In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to extend its positive run with another solid gain. At the time of writing the benchmark index is up 1.3% to 5,686.7 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:
The Fortescue Metals Group Limited (ASX: FMG) share price is down 1.5% to $13.63. Investors have been selling the iron ore producer’s shares on Tuesday after Chinese iron ore prices dropped lower overnight. Traders may have been taking profit after some stellar gains by the steel-making ingredient over the last few weeks.
The Freedom Foods Group Ltd (ASX: FNP) share price has continued its slide and is down 1.5% to $4.22. The diversified food company’s shares have fallen hard over the last few months. This could be due to concerns over the premium its shares trade at. One broker that believes it deserves the premium is Goldman Sachs. It is forecasting exceptionally strong earnings growth over the coming years and has a buy rating and $6.55 price target on its shares.
The Pushpay Holdings Ltd (ASX: PPH) share price is down 1.5% to $6.55. This decline appears to have been driven by profit taking after the donation platform provider’s shares rocketed higher over the last few months. Pushpay’s shares are up almost 70% year to date thanks to its strong FY 2020 result and positive guidance for the next 12 months.
The QBE Insurance Group Ltd (ASX: QBE) share price has fallen 1.5% to $8.06. The insurance giant’s shares have dropped lower today despite being the subject of a positive broker note this morning. Analysts at Morgan Stanley have retained their overweight rating and sizeable $12.00 price target on QBE’s shares.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended Freedom Foods Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post Why Fortescue, Freedom Foods, Pushpay, & QBE shares are dropping lower appeared first on Motley Fool Australia.
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