Why Bapcor, Brainchip, Helloworld, and Woolworths shares are tumbling today

These shares are out of favour with investors on Thursday. But why?

| More on:
A businesswoman exhales a deep sigh after receiving bad news, and gets on with it.

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

The S&P/ASX 200 Index (ASX: XJO) has returned to form on Thursday. In afternoon trade, the benchmark index is up 0.45% to 7,604.1 points.

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

Bapcor Ltd (ASX: BAP)

The Bapcor share price is down 25% to $4.33. This follows the release of a trading update from the auto parts retailer this morning. As well as the shock announcement that its CEO-elect decided against joining the company the day before his start date, the company revealed that trading has been below expectations in the second half. Bapcor now expects to report FY 2024 pro-forma net profit after tax of between $93 million and $97 million. This will be down from $125.3 million in FY 2023.

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price is down 16% to 24 cents. This morning, Brainchip announced the issue of 10 million shares for its Employee Share Plan Trust. But the real bombshell was news that two key executives have left the company suddenly. Given that you would be unlikely to leave if you thought the company was about to change the world with its technology, investors seem to be interpreting these exits as another big red flag and have scrambled to the exits.

Helloworld Travel Ltd (ASX: HLO)

The Helloworld share price is down 11% to $2.42. This follows the release of the travel agent's quarterly update. Interestingly, investors have been hitting the sell button despite management reaffirming its guidance for the full year. It said: "HLO reaffirms its guidance to achieve an underlying EBITDA of $64-$72m for the FY24 year, subject to no material adverse change in operating conditions over the remainder of the financial year." The market may have been expecting Helloworld to outperform this.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price is down 4% to $30.61. Investors have been selling this retail giant's shares after it released its third-quarter sales update. Woolworths reported a 2.8% increase in total sales to $16,800 million. However, its Australian Food sales only rose 1.5% to $12,578 million compared to the prior corresponding period. This is a slower growth rate than its arch-rival, which suggests market share losses. In response, Goldman Sachs notes that there have been "shifts in competition, which is clearly intensifying." It has concerns that this "could signal weaker margins in FY25/26."

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 Goldman Sachs Group. The Motley Fool Australia has recommended Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Fallers

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 AMP, Civmec, Cochlear, and LGI shares are falling today

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

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Graincorp, IAG, Pro Medicus, and Treasury Wine shares are falling today

These shares are having a tough time on Thursday. Let's find out why.

Read more »

A gambler at a casino bets a pile of chips on one number
Share Fallers

Down 78% in a year, time to throw in the towel on Star Casino shares?

Has the time come to cut and run?

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Amotiv, Dexus Industria, St Barbara, and Wildcat shares are sinking today

These shares are having a tough time on hump day. But why?

Read more »

Miner looking at a tablet.
Resources Shares

Why is the South32 share price taking such a shellacking today?

A whale move might be behind today's big slump.

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why Breville, Domino's, Liontown, and WiseTech shares are falling today

These shares are out of form on Tuesday. What's going on?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why CAR Group, Domino's, JB Hi-Fi, and WiseTech shares are dropping today

These shares are having a tough start to the week. But why?

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Beach Energy, McMillan Shakespeare, News Corp, and Pilbara Minerals shares are falling today

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

Read more »