Day: September 22, 2021

The News Corp (ASX:NWS) share price is leaping 8% today. Here’s why

Businessman outside jumps in the air

The News Corporation (ASX: NWS) share price has jumped into the green today and is now changing hands 7.8% higher at $32.62.

Shares in the media giant are running hot after it snuck in an announcement on a new share buyback program yesterday.

Here’s what we know.

News Corp to double share buyback program

News Corp announced that it has authorised a US$1 billion share repurchase program with no time limit.

The program replaces the old $500 million regime that was authorised back in 2013 and represents almost 6% of News Corp’s market capitalisation.

Under the arrangement, the company will purchase its own stock in the open market, which may then be “modified, suspended or discontinued at any time”.

Prior to allocating capital to share buybacks, News Corp had been on the acquisition trail in 2021, folding in a number of additional ingredients into its growth recipe. Around six transactions have been completed this year, either through News Corp itself or its subsidiaries.

It appears News Corp may have pivoted away from that strategy for now in announcing the buyback program.

After all, it has a fairly robust balance sheet judging by its last earnings report, with $2.2 billion in cash, and $4.5 billion in short-term assets.

Investors appear to want a piece of the action and are driving the News Corp share price higher in afternoon trade.

What did management say?

Speaking on the buyback program, News Corp CEO Robert Thompson said:

These landmark decisions follow our most profitable year since the launch of the new News Corp in 2013 and are a tangible sign of our confidence in the inherent value and enormous potential of our businesses.

With the board’s active support, we are acutely focused on long-term value for investors, balancing strategic investments and capital returns. Our robust cash balance and strong free cash flow have enabled us to launch a much larger, more aggressive buyback program that we intend to begin after our quiet period ends.

News Corp share price snapshot

The News Corp share price has gained 41% this year to date, which is well ahead of the benchmark S&P/ASX 200 index (ASX: XJO).

It has also climbed a further 57% over the past year, again outpacing the broad index’s return of 25% over the same period

The post The News Corp (ASX:NWS) share price is leaping 8% today. Here’s why appeared first on The Motley Fool Australia.

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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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4 ASX shares going ex-dividend today

team holding up thumbs up

Investors could be wondering why a number of ASX 200 shares have fallen today despite no company announcements.

As we move towards the end of September, a vast majority of ASX shares are trading ex-dividend these days.

An ex-dividend date is when investors must have purchased a company’s shares to be eligible for the upcoming dividend. If an investor buys the shares on or after this date, the dividend will go to the seller.

Below, we take a look at the list of shares that are trading ex-dividend today.

Cash Converters International Ltd (ASX: CCV)

Cash Converters provided its full-year results to the market at the end of August, highlighting a mostly positive performance.

Revenue fell 23% on the prior corresponding period to $201.3 million in what management described “a challenging economic environment”. Nonetheless, this didn’t deter the company to turn around its bottom line. Net profit after tax improved to $16.2 million compared to a $10.5 million loss in FY20.

The board declared an unfranked final dividend of 1 cent per share, payable on 14 October 2021.

The Cash Converters share price has accelerated by almost 60% over the past 12 months with year-to-date gains above 10%.

Eagers Automotive Ltd (ASX: APE)

Eagers Automotive released its half-year result also in late August, delivering increases across the board.

Underlying Earnings before Interest, Tax, Depreciation, Amortisation and Impairment (EBITDAI) surged 65.4% to $378 million. An even better percentage came from the company’s statutory profit after tax, up 1,614% to $202.3 million.

The board declared a full-franked interim dividend of 28.4 cents per share. Eligible shareholders can expect to receive the dividend distributions on 15 October 2021.

The Eagers Automotive share price has travelled 60% higher since this time last year and is up 15% in 2021.

Cochlear Limited (ASX: COH)

Cochlear revealed its full-year results on 20 August, recording a strong finish for the 2021 financial year.

Sales revenue lifted 19% to $1.49 billion which led the company’s bottom line to jump 54% to $236.7 million.

Cochlear announced an unfranked dividend of $1.40 per share, landing in shareholder accounts on 18 October 2021.

The Cochlear share price has gained 16% in the past 12 months and is treading 24% higher this year alone.

NRW Holdings Limited (ASX: NWH)

NRW issued its full-year results on 19 August, registering a mixed performance for the financial year’s end.

Revenue lifted by 11.5% on the prior comparable period to $2.3 billion. The bumper earnings weren’t enough to pick up profit before income tax, declining 24.3% to $75.9 million.

Management noted that the progressive dividend will be maintained, announcing a fully-franked final dividend of 5 cents.

The funds are scheduled to be paid to eligible shareholders on 13 October 2021.

The NRW share price has lost 24% in the past year, with further falls of 44% coming in 2021.

The post 4 ASX shares going ex-dividend today appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 Cochlear Ltd. The Motley Fool Australia has recommended Cochlear 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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Why has the Cochlear (ASX:COH) share price been struggling lately?

laboratory workers looking disappointed

The Cochlear Limited (ASX: COH) share price has been underperforming in recent days.

Over the last month, shares in the hearing device company have fallen 2.6% and are currently trading for $235.28. Over the same period, the S&P/ASX 200 Index (ASX: XJO) is 1.53% lower.

So, why are Cochlear shares struggling at the moment?

Let’s take a closer look.

Could COVID be to blame?

The current COVID-19 outbreak in Australia’s southeast could be one reason for the sluggish Cochlear share price of late.

New South Wales, Victoria, and the ACT are all under lockdown measures as the Delta variant runs rampant. This has put hospital capacity in those areas under increasing strain as coronavirus case numbers surge.

As a result, hospital elective surgery appointments are being cancelled — and this has even been mandated in Greater Sydney by the government.

Cochlear revealed in its full-year results that it generated more than 60% of its revenue from implant devices. So it’s possible the struggling Cochlear share price may be a reflection of the fact surgeries have been delayed across Australia, especially in Sydney.

What else could be affecting Cochlear shares?

The company’s shares have gone ex-dividend today.

This means investors who buy shares in a company on or after the day it goes ex-dividend are not entitled to receive the most recently announced dividend distribution.

The share price typically falls by the dividend amount on ex-dividend days as sellers who will keep the dividend seek to maximise returns.

Cochlear share price snapshot

While the Cochlear share price has been struggling over the last month, it’s also had a pretty average year.

Over the past 12 months, Cochlear shares have appreciated 16%. The ASX 200, meanwhile, is up 24.5% over the same time.

It is slightly better reading since the beginning of 2021. Year-to-date, Cochlear shares have outpaced the ASX 200 by about 13 percentage points.

Cochlear has a market capitalisation of about $15.5 billion.

The post Why has the Cochlear (ASX:COH) share price been struggling lately? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Cochlear right now?

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Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Cochlear wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

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Motley Fool contributor Marc Sidarous 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 Cochlear Ltd. The Motley Fool Australia has recommended Cochlear 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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Why Bapcor, Brickworks, News Corp, & Premier Investments are rising

arrows representing a rise in share price

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a very strong gain. At the time of writing, the benchmark index is up 1.2% to 7,383.9 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are rising:

Bapcor Ltd (ASX: BAP)

The Bapcor share price is up 5% to $7.60. Investors have been buying the auto parts company’s shares after they were upgraded by a leading broker. According to a note out of Citi, its analysts have upgraded the company’s shares to a buy rating with an improved price target of $8.25. Citi made the move partly on valuation grounds following a sharp share price pullback in recent weeks.

Brickworks Limited (ASX: BKW)

The Brickworks share price is up over 2% to $24.97. This follows the release of the building products company’s full year results this morning. According to the release, Brickworks reported a 6% decline in revenue to $890 million but a 95% jump in underlying net profit after tax to $285 million. The latter was driven largely by its joint venture property trust with Goodman Group (ASX: GMG).

News Corp (ASX: NWS)

The News Corp share price has jumped 8% to $32.37. This gain appears to have been driven by a bullish broker note out of Goldman Sachs. According to the note, the broker has reiterated its conviction buy rating and $44.50 price target on its shares. This follows the media company’s 30th Annual Communacopia Conference.

Premier Investments Limited (ASX: PMV)

The Premier Investments share price is up 3.5% to $27.73. This follows the release of the retail conglomerate’s full year results this morning. For the 12 months ended 31 July, Premier Investments reported an 18.7% increase in retail sales to $1,443.2 million and a 97% jump in statutory net profit after tax to $271.8 million. A key driver of this growth was the Peter Alexander brand, which reported very strong sales and profit growth.

The post Why Bapcor, Brickworks, News Corp, & Premier Investments are rising appeared first on The Motley Fool Australia.

Wondering where you should 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 could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

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 shares of and has recommended Brickworks. The Motley Fool Australia owns shares of and has recommended Bapcor and Brickworks. The Motley Fool Australia has recommended Premier Investments 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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