In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a solid gain. At the time of writing the benchmark index is up an impressive 1.05% to 6,107.3 points.
Four shares that have failed to follow the market higher today are listed below. Here's why they are dropping lower:
The Bubs Australia Ltd (ASX: BUB) share price is down 2.5% to 95 cents. The catalyst for this appears to be a broker note out of Citi this morning. According to the note, the broker has downgraded Bubs shares down to a neutral rating and cut the price target on them to $1.00. The broker has concerns that the slowdown in sales experienced in the fourth quarter could carry over into the first quarter and delay profitability.
The Perpetual Limited (ASX: PPT) share price is down 1% to $33.26. This follows the completion of its placement this morning. The fund manager has raised $225 million from institutional investors at a price of $30.30 per new share. The proceeds will be used to partly fund the acquisition of a 75% interest in Barrow Hanley for US$319 million (A$465 million). Barrow Hanley is a Texas-based investment manager with funds under management of approximately US$44.1 billion.
The PointsBet Holdings Ltd (ASX: PBH) share price is down over 3% to $6.07. This follows the release of the sports betting company's fourth quarter update. Although PointsBet delivered a 57.9% increase in quarterly turnover to $349.4 million, investors appear disappointed with a decline in US turnover. It fell 12.9% compared to the prior corresponding period to $46.5 million.
The Waypoint REIT Ltd (ASX: WPR) share price is down 4.5% to $2.61. This morning the service station owner, previously known as Viva Energy, revealed that Charter Hall Long WALE REIT (ASX: CLW) has sold its entire 5% stake in the company. Charter Hall sold its stake for $2.61 per security, which equates to a total of $101.6 million.
