NEW YORK (TheStreet) -- Arctic Cat (ACAT) stock is moving lower Monday after the surprise announcement of its CEO's exit. In a statement, the company said Claude Jordan would step down as chairman and CEO, effective immediately. Former CEO and current board member Chris Twomey has been named as interim CEO.
"Claude and the board have mutually decided this is the right time, however, for new executive leadership at the company. It makes sense to set up the leadership team that will take the company forward to a successful future, as we enter a new fiscal year," Twomey said in the statement.
By late afternoon, shares had plummeted 9.1% to $33.90.
TheStreet Ratings team rates ARCTIC CAT INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ARCTIC CAT INC (ACAT) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins."