Why Clover, InvoCare, REA Group, & Virtus Health shares are tumbling lower

InvoCare Limited (ASX:IVC) and REA Group Limited (ASX:REA) shares are two of four tumbling lower on Wednesday. Here's why…

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a very strong gain. At the time of writing the benchmark index is up 4% to 4,926.7 points.

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

The Clover Corporation Limited (ASX: CLV) share price is down 18% to $1.53. Investors have been selling the infant formula ingredients producer's shares following the release of its half year results. Although Clover delivered a 9.8% increase in revenue to $37.6 million, its profit growth underwhelmed. On the bottom line the company posted a modest 3.4% increase in net profit after tax to $4.6 million.

The InvoCare Limited (ASX: IVC) share price has fallen 17% to $9.29. The catalyst for this decline was news that the government has put a limit on the number of people that attend funerals to just 10. This will be a big blow for InvoCare, as this morning it revealed that it was already beginning to see an impact on its core business due to the restrictive social gathering measures put in place by the authorities to address the COVID-19 crisis.

The REA Group Limited (ASX: REA) share price has fallen 3% to $65.60. As with InvoCare, investors appear concerned that restrictive social gathering measures will impact the property listings company. Overnight the government announced that property auctions and house inspections would be banned. This is part of an effort to stop the spread of the coronavirus.

The Virtus Health Ltd (ASX: VRT) share price is down 4.5% to $2.05. The catalyst for this share price decline is the fertility treatment company's shares trading ex-dividend this morning for its 12 cents per share fully franked dividend. If it were not for this dividend, Virtus Health's shares would be pushing higher on Wednesday. Its 4.5% decline represents a value decline of 10 cents.

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 Clover Limited. The Motley Fool Australia has recommended InvoCare Limited, REA Group Limited, and Virtus Health 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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