As per usual earnings season results are causing big price swings for ASX shares.
It can be difficult for investors to not overreact both positively and negatively depending on the earnings results posted by a company.
However these swings can sometimes be overcorrections, leading to great entry points for certain ASX shares.
Here is one ASX stock that was heavily sold off yesterday that could now be attractively valued.
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AUB Group Ltd (ASX: AUB)
AUB Group is the second-largest general insurance broker network in Australia and New Zealand.
This ASX 200 financials stock has experienced some significant volatility over the last 12 months and its start to 2026 has been difficult.
AUB Group shares fell more than 6% yesterday, taking its year to date loss to 15%.
It is now trading at 52-week lows.
Failed takeover
Investors have been exiting their positions in this insurance company following a failed takeover deal late last year.
The deal would have seen indicative offers up to A$45 per share – well above the prevailing share price at the time.
Initially, this pushed the stock sharply higher.
However, after due diligence negotiations, the buyers pulled out and terminated the takeover talks at the end of 2025, shocking markets and removing the potential takeover premium.
The share price plunged sharply after that announcement.
Analysis via The Bull said this result was a disappointment for shareholders.
AUB's board had indicated the consortium's offer appropriately valued the company, making the withdrawal a significant disappointment for shareholders who had anticipated a premium exit.
The subsequent announcement of the Prestige acquisition suggests management has pivoted quickly to pursue organic growth strategies rather than waiting for another takeover approach.
January acquisition
Late last month, AUB Group completed a $400 million institutional placement to help fund its acquisition of UK insurer Prestige and support growth.
The placement was priced below the then-current share price (at about $29.40), diluting existing holders and signalling a reduction in valuation expectations.
Most of this year's share price fall has come after this announcement.
The $400 million raise represents a substantial capital commitment for the company. According to management, it will now focus on integrating Prestige while delivering on promised synergies.
Buy low opportunity?
These ASX shares now sit at roughly $26.00 per share after yesterday's crash.
Have they now hit rock bottom?
Based on the average rating of 8 analysts, these ASX shares are now undervalued.
TradingView has an average 12 month price target of $37.63, with analysts one year targets ranging from $35.00 to $42.00.
This average target is 45% higher than yesterday's closing price.
