Air Products Stock Rises After Mantle Ridge’s Boardroom Victory, CEO Loses Seat: Retail Sentiment Turns Bullish

Shares of Air Products and Chemicals Inc. (APD) rose nearly 2% during mid-day trading on Thursday after activist investor Mantle Ridge secured three out of the four board seats it sought, marking a significant shift in the company’s leadership and strategic direction.

At the annual investor meeting, shareholders voted to elect Mantle Ridge nominees Paul Hilal, Dennis Reilley, and Andrew Evans to Air Products’ board. 

The results signal growing support for Mantle Ridge’s push to overhaul the company’s leadership and growth strategy. 

Current CEO Seifi Ghasemi lost his seat on the board but remains in his role as CEO for the time being.

Mantle Ridge, which owns approximately $1.3 billion worth of Air Products shares, has been critical of the company’s spending under Ghasemi and its approach to succession planning. 

Air Products and Chemicals Inc. Sentiment and Message Volume on Jan.23 as of 2:15 p.m. ET | Source: Stocktwits

On Stocktwits, retail sentiment improved to ‘bullish’ from ‘neutral’ six months ago. Message volume also increased to ‘high’ from ‘normal’ levels. 

Ahead of the vote, Air Products outlined a succession plan, committing to appointing a new president by March 31 and transitioning to a new CEO within three months thereafter. 

Mantle Ridge, however, has called for more aggressive changes, including reallocating capital and scaling back on what it describes as risky mega-projects, particularly in the clean hydrogen space.

The activist investor had proposed Eduardo Menezes, a former executive at Linde Plc, as Ghasemi’s replacement and Reilley as the new chairman. Air Products has publicly criticized these candidates, deeming them unqualified.

Wells Fargo has maintained its ‘Overweight’ rating on Air Products stock, with a price target of $425, representing a potential 31% upside. 

According to the brokerage, the leadership shake-up could steer the company toward a more traditional industrial gas growth model while reducing risks associated with large-scale projects.

Air Products’s shareholders on Thursday also voted to elect Tonit Calaway, Lisa Davis, Jessica Trocchi Graziano, Bhavesh Patel, Wayne Smith and Alfred Stern to the company’s board.

“We appreciate the engagement and dialogue we have had with all our shareholders throughout this process and reiterate our commitment to delivering meaningful, long-term value,” Air Products said in a statement.

APD’s stock has gained over 22% in the last year, with gains of nearly 14% this year so far. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.<

Read also: Arm Holdings Stock Pulls Back After Best Day In A Year: Retail Confidence Unshaken Amid Musk’s Stargate Concerns