Why Have Shares of Artic Cat Plunged?

Artic Cat Inc. ACATannounced today that chairman and chief executive officer Claude Jordan has stepped down. Current board member and former Artic Cat CEO, Chris Twomey has been named as the interim CEO until a permanent replacement can be found. The street is reacting negatively to this news as shares of Artic Cat are down over 10 percent in today's trading. Twomey commented, "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. He Continued, "“We expect to record a charge in the fiscal 2015 first quarter to cover severance-related costs. Excluding the severance, we are maintaining our fiscal 2015 guidance." In light of this news CFO Tim Delmore has agree to delay his previously announce retirement until after the transition period. Following this news, analysts at Baird downgraded the company from Outperform to Neutral and lowered the price target from $42 to $35.