These were the 5 worst performing ASX 200 shares in 2021

These ASX 200 shares were sold off in 2021…
The post These were the 5 worst performing ASX 200 shares in 2021 appeared first on The Motley Fool Australia. –

It was a stunning 12 months for the S&P/ASX 200 Index (ASX: XJO) in 2021. Over the period, the benchmark index climbed 13% higher.

Unfortunately, not all ASX 200 shares climbed with the market. Here’s why these were the worst performers over the period:

PolyNovo Ltd (ASX: PNV)

The PolyNovo share price was the worst performer on the ASX 200 in 2021 with a disappointing 60.5% decline. Investors were selling the medical device company’s shares after its sales fell well short of expectations in FY 2021. In addition, the surprise resignation of its Managing Director, Paul Brennan, weighed on sentiment. Mr Brennan’s interactions with senior staff and his management style led to increasing differences between him and the Board. PolyNovo also lost its Chief Operating Officer, Dr. Anthony Kaye, to CSL Limited (ASX: CSL) during the year.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price wasn’t far behind with a decline of just over 60% during the 12 months. This fund manager’s shares came under pressure last year amid concerns over the underperformance of its flagship fund. This is expected to weigh on performance fees in the near term and could impact fund inflows. In addition, late in the year the company’s shares were sold off after it announced the termination of the St James’s Place mandate. Magellan advised that the mandate represents approximately 12% of its current annual revenues.

Appen Ltd (ASX: APX)

The Appen share price was out of form and dropped 55% over the 12 months. A good portion of this decline came after the release of its half year results in August. Appen reported a 2% decline in revenue to US$196.6 million and a 14.3% fall in EBITDA to US$27.7 million. In addition to this, concerns over structural changes in the artificial intelligence/machine learning data labelling industry have been weighing on sentiment. There are fears that major tech companies will bypass Appen by taking things in-house.

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price was unsurprisingly among the worst performers on the ASX 200 in 2021 with a decline of 52.3%. Investors were selling down this struggling infant formula company’s shares after a disastrous performance in FY 2021. This was driven by a significant reduction in demand for its products in China and the daigou channel and poor inventory management. And while the company provided an investor update which outlined its recovery plans, it wasn’t enough to stop its shares from falling. A2 Milk guided to significantly lower margins compared to pre-COVID levels and a sales target of NZ$2 billion over the next ~5 years. The latter compares to FY 2020’s pre-COVID sales of NZ$1.73 billion.

AGL Energy Limited (ASX: AGL)

The AGL share price continued its multi-year decline in 2021 and dropped 48.6% over the period. Investors were selling off this energy company’s shares amid weak wholesale prices and its bleak outlook. Not even the release of its demerger plans has been able to give its shares a boost. Those plans will see the company split into two. AGL Energy is planning to become Accel Energy, an electricity generation business focused on the accelerating energy transition. It will then demerge a new entity, AGL Australia, which will be a multi-product energy-led retailing and flexible energy trading, storage and supply business.

The post These were the 5 worst performing ASX 200 shares in 2021 appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

These were the 5 best performing ASX 200 shares in 2021

Analysts tip A2 Milk (ASX:A2M) and this share as buys

5 things to watch on the ASX 200 on Tuesday

These were the best performing ASX 200 shares in December

These were the worst performing ASX 200 shares in December

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. owns and has recommended Appen Ltd and POLYNOVO FPO. The Motley Fool Australia owns and has recommended Appen Ltd. 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!