Why DroneShield, WiseTech and Judo shares are leading the ASX 200 lower this week

With just a few hours of trade left before Friday’s closing bell, the S&P/ASX 200 Index (ASX: XJO) is down 0.7% for the week, with DroneShield Ltd (ASX: DRO), WiseTech Global Ltd (ASX: WTC) and Judo Capital Holdings Ltd (ASX: JDO) shares all falling far harder.

Here’s why investors have been bidding down the ASX 200 heavyweights this week.

Judo shares plunge on profit downgrade

Judo shares are down 2.2% in intraday trade today, changing hands for 90 cents apiece. That sees shares in the ASX 200 challenger bank down a sharp 39.9% since last Friday’s close.

All of those losses can be pinned to Thursday’s decidedly underwhelming market update.

Judo shares closed down a precipitous 40.4% yesterday after the bank increased it forecast full year FY 2026 cost of risk to between $116 million and $122 million.

And investors were overheating their sell buttons after Judo downgraded is FY 2026 profit before tax guidance to be between $163 million and $169 million. While that still represents year on year profit growth of around 30%, the revised guidance was down from prior FY 2026 profit expectations of between $180 million and $190 million.

Commenting on the downgrade, Judo Bank CEO Chris Bayliss said:

We continue to see strong underlying momentum in the business. Recent credit outcomes have been driven by a small number of customers, who we are actively working with.

DroneShield shares losing altitude

DroneShield shares also had a week to forget, though not nearly so bad a Judo shares.

Shares in the ASX 200 drone defence company are down 4.8% at time of writing, trading for $2.30 each. That sees the DroneShield share price down 16.4% since last Friday’s close.

There was no market sensitive news out this week to explain the sharp decline. Though the company did announce the appointment of retired Rear Admiral Lee Goddard as an independent non-executive director.

But investors may have been favouring their sell buttons amid expectations that the peace deal in the Middle East could impact future demand for drone defence systems.

Which brings us to…

WiseTech shares sink on new White allegations

Joining DroneShield and Judo shares on the decline this week is WiseTech.

Shares in the ASX 200 logistics software solutions company are down 1.7% at time of writing, trading for $30.85 apiece. That sees the WiseTech share price down 16.4% for the week.

WiseTech shares plunged 18.4% on Monday following concerning new media reports involving founder and executive chairman Richard White.

Investors were heading for exit following news that the Australian Federal Police are investigating White over allegedly exploiting a female employee’s immigration status and financial position and providing false information on a visa application.

The post Why DroneShield, WiseTech and Judo shares are leading the ASX 200 lower this week appeared first on The Motley Fool Australia.

More reading

• Why 4DMedical, Centuria Capital, Judo Capital, and Worley shares are dropping today
• What on earth’s going on with Judo Capital shares?
• 8 ASX 200 shares with reaffirmed buy recommendations this week
• Down almost 75%, are WiseTech shares really cheap?
• Is DroneShield the ASX growth share investors should be buying?

Motley Fool contributor Bernd Struben 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 DroneShield and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.