Shares of Regal Rexnord Corporation (RRX) plunged 5.08% during intraday trading on Friday, as investors reacted to the company's announcement of a CEO succession search and a price target cut by a major investment bank.

In a surprise move, Regal Rexnord revealed that it has initiated a search for a new Chief Executive Officer. The company stated that current CEO Louis Pinkham will continue in his role until a successor is appointed, after which he will also step down from the Board of Directors. The unexpected news of the leadership transition appears to have sparked uncertainty among investors, contributing to the sharp decline in the stock price.

Adding to the downward pressure, Jefferies, a prominent investment bank, reduced its price target for Regal Rexnord from $175 to $170. While the reasons for the target price reduction were not immediately clear, such moves by analysts often influence investor sentiment. The combination of the CEO succession announcement and the lowered price target seems to have created a perfect storm, resulting in the significant drop in Regal Rexnord's stock value during the trading session.