Why PolyNovo, Smartgroup, Star, and WiseTech shares are falling

These ASX shares are falling on Wednesday…

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another decent gain. At the time of writing, the benchmark index is up 0.6% to 7,226.7 points.

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

A male investor erupts into a tantrum and holds his laptop above his head as though he is ready to smash it, as paper flies around him, as he expresses annoyance over so many new 52-week lows in the ASX 200 today

Image source: Getty Images

Polynovo Ltd (ASX: PNV)

The PolyNovo share price is down 9% to $1.91. This has been driven by the medical device company completing a $30 million institutional placement at a discount of $1.90 per new share. The proceeds will be used to accelerate growth and fund the construction of a new co-located manufacturing, R&D, and office facility in Port Melbourne.

Smartgroup Corporation Ltd (ASX: SIQ)

The Smartgroup share price is down 4.5% to $4.67. This morning this fleet management and salary packaging company revealed that it expects to report a profit in the range of $60 million to $61 million for calendar year 2022. This appears to have fallen short of the market's expectations.

Star Entertainment Group Ltd (ASX: SGR)

The Star share price is down 6% to $2.70. Investors have been hitting the sell button after Macquarie downgraded the casino operator's shares to a neutral rating with a trimmed price target of $3.05. The broker made the move following the release of an update which revealed that trading has been softer than expected. Combined with remediation costs, Macquarie has made a sizeable reduction to its earnings estimates.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is down 5% to $54.62. This follows the release of the logistics solutions company's annual general meeting update. Investors appear disappointed that the company only reaffirmed its guidance at the event. WiseTech expects to deliver revenue growth of 20% to 23% and EBITDA growth of 21% to 30% in FY 2023.

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 POLYNOVO FPO and WiseTech Global. The Motley Fool Australia has positions in and has recommended SMARTGROUP DEF SET 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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