Case Study: New CEO sparks rebound

LevelFields alerts users to the hiring of a new CEO at struggling NTNX. Scenario data trends suggest a rebound over the long-term, and short-term pops under certain conditions. A position entered on the event day at $21 would have enabled a one-day exit at +30%. Investors holding for 3 to 6 months would have enjoyed 30% to 50% returns.

When a CEO departs, the event can be either positive or negative for the stock price. It really depends on the financial situation of the company and the maturity of the company. Large, established companies that day to day make few changes to their business models can change CEOs and be just fine. If tomorrow, the CEO of Visa left, the company would still be there to swipe credit cards globally.

For companies that are not performing well, the departure of the CEO can be a celebrated event as it ushers in new hope for the company's financial future. It's important to be able to filter for a company's financials when searching for news events like CEO departures. LevelFields not only enables this, but the AI will then search for companies that match the criteria and display analytics showing you how events impact prices based on the financials.

You can also filter for the size of the company, as that is highly correlated to the age of the company. The company's market cap is an indication of its maturity. Younger companies have smaller market caps and are more heavily reliant on the direction and vision of the CEO. If the CEO leaves a smaller, high performing company, investors often flee the stock, sending the share price down.

For a company like NTNX, the departure of the CEO was a welcomed event as the company was struggling. Investors bought in on optimism the new CEO would be better and usher in a new era of prosperity for investors.

You can set your alerts to look for opportunities like this event. LevelFields will automatically send you an alert and show you how past events affected similar companies. This makes it easier to decide whether to trade the event or invest in the company.

Following these steps will save time, see across the entire ocean of companies and company events, and help you move faster than the vast majority of the market.


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