The S&P/ASX 200 Index (ASX: XJO) is on course to end the month in the red. In afternoon trade, the benchmark index is down 0.7% to 7,237.5 points.
Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:
Bubs Australia Ltd (ASX: BUB)
The Bubs share price is down 8% to 62.5 cents. This appears to have been driven by a combination of profit taking after a strong gain yesterday and a broker note out of Bell Potter. In respect to the latter, this morning the broker downgraded this infant formula company’s shares to a speculative hold rating with a 75 cents price target. It is treating Bubs’ 1.25 million tin order from the US largely as a temporary sales boost.
Polynovo Ltd (ASX: PNV)
The PolyNovo share price is down 5% to $1.24. Investors may have been selling this medical device company’s shares after data showed that short sellers continue to increase their positions. Approximately 11.4% of its shares are held by short sellers at present, making it one of the most shorted on the market.
Suncorp Group Ltd (ASX: SUN)
The Suncorp share price is down over 5% to $11.46. This appears to have been driven by a broker note out of Morgan Stanley. According to the note, the broker has downgraded Suncorp’s shares to an underweight rating with a $10.50 price target. Morgan Stanley has warned that Suncorp is one of the companies most exposed to the structural risks stemming from climate change
Zip Co Ltd (ASX: ZIP)
The Zip share price is down 5.5% to 92 cents. Investors have been selling Zip shares amid weakness in the tech sector on Tuesday. That weakness has seen the S&P/ASX All Technology Index fall 1.9% this afternoon and comes despite Nasdaq futures pointing to gains on Wall Street tonight.
The post Why Bubs, PolyNovo, Suncorp, and Zip shares are dropping appeared first on The Motley Fool Australia.
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More reading
- Why is the Suncorp share price cratering today?
- ASX 200 midday update: Beach, Santos rise but EML, Zip tumble
- May was another shocker of a month for the Zip share price. Here’s why
- Bubs share price tumbles 5% amid broker downgrade
- 2 ASX All Ordinaries shares rocking new 52-week highs today
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. has positions in and has recommended POLYNOVO FPO and ZIPCOLTD 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 Scott Phillips.
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