In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is well and truly back on form and surging higher. The benchmark index is currently up 1.65% to 6,848.9 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:
AGL Energy Limited (ASX: AGL)
The AGL share price is down almost 1.5% to $9.68. Investors have been selling the energy company’s shares after analysts suggested its plan to split into two might not be a good move. Goldman Sachs named seven concerns it has with the proposal this morning. Elsewhere, Ord Minnett responded by downgrading its shares to a hold rating and slashing its price target by 22% to $11.00.
Bubs Australia Ltd (ASX: BUB)
The Bubs share price is down a further 2% to 48 cents. Investors have been selling the infant formula company’s shares this year due to its poor performance in the first half and concerns over its outlook. Although its shares hit a 52-week low today, one broker believes they can go even lower. Citi recently reaffirmed its sell rating and 35 cents price target.
Harvey Norman Holdings Limited (ASX: HVN)
The Harvey Norman share price has fallen almost 4% to $5.73. This decline is almost entirely attributable to the retail giant’s shares going ex-dividend this morning for its interim dividend. Eligible Harvey Norman shareholders can look forward to receiving its fully franked 20 cents per share dividend on 3 May.
Openpay Group Ltd (ASX: OPY)
The Openpay share price has returned from its trading halt and tumbled 5% to $2.29. This morning the buy now pay later provider announced a $67.5 million funding package. This comprises a $37.5 million institutional placement, a $25 million corporate debt facility, and a $5 million share purchase plan. The placement was undertaken at $2.03 per new share, which represents a 15.8% discount to its last close price. Management intends to use the funds to accelerate its international expansion following its partnership with Worldpay.
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More reading
- ASX 200 jumps 1.35%: Zip inks deal with JB Hi-Fi, Suncorp’s flood update
- Why the Openpay (ASX:OPY) share price is sinking 8% lower today
- 7 reasons the AGL (ASX:AGL) demerger might be bad for its share price
- 5 things to watch on the ASX 200 on Wednesday
- Why an AGL Energy (ASX:AGL) demerger might be a problem
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 BUBS AUST FPO. The Motley Fool Australia has recommended BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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