Mattel's stock dropped to its lowest level in nearly six years on Wednesday after the toy company announced CEO Ynon Kreiz would step down ahead of the holiday season.

Shares of Mattel fell 4.7% to $12.60, on pace for their lowest close since hitting $12.45 on Oct. 21, 2020, according to Dow Jones Market Data. The stock traded as low as $12.53 during the session, its lowest intraday level since Oct. 22, 2020.

Mattel said Kreiz will step down as chairman and CEO effective Oct. 2 to take a senior leadership position at another public company. It was not immediately clear what company Kreiz is joining.

Roger Lynch, Mattel's independent lead director and a board member since 2018, will be appointed chairman effective Oct. 2. He will succeed Kreiz as CEO effective on or before Nov. 2, Mattel said.

Kreiz has served as Mattel's CEO since April 2018. In a news release, Mattel credited Kreiz with transitioning the company as a toy manufacturer into "family entertainment," pointing to the expansion of its studio business and push into theatrical releases.

Under Kreiz, the toy company's stock has fallen 8.8%.

UBS analyst Arpine Kocharyan wrote Wednesday the announcement "adds a layer of uncertainty to an already skittish investor sentiment" as Mattel is pressured by "a tougher macro backdrop."

Kocharyan said Lynch, whom she referred to as a "toy and manufacturing industry outsider," has a track record that "positions him relatively well to lead Mattel's evolution" into a diversified entertainment company.

Lynch has served as Condé Nast's CEO since 2019 and previously served at Pandora, Sling, Video Networks International, and Chello Broadband.