Day: January 5, 2021

Here are 3 ASX shares trading near their 52-week lows

asx shares falling lower represented by investor wearing paper bag on head with sad face

When considering particular ASX shares to buy, investors often take a look at where a company’s share price is trading in relation to its 52-week high or low, as this might indicate an upward or downward trend.

Here we’ll take a look at three ASX shares which are currently trading very close to their 52-week low levels.

3 ASX shares struggling to gain ground

TPG Telecom Ltd (ASX: TPG)

The TPG share price is currently trading at $7.06, only around 2% shy of its 52-week low of $6.93 in November.

The company was formed by a merger between Vodafone and TPG, and the new entity was floated on the ASX in June 2020.

Since the float, this ASX share has lost around 20% of its value.

In the company’s first post-merger results, TPG annnounced that its first-half revenue for the period ending 30 June 2020 came in short at $1.5 billion, an 11% dip from the previous year.

It reported earnings before interest, tax, depreciation, and ammortisation (EBITDA) of $531 million, down 8% compared to 2019.

AGL Energy Limited (ASX: AGL)

At the time of writing, the AGL share price is only just managing to trade above its 52-week lows.

AGL shares are currently trading at $12.02, less than 1% away from their 52-week (and also 5-year) low of $11.95.

Just four days before Christmas, the company downgraded its guidance for the FY21 year, following a serious injury at its Liddell power station that caused one of the station’s units to be shut down until March 2021.

As a result, AGL announced it expected underlying profit after tax (NPAT) for FY21 to be between $500 million and $580 million, down from the previous guidance range of $560 million to $660 million.

This is despite a solid statutory profit of $1.015 billion for the full year of FY20, compared to $905 million for FY19.

Insurance Australia Group Ltd (ASX: IAG)

The current IAG share price of $4.70 is sitting just 7% above its 52-week low of $4.38.

This ASX share is currently weighed down by potential business interruption claims arising from the COVID-19 pandemic.

IAG surprised the market in November by announcing a $750 million capital raising to repair the capital damage expected from claims related to COVID-19.

The company said it has provided its best estimate for potential claims, but the risk that possible claims have been underestimated, or additional lockdowns occur before old policies are replaced with newly worded policies, has left a degree of uncertainty.

The company reported a full-year net profit after tax (NPAT) of $435 million for FY20, down almost 70% compared to FY19.

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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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Why the RedHill (ASX:RDH) share price is climbing higher today

A young woman smiling and looking happy, indicating a positive share price movement on the ASX market

The RedHill Education Ltd (ASX: RDH) share price has surged up today after the company announced a positive trading update to the market this morning.

At the time of writing, the RedHill share price is trading up 5% at 94 cents.

What’s driving the RedHill share price higher?

The RedHill share price has lifted today after the company updated investors on its performance for the first-half of the 2021 financial year.

For the period ending 31 December 2020, RedHill delivered total revenues in the range of $22.4 million to $22.8 million.

This was underpinned by its strong domestic student market offsetting the short-term impacts of international student numbers. Greenwich Management and Coder Academy enrolments continued to increase, up 8% and 36% respectively, over the prior corresponding period.

RedHill reported a robust balance sheet with cash on hand of $23.1 million and nil bank debt. Management will use the capital to fund growth initiatives to generate revenue when international borders re-open.

In addition, 3 new undergraduate certificate courses were approved in November for FEE-HELP student tuition loans and government-funded places. These courses are scheduled to launch early this year.

What did management say?

RedHill CEO Glenn Elith welcomed the progress, saying:

We are delighted with the levels of resiliency in the business, with positive momentum in our domestic student revenues partially offsetting short-term challenges in the international student market.

We have bolstered RedHill’s balance sheet, and are confident that our strong cash position will enable RedHill to weather continued operating disruptions due to international border closures and to accelerate the recovery of international student revenues when borders do ultimately re-open.

Outlook

RedHill said it was ready to respond when international borders reopened to quickly re-build its student numbers. This follows active ongoing discussions with government bodies around Australia to develop and implement a COVID-19 safe plan.

The company has also moved its course delivery online, offering both full and partial online options to remote learning students.

RedHill share price snapshot

The RedHill share price was hit hard when COVID-19 first entered the world stage last year. Falling from its 52-week high of $1.97 last January, the company’s shares continued a descent to 43 cents in August.

While the last 3 months have been positive for the RedHill share price, it is still down almost 50% since this time last year.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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Why the Pilbara Minerals (ASX:PLS) share price jumped 8% to a 52-week high

unstoppable asx share price represented by man in superman cape pointing skyward

The market may be sinking lower but the same cannot be said for the Pilbara Minerals Ltd (ASX: PLS) share price on Wednesday.

In afternoon trade the lithium miner’s shares have surged 8% higher to a 52-week high of $1.01.

Why is the Pilbara Minerals share price surging higher?

Investors have been buying the company’s shares this afternoon following the release of an update on its second quarter shipments.

According to the release, the company achieved record quarterly shipments of 70,609 dry metric tonnes (dmt) of spodumene concentrate to offtake partners.

This means the company exceeded its previous sales guidance for the quarter, which forecast shipments to be in the range of 55,000 to 70,000 dmt.

It also represents a 38% increase on the shipments it recorded in the previous quarter of 43,630 dmt and is well above the previous shipment record of 46,682 dmt from two years ago.

Pilbara Minerals’ Managing Director and CEO, Ken Brinsden, was very pleased with the quarter.

He commented: “What a great way to start the New Year with record tonnes shipped from Pilgangoora to support increasing customer demand and an upward trend evident in the price for lithium chemicals in China, showing positive signs of a recovery in the lithium raw material market.”

The company advised that it has seen a material uplift in lithium chemicals pricing within China. It notes that the Platts Battery Grade lithium carbonate pricing is up 35% to date from its lows in August 2020.

Mr Brinsden believes the company is well-placed to take advantage of improving trading conditions after a very busy 18 months.

“The significant amount of work we have undertaken over the past 18-months in improving lithia recoveries, reducing operating costs and refinancing our senior debt facility, together with the impending acquisition of the neighbouring Altura Lithium Project, means that Pilbara Minerals is well positioned to respond to a recovery in the lithium market and capitalise on improvements in market conditions,” he added.

A full update on its quarterly performance will be released to the market before the end of the month.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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Top brokers name 3 ASX shares to buy today

finger pressing red button on keyboard labelled Buy

With many brokers still taking a well-earned break over the holiday period, broker notes are few and far between right now.

In light of this, I thought I would take a look at a few that have been released over the last few weeks that remain very relevant today.

Three buy ratings that you might want to pay attention to are listed below:

Bapcor Ltd (ASX: BAP)

According to a note out of Citi, its analysts have retained their buy rating and lifted the price target on this auto parts retailer’s shares to $8.85. The broker made the move in response to the release of a trading update from Bapcor which revealed stronger than expected sales growth in FY 2021. Citi expects this to result in a solid half year result in February. In addition to this, its analysts are fans of the company due to its defensive qualities, favourable tailwinds, and international expansion plans. The Bapcor share price is trading at $7.57 this afternoon.

Challenger Ltd (ASX: CGF)

A note out of UBS reveals that its analysts have reinstated coverage on this annuities company’s shares with a buy rating and price target of $6.85. According to the note, the broker still sees value in the Challenger share price at the current level after it recovered from a selloff at the height of the pandemic. In addition, UBS believes the risks are now to the upside in respect to Challenger’s earnings, especially given favourable regulatory developments. The Challenger share price is trading at $6.36 on Wednesday.

Pro Medicus Limited (ASX: PME)

Analysts at Morgans have retained their add rating and lifted the price target on this health imaging company’s shares to $35.02. According to the note, the broker points out that Pro Medicus has just won another major contract in the United States. The five-year contract with MedStar Health is worth a total of A$18 million. Morgans points out that this is the first time the company has signed a major cloud-only deal. It feels this could be a sign of things to come. The Pro Medicus share price is changing hands for $32.86 today.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Bapcor, Challenger Limited, and Pro Medicus Ltd. 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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