Shares of Molina Healthcare (MOH) - Get Reportclosed Tuesday after the company announced that it parted ways with its CEO J. Mario Molina and CFO John Molina after the firm's recent "disappointing financial performance."
Molina closed at $59.75 per share on Tuesday, up about 18% from market open.
Molina's chief accounting officer Joseph White will assume the role as interim president and CEO, while it searches for a permanent replacement. White will also take over as CFO. The changes are effective immediately.
Both Molina brothers, whose father founded the firm, will continue to serve as directors on the company's board, according to the company.
"The board has determined to change leadership in order to drive profitability through operational improvements," Molina Chairman Dale B. Wolf said.
Analysts at healthcare-focused brokerage Leerink Partners view the shakeup in management as "a positive change in MOH that will drive more consistent execution, margin expansion, and EPS Achievability and increases the potential of take-out."