NEW YORK (TheStreet) -- Shares of Boulder Brands Inc. (BDBD) are slumping by 22.02% to $6.93 on heavy volume in late afternoon trading on Wednesday, after the consumer packaged foods company announced CEO Stephen Hughes has resigned effective immediately and guided below expectations for the 2015 second quarter.

Boulder Brands has placed COO James Leighton in the position of interim CEO as they search for a replacement for Hughes.

"The board believes now is the time for new leadership at Boulder Brands. This change, along with the evolving dynamics of our industry, gives us confidence that we are well-positioned to leverage customer and consumer desires for authentic and scalable natural brands to deliver sustainable results and generate meaningful value creation," Boulder said in a statement.

Additionally, the company issued guidance for its 2015 second quarter. On a non-GAAP basis Boulder is expecting flat earnings to an income of 2 cents per share. Analysts have forecast for earnings of 4 cents per share.

Boulder's sales guidance for the 2015 second quarter is in a range between $122 million and $124 million. Analysts are anticipating second quarter sales of $135.98 million.

Insight From TheStreet Research Team:

TheStreet's David Peltier, Portfolio manager of Stocks Under $10 commented on Boulder Brands in a post today on Here is what Peltier had to say:

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Boulder Brands had maintained its annual guidance as recently as May 7, so what changed and are shares worth buying down here since we have a sizable cash position in the Stocks Under $10 portfolio? Is this a potential turnaround story, or not?

One of Jim Cramer's core investment tenets is not to buy a stock in the first year of a new CEO's tenure. I'm going to take that one step further and say you certainly don't want to step in and try to buy Boulder, where the previous CEO left on a sour note. It will likely take a few months to find a permanent replacement, the core Smart Balance brand is not performing well and the steam has come out of the expected growth of its gluten-free brands.

The company is no longer a growth story and even though the stock has fallen 36% so far this year, at north of 20x expected full-year earnings, it isn't cheap enough yet to attract value investors.

-David Peltier 'Results, CEO's Exit Rattle Boulder Brands' Originally Published on June 10, 2015 on Real Money.

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Separately, TheStreet Ratings team rates BOULDER BRANDS INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate BOULDER BRANDS INC (BDBD) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, generally disappointing historical performance in the stock itself and generally high debt management risk."

You can view the full analysis from the report here: BDBD Ratings Report