Endava CFO Placed on Leave Amid Accounting Probe; ADRs Tumble 14%
DAVA is trading near its 52-week low of $2.55 (5.1% below the low).
Summary
Endava's CFO Mark Thurston has been placed on administrative leave pending an investigation into accounting treatment of certain customer and supplier agreements. The audit committee recommended the leave, and Conor McShane of AlixPartners has been appointed interim CFO. ADRs slid 14% to $2.39 in premarket trading Tuesday, extending a 56% year-to-date decline. This follows yesterday's initial report of the CFO leave; today's headline adds the market's sharp negative reaction and confirms the investigation's scope. The accounting concerns raise the risk of restatements or control weaknesses, which could further pressure the stock. Watch for updates from the independent counsel's investigation and any impact on upcoming financial filings.
At the time of this announcement, DAVA was trading at $2.42 on NYSE in the Technology sector, with a market capitalization of approximately $156.8M. The 52-week trading range was $2.55 to $9.88. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.