Insights

Why Australian Ethical, Clinuvel, Liontown Resources, & Tabcorp shares are dropping

These ASX shares have started the week in the red…
The post Why Australian Ethical, Clinuvel, Liontown Resources, & Tabcorp shares are dropping appeared first on The Motley Fool Australia. –

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a modest gain. The benchmark index is currently up slightly to 7,312.9 points.

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

Australian Ethical Investment Limited (ASX: AEF)

The Australian Ethical share price is down 10% to $7.46 following the release of its earnings guidance for FY 2021. According to the release, the fund manager expects its underlying profit after tax (UPAT) to be between $10.7 million and $11.2 million for FY 2021. This represents a midpoint increase of 18% against the prior corresponding period. This is down from its prior (pre performance fee guidance) of $8.8 million to $9.3 million. That prior guidance represented a midpoint increase of 29% on FY 2020’s pre performance fee profit.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel share price is down 4% to $28.80. This follows the release of a change of director’s interests notice which reveals significant insider selling. According to the notice, the company’s CEO, Philippe Wolgen, has sold 122,675 shares on-market. Dr Wolgen received a total consideration of approximately $3.75 million.

Liontown Resources Limited (ASX: LTR)

The Liontown Resources share price is down 6% to 83.5 cents. This is despite the lithium explorer revealing that it has defined significant new exploration targets in close proximity to its Buldania Lithium Project in Western Australia. Though, with the company’s shares more than doubling in 2021, this decline could be the result of profit taking.

Tabcorp Holdings Limited (ASX: TAH)

The Tabcorp share price has fallen 5% to $4.93. This follows news that the gaming company plans to demerge its lotteries and Keno business. This will see two separate ASX-listed companies – Tabcorp and Lotteries & KenoCo. The former will retain its wagering, media, and gaming services businesses. This also ends the takeover approach by Betmakers Technology Group Ltd (ASX: BET), which judging by the share price weakness, some shareholders may have preferred.

The post Why Australian Ethical, Clinuvel, Liontown Resources, & Tabcorp shares are dropping 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 May 24th 2021

More reading

The Australian Ethical (ASX:AEF) share price lower despite positive earnings guidance
Why A2 Milk, Airtasker, BetMakers, & Sydney Airport shares are storming higher

Why the BetMakers (ASX:BET) share price is up 5% at lunchtime
ASX 200 up 0.1%: Sydney Airport takeover, Tabcorp demerger, a2 Milk jumps

Tabcorp (ASX:TAH) share price drops on demerger news

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 shares of and has recommended Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. 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!