Shares in Value Logo
Product Review Img Vertical

Date : 28/05/2021

Costa Group Shares Crashed by 22% on ASX. Should we buy it?

Costa Group Holdings engages in the provision of horticultural business. It operates through the following segments: Produce, Costa Farms and Logistics (CF&L), and International. The Produce segment operates in berries, mushrooms, glasshouse-grown tomatoes, citrus, and avocados. The Costa Farms and Logistics segment incorporates interrelated logistics, wholesale and marketing operations within Australia. The International segment focuses on licensing of blueberry varieties in Australia, the Americas, China and Africa, and international berry farming operations in Morocco and China.

Costa Group had their Annual General Meeting a few days ago and the results of the meeting were announced before the market opened on the 27th of May. While berry and avocado sales have reportedly been solid, the company warned its domestic mushroom, citrus and tomato productions were all experiencing issues.

While the international segment has been performing well, the strong Australian dollar has negatively affected the firm, given that most of their revenues are generated in a different currency and then converted to AUD. This led to the management announcing that their guidance will have to be revised.

The bulk of the harvest occurs in the second half of the year, and Costa expects it to yield strong results. However, given that CGC shares were trading at high valuations, the hiccup did result in a massive correction and selling pressure has mounted. Trading Volumes have jumped from an average of 1.5 million shares a day to 21 million on the 27th of May and 14 million on the 28th of May.

CGC shares currently trade at $3.31 a share amid a 23% decline in less than a week.

Looking for top 5 ASX Stocks to invest in?

Growth stocks are potentially one of the hardest to pick as there are a lot of factors that need to be considered – from industry tailwinds to the financial health of the individual stocks and a lot of little things in between them. Shares in the Value research team have picked their top 5 ASX stocks to buy in 2021. Click here to download the report for free.


Are You Looking To Buy The Best Stocks In 2024?

Stay on top of upcoming market trends! Whether you are an SMSF investor or a young investor with your portfolio, we cover a wide range of stocks across all sectors, including mining, financials, industrials, real estate, technology, health and biotech, etc. It will give you an edge to invest and trade ASX listed stocks across large, mid and small caps with an advantage.

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for Top 3 Dividend Stocks to buy in 2024!


Top 5 ASX Stocks
to Buy for Capital Growth in 2024

Shares In Value - Top 5 ASX Stocks to Buy - Cover 2024
The hardest part to finding growth stocks is having an ability to understand the finer details of these companies from their valuations through to first mover advantage and having key factors on hand to make informed investment decisions.

Our experts take the guesswork out.
ASX insight Stocks Landing

Download Your Free Report

By downloading this report, you agree to our terms and conditions and privacy policy

Scroll to Top


By submitting this form, I agree to the TERMS AND CONDITIONS and PRIVATE POLICY

Income Stocks - Blogs

Please fill in your details to download the free dividend shares report.

By downloading this report, you agree to our terms and conditions and privacy policy

Just 10 Seconds Away From Your Free Report!
Income Stocks - Popup Blog

Please fill in your details to download the free dividend shares report.

By clicking 'Download Report', I accept the Privacy Policy and Member Terms & Conditions.

We will send your report instantly. Please put your correct email address and phone number.