Why ARQ Group, Australian Ethical, GTN, & National Storage shares tumbled lower today

The ARQ Group Ltd (ASX:ARQ) share price and the National Storage REIT (ASX:NSR) share price are two of four tumbling lower on Wednesday. Here's why….

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In early afternoon trade the S&P/ASX 200 index is on course to record another small decline. At the time of writing the benchmark index is down 0.1% to 6,650.4 points.

Four shares that have fallen more than most today are listed below. Here's why they have tumbled lower:

The ARQ Group Ltd (ASX: ARQ) share price has dropped over 35% to 84 cents after the release of a disappointing trading update. According to the release, the company's Core Operations are expected to generate between $15.5 million and $18.5 million of underlying EBITDA in FY 2019, which is sharply lower than its previous guidance and down from $24.5 million in FY 2018. This is due to the underperformance of its Enterprise division which expects to report underlying EBITDA of $12 million to $14.5 million, compared to guidance of $24 million.

The Australian Ethical Investment Limited (ASX: AEF) share price has fallen 4% to $1.88 after the investment company advised that its managing director and chief executive officer, Phil Vernon, will step down after nine years in the role. Under his leadership Australian Ethical's funds under management have increased from $600 million to over $3 billion. Mr Vernon will leave the company on August 31.

The GTN Ltd (ASX: GTN) share price has sunk 9.5% lower to 93.2 cents following the release of a trading update. This morning the supplier of traffic information reports to radio stations advised that it expects adjusted EBITDA for FY 2019 to be in the range of $37 million to $38 million. This compares to $48.1 million in the prior corresponding period. Management blamed the poor result on a combination of lower revenue and increasing expenses for its Australian business.

The National Storage REIT (ASX: NSR) share price has returned from its trading halt and is down 2.5% to $1.79. The self-storage operator requested the trading halt whilst it completed its $170 million institutional placement. The company successfully raised the funds at $1.71 per stapled security and will use the proceeds to fund its growth through acquisition strategy.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Australian Ethical Investment Ltd. The Motley Fool Australia has recommended National Storage REIT. 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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