Why A2 Milk, Magellan, Santos, & Whitehaven Coal shares are falling

These ASX shares are in the red on Thursday…

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on form and charging higher. At the time of writing, the benchmark index is up 0.7% to 7,258.3 points.

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

ASX shares skills shortage downgrade arrow causing the ground to crack symbolising a recession

Image source: Getty Images

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is down 2% to $5.90. Investors have been selling this embattled infant formula company's shares this week after it was hit with a class actionSlater & Gordon Limited (ASX: SGH) alleges that a2 Milk was or ought to have been aware that it would not achieve its FY 2021 guidance.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is down 1.5% to $32.04. This morning the team at UBS retained their sell rating and cut their price target on this fund manager's shares to $29.00. This follows the release of a disappointing funds under management update. Magellan recorded a greater than expected outflow of funds. UBS suspects the underperformance of its flagship global fund is to blame.

Santos Ltd (ASX: STO)

The Santos share price is down 2% to $7.28. This appears to have been driven by a pullback in oil prices overnight and profit taking from some investors. In respect to the latter, prior to today, the Santos share price was up a massive 20% in the space of a month. Some investors may have decided to lock some of these gains in after the oil price rally stalled.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price has dropped 7% to $3.34. Investors have been selling this coal miner's shares after a poor night of trade for the thermal coal price. According to CommSec, the thermal coal price fell a sizeable 10.2% to US$242.00 per tonne.

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 recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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