Why Afterpay, Clinuvel, Inghams, and Virgin Money UK shares are tumbling

These ASX shares are under pressure on Friday…

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a solid gain. At the time of writing, the ASX shares benchmark index is up 0.6% to 7,471.6 points.

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

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Image source: Getty Images

Afterpay Ltd (ASX: APT)

The Afterpay share price is down 4.5% to $118.71. Investors have been selling this payments company's shares following a pullback in the Square share price overnight. The US payments giant's shares were sold off after its third quarter result fell short of expectations. As Square is acquiring Afterpay in an all-scrip deal, the value of the takeover rises and falls with its share price.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel share price is tumbling 10.5% to $36.36. This decline appears to have been driven by the release of a broker note out of Jefferies this morning. According to the note, following some strong gains in recent months, the broker has downgraded this biopharmaceutical company's shares to a hold rating from buy. The Clinuvel share price is still up over 50% in 2021.

Inghams Group Ltd (ASX: ING)

The Inghams share price is down a further 3.5% to $3.47. Investors have been selling this poultry producer's shares since the release of its annual general meeting update on Thursday. That update revealed that Inghams' performance is being impacted by sustained input cost pressures. In response, this morning Macquarie retained its neutral rating but cut its price target down to $3.70.

Virgin Money UK (ASX: VUK)

The Virgin Money share price has sunk 11.5% to $3.14. This UK-based bank's shares are being sold off today following the release of its full year update. Virgin Money advised that it expects to record an underlying profit before tax of 801 million pounds. This will be up 546% from the 124 million pounds recorded a year earlier. However, taking the shine off this was management revealing that it will incur 275 million pounds in restructuring costs over the next 3 years. This was approximately double what the market was expecting.

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 AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T 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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