Insurance Australia Group Ltd (ASX:IAG) and Kogan.com Ltd (ASX:KGN) shares are two of four dropping notably lower on Monday…
The post Why BlueScope, Home Consortium, IAG, & Kogan shares are dropping lower appeared first on Motley Fool Australia. –
The S&P/ASX 200 Index (ASX: XJO) is on course to record a solid gain on Monday. In early afternoon trade the benchmark index is up 0.5% to 6,572.1 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:
BlueScope Steel Limited (ASX: BSL)
The BlueScope Steel share price is down 2.5% to $16.80. This is despite there being rumours that the steel producer could be a takeover target. There is speculation that private equity firms could be willing to pay as much as $25.00 per share to acquire the company.
Home Consortium Ltd (ASX: HMC)
The Home Consortium share price is sinking 8.5% lower to $3.87. This morning the property company announced that it has entered into a binding contract to acquire Marsden Park Shopping Centre. Home Consortium has agreed to pay $48 million for the Queensland-based convenience focused asset. This represents a cap rate of 6.75%.
Insurance Australia Group Ltd (ASX: IAG)
The IAG share price has sunk 5.5% lower to $5.15 following the completion of its institutional placement. The insurance giant has raised $650 million through the issue of approximately 128.7 million new shares to institutional investors at a 7.5% discount of $5.05 per new share. It will now seek to raise a further $100 million via a share purchase plan. The company launched the equity raising last week in order to strengthen its balance sheet following an $865 million business interruption claims provision.
Kogan.com Ltd (ASX: KGN)
The Kogan share price has dropped 3.5% to $16.88. This may have been driven by a broker note out of UBS this morning. Although the broker has retained its neutral rating, it has reduced its price target from $22.00 to $18.00. While Kogan delivered a strong trading update at its annual general meeting, its growth fell a touch short of the broker’s expectations. UBS also has concerns that recent gross margin strength is unsustainable.
Where to 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 are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
- Why the IAG (ASX:IAG) share price is sinking lower today
- ASX 200 up 0.7%; Zip trading update, Ampol buyback, IAG sinks
- BlueScope (ASX:BSL) share price on watch as takeover rumours swirl
- Revealed: Shares that’ll shoot up with a COVID-19 recovery
- Profit up 270% in FY21 YTD, is the Kogan.com share price a buy?
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 Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd. 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.
The post Why BlueScope, Home Consortium, IAG, & Kogan shares are dropping lower appeared first on Motley Fool Australia.