Day: 16 July 2021

Google, or Alphabet, may have plans to disrupt the big four ASX banks of Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB).

According to reporting by the Australian Financial Review, the banks may be concerned by the global tech company’s growing incursions into the financial space.

Readers may have recently seen that Apple is working on a product that is internally called Apple Pay Later with the help of Goldman Sachs which will provide the lending for the instalments that customers may use, according to Bloomberg.

The newspaper wrote that there are teams in major banks that are trying to predict what the future competitive landscape will be, and that those teams would have been “watching with trepidation” as the big tech companies steadily expand into financial services.

In China, the big tech giants of Alibaba and Tencent have grown from just payments into the world of lending and wealth management too. US tech shares could follow a similar sort of path.

Google’s banking moves

The tech giant is reportedly about to expand into banking with a product called Google Plex. It is a name for another big number, but it also refers to the plan to add a transaction account to Google Pay.

Google is partnering with a group of small US banks where they will hold the deposits.

It’s possible that Google may not extend these new products to Australia, but the possibility of the tech giant linking up with other banks could be a large competitive threat, according to the AFR.

However, the newspaper said that the tech giants of Apple, Google and other tech giants will “inevitably find changing industries like banking and wealth” to be harder than software or music because of the importance of banks to economies and high levels of regulation.

The masthead also wrote about how, in some ways, it’s easier for tech companies to get into the industry:

But the emergence of “embedded finance” – which allows non-banks to hire banking licences and the infrastructure of regulated banks, through ‘banking-as-a-service’ (BaaS) offerings – means more companies not regulated as banks will still be able to provide financial services to enhance customer experiences.

For traditional lenders, this will make maintaining close and trusted customer relationships paramount. The distribution of financial products in the smartphone era looks very different to sprawling branch networks.

On Friday, each of the big bank share prices of CBA, ANZ, NAB and Westpac all declined.

The post Does Google plan to disrupt the ASX banks of CBA, ANZ, NAB and Westpac? appeared first on The Motley Fool Australia.

More reading

• NAB (ASX:NAB) share price slides as potential Forum fraud deepens
• How has the Afterpay (ASX:APT) share price responded to competition in the past?
• It hasn’t been a great week for the ANZ (ASX:ANZ) share price so far
• Top brokers name 3 ASX shares to sell today
• The ASX 200 is trading near record highs – time to worry about popping bubbles?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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Respected fund manager Wilson Asset Management (WAM) has recently identified two top small cap ASX shares that it owns in its microcap portfolio.

WAM operates several listed investment companies (LICs). Some focus on larger companies like WAM Leaders Ltd (ASX: WLE) and WAM Capital Limited (ASX: WAM).

There’s also one called WAM Microcap Limited (ASX: WMI) which targets small cap ASX shares with a market capitalisation under $300 million at the time of acquisition.

WAM says WAM Microcap targets the most exciting undervalued growth opportunities in the Australian microcap market.

The WAM Microcap portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 24.1% per annum since inception in June 2017, which is superior to the S&P/ASX Small Ordinaries Accumulation Index average return of 12%.

These are the leading two small cap ASX shares that WAM outlined in its most recent monthly update:

Silk Laser Australia Ltd (ASX: SLA)

WAM describes Silk Laser as a business that operates a network of specialist clinics offering non-surgical aesthetic services and products. In June, the company reached a milestone of 60 clinics, including ten new clinics opened during FY21.

The fund manager pointed out that Silk announced a $52 million strategic acquisition of Australian Skin Clinics and The Cosmetic Clinic in New Zealand. This almost doubled its clinic footprint to 117 and progressing its medium-term network plan of 150 clinics.

The small cap ASX share announced a $20 million capital raising to partially fund the acquisition, with management expecting the deal to deliver greater than 20% earnings per share (EPS) accretion before synergies.

WAM Microcap said that it’s still positive on Silk because of its “strong” organic growth profile, the benefit of synergies and the potential and capacity for further accretive acquisitions.

Atomos Ltd (ASX: AMS)

The small cap ASX share manager explained that Atomos is a global provider of digital imaging creation hardware and software tools for video professionals.

Atomos is headquartered in Melbourne, it creates “market-leading” 4K and HD Apple ProRes monitor-recorders, used by video professionals for content creation, increasing video quality and reducing production costs.

WAM pointed out that in June, Atomos strengthened is management team with Estelle McGechie, who has been picked as the chief product officer and was previously a product manager at Apple in video applications.

The small cap ASX share has reported a 73% increase of its sales in FY21 to more than $77 million. The fund manager said that momentum has continued to build through the second half of the year with sales of $44.2 million. Those second half sales represented a 275% increase on the prior corresponding six month period.

WAM Microcap remains positive on Atomos with additional product releases into the professional and general consumer categories, while additional upside in operating leverage is “compelling” because of a relatively stable fixed cost base.

The post Wilson Asset Management thinks these 2 top small cap ASX shares are a buy appeared first on The Motley Fool Australia.

More reading

• Why the Atomos (ASX:AMS) share price is up 23% in a month
• Here’s why the Atomos (ASX:AMS) share price is surging 9%
• 2 buy-rated small cap ASX shares
• SILK Laser (ASX: SLA) share price climbs on equity raise update
• SILK Laser (ASX: SLA) share price frozen on acquisition news

Motley Fool contributor Tristan Harrison 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 Atomos Ltd. The Motley Fool Australia has recommended Atomos Ltd and SILK Laser Australia 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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If you are looking to bolster your portfolio with some ASX 200 shares, you may want to look at the three listed below.

Here’s why these ASX 200 shares are highly rated right now:

BHP Group Ltd (ASX: BHP)

If you don’t mind investing in the mining sector, then BHP could be an ASX 200 share to look at. This is because this mining giant is widely regarded as the highest quality miner in the world, with a collection of world class, low cost, and diverse operations. Positively, the company is benefiting greatly from favourable commodity prices at present. This is particularly the case with iron ore and oil after strong price rises over the last 12 months. As a result, BHP appears well-positioned to deliver a bumper full year result in August. And with its balance sheet in such a strong state, generous dividends are expected in the near term.

One broker that is particularly positive on BHP is Macquarie. It currently has an outperform rating and $63.00 price target on BHP’s shares.

NEXTDC Ltd (ASX: NXT)

Another ASX 200 share to look at is this leading data centre operator. NEXTDC has a collection of world class operations across several key Australian locations. It is also looking to expand into Asia and has recently opened offices in Singapore and Tokyo. Given the size of these markets, if the company can replicate its success overseas, it would give it a very long runway for growth in the future. In the meantime, NEXTDC is well-positioned for growth domestically thanks to increasing demand for data centre capacity due to the structural shift to the cloud.

Goldman Sachs recently reiterated its conviction buy rating and $14.80 price target on NEXTDC’s shares.

REA Group Limited (ASX: REA)

A final ASX 200 share for investors to look at is REA Group. It is the leading player in real estate listings in the Australian market with its realestate.com.au website. It also has a number of complementary businesses and recently bolstered its offering with the acquisition of Mortgage Choice and an interest in Simpology. Combined with its international operations and the booming housing market, REA Group has been tipped by a number of brokers to grow strongly over the coming years.

One of those is Goldman Sachs. It is very bullish on REA Group’s prospects. So much so, it recently retained its buy rating and lifted its price target to a lofty $198.00.

The post 3 ASX 200 shares named as buys appeared first on The Motley Fool Australia.

More reading

• Why the BlueScope (ASX:BSL) share price could be set to jump higher
• 2 excellent ASX growth shares analysts love
• 2 ASX 200 mining shares that could be buys
• These ASX shares are the latest buy ideas from top brokers
• Why the BHP (ASX:BHP) share price has surged 3% this week

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group 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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The S&P/ASX 200 Index (ASX: XJO) went up by 0.2% today to 7,348 points.

Here are some of the highlights from the ASX:

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price dropped around 5%. The ASX 200 gold miner released its quarterly update for the last period in FY21.

Evolution Mining said that in the three months to 30 June 2021, it produced 169,146 ounces of gold. This was achieved at an all-in sustaining cost (AISC) of A$1,239 per ounce.

Operating cashflow for the quarter was $212 million and net mine cashflow was $100 million.

Evolution Mining also committed to net zero emissions by 2050, with a 30% reduction of emissions by 2030.

Drilling has identified a new high-grade gold zone at Cue Joint Venture.

In FY21, Evolution Mining said that mine operating cashflow was $937 million. Net mine cash flow was $555 million. Group cash flow was $327 million.

The FY21 gold production was 680,788 ounces. That was within the original guidance of 670,000 to 730,000 ounces and 2% below the bottom end of its revised guidance of 695,000 to 710,000 ounces issued in April. The AISC for FY21 was A$1,215.

Evolution Mining’s board has approved the Cowal underground development, with a pathway to deliver more than 350,000 ounces per year.

The Red Lake transformation plan has been accelerated by the Battle North Gold acquisition. The plan of 200,000 ounces per annum at an AISC below US$1,000 per ounce by 2023 is on schedule with a pathway to gold production of over 350,000 ounces per annum.

The group mineral resources increased 74% year on year to 26.4 million ounces. The ore reserves increased 49% year on year to 9.9 million ounces.

It was the worst performer in the ASX 200 today.

Appen Ltd (ASX: APX)

There was no official news released from the business. However, the brokers at Citi said it might be a takeover target.

The Australian Financial Review reported that Citi said about Appen’s share price slump:

A key question regarding the recent downgrades is whether they are due to a structural issue (self-learning systems, in-sourcing, synthetic datasets etc.), competition or something else.

Our discussions suggest demand for human annotated training data is not structurally impaired and that ongoing growth is expected, with evolving regulations and data privacy laws as key tailwinds medium-term.

However, our discussions also point to slower growth for data annotation as the major tech companies develop better systems.

With the recent increase in M&A and given Appen’s position as a leader in the AI training data space as well as client exposure, we would not be surprised if Appen was a potential acquisition target for an IT Services or BPO firm.

We note Appen’s main competitor Lionbridge was acquired by Telus International for 16x – 20x EV/EBITDA versus Appen currently trading at 13x.

The Appen share price climbed around 3% today, making it one of the best performers in the ASX 200.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price came into focus after the Mt Holland lithium project received ministerial approval outlining the conditions that apply to the construction and operation of the lithium hydroxide refinery as part of the Mt Holland lithium project.

The Mt Holland lithium project has now received all critical approvals and construction and project development have commenced.

The post ASX 200 up, Evolution Mining drops, Appen rises appeared first on The Motley Fool Australia.

More reading

• Woodside (ASX:WPL) share price down 4% this week. Here’s why
• Here are 3 heavily traded ASX 200 shares today
• Top broker says Appen (ASX:APX) might be a takeover target at this share price
• Wesfarmers (ASX:WES) share price higher on lithium update
• Why Buddy, Evolution, Medical Dev International, & Whitefield are dropping

Motley Fool contributor Tristan Harrison 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 Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd and Wesfarmers 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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The Wellnex Life Ltd (ASX: WNX) share price has skyrocketed today, finishing the session at 16.5 cents — a gain of 37.5%.

Wellnex, formerly Wattle Health Australia Ltd, returned to the ASX under the new ticker yesterday after an 18-month suspension.

On the re-listing, Wellnex shareholders were quick to unload shares at a rapid pace, resulting in a 75% loss on the day.

However, following an investor presentation from the company today, the Wellnex Life share price enjoyed a turnaround in fortunes.

Let’s take a look at the contents of Wellnex’s presentation in a bit more detail.

But first — a quick recap on Wellnex

The newly named Wellnex is engaged in health and wellness. It has products in nutrition, skincare, and nutritional health supplements.

It labelled itself an “Australian brand and distribution company” in today’s presentation, with the mission of offering “innovative, sustainable Australian health and wellness brands throughout the world”.

Wellnex was formed following Wattle Health’s acquisition of Brand Solutions and Pharma Solutions Australia.

At the time of writing, it has a market capitalisation of $36 million.

Today’s investor presentation

Wellnex chief executive George Karafotias presented at the ShareCafe Small Cap “Hidden Gems” Webinar this afternoon.

Karafotias detailed how Wellnex intends to grow its market share, while highlighting the company’s existing brand portfolio.

The global health and wellness market was on display, which Karafotias explained is a $5.6 billion industry.

Attendees also observed the company’s growth vision, built on efficiency and revenue growth.

Wellnex’s top executive also gave FY 2021 guidance for consolidated revenue of $18.3 million, calling for 18% growth from FY 2020.

Investors pounced, driving the Wellnex Life share price higher.

Foolish takeaway

In summary, Wellnex will be a name to watch over the coming periods as it has been re-listed as of yesterday.

Already the Wellnex Life share price has had a choppy two days, however, investors seem to favour today’s presentation.

The post Here’s why the Wellnex Life (ASX:WNX) share price jumped 37% today appeared first on The Motley Fool Australia.

More reading

• Why the Wellnex Life (ASX:WNX) share price is crashing 75% lower on Thursday

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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It hasn’t been the best week for the Woodside Petroleum Limited (ASX: WPL) share price.

By Friday’s close, the Woodside share price was 4.42% lower for the week at $22.73. It lost 1.04% in today’s trade.

The big news out of the ASX 200 energy giant this week was its quarterly report, released yesterday morning.

Production down 4% this quarter

The Woodside share price lost almost 1% yesterday after the company released its second quarter update for the 3 months ending June 2021.

At one point during intraday trading, Woodside shares were down almost 2% before partially recovering by the close of Thursday’s session.

This also came following a slide in oil prices the night prior.

In its update, Woodside reported it had realised additional revenue on the back of hot markets in oil and liquefied natural gas, with both of these commodities fetching a premium.

The company highlighted that this propped up second quarter revenue by 15%, recognising ~$1.72 billion in the 3 months to June.

Despite the gain, Woodside reported a 4% decline in production of 27 million barrels of oil equivalent (MMboe) from the previous quarter.

In the report, Woodside acting chief executive Meg O’Neill said:

Revenue from oil sales during the period was higher than the first quarter supported by an above-market average realised price of $75/barrel, while revenue from LNG sales climbed 14%.

Recent acquisition success

This week’s downward pressure on the Woodside share price came despite some positive news released by the company just last week.

On 7 July, Woodside announced it had completed the acquisition of “the entire participating interest of FAR Senegal”.

The arrangement saw the company claim operations at the Rufisque Offshore, Sangormar Offshore and Sangomar Deep Offshore joint venture.

The company completed the transaction at a US$45 million valuation, in addition to certain adjustments to the tune of $167 million.

Despite the seemingly upbeat news, the Woodside share price slipped 1.87% into the red on the day of the announcement.

Woodside share price snapshot

The Woodside Petroleum share price has had a choppy year to date. It is down 1.47% since January.

Over 12 months, it has gained 10.13%.

This lags the S&P/ASX 200 Index (ASX: XJO), which is up 9.93% since January and 21.79% over the past 12 months.

Woodside has a market capitalisation of around $22 billion.

The post Woodside (ASX:WPL) share price down 4% this week. Here’s why appeared first on The Motley Fool Australia.

More reading

• Here are 3 heavily traded ASX 200 shares today
• Why the BlueScope (ASX:BSL) share price could be set to jump higher
• ASX 200 midday update: Rio Tinto update disappoints, Evolution sinks
• A jump in the ARB (ASX:ARB) share price, but no joy for the Woodside (ASX: WPL) share price. Scott Phillips on Nine’s Late News
• Why the Santos (ASX:STO) share price is outperforming Woodside in 2021

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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The S&P/ASX 200 Index (ASX: XJO) is looking to finish the week 0.86% higher at 7335.3.

Taking charge of this week’s gains is the resources sector, with the S&P/ASX Materials (INDEXASX: XMJ) rallying 4.44%.

Encouragingly, it isn’t just iron ore miners driving gains.

ASX 200 shares in lithium, gold and mining services have also posted solid gains throughout the week.

Top performing ASX 200 shares this week

Fortescue Metals Group Limited (ASX: FMG)

First off the ranks is none other than Fortescue.

Shares in the iron ore major have posted gains in the last eight consecutive trading sessions.

In this week alone, the Fortescue share price has rallied 8.42% to $25.88, far outpacing the broader ASX 200.

If Fortescue rallies another 1.5% from current levels, it would retest its 8 January record high of $26.40.

Supporting the resurgence of Fortescue shares is the iron ore spot price.

According to Market Index, iron ore prices have been steadily grinding higher, from US$213/tonne at the start of the month to US$218.68.

Orocobre Limited (ASX: ORE)

The Orocobre share price rallied 7.32% this week to $7.25 and briefly hit a new record high of $7.48 on Wednesday.

Orocobre alongside its ASX 200 lithium peers has experienced a particularly strong push on Tuesday, thanks to a strong rally in lithium-related peers such as Albemarle and Tesla.

Galaxy Resources Limited (ASX: GXY)

Similarly, the Galaxy share price also lifted 7.55% this week, marking a new record high of $4.24 on Wednesday.

The lithium sector has been running hot in recent weeks, likely propped up by a surge in demand for the battery making metal.

Fastmarkets reiterates this supply tight narrative with producers saying: “Everything needs to be settled before mid-June, otherwise buyers can barely find anything on the spot market”.

Mineral Resources Limited (ASX: MIN)

Mineral Resources deserves an honourable mention, despite rallying just 2.95% to $59.97 this week.

The company has been able to enjoy the best of both worlds, as a fast-growing iron ore miner and emerging lithium producer.

In an extraordinary display of strength, the Mineral Resources share price has logged 8 consecutive week-on-week gains since 24 May.

The company is Australia’s 5th largest iron ore producer, with ambitious plans to more than triple its iron ore production from 20 million tonnes per annum (Mtpa) to 90 Mtpa over the next five years, according to its half-year results.

Mineral Resources also operates two lithium joint venture assets, with high profile partners including Ganfeng and Albemarle.

The post Guess which sector this week’s top performing ASX 200 shares all come from appeared first on The Motley Fool Australia.

More reading

• Why the Mineral Resources (ASX:MIN) share price is up 39% in 3 months
• Why the BlueScope (ASX:BSL) share price could be set to jump higher
• 2 ASX 200 mining shares that could be buys
• These 2 ASX dividend shares are offering trailing yields of 10% today
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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The Qantas Airways Limited (ASX: QAN) share price has been out of form so far in 2021.

Since the start of the year, the airline operator’s shares are down almost 4%. This compares to a 10% gain by the S&P/ASX 200 Index (ASX: XJO) over the same period.

However, that only tells you half of the story. Things were going a lot better for the Qantas share price earlier in the year.

For example, just four months ago Qantas shares were trading at $5.50. This means the airline’s shares have fallen 14.2% since peaking at that level.

What is happening with the Qantas share price?

The volatility in the Qantas share price in 2021 has been driven by uncertainty relating to the recovery of the travel market.

Earlier this year when Australia was COVID-free, Qantas was busy planning to increase its capacity to take advantage of the strong recovery in the domestic travel market. At that point, investors were scrambling to buy Qantas shares and driving them higher.

However, since then, outbreaks of COVID-19 have caused lockdowns across several states, grounding a good portion of the airline’s domestic fleet. This has spooked investors, sending many to the exits.

Is this a buying opportunity?

The good news for investors is that the majority of brokers in Australia believe the Qantas share price is in the buy zone right now.

For example, late last month analysts at Morgan Stanley put an overweight rating and $7.00 price target on the company’s shares. This implies potential upside of 48% over the next 12 months.

Elsewhere, at the end of May, the team at Citi put a buy rating and $5.89 price target on Qantas shares. This represents potential upside of 25% from where it trades today.

Finally, analysts at Goldman Sachs currently have a buy rating and $6.38 price target. Its analysts believe Qantas is a top recovery investment option for investors. Particularly given its strengthening market position and cost reduction program.

The post It hasn’t been a great 2021 so far for the Qantas (ASX:QAN) share price appeared first on The Motley Fool Australia.

More reading

• Fresh blow to ASX 200 travel shares as Victoria lockdown looms large
• Will the Qantas (ASX:QAN) share price take off soon?
• It has been a big past year for the Qantas (ASX:QAN) share price
• Here are the 5 best ASX transport shares of the 2021 financial year
• The ASX shares with the most to lose from a delayed COVID reopening

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. 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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Prescient Therapeutics Ltd (ASX: PTX) shares have just ended a week to forget. By Friday’s close, the Prescient share price was sitting 16% lower for the week. The company’s shares also sank by 4.55% during today’s session alone.

Let’s take a look at what the healthcare company has been up to lately.   

What’s driving the Prescient share price lower?

The company has not released any price-sensitive news this week that could explain the bearish price action.

As such, it’s possible that some investors are simply deciding to take some profits off the table in what has been a fairly lacklustre week for the All Ordinaries Index (ASX: XAO).

The Prescient share price has had an astounding run in 2021, surging by more than 200% since the start of the year. After hitting fresh highs recently, many shareholders may be looking to cash in some of their profits.

What else has the company been up to?

Prescient Therapeutics is a clinical-stage oncology company based in Australia. It has a broad pipeline of products that aim to tailor cancer treatments for patients. Prescient’s oncology therapies genetically modify a patient’s T-cells by adding a new receptor.

Most recently, the Prescient share price hit new highs following news about its cancer treatment drug OmniCAR released on 5 July.

The company announced that testing results substantially de-risked the product’s use. Prescient is developing OmniCAR programs for acute myeloid leukemia and other solid tumours. The product’s binding components were tested by an independent researcher to determine if they would cause adverse immune responses that could compromise therapy.  

Foolish takeaway

Overall, the Prescient share price has had a stellar run in 2021, as well as over the past 12 months. Since this time last year, shares in the biotech company have soared by more than 250%.

After being smashed in early trade today and falling by as much as 11%, the Prescient share price did manage to partially recover by the end of today’s session. Based on the current share price, the company has a market capitalisation of around $130 million.   

The post Why is the Prescient (ASX:PTX) share price down 16% this week? appeared first on The Motley Fool Australia.

More reading

• The Prescient (ASX:PTX) share price rocketed 10% higher today. Here’s why
• Prescient (ASX:PTX) share price sinks despite positive update

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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When looking at shares in the S&P/ASX 200 Index (ASX: XJO) the amount of insider ownership may not pop up as a consideration. Yet, a company’s share price can be influenced by how much insider support it has.

Firstly, insiders are directors, officers, and employees of the company. As such, these individuals are likely to have the most up-to-date understanding of how the company is performing. Likewise, while no one can tell the future, insiders usually have the clearest vision of it – after all, they are the ones making it happen.

Secondly, high insider ownership typically puts upwards pressure on a share price in the event of a good news catalyst. The reason being, there are fewer liquid shares available for investors to get a hold of.

Let’s take a look at the top 3 ASX 200 shares with insider ownership.

ASX 200 shares with the highest insider ownership

Platinum Asset Management Ltd (ASX: PTM)

Platinum Asset Management is an Australia-based investment manager that focuses on international shares. The company reported having $23.5 billion in funds under management (FUM) at the end of June.

The ASX 200 constituent suffered a selloff in its share price in the past month. This might have something to do with the $167 million of net outflows experienced by the fund during June.

However, the fund manager can boast insider ownership of above 50%. At the time of writing, 50.4% of shares on offer are held by individual insiders. Nearly all of these holdings are held by Andrew Clifford (CEO and co-founder), Kerr Neilson (founder), and Judith Neilson.

Pro Medicus Limited (ASX: PME)

The next company on the list is healthcare imaging software provider, Pro Medicus. Shares in this ASX 200 company have multiplied shareholders’ wealth many times over during the last 5 or so years.

Across the past 12 months, Pro Medicus has signed several high-value contracts with healthcare providers, the most recent being a $14 million 8-year deal with the University of Vermont. As a result, shares have continued to surge to all-time highs.

Attesting to the conviction of the founders, Sam Hupert and Anthony Hall still hold 52% of outstanding shares between the two of them. The total amount of insider ownership of this ASX 200 share comes in at 56.05%.  

Netwealth Group Ltd (ASX: NWL)

Finally, the company with the highest amount of insider ownership in our list is Netwealth. For those unfamiliar with it, Netwealth is a fintech company offering a platform for superannuation funds.

According to its latest quarterly update, the company’s funds under administration stood at $47.1 billion at the end of June. Impressively, this reflected a 12.7% increase from the previous quarter. Additionally, the result placed Netwealth as the sixth largest and fastest-growing platform provider by net inflows in Australia.

Having said that, it’s not hard to see why co-CEO Michael Heine has maintained a 55.56% ownership in this ASX 200 share. With the highest insider ownership in the index, Netwealth has 58.13% insider ownership.

The post These ASX 200 shares are the most tightly held by individual insiders appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler owns shares of Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Netwealth and Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Netwealth 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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