Why Allegiance Coal, Hub24, Suncorp, and WiseTech shares are dropping

These ASX shares are dropping on Tuesday…

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing, the benchmark index is down 0.6% to 6,649 points.

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

Red arrow going down on a stock market table which symbolises a falling share price.

Image source: Getty Images

Allegiance Coal Ltd (ASX: AHQ)

The Allegiance Coal share price is down a massive 66% to 18.5 cents. Investors have been selling this coal miner's shares following the release of a very disappointing update. Allegiance Coal has been unable to successfully ramp up production to previous expectations at its two operating mines. This has left it in a precarious position financially. In order to keep the lights on, the company has established a $5 million equity facility.

Hub24 Ltd (ASX: HUB)

The Hub24 share price is down 7% to $22.13. The catalyst for this was the release of the investment platform provider's fourth quarter update. Although that update revealed that Hub24 achieved a record annual increase in platform inflows of $11.7 billion in FY 2022, its soft finish to the year appears to have spooked investors. Hub24 revealed that it finished the period with funds under administration (FUA) of $65.6 billion. This was an increase of 11.8% year on year, but down 4% quarter on quarter.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price is down over 4% to $11.27. This morning the team at Ord Minnett downgraded this insurance giant's shares to a hold rating and cut the price target on them to $13.25. It isn't a fan of the company's decision to sell its banking operations.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is down over 5% to $44.80. As well as being hit by weakness in the tech sector, the logistics solutions software company's shares were dealt a blow from Macquarie this morning. The broker has downgraded them to an underperform rating with a $42.00 price target. The broker suspects that the company's margins may be peaking, which it fears could weigh on its valuation.

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 Hub24 Ltd and WiseTech Global. The Motley Fool Australia has positions in and has recommended Hub24 Ltd and WiseTech Global. 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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