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Why Gentrack, Jumbo, Kogan, & NIB shares are sinking lower today

In afternoon trade the S&P/ASX 200 index is on course to continue its positive run. At the time of writing the benchmark index is up just over 0.3% to 7,087.1 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they have started the week in the red:

The Gentrack Group Ltd (ASX: GTK) share price is down 12.5% to $2.32. Investors have been selling the essential software provider’s shares after it confirmed its expectations for FY 2020. Last week it warned that its earnings would be down materially due to difficult conditions in its utility markets. This morning it revealed that this means EBITDA in the range of NZ$8 million and NZ$12 million. This represents a sizeable 51.6% to 68% decline on the prior corresponding period.

The Jumbo Interactive Ltd (ASX: JIN) share price is down 5% to $15.53 despite there being no news out of the lottery ticket seller. However, prior to today, Jumbo’s shares were up 9% since the start of the year. This may have led to some investors taking a bit of profit off the table on Monday.

The Kogan.com Ltd (ASX: KGN) share price has crashed 19% lower to $6.44. The ecommerce company’s shares have fallen heavily after a surprisingly disappointing first half update. That update revealed that Kogan’s first half gross sales and gross profit grew 16% and 9%, respectively, over the prior corresponding period. The latter is a sharp slowdown from gross profit growth of 28% in the first quarter. It also means that within three months, Kogan has gone from growing its gross profit almost twice as quickly as its sales to almost half as quickly.

The NIB Holdings Limited (ASX: NHF) share price is down a sizeable 13% to $5.70. This private health insurer’s shares have come under pressure today after it downgraded its guidance. An increase in claims expenses means NIB now expects its underlying operating profit (UOP) to be ~$170 million in FY 2020. Previously it was targeting UOP of at least $200 million this year.

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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 and recommends Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive Limited, Kogan.com ltd, and NIB Holdings 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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