Day: October 7, 2021

Top brokers name 3 ASX shares to sell today

Scared, wide-eyed man in pink t-shirt with hands covering mouth

Yesterday I looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

According to a note out of UBS, its analysts have retained their sell rating and NZ$22.65 (A$21.50) price target on this medical device company’s shares. UBS was pleased to see the company release the Evora Full sleep apnoea mask. It notes that this new design is in line with current industry trends. However, it isn’t enough for a change of rating. UBS continues to believe its shares are overvalued at the current level. The Fisher & Paykel Healthcare share price is trading at $28.77 today.

Magellan Financial Group Ltd (ASX: MFG)

Another note out of UBS reveals that its analysts have retained their sell rating and cut their price target on this fund manager’s shares to $29.00. This follows the release of Magellan’s latest funds under management update, which revealed further fund outflows. The broker believes this is being driven by the poor performance of its flagship Global Fund. Unfortunately, the broker suspects that there could be further outflows to come. Particularly on the retail side due to its underperformance and high fees. The Magellan share price is fetching $33.65 today.

Mineral Resources Limited (ASX: MIN)

Analysts at Morgan Stanley have retained their underweight rating and $41.00 price target on this mining and mining services company’s shares. While the broker notes that the company is working towards restarting its Wodgina lithium operation, it doesn’t expect this to happen until the second half of next year. For now, the broker believes the company’s shares are overvalued. Particularly given its exposure to low grade iron ore. The Mineral Resources share price is trading at $43.55 today.

The post Top brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

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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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Why is the De Grey Mining (ASX:DEG) share price higher on Friday?

gold, gold miner, gold discovery, gold nugget, gold price,

The De Grey Mining Limited (ASX: DEG) share price is in the green this afternoon and is now trading 0.83% higher at $1.22.

Shares in the gold exploration company are on the move despite there being no market-sensitive news out of its camp today.

At one point, to start the day, the gold explorer’s shares were in the red, hitting an intraday low of $1.17. They stepped into the money just after 11am, where they have stayed since.

What’s happening with De Grey today?

The De Grey Mining share price is just behind the S&P/ASX All Ordinaries Gold Index (ASX: XGD) today which has climbed 1.05% into the green since the opening of trade.

This indicates there may be strength across the broader ASX gold sector today that may be helping the company’s price action.

The De Grey Mining share price has risen 26% in the past week, leading the ASX Gold index’s gain of 6%.

Also rallying this past week is the price of gold, which has shot up US$30/t.oz since 30 September, hitting a high of US$1,768/t.oz on 4 October.

The recent gains are a reversal of a longer-term downward trend that had been in place since June, where the price of the yellow metal bottomed on 29 September.

As of today it is trading 0.3% higher, commanding US$1,760/t.oz at last check, not far off its recent tops.

De Grey’s industry is in a unique position, in that participants on the supply side must accept prices that are offered in the spot and futures markets on the commodity it is exposed to – gold.

This means the markets dictate what price the company gets for its hard-earned labour. As such, it is considered a price taker, and its share price can and does fluctuate with the price action in the broader gold markets.

Two recent updates appear to have excited investors. De Grey announced a positive scoping study and drill results that indicate a high gold production at two of the company’s sites.

The De Grey Mining share price has shot up 28% from a previous low of 93 cents following the release of both announcements this past week.

De Grey Mining share price snapshot

The company’s shareholders have endured a wave-like journey over the past 12 months. The De Grey Mining share price is down 0.2% in this time. However, it has managed to climb 20% this year to date.

It’s also rallied almost 11% this past month and has risen 26% in the last week, despite today’s selling pressures.

For comparison, the S&P/ASX 200 (ASX: XJO)’s benchmark index has returned around 20% over the past 12 months.

The post Why is the De Grey Mining (ASX:DEG) share price higher on Friday? appeared first on The Motley Fool Australia.

Should you invest $1,000 in De Grey Mining right now?

Before you consider De Grey Mining, you’ll want to hear this.

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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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Why is the Regional Express (ASX:REX) share price sliding 3% today?

outline of a Qantas plane against backdrop of share price chart

The Regional Express Holdings Ltd (ASX: REX) share price is slipping into the red in afternoon trade today. At the time of writing, it is trading down 3% at $1.60.

Rex shares are leading the broader sector’s decline today with the S&P/ASX 200 Hotels Restaurants & Leisure Index (AXHRJD) sliding 1.55% from market open today as well.

Whilst there’s been no market sensitive news out of the airline’s camp today, it’s worthwhile seeing what’s led us to this point.

What’s up with the REX share price lately?

September saw the regional airline carrier’s share price takeoff from the runway, shooting up almost 30% to a high of $1.70 on October 4.

The onset of this move coincided with Qantas’ announcements last that it intends to start travel to some destinations from mid-December.

Despite this, REX announced extended reductions to its staff headcount and further downsizing of its service offerings at the end of the month.

It also advised that its services will remain suspended until 31 October, where it then expects all relevant staff to be double-vaccinated against COVID-19.

In fact, as more and more news comes out regarding the vaccine statistics of Australian’s, travel and leisure names share in the good fortune.

The ASX Hotels & Leisure Index has climbed over 12% since mid-August, on optimism of Australia’s domestic and international border reopening.

According to the Department of Health, 60.2% of people aged 16 and over are double vaccinated as of 7 October, and 81.5% have had at least one dose.

That means 12.423 million of us are fully vaccinated against COVID-19 here in Australia after another 330,600 doses were recorded in the last 24 hours.

As vaccination rates approach the desired 80% mark, former New South Wales Premier Gladys Berejiklian recently resigned, after a corruption probe.

That was a week ago, and REX shares started trading this week with a sharp nosedive, a trend that has continued until today.

The same phenomenon was observed in the broader travel sector as we walk through to finish this week of trading.

Investors appear uncertain about the roadmap out of lockdown given the former Premier’s resignation. The resignation has been felt throughout the public and private markets in the past week since it was announced.

REX share price snapshot

The REX share price has been plagued by the pandemic itself this year to date and is in the red from January 1.

The recent momentum hasn’t been enough to salvage the REX share price. It has posted a loss of 22% since January 1. Yet, it has gained 16% in the past 12 months, around half that of the S&P/ASX 200 index (ASX: XJO)’s climb of about 25% in this time.

The post Why is the Regional Express (ASX:REX) share price sliding 3% today? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Regional Express Holdings right now?

Before you consider Regional Express Holdings, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Regional Express Holdings 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.

*Returns as of August 16th 2021

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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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Why is the Tesserent (ASX:TNT) share price climbing 11% on Friday?

Tesserent cybersecurity professional man inspects server room and works on laptop

The Tesserent Ltd (ASX: TNT) share price is surging today despite no news being released by the company.

However, only minutes before yesterday’s close, Tesserent announced it had completed its acquisition of Australian cybersecurity firm, Loop Secure.

Tesserent spent around $13.5 million to acquire Loop, using a mix of cash and scrip to pay.

At the time of writing, the Tesserent share price is 24.2 cents, 10% higher than its previous close.

Let’s take a closer look at the most recent news from the internet security-as-a-service provider.

Tesserent finalises Loop acquisition

The Tesserent share price is gaining today despite no news from the cybersecurity and cloud services company. However, its recently finalised acquisition is a potential catalyst.

Yesterday, Tesserent announced it had completed its acquisition of Loop Secure. While investors’ enthusiasm for Tesserent shares may have been spurred by this today, the acquisition has been a long time coming.

Tesserent first announced its plan to acquire Loop on 19 August.

Back then, the market was seemingly indifferent to the announcement. The Tesserent share price finished that session exactly where it had ended the previous one.

According to Tesserent, its purchase of Loop adds an additional $18 million of unaudited revenue to its books. Loop also has $2.25 million of sustainable earnings before interest, tax, depreciation, and amortisation (EBITDA).

Additionally, Loop’s security services will strengthen Tesserent’s Cyber 360 capabilities and deliver significant synergy and cross-selling benefits.

Tesserent previously said the acquisition would see it paying $7 million of cash on completion. It expects to pay another $2 million over the following 12 months.

Tesserent share price snapshot

Today’s gains haven’t been enough to boost the Tesserent share price back into the green.

The company’s stock value has fallen 30% since the start of 2021. It is almost 7% lower than it was this time last year.

The post Why is the Tesserent (ASX:TNT) share price climbing 11% on Friday? appeared first on The Motley Fool Australia.

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

Before you consider Tesserent, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Tesserent 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.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Brooke Cooper 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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