sandler maintaining an Overweight rating while lowering its price forecast to $36 and Needham maintaining a Buy rating while reducing its price forecast to $35.
Recent Earnings
The announcement follows Thursday’s second-quarter report, where Celsius reported revenue of $817.9 million, below the $870.027 million estimate. Adjusted diluted EPS fell to 36 cents, missing the 42-cent forecast. CELH stock fell 15.92% on Thursday to $24.51 following the results.
Celsius Price Action
CELH Price Action: Celsius Holdings shares were up 11.72% at $26.55 at the time of publication on Friday, according to Benzinga Pro data.
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