Why CIMIC, Crown, Domino’s, & Praemium shares are tumbling lower today

CIMIC Group Ltd (ASX:CIM) and Crown Resorts Ltd (ASX:CWN) shares are two of four tumbling lower on Wednesday…

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In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) is back on form and pushing higher. At the time of writing, the benchmark index is up 0.5% to 6,856.4 points.

Four ASX shares that have failed to follow the market’s lead today are listed below. Here’s why they are under pressure:

CIMIC Group Ltd (ASX: CIM)

The CIMIC share price has crashed 16% lower to $21.88 following the release of its full year results for FY 2020 this morning. While the contractor reported a sizeable jump in profits, this growth was driven entirely by the sale of a 50% stake in the Thiess business. Underlying profit fell 25% year on year. The company’s cash flows were also weak, which appears to have alarmed investors.

Crown Resorts Ltd (ASX: CWN)

The Crown share price has returned from its trading halt and dropped 3.5% to $9.80. Yesterday afternoon the casino and resorts operator was judged to be an unsuitable operator of its new Barangaroo casino in Sydney. Commissioner Bergin noted how Crown has been “facilitating money laundering, exposing staff to the risk of detention in a foreign jurisdiction and pursuing commercial relationships with individuals with connections to Triads and organised crime group.”

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price is down 1.5% to $96.20. This appears to have been driven by a broker note out of Credit Suisse this morning. According to the note, ahead of its half year results release, the broker has reaffirmed its underperform rating but lifted its price target to $63.58. While Credit Suisse expects a solid first half, it isn’t enough to change its recommendation due to valuation reasons.

Praemium Ltd (ASX: PPS)

The Praemium share price has fallen almost 5% to 80 cents. The catalyst for this was the release of the investment platform provider’s half year results this morning. Although Praemium reported a 69% increase in funds under administration to $34.3 billion, its revenue only increased 20% to $31.7 million and its EBITDA rose just 5% to $7.3 million.

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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 Praemium Limited. The Motley Fool Australia has recommended Crown Resorts Limited, Dominos Pizza Enterprises Limited, and Praemium Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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