The S&P/ASX 200 Index (ASX: XJO) overcame tough trading conditions to record a decent gain in February. The benchmark index rose 1.1% to end the period at 7,049.1 points.
Unfortunately, not all shares were able to climb higher with the market. Here’s why these were the worst performing ASX 200 shares last month:
Boral Limited (ASX: BLD)
The Boral share price was the worst performer on the ASX 200 last month with a 39% decline. However, this decline is a touch misleading as it wasn’t driven by bad news. This decline actually reflects the building materials company returning a total of $3 billion to shareholders following a series of asset sales. Boral’s total cash return of $2.72 per share comprises a $2.65 per share capital reduction and an unfranked dividend of 7 cents per share.
PointsBet Holdings Ltd (ASX: PBH)
The PointsBet share price was out of form again and sank 30% in February. This brings the sports betting company’s 12-month decline to 75%. Investors were selling the company’s shares following weakness in the tech sector and particularly the sports betting industry. The latter was driven by a disappointing update from rival DraftKings. Its shares crashed after revealing a loss of US$326 million for the fourth quarter. It also warned that it was likely to make a loss of US$1 billion in 2022 due largely to marketing costs.
Zip Co Ltd (ASX: Z1P)
The Zip share price wasn’t far behind with a 25% decline last month. Investors were selling the buy now pay later (BNPL) provider’s shares amid weakness in the industry and in response to its half year update. That update revealed a greater than expected loss for the first half of FY 2022. Speculation that a capital raising was imminent also weighed on sentiment.
Appen Ltd (ASX: APX)
The Appen share price was sold off again and tumbled 25% in February. Investors were selling down the artificial intelligence data services company’s shares following the release of its full year results. Appen reported a 3% increase in underlying EBITDA to US$77.7 million in FY 2021, which fell short of its revised guidance. Management also didn’t provide any guidance for FY 2022, which didn’t help sentiment.
The post These were the worst performing ASX 200 shares in February appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd, Pointsbet Holdings Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Appen Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. 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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