Rust-Oleum Group’s new CEO
According to RPM International (RPM), Edward J. Voorhees III, Rust-Oleum North America’s president, replaced Thomas E. Reed as Rust-Oleum Group’s CEO on March 1, 2018. Voorhees will be involved in the company’s strategic and tactical direction at the global level.
Voorhees has been part of Rust-Oleum for more than 35 years. He served as Rust-Oleum’s president for 12 years and made long-term strategy and building business foundations. Rust-Oleum is one of the well-known brands in the “do-it-yourself” and professionals segments for primers, paints, cleaners, coatings, and woodcare.
Frank C. Sullivan, RPM’s chairman and CEO, said, “At RPM, we place great emphasis on succession planning for our group and operating company leaders, and anticipate a smooth and seamless transition over the coming weeks. Tom has helped turn Rust-Oleum into one of our best-known consumer brands and Ed is well suited to continue to lead the business and drive its growth.”
Update on RPM’s stock price
RPM stock declined 1.50% and closed at $49.55 for the week ending March 2, 2018. The decline was mainly due to the broader market’s overall decline. The weakness in RPM stock continued. RPM stock traded 4.70% below the 100-day moving average price of $52.00. On a year-to-date basis, RPM has declined 5.90%. However, analysts expect RPM’s target price to be $57.30, which implies a return potential of 15.6% from the closing price as of March 2, 2018.
RPM’s 14-day relative strength index of 44 indicates that the stock isn’t overbought or oversold. Investors can hold RPM indirectly by investing in the iShares U.S. Basic Materials ETF (IYM). IYM has invested 1.0% of its holdings in RPM International. IYM also has exposure to Praxair (PX), Air Products and Chemicals (APD), and LyondellBasell (LYB) with weights of 6.20%, 5.10%, and 5.0%, respectively, as of March 2.