Why Australian Strategic Materials, Bapcor, Brainchip, and Deep Yellow shares are dropping today

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

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Man with a hand on his head looks at a red stock market chart showing a falling share price.

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Key points

  • Australian Strategic Materials shares are down 17% following a $55 million institutional placement at a discounted price to fund plant expansion.
  • Bapcor shares have fallen 15% due to profit guidance indicating a significant drop in first half earnings for FY 2026.
  • Deep Yellow shares are down 16% as the market responds to the CEO's resignation and interim leadership by the CFO.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a small decline. At the time of writing, the benchmark index is down slightly to 8,991 points.

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

Australian Strategic Materials Ltd (ASX: ASM)

The Australian Strategic Materials share price is down 17% to $1.34. This morning, the integrated materials business revealed that it has received firm commitments for an institutional placement to raise approximately $55 million at a sizeable discount of $1.20 per new share. Managing director, Rowena Smith, said: "We are now fully funded to execute our Phase 2 ramp-up plan at the Korean Metals Plant (KMP). Completion of Phase 2 expansion activities will double our existing NdFeB alloy capacity to 3,600 tonnes per annum. This increased capacity will enable us to service the growing demand of our existing customers and the increasing number of enquiries we have received in recent months."

Bapcor Ltd (ASX: BAP)

The Bapcor share price is down 15% to $2.69. Investors have been selling this auto parts retailer's shares after it released its guidance for FY 2026. Management revealed that first half underlying profit is expected to be in the range of $14 million to $18 million. This is down sharply from $45.5 million in the prior corresponding period. On a statutory basis, things will be even worse, with a profit of $3 million to $7 million expected. And this doesn't include any potential impairments associated with the New Zealand segment. A stronger second half is expected, with management guiding to full year statutory profit in the range of $40 million to $50 million.

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price is down 2.5% to 20.5 cents. This morning, this struggling semiconductor company appeared to change its business model out of the blue once again. After hyping up its potential to sell IP, Brainchip has now announced a shift back to trying to sell chips. This will see Brainchip tape out AKD1500 chip with its foundry partner. Though, the first units are not expected to be available until the third quarter of 2026. Brainchip CEO, Sean Hehir, said: "We are confident that this strategic step will position BrainChip for commercial success."

Deep Yellow Ltd (ASX: DYL)

The Deep Yellow share price is down 16% to $1.95. This has been driven by news that the uranium producer's CEO is stepping down after almost a decade at the company. Deep Yellow's chief financial officer (CFO), Craig Barnes, will lead the organisation as acting CEO until a permanent appointment is made. The company stated: "John leaves an incredible legacy at Deep Yellow having built one of the most experienced uranium mining leadership teams in the industry."

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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