Insight Communications Co. stock was down 15 cents each (1.3%) to $11.47 per
share in 4 p.m. trading on Monday, the first full day after it announced that
president and chief operating officer Kim Kelly would step down in November.
The stock had been down as much as 3% (54 cents per share to $11.08), but
rallied later in the day.
While investors appeared to take Kelly's resignation in stride, analysts said
her leadership will be missed but shouldn't have a negative long-term effect on
Insight's stock price.
'Her talents will be missed,' said Stifel Nicolaus & Co. cable analyst
'That said, [Insight CEO] Michael Willner also has an operating
background. He is also very familiar with these properties and all reporting
responsibilities flow directly up to Michael in the interim. There are some very
good operating cable people available in the marketplace. It came as a little
bit of a surprise to me, but in the cable business, one executive does not make
Insight said in a statement that Kelly's reports would report directly to
Willner in the interim.
The company is considering internal and external candidates to replace Kelly.
Insight ran into a little bit of trouble in the second quarter, losing about
13,000 subscribers which it attributed to seasonality as college students left
school and transients moved to their summer residences.
But most analysts believed that Kelly's departure had more to do with
personal reasons rather than any operational issues at the company.
In a statement late Friday, Kelly said the reason for her departure was to
pursue other opportunities.
'Maybe she just decided it was time to move on, that she wasn't having the
time of her life and she just decided she wanted to do something else,' said
Janco Partners Inc. analyst Matt Harrigan.