What Happened?

Shares of supply chain optimization software maker Manhattan Associates (NASDAQ:MANH) fell 10.8% in the afternoon session after the company announced that Eddie Capel, who joined in 2000, will retire as President and CEO. Eric Clark, currently CEO of NTT Data North America, will succeed him. Before leading NTT Data North America, Clark held leadership roles at ServiceNow, Dell, and Bank of America. Under Capel's leadership since 2013, when he became CEO, shares of MANH gained nearly 2,000%. However, recent quarters have brought challenges, and his departure introduces uncertainty as investors adjust to new leadership.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Manhattan Associates? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Manhattan Associates’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. Moves this big are rare for Manhattan Associates and indicate this news significantly impacted the market’s perception of the business. 

The previous big move we wrote about was 12 days ago when the stock dropped 25.6% on the news that the company reported weak fourth-quarter results: Its revenue guidance for next year suggests a significant slowdown in demand, and its full-year revenue guidance fell short of Wall Street's estimates. Moving down the income statement, full-year EPS guidance also came in below expectations. On the other hand, MANH beat EPS expectations on revenue, which came in slightly ahead of Wall Street's estimates. Overall, this was a weaker quarter, with the outlook weighing on shares.

Manhattan Associates is down 33.5% since the beginning of the year, and at $178.69 per share, it is trading 42.3% below its 52-week high of $309.78 from December 2024. Investors who bought $1,000 worth of Manhattan Associates’s shares 5 years ago would now be looking at an investment worth $2,276.

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