Why Bubs, Dalrymple Bay, IAG, and Redbubble shares are dropping

These ASX shares are dropping on Wednesday…

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is back on form and charging higher. At the time of writing, the benchmark index is up 0.8% to 7,385.4 points.

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

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is down 6% to 54.5 cents. Investors have been selling this infant formula company’s shares despite it announcing a key appointment in China. A few investors may be taking profit off the table after some very strong gains in recent weeks.

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

The Dalrymple Bay Infrastructure share price is down 1% to $2.22. This morning the infrastructure company announced a A$514 million private US placement. According to the release, Dalrymple Bay is raising the funds via fixed rate senior secured notes. The notes will be issued in three tranches of approximately A$185 million, A$215 million and A$114 million, with tenors of 10, 12 and 15 years, respectively.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price has continued its slide and is down a further 1% to $4.45. Investors have been selling this insurance giant’s shares since it downgraded its margin guidance for FY 2022 following a surge in claims. This was driven by recent severe storm across parts of Australia.

Redbubble Ltd (ASX: RBL)

The Redbubble share price is down 4.5% to $3.70. This is despite there being no news out of the ecommerce company. However, it is worth noting that short sellers have been targeting Redbubble. So much so, it is now one of the most shorted shares on the Australian share market. At the last count, over 10% of Redbubble’s shares were in the hands of short sellers.

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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 owns shares of and has recommended Insurance Australia Group Limited. The Motley Fool Australia has recommended BUBS AUST 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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