Why A2 Milk, Life360, Nine, and Ramsay shares are dropping

The S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a high. In afternoon trade, the benchmark index is up 0.7% to 6,896.2 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down almost 1% to $5.54. Investors have been selling the infant formula company’s shares following the release of a broker note out of Goldman Sachs. This morning the broker initiated coverage on the company with a sell rating and $5.80 price target. Goldman said: “Despite solid operational execution in 2H22, we believe this result will be challenging to replicate in FY23.”

Life360 Inc (ASX: 360)

The Life360 share price is down over 3% to $5.50. This appears to have been driven by profit taking after some strong gains earlier this week. For example, even after this decline, the location technology company’s shares are still up over 7% since the start of the week. A positive update at an investor event gave its shares a boost.

Nine Entertainment Co Holdings Ltd (ASX: NEC)

The Nine share price is down 3.5% to $2.14. This has been driven almost entirely by the entertainment company’s shares trading ex-dividend this morning for its final dividend of FY 2022. Eligible shareholders can now look forward to receiving Nine’s fully franked 7 cents per share dividend next month on 20 October.

Ramsay Health Care Limited (ASX: RHC)

The Ramsay share price is down 1.5% to $70.11. This morning the private hospital operator revealed that the proposed sale of Ramsay Sime Darby Health Care to IHH Healthcare Berhad has terminated. Discussions between the parties concluded and have not resulted in a binding agreement for the sale of Ramsay Sime Darby.

The post Why A2 Milk, Life360, Nine, and Ramsay shares are dropping appeared first on The Motley Fool Australia.

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More reading

• Why is the A2 Milk share price tumbling lower today?
• 5 things to watch on the ASX 200 on Friday
• Why has the A2 Milk share price leapt 17% in a fortnight?
• 2 ASX growth shares that analysts say have 40%+ upside
• Life360 share price explodes 16% higher amid pathway to profitability

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. The Motley Fool Australia has recommended A2 Milk and Ramsay Health Care Limited. 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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