iRobot Stock: Can a New CEO Lead the Turnaround?

iRobot gets a new CEO with turnaround experience

On May 7, iRobot announced that Gary Cohen would be coming on as the company's new chief executive officer, effective immediately, to help steer its turnaround. With 25 years of experience, including dealing with turnarounds, Cohen has experience helping multiple businesses improve their sales and profits through cost-cutting initiatives, corporate restructuring, and product innovations.

The company faces a tough road ahead

At a time when consumers are facing higher inflation and there's potentially a recession on the horizon, it won't be easy for iRobot to get on the right track. Its high-priced robots may find it hard to do well with more competition in the market, and people may be less likely to spend as much as they have in the past.

Is iRobot's stock cheap enough?

Shares of iRobot are trading at just 0.3 times sales and only 1.5 times book value. These are at far lower levels than what the stock has averaged in the past. It has come off its 52-week lows, but it's still down 78% from its 52-week high of $51.49.

Should investors take a chance on iRobot stock?

iRobot has turned into a speculative investment, and it's only suitable for investors with a high risk tolerance. At the very least, waiting to see how the new CEO performs and monitoring the turnaround progress would be prudent before considering an investment.