The S&P/ASX 200 Index (ASX: XJO) is on course to record a very strong gain on Wednesday. In late morning trade the benchmark index is up 1.2% to 5,376.4 points.
Four shares that have failed to follow the market higher today are listed below. Here's why they are dropping lower:
The Avita Medical Ltd (ASX: AVH) share price is down 3% to 44.7 cents. This morning the regenerative medicine company released its quarterly update and revealed a 67% jump in third quarter revenue to $8.065 million. While this was strong growth, it appears as though some investors were expecting even better.
The Coles Group Ltd (ASX: COL) share price is down 4.5% to $15.53. This morning the supermarket giant released its third quarter update and revealed stellar sales growth. Thanks to a strong performance by its Supermarkets division, Coles recorded third quarter sales revenue of $9.2 billion. This was an increase of 12.9% on the prior corresponding period. Possibly weighing on its shares was a comment about its costs. Coles expects an elevated cost base in the fourth quarter as a result of the additional investment it is making as a result of COVID-19.
The Northern Star Resources Ltd (ASX: NST) share price is 2.5% lower to $12.97. Investors have been selling Northern Star and the some of the gold miners on Wednesday after improving investor sentiment put pressure on risk off assets. In addition to this, analysts at Macquarie downgraded Northern Star's shares to a neutral rating and cut their price target to $14.00 this morning. This follows a weaker than expected quarterly update by the gold miner.
The ResMed Inc. (ASX: RMD) share price is down almost 3% to $24.36. This is despite there being no news of the medical device company. However, this morning Morgan Stanley reiterated its equal weight rating on the company's shares and lifted its price target to $23.00. It appears cautiously optimistic that ventilator sales may have offset potential weakness in the sleep apnoea business. But not enough to recommend its shares as a buy.
