Why Collins Foods, Genworth Mortgage Insurance, Kathmandu, & ResMed are sinking

These ASX shares aren’t having a good day…
The post Why Collins Foods, Genworth Mortgage Insurance, Kathmandu, & ResMed are sinking appeared first on The Motley Fool Australia. –

The S&P/ASX 200 Index (ASX: XJO) is on course to record a reasonably disappointing decline on Tuesday. In afternoon trade, the benchmark index is down 0.4% to 7,276.4 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price is down 5% to $12.06 following the release of its full year results. The KFC-focused quick service restaurant operator’s shares hit a record high in early trade before sinking. In FY 2021, Collins Foods reported a 12.4% increase in revenue to $1.07 billion and an 18.2% increase in underlying net profit after tax from continuing operations to $56.9 million. The latter was ahead of the expectations of Wilsons but still not enough to stop its shares from falling.

Genworth Mortgage Insurance Australia Ltd (ASX: GMA)

The Genworth Mortgage Insurance share price has crashed 15% lower to $2.16. This morning the mortgage insurance company was dealt a blow when Commonwealth Bank of Australia (ASX: CBA) advised that it intends to issue a request for proposal relating to its Lenders Mortgage Insurance requirements. Genworth has provided this to CBA for over 50 years, with its current deal contributing more than half of its gross written premiums.

Kathmandu Holdings Ltd (ASX: KMD)

The Kathmandu share price has fallen 3.5% to $1.43. Investors have been selling the adventure retailer’s shares after it warned that COVID-19 lockdowns would lead to it falling short of expectations in FY 2021. Kathmandu estimates that the current lockdowns will hit its earnings by NZ$13 million.

ResMed Inc (ASX: RMD)

The ResMed share price is down 2% to $32.00. The catalyst for this decline appears to be a broker note out of Citi this morning. According to the note, the broker has downgraded the medical device company’s shares to a neutral rating with an improved price target of $32.50. Citi made the move on valuation grounds after a strong gain in June following a competitor product recall.

The post Why Collins Foods, Genworth Mortgage Insurance, Kathmandu, & ResMed are sinking 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

ResMed (ASX:RMD) share price tumbles on broker downgrade
ASX 200 down 0.9%: Big four banks drop, Metcash charges higher

Genworth (ASX:GMA) share price dives 17% after CBA contract update
Collins Foods (ASX:CKF) share price hits record high after reporting strong FY 2021 growth
Kathmandu (ASX:KMD) share price on watch after COVID lockdowns hit sales

Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended Collins Foods Limited and ResMed Inc. 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!