Shares of Regal Rexnord (RRX) tumbled 5.08% during intraday trading, as the company announced the initiation of a search for a new Chief Executive Officer. The unexpected leadership change has sparked investor concerns about the company's future direction and stability.

According to the announcement, current CEO Louis Pinkham will continue in his role until a successor is appointed, at which point he will also resign from the Board of Directors. The Board has engaged an executive search firm to identify the next CEO, signaling a significant transition period for the company.

Adding to the downward pressure, Jefferies cut its target price for Regal Rexnord to $170 from $175. This adjustment in valuation, combined with the uncertainty surrounding the leadership change, has likely contributed to the sharp decline in the stock price. Investors appear to be reassessing their positions in light of these developments, leading to the significant sell-off in Regal Rexnord shares.