The S&P/ASX 200 Index (ASX: XJO) is back on form and on course to start the week with a solid gain. In afternoon trade, the benchmark index is up 0.6% to 7,396.3 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:
Image source: Getty Images
Audinate Group Ltd (ASX: AD8)
The Audinate share price has tumbled 7% to $9.73. Investors have been selling the media networking solution provider's shares despite it announcing an acquisition. Audinate is acquiring the video business of Belgium-based Silex Insight for an up-front cash payment of US$6.5 million. The release notes that the Silex video business produces video networking products for manufacturers of audio-visual (AV) equipment. Investors may be concerned with the decision to eat into its cash reserves during a particularly difficult period because of chip shortages.
Firefinch Ltd (ASX: FFX)
The Firefinch share price has fallen 4% to 72.5 cents. This morning the gold and lithium explorer announced firm commitments to raise $100 million (before costs) through a placement. Firefinch raised the funds at $0.67 per share, which represents a 11.3% discount to the last close price. The proceeds will be used to support growth plans at the Morila and Goulamina operations.
Insurance Australia Group Ltd (ASX: IAG)
The IAG share price is down 3% to $4.26. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has downgraded this insurance giant's shares to a sell rating and cut the price target on them to $4.20. UBS believes the profitability of IAG's Direct business could be under pressure and its financial target could be challenging to achieve due to the rise of online competition.
Ramsay Health Care Limited (ASX: RHC)
The Ramsay share price is down 1% to $68.72. This is despite the private healthcare operator announcing a key new acquisition this morning. Ramsay has signed an agreement to acquire UK based mental health services provider Elysium Healthcare for $1.4 billion. Some investors may believe the company has overpaid for the deal.
