Why Costa, Freedom Foods, Sonic, & Westpac shares are tumbling lower

Freedom Foods Group Ltd (ASX:FNP) and Westpac Banking Corp (ASX:WBC) shares are two of four tumbling notably lower on Friday…

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) looks set to end a very positive week on a disappointing note. At the time of writing the benchmark index is down just over 1.2% to 5,778.8 points.

Four shares that have fallen more than most today are listed below. Here's why they are tumbling lower:

The Costa Group Holdings Ltd (ASX: CGC) share price is down 4% to $3.16. This follows the release of the horticulture company's annual general meeting update this morning. That update revealed that Costa's long-serving CEO intends to retire within the next nine months. In addition to this, the company revealed that the majority of its produce is in demand and receiving favourable prices. However, it did warn on increasing operating costs relating to the pandemic.

The Freedom Foods Group Ltd (ASX: FNP) share price has crashed 13% lower to $3.80. Investors have been selling the diversified food company's shares after the release of trading update. According to the release, a number of Freedom Foods' channels have been materially impacted by the pandemic. And given the importance of the second half for its overall result, this looks likely to lead to a significantly weaker than expected full year result in FY 2020.

The Sonic Healthcare Limited (ASX: SHL) share price is down 3% to $28.34. This decline may be in relation to a broker note out of UBS this week. According to the note, the broker has a sell rating and $25.10 price target on the company's shares. It appears concerned that Sonic may not benefit as greatly from pandemic testing as the market expects.

The Westpac Banking Corp (ASX: WBC) share price has fallen over 4% to $17.60. This sizeable decline appears to be the result of profit taking after some sensational gains this week. Prior to today, the Westpac share price was up over 22% week to date. The rest of the big four are tumbling lower with Westpac today, which is weighing heavily on the performance of the ASX 200.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia has recommended Freedom Foods Group Limited and Sonic Healthcare Limited. 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.

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