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Why AVITA, Chorus, Evolution, & New Hope shares are dropping lower

Downward trend
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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to end the week in the red. At the time of writing the benchmark index is down 0.25% to 5,940.4 points.

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

The AVITA Therapeutics Inc (ASX: AVH) share price is down almost 3% to $8.29. This follows the release of the regenerative medicine company’s fourth quarter and full year sales update. For the 12 months, AVITA’s total revenue was approximately US$14.32 million. This was an increase of US$8.78 million or 160% over FY 2019’s sales. It appears as though investors were expecting even stronger growth.

The Chorus Ltd (ASX: CNU) share price has crashed 9% lower to $6.65. Investors have been selling the New Zealand telco’s shares after the release of its fourth quarter update. That update revealed that the lockdown period had a significant impact on its fourth quarter fibre activity and uptake. In addition to this, the New Zealand Commerce Commission has announced a change to the timing for the next step in its input methodologies process. This relates to changes they are considering to their approach to valuing the financial loss asset and associated updates to the draft determination provisions.

The Evolution Mining Ltd (ASX: EVN) share price is down 3% to $6.12. Investors have been selling the gold miner’s shares after it was downgraded by two brokers. Both Goldman Sachs and Citi have downgraded Evolution’s shares to a sell rating largely on valuation grounds.

The New Hope Corporation Limited (ASX: NHC) share price has fallen 1.5% to $1.38. This is despite the coal miner announcing the appointment of its new chief executive officer this morning. New Hope has appointed former Yancoal Australia Ltd (ASX: YAL) CEO, Reinhold Schmidt, to the role. Mr Schmidt left the rival coal miner in March of 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 Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical 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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