Why is the Bapcor share price racing ahead of the ASX 200 on Thursday?

The Bapcor Ltd (ASX: BAP) share price is marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) auto parts company closed yesterday trading for $5.64. In earlier trade, shares were swapping hands for $5.95 apiece, up 5.5%.

The Bapcor share price has since retraced to $5.73, leaving the stock up 1.6% at time of writing.

That’s a good bit better than the 1% losses posted by the ASX 200 at this same time.

The benchmark index is following US markets lower after Fed chair Jerome Powell dashed investor hopes of a March interest rate cut from the central bank. (See the full story here.)

Here’s why the Bapcor share price looks to be shaking off those macro concerns today.

What did the ASX 200 auto parts company announce?

Investors are bidding up the Bapcor share price after the company announced the appointment of a new CEO and managing director.

Current CEO and managing director, Noel Meehan, will exit his position at the end of this week. Meehan, Bapcor’s CEO since December 2021, was said to be leaving for personal and family reasons.

Paul Dumbrell will take over the reins as CEO and managing director on 1 May.

Meehan will stay on during the transitional period to provide strategic support and facilitate an orderly leadership transition.

Bapcor non-executive director Mark Bernhard, who has more than 30 years of experience in the automotive industry in senior executive roles, will step in as interim CEO and managing director.

ASX 200 investors could be bidding up the Bapcor share price on news that sales at Total Tools almost doubled during the five years that Dumbrell served as the company’s CEO.

Commenting on his appointment to the top job, Dumbrell said:

After leaving Total Tools I had planned to take an extended break, but the opportunity to work alongside the Bapcor team is an exciting opportunity and I am very much looking forward to working with the leadership team and board to drive shareholder value.

I have a long history with Bapcor, and I look forward to seeing the full potential of the broader group realised into the future alongside the exceptional teams within the business.

Current chair, Margie Haseltine also said she would not seek re-election to the board at the 2024 AGM.

“We are focused on ensuring that Bapcor has the right executive team to drive profitable growth and the right board to give strategic oversight to the company,” she said.

Bapcor share price snapshot

After a big slide in October, the Bapcor share price remains down 11% over the past 12 months.

Shares in the ASX 200 auto parts company are up 8% since 24 January.

The post Why is the Bapcor share price racing ahead of the ASX 200 on Thursday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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