In afternoon trade the S&P/ASX 200 index is fighting hard to keep its head above water. At the time of writing the benchmark index is up 0.1% to 6,855.3 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:
The CIMIC Group Ltd (ASX: CIM) share price has fallen almost 4% to $33.62. This follows an announcement out of the engineering company just before the market close on Tuesday. That update revealed that its CPB Contractors business has reached a contractual close to deliver the Yanchep Rail Extension and the Thornlie to Cockburn Link. This is expected to generate revenue of approximately $423 million to CPB Contractors. Investors may have been expecting greater revenues.
The Redbubble Ltd (ASX: RBL) share price is down over 3% to $1.02. This decline appears to have been driven by a broker note out of Goldman Sachs this morning. According to the note, the broker has taken its buy rating off the ecommerce company’s shares and downgraded them to neutral. Goldman has also slashed its price target by 45% to $1.12. This was in response to its bitterly disappointing trading update last week.
The OZ Minerals Limited (ASX: OZL) share price has fallen 4% to $11.07. As with Redbubble, the catalyst for this decline appears to have been a broker note out of Goldman Sachs. This morning the broker downgraded the copper producer’s shares to a sell rating with an $8.70 price target. This was due partly to concerns over its Carrapateena operation.
The Virgin Money UK PLC (ASX: VUK) share price is down 3% to $3.72. This is the second day in a row that the UK-based bank’s shares have tumbled lower. These declines are likely to have been driven by profit taking after a series of very strong gains following the UK election and the release of its full year result.
The post Why CIMIC, Redbubble, OZ Minerals, & Virgin Money are dropping lower appeared first on Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REDBUBBLE FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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