Why Evolution Mining, REA Group, Sigma Healthcare, and TechnologyOne shares are tumbling today

The S&P/ASX 200 Index (ASX: XJO) is back on form and pushing higher. At the time of writing, the benchmark index is up almost 0.5% to 8,644.9 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is down almost 3% to $10.99. Investors have been selling its shares after the gold price pulled back again overnight. Traders were selling gold ahead of the release of US inflation data. There are concerns that inflation could be running hot and that interest rate hikes may be necessary.

REA Group Ltd (ASX: REA)

The REA Group share price is down almost 3% to $148.39. This appears to have been driven by a second broker downgrade in as many days. After Bell Potter downgraded the property listings company’s shares to a sell rating (from buy) yesterday, UBS has followed suit and cut its recommendation to neutral from buy with a reduced price target of $165 (from $213). The broker has concerns that recent property tax changes could weigh on listing volumes in the near term.

Sigma Healthcare Ltd (ASX: SIG)

The Sigma Healthcare share price is down over 4% to $2.79. This follows news that the Chemist Warehouse owner is in preliminary talks to buy UK retail chain Boots. It said: “Sigma Healthcare Limited (Sigma) refers to the recent media speculation regarding the sale process of The Boots Group (Boots). Sigma continuously reviews opportunities that would create value for shareholders and has engaged in preliminary discussions in relation to the sale process. There is no certainty that any transaction will eventuate.” It seems that some investors are not keen on the ambitious move.

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price is down 1.5% to $32.03. The catalyst for this may have been a broker note out of Bell Potter. It has downgraded the enterprise software provider’s shares to a hold rating (from buy) with an improved price target of $34.25 (from $32.25). Bell Potter said: “Our updated TP of $34.25 is <15% premium to the share price so we downgrade our recommendation to HOLD. We now see the stock as reasonable value on FY26 and FY27 PE ratios of 66x and 55x respectively. We do see Technology One as one of if not the best quality large cap SaaS company on the ASX but we note it is already trading at almost double the FY26 and FY27 PE ratios of WiseTech (ASX: WTC) on 35x and 28x.”

The post Why Evolution Mining, REA Group, Sigma Healthcare, and TechnologyOne shares are tumbling today appeared first on The Motley Fool Australia.

More reading

• Guess which ASX 200 tech stock just got hit with a broker downgrade
• 5 things to watch on the ASX 200 on Wednesday
• 3 high-quality Australian shares I’d buy with $10,000
• Why Aeris Resources, Northern Star, REA Group, and Weebit Nano shares are falling today
• Why are ASX 200 tech stocks like WiseTech, Life360 and Xero shares getting hammered on Tuesday?

Motley Fool contributor James Mickleboro has positions in REA Group, Technology One, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.