Why Accent, Ioneer, Lifestyle Communities, & Vulcan are sinking

These ASX shares are out of form on Thursday…

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In late trade, the S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and is storming higher. At the time of writing, the benchmark index is up 0.5% to 7,453.5 points.

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

Accent Group Ltd (ASX: AX1)

The Accent share price is down 4% to $2.18. Investors may be taking a bit of profit off the table after a very strong gain this week. The catalyst for that was a bullish broker note out of Morgan Stanley. The broker upgraded the footwear retailer’s shares to an overweight rating with a $2.60 price target on Wednesday.

Ioneer Ltd (ASX: INR)

The Ioneer share price has sunk 18% to 60.5 cents. This follows the release of an announcement that the future-focused mining company has formed a joint venture with the world’s largest primary producer of platinum, Sibanye Stillwater. Part of the deal will see Sibanye Stillwater subscribe for 145.9 million shares in Ioneer via a placement. This is being undertaken at 65.5 cents per share, which represented an 11.5% discount to its last close price.

Lifestyle Communities Limited (ASX: LIC)

The Lifestyle Communities share price has fallen 8% to $20.30. The catalyst for this was news that its founder and CEO, James Kelly, has sold 2 million shares at an average of $21.50 per share. This represents a total consideration of $43 million. Mr Kelly advised that he was selling shares to rebalance his portfolio.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan share price has dropped almost 8% to $14.68. This morning the clean lithium company announced firm commitments for its $200 million underwritten placement to sophisticated, professional, and institutional investors. Vulcan is raising the funds at an offer price of $13.50 per new share. This represents a discount of 15% to the Vulcan share price prior to its trading halt.

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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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. 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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