Shares of Qunar Cayman Islands Ltd (NASDAQ:QUNR) are down big in morning trading after the company just announced significant changes to both its board of directors and management team.
The changes are effective today, and they see Qunar Cayman Islands Ltd (NASDAQ:QUNR) Executive Vice President and Head of Mobile Business Group, Mr. Zhenyu Chen taking over as the company’s CEO. Also appointed as the new COO is Xiaolu Zhu, who had previously been the company’s Senior Director of Strategy and Investor Relations. This move means that co-founder Chenchao Zhuang will no longer be the CEO nor a director. Also removed from management was Ms. Yilu Zhao who will no longer be the company’s CFO. They will both become senior advisors.
Qunar Cayman Islands Ltd (NASDAQ:QUNR) also named a new Board of Directors, consisting of five members.
“I am immensely grateful to many people who have collectively created and grown Qunar into the success it is today,” said Mr. Zhuang. “I want to thank our employees for giving Qunar their passion, drive and ingenuity. I want to thank our shareholders, in both private and public markets, for their strong conviction in us. I want to thank our board of directors, some of whom have accompanied us from the beginning, for guiding us throughout our journey of innovation. I wish the very best for the cooperation between Ctrip and Qunar, and believe that the potential for the two companies will be tremendous.”
Investors apparently do not like this change, as the stock is down in morning trading. The stock is down 12.70% or $6.7 following the news, hitting $46.04 per share. Approximately 710,401 shares traded hands. QUNR shares have risen 19.62% since May 29, 2015 and are currently uptrending. It has outperformed the S&P500 by 21.74%.
From a total of 7 analysts covering Qunar Cayman Islands Limited (NASDAQ:QUNR) stock, 3 rate it a “Buy”, 2 a “Sell”, and 2 a “Hold”. This means that 43% of the ratings are positive. The highest target price is $51 while the lowest target price is $36. The mean of all analyst targets is $44 which is -4.43% below today’s ($46.04) stock price. Qunar Cayman Islands Limited was the topic of 8 analyst reports since August 25, 2015 according to the firm StockzIntelligence Inc. Stifel Nicolaus downgraded shares on October 30 to a “Hold” rating. CLSA downgraded QUNR stock in a recent report from October 27 to a “Sell” rating. Finally, Summit Research maintained the stock with a “Hold” rating in a report they issued on an August 25.
Qunar Cayman Islands Limited is engaged in offering mobile and online commerce platform for travel in China. The company has a market cap of $6.56 billion. The Firm offers a range of travel products, including flights, hotels, vacations packages, attraction tickets and other travel related offerings. It currently has negative earnings. The Firm has developed Qunar Travel, its mobile application, which enables its users to search for and purchase travel products.