Why A2 Milk, Bravura, Magellan, and Pendal shares are dropping

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has recovered from a poor start and is pushing higher. At the time of writing, the benchmark index is up 0.35% to 6,881.4 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 1.5% to $5.40. This follows a lukewarm reaction to its US FDA approval from analysts at Credit Suisse. The broker has responded by retaining its neutral rating with a slightly higher price target of $5.30. The broker warned that the quality of A2 Milk’s earnings in the US will be lower due to higher costs and lower pricing.

Bravura Solutions Ltd (ASX: BVS)

The Bravura share price is down a further 3.5% to 60.7 cents. This financial technology company’s shares have been smashed this week after it announced the results of a strategic review. Following the review, management admitted that the Bravura will need to be “reconfigured.” This will involve “enhancing the existing technology stack to unlock the existing microservices strategy, drive higher resale multiples on technology development and reduce single customer efforts.”

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price has fallen 3% to $9.50. This has been driven by the release of another disappointing funds under management (FUM) update from the struggling fund manager. Magellan revealed further net outflows of $2.4 billion for the month. This comprised net retail outflows of $0.4 billion and net institutional outflows of $2 billion.

Pendal Group Ltd (ASX: PDL)

The Pendal share price is down 1.5% to $4.45. This follows the release of the fund manager’s full year results this morning. Pendal reported a 17% increase in underlying profit after tax to $194.2 million but a 32% decline in statutory profit after tax to $112.8 million. The latter reflects significant seed investment gains in 2021 that reversed in the current year as global equity markets declined.

The post Why A2 Milk, Bravura, Magellan, and Pendal shares are dropping appeared first on The Motley Fool Australia.

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More reading

• This ASX 200 dividend share has a 19% yield right now. Why it’s a trap: experts
• Magellan share price hits multi-year low following $2.4b horror month for outflows
• Here are the top 10 ASX 200 shares today
• Why Bravura, Domino’s, Lendlease, and Woolworths shares are sinking
• Why A2 Milk, New Hope, Perpetual, and Talga shares are charging higher

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 Bravura Solutions Ltd. The Motley Fool Australia has positions in and has recommended Bravura Solutions Ltd. The Motley Fool Australia has recommended A2 Milk. 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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