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In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and is dropping lower. At the time of writing the benchmark index is down 0.2% to 6,006.8 points.
Four shares falling more than most today are listed below. Here's why they are dropping lower:
The GUD Holdings Limited (ASX: GUD) share price is down 3.5% to $11.33. This decline appears to have been caused by a broker note out of Citi this morning. According to the note, the broker has downgraded the products company's shares to a neutral rating with a slightly reduced price target of $12.75. The broker made the move on valuation grounds after not seeing enough in its FY 2020 result to warrant the premium its shares trade at.
The IGO Ltd (ASX: IGO) share price has crashed 13% lower to $4.81 after its guidance for FY 2020 fell short of expectations. Management expects its revenue to be $892.4 million and its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to come in at $459.6 million. The latter is well short of Macquarie's estimate of $530 million.
The Nitro Software Ltd (ASX: NTO) share price is down 8% to $1.89. This follows the release of the software company's second quarter result. For the six months to 30 June 2020, Nitro's cash receipts from customers were $19.1 million. This represents a 7% increase compared to the prior corresponding period. Although this has met its pre-COVID forecasts, it appears to have fallen short of the market's expectations.
The St Barbara Ltd (ASX: SBM) share price has fallen 6.5% to $3.55. As well as being weighed down by general weakness in the gold mining industry, the release of its fourth quarter update appears to have underwhelmed. Although St Barbara achieved its production and cost guidance for FY 2020, its outlook for the year ahead may have been softer than hoped. The gold miner is expecting production and costs to remain largely the same in FY 2021.
