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Why Flight Centre, Pact, Paragon Care, & Transurban shares tumbled lower today

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has bounced back from yesterday’s decline and is on course to post a solid gain on Tuesday. In afternoon trade the benchmark index is up 0.4% to 6,086.9 points.

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

The Flight Centre Travel Group Ltd (ASX: FLT) share price has dropped 2.5% to $42.33. Today’s decline is likely to be attributable to a broker note out of Morgans this morning. According to the note, the broker has downgraded Flight Centre’s shares to a hold rating and cut the price target on them to $47.75 ahead of its half year results release. The broker appears concerned that weaker discretionary spending could be weighing on the company’s performance.

The Pact Group Holdings Ltd (ASX: PGH) share price has tumbled almost 7.5% to $3.64 after the packaging company announced a non-cash impairment charge in the range of $310 to $340 million after tax. The impairment charges reflect challenging trading conditions and a moderated long-term outlook for Pact’s Australian businesses, resulting in the use of more conservative assumptions regarding growth and discount rates.

The Paragon Care Ltd (ASX: PGC) share price has crashed 10.5% lower to 51.5 cents following the release of a trading update. Although the medical equipment provider’s continuing operations are performing well, management warned that its half year results will be impacted by its discontinued business and non-recurring costs. Paragon Care’s shares hit a multi-year low today.

The Transurban Group (ASX: TCL) share price is down almost 2.5% to $12.17 after the toll road giant released its half year results. The market appears disappointed that Transurban posted a 56% decline in profit from ordinary activities to $145 million despite revenue lifting 30.2% to $1,286 million. Proportional earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 9.8% to $1,001 million.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited and Transurban Group. The Motley Fool Australia has recommended Paragon Care Limited. 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 Scott Phillips.

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