Entain Shares Down 34%, CEO Resigns

Entain shares (LON:ENT) saw a drop of more than 10% in trading yesterday following the unexpected resignation of CEO Gavin Isaacs. The departure comes after Isaacs spent just five months in the role, stepping down by mutual agreement. This abrupt leadership change has raised concerns among investors regarding the company's strategic direction during a crucial turnaround period.

The share price has been under pressure in the past 12 months, having lost 34.59% in the period. 2025 had looked to be setting off in better shape, however yesterday's decline has moved the stock back into red territory on the YTD (-4.26%).

Taking a look at the 1 year chart, and a reversal from the August low to December delivered an upside of more 60%, but when zooming out to the 5 year, the downside trend that began back in 2021 becomes more evident.

Stella David, the non-executive Chair of Entain, will assume the role of interim CEO as the company navigates this transition. Analysts from both Barclays and Morgan Stanley have voiced worries about how Isaacs' exit might affect investor sentiment, particularly since Isaacs was anticipated to present a strategic vision during the FY24 results, a move now postponed.

Despite the leadership shake-up, Entain stands by its projection that the FY24 EBITDA will hit the upper end of its £1,040-1,090m guidance range. The company is focused on reducing its leverage and addressing constraints in cash flow following a fine from HMRC. While facing challenges, Morgan Stanley suggests that Entain's valuation could offer some level of stock support.