Why the Whispir (ASX:WSP) share price is sinking today

The Whispir Ltd (ASX:WSP) share price is sinking on Wednesday after announcing the resignation of its CFO less than one year after joining…

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The Whispir Ltd (ASX: WSP) share price is under pressure on Wednesday.

In afternoon trade, the communications workflow platform provider's shares are down 3% to $3.42.

This compares to gains of 0.6% by the S&P/ASX 200 Index (ASX: XJO) and 0.8% by the  S&P/ASX All Technology Index (ASX: XTX).

A stock market chart on a red background with an arrow going down, indicating a falling share price.

Image source: Getty Images

Why is the Whispir share price sinking?

Today's decline appears to have been driven by an announcement released by Whispir this afternoon.

According to the release, the company's Chief Financial Officer, Justin Owen, has handed in its resignation less than a year after joining the company.

Mr Owen intends to remain in the role until the middle of August and will oversee the completion of the company's FY 2021 full year results. He will also ensure a smooth transition to his successor.

In the meantime, Whispir advised that it has initiated a global executive search for a new Chief Financial Officer. It will announce a replacement following the completion of this process.

The company notes that Justin Owen joined Whispir as Chief Financial Officer in June 2020 and oversaw the company's global finance function during the initial phases of COVID-19 impacts.

Over this time, he has supported the company in a number of equity events. This includes the recent $45 million capital raising and the streamlining and strengthening of its core financial capabilities.

Whispir's CEO, Mr Jeromy Wells, said: "We thank Justin for the contribution he has made to Whispir and its growth as a leading ASX technology company, placing it in a strong position to capitalise on its future growth plans. We wish him well with his future endeavours."

Is this a buying opportunity?

One broker that might see the weakness in the Whispir share price as a buying opportunity is Ord Minnett.

Last month the broker put a buy rating and $4.25 price target on the company's shares. This price target implies potential upside of 24% over the next 12 months.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Whispir Ltd. The Motley Fool Australia has recommended Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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