Why is the Pilbara Minerals share price tumbling 10% on Tuesday?

Pilbara Minerals shares hit their lowest point in nearly a month earlier today.

| More on:
a group of business people sit dejectedly around a table, each expressing desolation, sadness and disappointment by holding their head in their hands, casting their gazes down and looking very glum.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Pilbara Minerals share price has tumbled 10% to trade at $4.76 at the time of writing
  • That's despite no price-sensitive news having been released by the ASX 200 lithium favourite
  • Its fall comes after international lithium giants suffered a rough session overnight

The Pilbara Minerals Ltd (ASX: PLS) share price is plummeting on Tuesday despite no word having been released by the company.

Right now, stock in the lithium favourite is down 10.02%, trading at $4.76. That's a slight improvement on its intraday low.

The Pilbara Minerals share price bottomed out at $4.60 earlier today, marking a 13% tumble and its lowest point in nearly a month.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.34% right now, while the S&P/ASX 200 Materials Index (ASX: XMJ) is proving to be its biggest weight, falling 1.72%.

Let's take a closer look at what might be going wrong for the ASX lithium share today.

What's dragging the Pilbara Minerals share price lower?

The Pilbara Minerals share price is among the ASX 200's worst performers on Tuesday, only outperforming some of its fellow lithium stocks.

Joining it in the red are shares in Core Lithium Ltd (ASX: CXO) and Allkem Ltd (ASX: AKE). They're down 13.94% and 12.33% respectively right now.

Some of their tumble might be chalked up to an international lithium sell-off.

Stock in many of the globe's most recognisable lithium players, such as Albemarle Corporation (NYSE: ALB), Livent Corp (NYSE: LTHM), and Sociedad Quimica y Minera de Chile (NYSE: SQM), slipped between 2.8% and 5.3% overnight.

Though, the trio each reached their highest closing price in more than a month on Friday, potentially helped along by optimistic US inflation data. Thus, their falls may have represented profit-taking.

Additionally, Wall Street struggled overnight, with the Dow Jones Industrial Average Index (DJX: .DJI) slipping 0.6% and the S&P 500 Index (SP: .INX) falling 0.9%.

Interestingly, there has been a non-price-sensitive release from Pilbara Minerals. The company revealed AustralianSuper has ditched its previously-held 5% stake in its stock after the market closed last night.

Additionally, lithium shares might be front of mind amid Allkem's annual general meeting, held this morning, as my colleague James reports.

Fortunately, the Pilbara Minerals share price still has a long way to go before it will reach the long-term red. The stock has soared 34% year to date and more than 90% over the last 12 months.

Motley Fool contributor Brooke Cooper 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »

Father in the ocean with his daughters, symbolising passive income.
Dividend Investing

I'd spend $8k on these ASX 200 shares today to target a $6,102 annual passive income

I believe these ASX 200 shares will continue rewarding passive income investors for years to come.

Read more »

Three businesspeople leap high with the CBD in the background.
Share Market News

Boom! ASX 200 blasts to new record highs

ASX 200 investors just sent the benchmark index into uncharted territory.

Read more »