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Domain Holdings Australia Ltd shares crushed on shock CEO resignation

One of the worst performers on the local market on Monday has been the Domain Holdings Australia Ltd (ASX: DHG) share price.

At the time of writing the property listings company’s shares are down 12% to an all-time low of $2.92.

What happened?

This morning Domain, which was spun off from Fairfax Media Limited (ASX: FXJ) in November, announced the resignation of its chief executive officer.

According to the release, Antony Catalano has tendered his resignation due to family commitments.

Chairman Nick Falloon stated that: “Antony informed the Board that over the Christmas break he had realised that the demands of his role and his absence from the lives of his family were proving more challenging than he had expected and he had decided to put his family first.”

A global search for a new CEO has commenced, but in the interim Mr Falloon will act as Executive Chairman. The company’s senior leadership team will report to him to ensure the continuing implementation of Domain’s strategy.

As well as this bombshell, the company took the opportunity to update the market on its trading, advising that it expects to report digital revenue growth of 22% against the same period last year and total revenue growth of 13%. This was in line with the guidance given in September.

Should you buy the dip?

I’m still undecided on Domain and industry peer REA Group Limited (ASX: REA) due to Australia’s cooling housing market.

Though, admittedly, Domain does look a lot more attractive after this sizeable decline.

However, for now I plan to sit tight and wait until it releases its half-year results on February 19 before making an investment. At that point investors will be able to decide whether Domain’s shares are trading at a a fair price for its growth rate.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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