Why Codan, Coles, Medibank, and Pilbara Minerals shares are sinking

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another gain. At the time of writing, the benchmark index is up 0.2% to 6,812.9 points.

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

Codan Limited (ASX: CDA)

The Codan share price is down 18% to $3.99. Investors have been selling this technology company’s shares following the release of a trading update at its annual general meeting. That update revealed that trading conditions have been tough so far in FY 2023. As a result, its first half profits are expected to be down as much as 50% over the prior corresponding period.

Coles Group Ltd (ASX: COL)

The Coles share price is down 3% to $16.12. This has been driven by the release of a first quarter update from the supermarket giant this morning. That update revealed softer than expected sales growth during the quarter despite a 7.1% jump in inflation. Management also warned that the company is “not immune to the inflationary cost pressures.”

Medibank Private Ltd (ASX: MPL)

The Medibank share price has returned from suspension and crashed over 16% to $2.93. Investors have been selling this private health insurer’s shares in response to its cyber security incident. Management estimates that costs related to the incident will impact its earnings by $25 million to $35 million pre-tax. And that doesn’t include any remediation, regulatory, or litigation-related costs.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is down 7% to $4.99. This may have been driven by a broker note out of Citi this morning. According to the note, the broker has downgraded the lithium miner’s shares to a sell rating with a $4.60 price target. Citi made the move on valuation grounds, believing that its shares have gone “too far, too fast.”

The post Why Codan, Coles, Medibank, and Pilbara Minerals shares are sinking appeared first on The Motley Fool Australia.

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More reading

• ‘Too far, too fast’: Pilbara Minerals share price falls on broker downgrade
• Coles share price struggles despite ‘strengthening sales trajectory’
• Medibank share price plunges 15% as cyberattack bites into outlook
• Why is this ASX All Ords share crashing 20% today?
• Coles share price on watch following mixed first quarter update

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. 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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