Why is the Transurban share price lagging the market today?

Investors don't seem to like Transurban's latest changes…

| More on:
Busy freeway and tollway at dusk

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It hasn't been a pleasant Tuesday for the S&P/ASX 200 Index (ASX: XJO) and many ASX 200 shares so far today. At the time of writing, the ASX 200 has fallen by 0.25%, down to around 7,730 points. But the Transurban Group (ASX: TCL) share price is faring even worse than that.

The ASX 200 toll roads stock closed at $12.75 a share yesterday afternoon. But this morning, Transurban shares opened at $12.72 before dropping a chunky 1.06% to the $12.62 the company is now commanding.

This drop comes after Transurban released an ASX update this morning before market open. This outlined a new "operating model" for its senior management. These changes have reportedly been made to "support the Group's strategic growth agenda".

ASX 200 stock announces management shakeup

Under the new model, four new executive roles are to be created. Those are Chief Commercial Officer, Group Executive Australian Markets, Group Executive Delivery and Risk, and Group Executive Corporate Affairs.

In exchange, the roles of Group Executive NSW, Group Executive Queensland and Group Executive Victoria will no longer exist at Transurban.

The Group Executive Delivery and Risk and Group Executive Corporate Affairs positions are yet to be filled, with an executive search now underway. However, the current Group Executive Delivery and Risk partner, Hugh Wehby, will be stepping into the Chief Commercial Officer position. Nicole Green, current acting Group Executive Victoria, is taking on the Group Executive Australian Markets role.

There will be no changes to Transurban's Chief Financial Officer, Group Executive People and Culture, Group Executive Customer and Technology, or President North America roles.

Transurban CEO Michelle Jablko said that the new model would help Tranurban "build on its strong foundation with further growth and a strong stakeholder focus". Here's some more of what she said in the statement:

I am delighted that Hugh Wehby, Group Executive Partners, Delivery and Risk has been appointed Chief
Commercial Officer, and Nicole Green, Acting Group Executive Victoria, has been appointed Group Executive Australian Markets…

There are significant opportunities ahead, but we need to evolve the way we grow. These changes to how we operate will help achieve that, by removing complexity and creating further simplicity and efficiency that will best position us going forward…

I would like to thank Sue Johnson and Michele Huey for the roles they have played in our growth over many years

Huey and Johnson are currently serving as Transuraban's Group Executive NSW and Group Executive Queensland, respectively.

Transurban share price snapshot

It seems investors aren't exactly welcoming this shakeup. That's judging by the reaction of the Transurban share price today.

Transurban shares have had a tough year. The toll road operator is now down 8.6% year to date in 2024 (including today's dip). As well as down 15.64% over the past 12 months. Check that all out for yourself below:

At the current Transurban share price, this ASX 200 stock has a trailing dividend yield of 4.86%.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Industrials Shares

Two colleagues at work looking at a tablet and smiling at a rising share price.
Industrials Shares

Why is this ASX 200 stock surging despite a $500 million writedown?

Investors are looking beyond this write-down and focusing on its strong underlying performance.

Read more »

Agricultural ASX share price on watch represented by farmer in field looking at tablet computer.
Earnings Results

Graincorp share price lifts off as dividend is maintained and debts plunge

ASX 200 investors are bidding up the Graincorp share price today. But why?

Read more »

falling down house signifying falling fletcher building share price
Industrials Shares

This ASX 200 stock just slashed its earnings guidance by 17%

In a housing crisis, how is this company now facing lower profits than previously expected?

Read more »

A businesswoman gets angry, shaking her fist at her computer.
Industrials Shares

Guess which ASX 200 stock just dived 8% on a profit downgrade

The second half hasn't started positively for this company.

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Industrials Shares

Why is this ASX 200 stock rocketing amid today's market sell-off

This stock is avoiding the sell-off today. But why?

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Industrials Shares

Why did this ASX 200 stock just dive 7%?

Investors have been hitting the sell button today. But why?

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Industrials Shares

APM shares collapse 30% as 'disappointing' bid lands in its lap

It hasn't been a good start to the week for owners of this stock.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Industrials Shares

Why is this ASX 200 share plunging 29% after a trading update?

This agribusiness company is starting the week deep in the red.

Read more »