Why ARB, Inghams, James Hardie, and SDI shares are sinking

These ASX shares are out of form on Tuesday…

The S&P/ASX 200 Index (ASX: XJO) is having a tough day on Tuesday. In afternoon trade, the benchmark index is down 0.6% to 7,400.9 points.

Four ASX shares that are falling more than most today are listed below. Here's why they are sinking:

A man sits in front of his laptop computer with his head on his hand and a sad, dejected look on his face after seeing how far Whitehaven shares have fallen today

Image source: Getty Images

ARB Corporation Limited (ASX: ARB)

The ARB share price is down 12% to $46.61. Investors have been selling the 4×4 parts company's shares after it was downgraded by analysts at Credit Suisse. According to the note, Credit Suisse has downgraded its rating to underperform with a price target of $38.00. While the broker is predicting a strong result in February, it expects margin pressure and slower growth thereafter.

Inghams Group Ltd (ASX: ING)

The Inghams share price is down 6% to $3.31. This follows the release of a disappointing trading update this morning. According to the release, the poultry producer revealed that COVID-19 and elevated feed costs are impacting its performance. Management also warned that it is not currently possible to predict how long this disruption will continue.

James Hardie Industries plc (ASX: JHX)

The James Hardie share price is down 3% to $49.37. This decline may have been driven by a broker note out of Morgan Stanley. Its analysts have downgraded the company's shares to an equal weight rating and cut the price target on them to $58.00. The broker made the move in response to the surprise exit of its CEO and slowing US housing.

SDI Limited (ASX: SDI)

The SDI share price has tumbled 10% to 92.5 cents following the release of a trading update out of the dental products company. While SDI expects to report a 26% increase in half year revenue to $46.2 million, it warned that its margins have been impacted by supply chain issues. As a result, first half net profit is only expected to be between $2.5 million and $3 million. This is down from $4.6 million a year earlier.

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 ARB Corporation Limited and SDI Limited. 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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