Gerresheimer’s stock plummets amid CEO exit and accounting woes
Gerresheimer is grappling with a tumultuous period as its share price hovers near a 15-year low. The company has weathered leadership changes, accounting issues, and mounting scepticism from investors. Despite these hurdles, expansion plans indicate confidence in future growth.
In October, CEO Dietmar Siemssen unexpectedly departed. Interim CEO Uwe Röhrhoff now helms Gerresheimer while a permanent replacement is sought. The sudden exit further fueled investor concerns.
An external audit later uncovered a €3 million revenue overstatement in 2024. The issue stemmed from 'bill-and-hold' accounting practices, raising questions about financial transparency.
Hedge funds have taken note, with five major institutions now holding substantial short positions. Numeric Investors leads with 2.30% of outstanding shares, followed by Arrowstreet Capital at 2.03%. Two Sigma Advisers also boosted its short stake to 0.60% on December 1.
Technical indicators suggest the stock is heavily oversold, with an RSI of 17.7. While there are signs of a minor rally, the price remains well below its 200-day moving average. Analysts remain divided, with an average target of €34.60, though some still recommend 'Hold' or 'Sell'.
Despite the struggles, Gerresheimer announced plans to expand its second plant in Skopje, North Macedonia. The move signals a long-term commitment to growth, even as the stock trades at a 2026 P/E ratio of 14.6—a level some consider fundamentally attractive.
Gerresheimer’s share price has yet to rebound from its recent lows, weighed down by accounting concerns and leadership uncertainty. The company’s expansion in North Macedonia hints at future optimism, but investor confidence remains shaky. With hedge funds increasing short positions, the path to recovery may still be uncertain.
