Why Air NZ, Carsales, Pendal, & Star shares are dropping lower

Carsales.Com Ltd (ASX:CAR) and Pendal Group Ltd (ASX:PDL) shares are two of four that are dropping notably lower on Thursday…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to snap its winning streak. The benchmark index is currently down 0.65% to 5,952.5 points.

Four shares that have fallen more than most today are listed below. Here's why they are dropping lower:

The Air New Zealand Limited (ASX: AIZ) share price is down 4% to $1.46. This morning the airline operator released its earnings guidance for FY 2020. Although the New Zealand Government is now allowing the airline to slowly restart its domestic network, revenue and earnings will still be significantly lower than expected. The company is now expecting to report an underlying loss before significant items and tax of up to NZ$120 million.

The Carsales.Com Ltd (ASX: CAR) share price has fallen 2.5% to $17.56. This decline may have been driven by a broker note out of Macquarie this morning. According to the note, the broker has downgraded Carsales' shares to a neutral rating with an $18.00 price target. It made the move on valuation grounds after a strong gain since April.

The Pendal Group Ltd (ASX: PDL) share price has dropped 3% to $6.03. This follows an announcement by Westpac Banking Corp (ASX: WBC) which reveals that it has offloaded its 9.5% stake in the fund manager. The banking giant has sold 31 million shares for an average of $5.98 per share. The bank also warned that it is undertaking a strategic review of its wealth businesses which could result in some or all of its $14 billion of funds under management with Pendal being withdrawn.

The Star Entertainment Group Ltd (ASX: SGR) share price is down 3.5% to $3.14. Earlier this week analysts at Morgan Stanley downgraded the casino and resort operator's shares to an underweight rating with a $3.30 price target. It believes the Star is going to lose market share to Crown Resorts Ltd (ASX: CWN) when the new Crown Sydney casino opens later this year.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has recommended carsales.com Limited and Crown Resorts 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.

More on Share Fallers

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why COG, Karoon Energy, Netwealth, and Pilbara Minerals shares are dropping today

These ASX shares are ending the week deep in the red. But why?

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Evolution Mining, Karoon Energy, ResMed, and Sayona Mining shares are dropping today

These ASX shares are having a tough session. But why?

Read more »

A young woman wearing a blue and white striped t-shirt blows air from her cheeks and looks up and to the side in a sign of disappointment after the ASX shares she owns went down today
Share Fallers

Why Australian Strategic Materials, Boral, Dubber, and Macquarie Technology are falling today

These shares are having a tough hump day. But why?

Read more »

a sad gambler slumps at a casino table with hands on head and a large pile of casino chips in the foreground.
Share Fallers

'Catastrophic' risk: Why Star shares have lost 25% in 4 days

The outcome of this inquiry could determine whether Star Entertainment hits Blackjack or bust.

Read more »

A male investor erupts into a tantrum and holds his laptop above his head as though he is ready to smash it, as paper flies around him, as he expresses annoyance over so many new 52-week lows in the ASX 200 today
Share Fallers

Why Domino's, Macmahon, Star, and Zip shares are sinking today

These ASX shares are falling more than most today.

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Avita Medical, NextDC, Predictive Discovery, and Star shares are tumbling today

These shares are starting the week in the red.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Avita Medical, Cettire, Domino's Pizza, and Star shares are falling today

These ASX shares are having a tough end to the week. But why?

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Avita Medical, Netwealth, Peninsula Energy, and Zip shares are sinking today

These ASX shares are having a tough session. But why?

Read more »