Why Kogan, Reliance, ResMed, and Sandfire shares are dropping

These ASX shares are ending the week in the red…

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Red arrow going down, symbolising a falling share price.

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The S&P/ASX 200 Index (ASX: XJO) is on form again and on course to end the week on a positive note. In afternoon trade, the benchmark index is up 0.95% to 7,426.8 points.

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

Kogan.com Ltd (ASX: KGN)

The Kogan share price has crashed 13% to a new multi-year low of $3.95. This morning the ecommerce company released its third quarter update and revealed that its sales fell 3.8% to $262.1 million. In addition, further margin weakness led to the embattled retailer reporting an operating loss of $0.8 million for period. Kogan also conceded that it has once again got it wrong with its inventory management.

Reliance Worldwide Corporation Ltd (ASX: RWC)

The Reliance share price is down 1.5% to $3.95. This follows the release of a trading update out of the plumbing parts company this morning. For the nine months ended 31 March, Reliance reported a 14% increase in sales to $845 million. This was overshadowed by margin pressures caused by higher input costs, which led to its EBITDA falling 8% year on year to $182.6 million.

ResMed Inc (ASX: RMD)

The ResMed share price is down 5% to $28.88. Investors have been selling this sleep treatment company’s shares after its quarterly update fell short of expectations. ResMed posted a 12% increase in revenue to US$864.5 million and a 2% lift in earnings per share to US$1.32. Goldman Sachs points out that this missed consensus estimates by 5% and 9%, respectively.

Sandfire Resources Ltd (ASX: SFR)

The Sandfire share price is down 3% to $5.65. This appears to have been driven by profit taking after a very strong gain on Thursday following its quarterly update. Though, analysts at Morgans think it is worth holding onto Sandfire’s shares. This morning the broker put an add rating and $7.50 price target on its shares.

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 positions in and has recommended Kogan.com ltd and Reliance Worldwide Corporation Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Reliance Worldwide Corporation Limited and ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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