In afternoon trade the S&P/ASX 200 index is on course to end the week on a high. At the time of writing the benchmark index is up 0.75% to 6,595.5 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they have sunk lower:
The Baby Bunting Group Ltd (ASX: BBN) share price has continued its slide and is down a further 2.5% to $3.39. The baby products retailer’s shares have come under pressure this week following the release of a trading update at its annual general meeting. Although management reiterated its earnings growth guidance for FY 2020, it revealed a surprise slowdown in its like for like sales growth.
The Netwealth Group Ltd (ASX: NWL) share price has fallen 6% to $8.64. Today’s decline appears to be attributable to a broker note out of Credit Suisse this morning. According to the note, Credit Suisse has downgraded the investment platform provider’s shares to an underperform rating with a $7.60 price target. It made the move due to concerns over its margins.
The Orora Ltd (ASX: ORA) share price has dropped 3% to $3.01. This decline appears to be down to profit taking following a very strong share price gain on Thursday. Investors were fighting to get hold of the packaging company’s shares after it announced the sale of its Australasian Fibre Business to Nippon Paper Industries for ~$1.7 billion. Approximately $1.2 billion of this will be returned to shareholders through capital management initiatives.
The Western Areas Ltd (ASX: WSA) share price has tumbled over 3% lower to $3.04. Today’s decline appears to have been caused by a broker note out of Ord Minnett. According to the note, the broker has downgraded the nickel producer’s shares from a buy rating to hold. It appears to believe that its shares are fully valued now.
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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 Netwealth. 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 Scott Phillips.