In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing the benchmark index is up 0.95% to 5,890.8 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:
The Austal Limited (ASX: ASB) share price is down 2.5% to $3.44. Investors have been selling the shipbuilder’s shares after it announced the retirement of its CEO. The company’s Chief Operating Officer, Patrick Gregg, will take over from the retiring David Singleton on 1 January 2021. Mr Singleton will continue to work closely with Mr Gregg for the next six months to ensure an efficient handover.
The Evolution Mining Ltd (ASX: EVN) share price has fallen 6.5% to $5.83. This morning analysts at UBS downgraded the gold miner’s shares to a neutral rating from buy. The broker made the move on valuation grounds after its shares surged past its price target of $5.50. Weakness in the gold price is also weighing on its shares.
The Newcrest Mining Limited (ASX: NCM) share price is down 3% to $29.87. Investors have been selling Newcrest and other gold miners after the price of the precious metal weakened overnight. Investors were moving out of safe haven assets and into risk assets amid optimism over the reopening of the U.S. economy. The S&P/ASX All Ordinaries Gold index is down 4.8% at the time of writing.
The Pro Medicus Limited (ASX: PME) share price has dropped 4% to $27.25. The healthcare imaging software provider’s shares have come under pressure since the release of a broker note out of UBS on Tuesday. It downgraded its shares to a neutral rating with a $29.65 price target. While the broker likes Pro Medicus and was pleased with its latest contract win, it isn’t a fan of its current valuation.
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As of 2/6/2020
More reading
- ASX 200 up 1%: Big four banks jump, Afterpay hits record high
- 5 things to watch on the ASX 200 on Wednesday
- Why Evolution, Iress, Pro Medicus, & Vicinity shares are dropping lower
- Is the Newcrest Mining share price a buy?
- Here are all the ASX 200 companies that announced capital raisings in May
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 Austal Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. 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.
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