Why Domino's, Inghams, Kogan, and Paradigm shares are sinking

These ASX shares are sinking on Thursday…

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another gain. At the time of writing, the benchmark index is up 0.3% to 7,415.7 points.

Four ASX shares that have failed to follow the market's lead today are listed below. Here's why they are sinking:

a person in a business suit wipes his forehead with his handkerchief while a red, falling arrow zigzags downwards behind him

Image source: Getty Images

Domino's Pizza Enterprises Ltd (ASX: DMP)

The Domino's share price has sunk 18% to $116.98. Investors have been selling the pizza chain operator's shares following the release of its trading update. That update revealed a severe deterioration in the performance of the Domino's Japan business once COVID restrictions lifted. As a result, management warned that it can no longer forecast whether FY 2022 Japan sales and earnings would surpass those recorded in FY 2021.

Inghams Group Ltd (ASX: ING)

The Inghams share price is down over 5% to $3.59. This follows the release of the poultry producer's annual general meeting update this morning. At the meeting the company noted that its performance is being impacted by sustained input cost pressures. These include high grain prices and increased international shipping costs.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is down over 2% to $9.48. This appears to have been driven by a broker note out of UBS. Although the broker has retained its neutral rating on Kogan's shares, it has slashed the price target on them by 33% to $10.00. UBS believes Kogan will fall well short of the market's expectations in FY 2022. This is due partly to rising costs relating to the supply chain and customer acquisition.

Paradigm Biopharmaceuticals Ltd (ASX: PAR)

The Paradigm share price is down 6% to $2.38. The catalyst for this appears to be a broker note out of Morgans this morning. According to the note, the broker has downgraded the biopharmaceutical company's shares to a reduce rating with a $1.68 price target. Morgans made the move on valuation grounds. Though, it also sees downside risk if Paradigm made changes to its US trial to gain FDA approval.

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 Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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