Why Beach Energy, Core Lithium, Helia, and Red 5 shares are dropping today

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

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down slightly to 7,775.4 points.

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

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is down almost 5% to $1.46. This appears to have been driven by a broker note out of Citi this morning. In response to its strategic review, the broker has downgraded the energy producer's shares to a sell rating with a trimmed price target of $1.40. It was disappointed to see that Beach Energy's strategic review revealed higher than expected capex with no boost to medium-term production. In light of this, it feels its shares are overvalued at current levels.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down over 3% to 8.7 cents. This is despite there being no news out of the lithium miner on Wednesday. However, it is worth noting that a number of ASX lithium stocks are in the red today. This follows another poor session for global lithium giants on Wall Street overnight. Core Lithium's shares are down over 90% since this time last year. It was forced to suspend mining activities indefinitely due to falling lithium prices.

Helia Group Ltd (ASX: HLI)

The Helia Group share price is down almost 18% to $3.48. This follows news that Commonwealth Bank of Australia (ASX: CBA) intends to issue a request for proposal relating to its external Lenders Mortgage Insurance (LMI) requirements for the whole CBA group. While this could mean a bigger contract for Helia. It could also mean the loss of the lucrative contract. Helia notes that its current contract represented approximately 53% of its gross written premium in FY 2023. Clearly, the loss would be a devastating blow to the company.

RED 5 Limited (ASX: RED)

The RED 5 share price is down over 2% to 4.4 cents. This morning, the company revealed a number of changes to its executive leadership following the successful implementation of the merger with Silver Lake Resources Ltd (ASX: SLR). Its chairman said: "Under the leadership of Luke Tonkin as Managing Director and CEO, supported by a high calibre executive leadership team, I am confident we have the team in place to oversee the next chapter of the Company's growth."

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 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.

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