Why 4DMedical, DroneShield, Ramsay, and Saturn Metals shares are sinking today

The market may be racing higher but the same cannot be said for these shares.

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Key points

  • One ASX share declines due to profit-taking after a remarkable rise, driven by recent U.S. market successes including a reimbursement approval.
  • Another ASX share drops as investors take profits after excitement around the EU's drone wall initiative.
  • A third ASX share falls following a share placement announcement, causing investor concern over dilution despite securing substantial development funding.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 1% to 8,935.9 points.

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

4DMedical Ltd (ASX: 4DX)

The 4DMedical share price is down 5% to $2.14. This appears to have been driven by profit taking from investors after some exceptionally strong gains last month. For example, even after today's pullback, the medical technology company's shares are up almost 180% since this time last month. This outperformance has been driven largely by positive developments in the US market. This includes the U.S. Centers for Medicare & Medicaid Services (CMS) confirming the reimbursement for its CT:VQ product, accelerating the path to broad market adoption.

DroneShield Ltd (ASX: DRO)

The DroneShield share price is down 13% to $4.96. This also appears to have been driven by profit taking. Like 4DMedical, DroneShield's shares have been on fire recently. Investors have been bidding its shares higher largely due to news that the European Union is looking to build a drone wall across its Eastern border. The market seems to believe that DroneShield is well-positioned to benefit from this plan.

Ramsay Health Care Ltd (ASX: RHC)

The Ramsay Health Care share price is down 3% to $31.57. This may have been caused by a broker note out of Morgan Stanley this morning. According to the note, the broker has downgraded the private hospital operator's shares to an underweight rating with a reduced price target of $31.30. It highlights that industry growth has slowed in Australia during the second half of the year.

Saturn Metals Ltd (ASX: STN)

The Saturn Metals share price is down 10% to 62.2 cents. This morning, this gold explorer revealed that it has received firm commitments for a $45 million share placement at 58 cents per new share. Saturn's managing director, Ian Bamborough, said: "Saturn is delighted and humbled by the exceptional support received from both our existing shareholders and new institutional investors as we continue to accelerate the Apollo Hill Project through development and towards production. This strong show of confidence and funding will enable the Company to take the next important steps along the development pathway, with the aim of unlocking, and maximising, the full value and potential of the Project and our broader exploration portfolio."

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 DroneShield. 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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