Why these 4 shares are taking a beating today

Shareholders of these four companies won't be smiling today.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Despite starting the session on a positive note, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has drifted progressively lower throughout the day and is now trading 0.27% lower to 5,636 points.

The big miners have inflicted the most damage to the index as the session has progressed, although the utilities and telecommunications sectors have provided some support.

Four shares that have disappointed shareholders today include:

Paragon Care Ltd. (ASX: PGC)

Shares of Paragon Care have plunged more than 14% after its first-half results failed to live up to expectations. Despite reporting a big surge in sales and profits, earnings per share (EPS) declined by around 4% due to the large number of shares that were issued last year to fund acquisitions. Paragon Care has guided for a stronger second half, although I expect the market is likely to remain lukewarm towards the company until EPS growth is restored.

Mcgrath Ltd (ASX: MEA)

Shares of McGrath have crashed nearly 8% today, despite the absence of any news from the company. The real estate agent has endured a tough time since debuting in late 2015 thanks to a sharp fall in property listings and the exodus of a number of its top agents. Astonishingly, the shares have now lost around 70% of their value since their debut and the company will be desperately hoping that listing volumes pick-up soon, particularly in Sydney.

Premier Investments Limited (ASX: PMV)

Shares of Premier Investments enjoyed a very strong day yesterday thanks to a positive trading update, but it appears some investors are taking profits today with the shares falling nearly 3% to $13.60. A number of brokers have also changed their ratings on the shares overnight with Macquarie and UBS raising the shares to an outperform and buy. CLSA, on the other hand, has cut the shares from a buy to outperform.

Credit Corp Group Limited (ASX: CCP)

Shares of Credit Corp have dropped more than 4% today, despite no major news from the company. One reason investors may be selling today is due to a release that shows one of its directors has recently sold a relatively small parcel of shares. This can be a warning sign to some investors, although I suspect today's move is more likely the result of profit taking as the shares have enjoyed a very good run over the past 12 months.

Motley Fool contributor Christopher Georges owns shares of Paragon Care Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »