In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to end its winning streak. At the time of writing the benchmark index is down 1.4% to 5,383.6 points.
Four shares that have fallen more than most today are listed below. Here’s why they are sinking lower:
The Altium Limited (ASX: ALU) share price is down 4% to $35.32. This morning the electronic design software company warned that it could fall short of its aspirational goal of US$200 million in revenue in FY 2020. This is because economic and social impacts of the coronavirus lockdowns are likely to impact its performance in the final quarter of the financial year. Altium remains committed to achieving its 50,000-subscriber target for the full year.
The ELMO Software Ltd (ASX: ELO) share price is down 10% to $7.08. This morning the cloud-based human resources and payroll software provider successfully completed its fully underwritten $70 million institutional placement. ELMO raised the funds at $7.00 per new share, representing an 11.5% discount to its last closing price. The proceeds will primarily be used for organic growth initiatives and to fund acquisition opportunities. ELMO will now push ahead with its $20 million share purchase plan.
The Suncorp Group Ltd (ASX: SUN) share price has tumbled 5% lower to $8.79. The catalyst for this decline may have been a broker note out of Morgan Stanley. In response to its trading update, the broker has retained its underweight rating and cut the price target on its shares to $8.10. It notes that Suncorp is facing a number of headwinds right now.
The Webjet Limited (ASX: WEB) share price has fallen 7% to $3.25. Today’s decline appears to be down to profit taking after some sensational gains on Friday and Monday. Webjet and other travel shares zoomed higher in response to the government’s plan to reopen Australia.
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More reading
- Is the Webjet share price a buy right now?
- 3 ASX tech shares to buy now for long-term returns
- Altium share price on watch after warning of tough trading conditions
- Is it time to invest in shares or wait on the sidelines?
- In a post-COVID world, could Australia be the next superpower?
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Elmo Software. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia owns shares of Altium. The Motley Fool Australia has recommended Elmo Software. 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 Scott Phillips.
The post Why Altium, ELMO, Suncorp, & Webjet shares are sinking lower appeared first on Motley Fool Australia.
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