The S&P/ASX 200 Index (ASX: XJO) is out of form and dropping into the red on Thursday. In afternoon trade, the benchmark index is down 0.4% to 8,314.6 points.

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

AVITA Medical Inc (ASX: AVH)

The AVITA Medical share price is down a further 12% to $3.10. This regenerative medicine company's shares have been sold off this week after it downgraded its guidance for FY 2024. Due to a softer than expected performance in the fourth quarter, the wound care management and skin restoration device seller's commercial revenue is expected to be approximately US$64.3 million for FY 2024. This compares to its guidance for commercial revenue of US$68 million to US$70 million. AVITA Medical CEO Jim Corbett said: "We remain confident in our long-term growth trajectory as we continue to scale our business. Our strategic investments in our people and new products position us to continue to drive significant growth and sustainable success."

Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price is down 9% to $27.10. This may have been driven by a couple of broker downgrades this week impacting the fashion jewellery retailer's shares. As we covered here, the team at UBS downgraded its rating on Lovisa to sell with a $27.00 price target. It said: "Given the downside risk to consensus earnings estimates and reduced valuation support, the risk-reward is no longer compelling." Elsewhere, fellow broker Jefferies has downgraded its recommendation from buy to hold.

Star Entertainment Group Ltd (ASX: SGR)

The Star share price is down 23% to 15 cents. Investors have been selling the embattled casino and resorts operator's shares after it released an update on its cash position. The company revealed that its available cash at 31 December 2024 was $79 million. This is a reduction of $70 million from its balance of $149 million at the end of September. It is now trying to find a way to meet conditions precedent to draw down $100 million from a debt facility. However, it admits that "conditions remain challenging to meet given the Group's current circumstances."

Westgold Resources Ltd (ASX: WGX)

The Westgold Resources share price is down 9% to $2.67. This has been driven by the release of the gold miner's quarterly update this morning. Westgold reported production of 80,886 ounces of gold in the second quarter of FY 2025, up from 77,369 ounces in the first quarter. This brings its half year production to 158,255 ounces of gold, which means a significant improvement will be required to meet its full year guidance of 400,000 ounces to 420,000 ounces. It seems that some investors are doubtful that it will deliver on its target.