Why is the Tabcorp share price diving 6% on Wednesday?

The Tabcorp Holdings Limited (ASX: TAH) share price is one of the worst performers on the S&P/ASX 200 Index (ASX: XJO) on Wednesday.

But at least part of its tumble can be easily explained. The stock is trading ex-dividend today.

At the time of writing, the Tabcorp share price is trading at 94.5 cents, 6.44% lower than its previous close.

For context, the ASX 200 is down 0.25% right now while the company’s home sector – the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) – has lifted 0.04%.

So, what else might be weighing on the gambling and entertainment services provider’s stock today? Let’s take a look.

What’s weighing on the Tabcorp share price today?

The Tabcorp share price is underperforming majorly on Wednesday as the company trades ex-dividend.

That means new investors have missed out on their chance to receive the company’s 6.5 cent, fully franked final dividend, declared last week.

Generally, a company’s share price falls relatively in line with the value of its upcoming dividend when they pass its ex-dividend date.

And indeed, the Tabcorp share price has dumped 6.5 cents at the time of writing.

However, there is one more happening that might be dragging on the stock today.

Bookmaker Pointsbet Holdings Ltd (ASX: PBH) is struggling on the market today after releasing its financial year 2022 earnings this morning.

The Pointsbet share price is down 10% right now, making it today’s worst-performing ASX 200 stock.

Of course, as both companies work in the betting and entertainment space, Pointsbet’s poor performance may be dinting sentiment for Tabcorp shares.

Today’s tumble included, the Tabcorp share price is 6% lower than it was at the start of 2022 and 4% higher than it was this time last year. That’s adjusting for the spin-out of the company’s lotteries and Keno business into the Lottery Corporation Ltd (ASX: TLC).

Meanwhile, the ASX 200 has fallen 8% year to date and 7% over the last 12 months.

The post Why is the Tabcorp share price diving 6% on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 ASX 200 shares turning ex-dividend on Wednesday
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Tabcorp share price rises 5% as management focuses on ‘pursuing growth’

Motley Fool contributor Brooke Cooper 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 Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. 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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