In late morning trade the S&P/ASX 200 Index (ASX: XJO) has recovered from its poor start and is edging ever so slightly higher. At the time of writing, the benchmark index is up slightly to 6,677.8 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:
G8 Education Ltd (ASX: GEM)
The G8 Education share price is down 5% to $1.22 following the release of a trading update. Although the childcare centre operator has experienced an increase in its occupancy, it is still down year on year. In addition to this, while G8 Education has delivered wage efficiencies, the decline in its occupancy means that its wage hours per booking metric is currently higher than the prior corresponding period.
Metcash Limited (ASX: MTS)
The Metcash share price is down almost 3% to $3.45. This appears to have been driven by a broker note out of UBS this morning. Although the broker was pleased with its better than expected first half profit, it doesn’t see enough upside in its shares at this level to maintain its buy rating. It has downgraded Metcash to a neutral rating with a $3.75 price target.
Woodside Petroleum Limited (ASX: WPL)
The Woodside share price is down over 1% to $22.89. This morning the energy producer announced the surprise retirement of its Chief Executive Officer, Peter Coleman, after 10 years at the helm. Mr Coleman advised that he believes this is the right time to retire and transition leadership. Woodside has commenced an internal and external search for the company’s next CEO.
Zip Co Ltd (ASX: Z1P)
The Zip share price has fallen 3% to $5.27. This decline may have been triggered by a broker note out of Ord Minnett this morning. The broker continues to see solid growth ahead for the company, particularly given lockdowns in the United States, and has held firm with its accumulate rating. However, it has trimmed its price target by 3% to $6.50.
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Returns as of 6th October 2020
More reading
- G8 Education (ASX:GEM) share price on watch after trading update
- 5 things to watch on the ASX 200 on Tuesday
- ASX 200 rises on Monday
- Here’s why the Beach Energy (ASX:BPT) share price is up more than 50% over the past month
- ASX 200 up 0.7%: Metcash impresses, BHP & Fortescue storm higher, Xero given buy rating
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 ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Why G8 Education, Metcash, Woodside, & Zip shares are dropping lower appeared first on The Motley Fool Australia.
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