Why BHP, Fortescue, Netwealth, and Santos shares are falling

These ASX shares are falling on Wednesday…

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 0.85% to 7,267.6 points.

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

An arrow crashes through the ground as a businessman watches on.

Image source: Getty Images

BHP Group Ltd (ASX: BHP)

The BHP share price is down 2.5% to $47.05. This morning Morgans downgraded the mining giant's shares to a hold rating with a $48.70 price target. Although the Big Australian delivered a half year result ahead of its expectations, the broker believes its shares are fully valued now.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is down 2% to $21.14. This follows the release of the mining giant's half year result. For the six months ended 31 December, Fortescue posted a 13% decline in revenue to US$8.1 billion and a 32% decline in underlying net profit after tax to US$2.8 billion. This led to the company cutting its interim dividend materially.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is down 11% to $13.29. Investors appear disappointed by the investment platform provider's half year results. Although it delivered a 46% jump in funds under administration and a 17% increase in revenue, its net profit was down 1.8% over the prior corresponding period to $27.1 million.

Santos Ltd (ASX: STO)

The Santos share price is down 3% to $7.19. This follows the release of the energy producer's full year results. Although Santos delivered a result that was largely in line with expectations, its guidance for FY 2022 appears to have fallen short of estimates. Santos is forecasting production of 100 mmboe to 110 mmboe and sales volumes in the range of 110 mmboe to 120 mmboe

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 and has recommended Netwealth. The Motley Fool Australia owns and has recommended Netwealth. 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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