Why Fortescue, Over The Wire, Pro Medicus, & Whispir shares are dropping

These ASX shares are missing out on the market’s gains today…

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In early afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a strong gain. At the time of writing, the benchmark index is up 1.3% to 7,488.7 points.

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

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is down almost 2.5% to $24.32. This follows a sharp pullback in the spot iron ore price on Friday. According to CommSec, the benchmark iron ore price dropped 7.4% to US$180.50 a tonne. This meant the iron ore price lost almost 11% of its value over the week. Concerns over a crackdown on steel production in China weighed on prices.

Over The Wire Holdings Ltd (ASX: OTW)

The Over The Wire share price is down 1.5% to $4.50. Investors have been selling the telecommunications, cloud and IT solutions provider’s shares after it announced the surprise resignation of the CEO of its Over The Wire business, Scott Smith. This was only a little over a year after Mr Smith commenced in the role. The company does not intend to replace him.

Pro Medicus Limited (ASX: PME)

The Pro Medicus share price has fallen 4% to $55.75. Investors have been selling the health imaging technology company’s shares after it was the subject of a broker note out of Goldman Sachs. According to the note, the broker has downgraded the company’s shares to a neutral rating with a $55.60 price target. Goldman Sachs made the move on valuation grounds after a strong period of share price performance.

Whispir Ltd (ASX: WSP)

The Whispir share price has continued its decline and is down a further 4.5% to a 52-week low of $2.37. The cloud-based communication platform provider’s shares have come under pressure since the release of a trading update on Friday. That update revealed a 6.6% quarter on quarter increase in its annualised recurring revenue (ARR) to $53.6 million. Whispir advised that a resurgence of COVID-19 has resulted in a delay in new customer activations.

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Motley Fool contributor 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 and has recommended Over The Wire Holdings Ltd, Pro Medicus Ltd., and Whispir Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended Over The Wire Holdings Ltd and Whispir Ltd. 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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