In afternoon trade the S&P/ASX 200 Index (ASX: XJO) has fought back from a soft start and is charging higher. At the time of writing, the benchmark index is up 0.35% to 6,710.8 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:
BrainChip Holdings Ltd (ASX: BRN)
The BrainChip share price is down 6% to 53.7 cents despite there being no news out of the artificial intelligence technology company. However, with its shares rocketing 18% on no news on Friday, it appears as though profit taking has been weighing on its shares this week. The BrainChip share price is now down 18% from Monday’s high.
Pilbara Minerals Ltd (ASX: PLS)
The Pilbara Minerals share price is down almost 2% to $1.13. This morning the lithium miner announced the completion of its retail entitlement offer. Pilbara Minerals raised $60.6 million from the offer, bringing the total raised from its capital raising to $240.2 million. These funds are to be used to acquire the Pilgangoora Lithium Project in Western Australia.
Premier Investments Limited (ASX: PMV)
The Premier Investments share price is down close to 3% to $24.67. This appears to have been driven by profit taking and a couple of bearish broker notes. In respect to the latter, this morning Goldman Sachs retained its sell rating and put a $20.80 price target on its shares. Elsewhere, UBS has downgraded the retail conglomerate’s shares to a neutral rating with a $24.50 price target. Both brokers expect a strong result in FY 2021, but then a sharp decline in earnings in FY 2022.
Tyro Payments Ltd (ASX: TYR)
The Tyro share price has fallen almost 7% to $2.64. This morning Goldman Sachs retained its neutral rating but cut its price target on the payments company’s shares to $3.15. The broker has concerns over the outage that has been impacting some of Tyro’s customers since last week. It fears these temporary terminal connectivity issues could weigh on medium-term growth and possibly lead to compensation claims.
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Returns as of 6th October 2020
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 Tyro Payments. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.