The S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a modest gain. In afternoon trade, the benchmark index is up 0.1% to 7,546.1 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:
ELMO Software Ltd (ASX: ELO)
The ELMO share price is down 5.5% to $5.08 following the release of its full year results. For the 12 months ended 30 June, ELMO reported a 52.1% increase in annualised recurring revenue (ARR) to $83.8 million. This was driven by a combination of organic growth and the benefits of acquisitions. However, investors may have been disappointed with an increase in its churn levels. Though, it is worth noting that this was driven by COVID-19 impacts on some customers. Management is forecasting strong ARR growth again in FY 2022.
Flight Centre Travel Group Ltd (ASX: FLT)
The Flight Centre share price is down 3% to $14.80. The weakness in this travel agent’s shares appears to have been driven by a broker note out of Macquarie this morning. According to the note, the broker has downgraded Flight Centre’s shares to a neutral rating and cut the price target on them by 11% to $15.50.
Northern Star Resources Ltd (ASX: NST)
The Northern Star share price has fallen 5% to $9.46. Investors have been selling this gold miner’s shares following a sizeable pullback in the gold price on Friday following the release of strong US jobs data. It isn’t just Northern Star that is under pressure. The S&P/ASX All Ordinaries Gold index is down 4% this afternoon.
Regis Healthcare Ltd (ASX: REG)
The Regis Healthcare share price has sunk 7.5% to $1.94. Investors have been selling the aged care operator’s shares after it revealed that it has identified potential employee underpayments. The company notes that these payment shortfalls have arisen because some employee entitlements due under various enterprise agreements were recorded inaccurately in the payroll system. It estimates that the underpayments could total $30 million to $40 million.
The post Why ELMO, Flight Centre, Northern Star, & Regis shares are dropping appeared first on The Motley Fool Australia.
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- Regis Healthcare (ASX:REG) share price dives 8% on potential $40m underpayment
- Why is the Flight Centre (ASX:FLT) share price slipping 2% today?
- ELMO (ASX:ELO) share price on watch after full-year result
- These are the 10 most shorted ASX shares
- 5 things to watch on the ASX 200 on Monday
Motley Fool contributor 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 has recommended Elmo Software. The Motley Fool Australia owns shares of and has recommended Elmo Software. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. 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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