The S&P/ASX 200 index is on course to record its third day of heavy declines in a row. In afternoon trade the benchmark index is down 2.1% to 6,721.9 points.
Four shares that have fallen more than most today are listed below. Here’s why they are sinking lower:
The AMA Group Ltd (ASX: AMA) share price is down 33% to 52.7 cents. Investors have been selling the smash repair company’s shares following the release of its half year results. Although AMA revealed a 32% increase in revenue, it recorded a loss after tax of $11 million. This compares to a profit of $10 million in the prior corresponding. Management advised that this reflects challenging market conditions which has seen declining repair volumes, pressure on pricing, and the cost associated with new vehicle technologies.
The Appen Ltd (ASX: APX) share price has crashed 8% lower to $23.42 following a tech selloff. This decline means Appen’s shares have now given back the gains it made after beating its upgraded FY 2019 guidance on Tuesday. One broker that liked what it saw yesterday was UBS. This morning it retained its buy rating and lifted its price target on the company’s shares to $32.00.
The Catapult Group International Ltd (ASX: CAT) share price has fallen 12% to $1.64 following the release of its half year results. During the first half, Catapult recorded revenue of $50.7 million and annual recurring revenue (ARR) of $68.8 million. This was an increase of 18% and 20%, respectively, on the prior corresponding period. The Americas segment was a key driver of this growth. Catapult reported a 21% increase in revenue in the market to $35.5 million. The company recorded a loss after tax of $4.8 million.
The PolyNovo Ltd (ASX: PNV) share price has sunk 15.5% lower to $2.55. Although the medical device company revealed strong half year revenue growth this morning, it appears to have fallen short of the market’s lofty expectations.
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Returns as of 6th October 2020
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Catapult Group International Ltd. The Motley Fool Australia owns shares of Appen Ltd. 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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