Shares of nVent Electric (NVT - Get Report) were falling Tuesday after the London-based electrical installation company announced that Stacy McMahan, chief financial officer and executive vice president, will step down effective Nov. 1.
She will be replaced by current senior vice president of finance and treasurer, Sara Zawoyski.
RBC called the change in leadership "unsettling" while downgrading the stock to sector perform from outperform. The firm also lowered the company's price target to $30 from $24.
"These changes are focused on accelerating our growth and the execution of our strategy," said CEO Beth Wozniak.
"It is hard not to assume negative implications from the CFO change," said RBC analyst Deane Dray. "Investors should be bracing for a choppy 3Q19 from nVent, especially given the negative inflection in the ISM."
The company also announced that Betty Noonan will take over as executive vice president and chief growth officer.
"I want to congratulate Sara and Betty on their new positions, and thank Stacy for her leadership and contributions to our successful first year as an independent public company."
nVent shares dropped 6.7% Tuesday to $20.56.