Why Accent, Bluebet, IAG, & Megaport shares are tumbling lower

These ASX shares are having a disappointing day…

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In late afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a gain. At the time of writing, the benchmark index is up 0.2% to 7,577.6 points.

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

Accent Group Ltd (ASX: AX1)

The Accent share price is down almost 7% to $2.61. This decline has been driven by a broker note out of Citi this morning. According to the note, the broker has downgraded the footwear retailer’s shares to a sell rating and cut the price target on them by 19% to $2.50. Citi has a number of concerns such as lockdowns and potential supply chain issues. It notes that Adidas’ production has been impacted by lockdowns in Vietnam.

Bluebet Holdings Ltd (ASX: BBT)

The Bluebet share price is down 3% to $2.00 despite there being no news out of the sports betting company. However, with its shares shooting higher this week following a positive US development, this decline could be due to profit taking.

Insurance Australia Group Ltd (ASX: IAG)

The Insurance share price has fallen 2.5% to $5.14. Investors have been selling the insurance giant’s shares following the release of a mixed full year result. IAG reported a 3.8% increase in gross written premium to $12,135 million but a net loss after tax of $427 million. The latter was driven by a range of one-offs. Excluding these one-offs, its cash earnings rose 170% to $747 million.

Megaport Ltd (ASX: MP1)

The Megaport share price has sunk 7% to $16.68. This decline is likely to have been driven by a broker note out of Ord Minnett. According to the note, the broker has downgraded the network as a service provider’s shares to a sell rating and cut the price target on them to $15.00. The broker made the move on the belief that Megaport may need to continue to invest for longer than previously expected to drive its growth.

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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 MEGAPORT FPO. The Motley Fool Australia owns shares of and has recommended Insurance Australia Group Limited. The Motley Fool Australia has recommended Accent Group and MEGAPORT FPO. 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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