Why Australian Ethical, Northern Star, ResMed, & TPG Telecom are dropping lower

ResMed Inc. (ASX:RMD) and TPG Telecom Ltd (ASX:TPG) shares are two of four dropping notably lower on Friday. Here's why…

| 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

The S&P/ASX 200 Index (ASX: XJO) is on course to finish the week with a day in the red. In late morning trade the benchmark index is down 0.45% to 6,015.6 points.

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

The Australian Ethical Investment Limited (ASX: AEF) share price has crashed 15% lower to $5.09. This follows an announcement by IOOF Holdings Limited (ASX: IFL) which revealed that it has sold down its stake in the ethical investment company. IOOF offloaded 14.2 million shares or 72% of its shareholding for a total consideration of $74.5 million. This represents an average of $5.25 per share, which was a 12.5% discount to Australian Ethical's last close price.

The Northern Star Resources Ltd (ASX: NST) share price is down 2% to $1.97. A number of Australian gold miners have come under pressure today despite the gold price pushing higher overnight. At the time of writing the S&P/ASX All Ordinaries Gold index is down 1.5%.

The ResMed Inc. (ASX: RMD) share price has fallen 2% to $25.38. This appears to have been driven by a broker note out of Morgan Stanley this morning. Following the release of its full year results on Thursday, the broker has downgraded ResMed's shares to an equal-weight rating with a reduced price target of $25.40. It made the move partly on valuation grounds after strong share price gains year to date.

The TPG Telecom Ltd (ASX: TPG) share price is down 2.5% to $8.04. The catalyst for this appears to be a broker note out of UBS this morning. Its analysts have downgraded the telco to a sell rating with a lowered price target of $7.20. It believes TPG's shares are overvalued and shouldn't be trading at such a premium currently. Especially given its upcoming special dividend payment.

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 Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. and ResMed Inc. 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

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why 4DMedical, New Hope, Santos, and St George Mining shares are dropping today

These shares are under pressure on Tuesday. But why?

Read more »

A woman is excited as she reads the latest rumour on her phone.
Share Fallers

These 3 dirt-cheap ASX shares are tipped to climb another 50-90%

These shares are now trading at super low prices.

Read more »

Shot of a young businesswoman looking stressed out while working in an office.
Share Fallers

Why 4DMedical, Brainchip, Catapult, and Star Entertainment shares are falling today

These shares are starting the week in the red. But why>

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why DroneShield, Hub24, Syrah, and Weebit Nano shares are sinking today

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

Read more »

A worried woman sits at her computer with her hands clutched at the bottom of her face.
Share Fallers

These 3 ASX 200 shares have hit fresh multi-year lows: Buy, sell or hold?

One of these stocks has crashed over 50% over the past year alone.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Brazilian Rare Earths, L1 Group, Silver Mines, and Xero shares are dropping today

These shares are having a poor session on Thursday. But why?

Read more »

A woman looks nervous and uncertain holding a hand to her chin while looking at a paper cut out of a plane that she's holding in her other hand.
Travel Shares

Qantas stock is down 17.7% in a month. Time to buy?

Qantas is back to April prices.

Read more »

A young man clasps his hand to his head with a pained expression on his face and a laptop in front of him.
Share Fallers

Why Amplitude Energy, Atlas Arteria, Computershare, and Woodside shares are falling today

These shares are falling on hump day. But why?

Read more »