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

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

Fortescue Metals Group Limited (ASX: FMG)

According to a note out of Goldman Sachs, its analysts have retained their sell rating and trimmed their price target on this mining giant’s shares to $14.90. Although Fortescue outperformed Goldman’s estimates with its record third quarter shipments, it wasn’t enough for a change of rating. The broker continues to have issues with its valuation and believes its premium to fellow large cap miners is unwarranted considering the lack of diversification and risks around future capital spend and returns. The Fortescue share price was trading at $20.61 on Tuesday.

Kogan.com Ltd (ASX: KGN)

A note out of Credit Suisse reveals that its analysts have downgraded this ecommerce company’s shares to an underperform rating and slashed the price target on them to $3.75. Credit Suisse was disappointed with Kogan’s quarterly update and notes that its sales fell well short of its expectations during the period. And with inventory and costs high, the broker has concerns over its profits and also its cash flows. The Kogan share price has now dropped below this price target to $3.73.

Zip Co Ltd (ASX: ZIP)

Analysts at UBS have retained their sell rating and cut their price target on this buy now pay later provider’s shares to a lowly 90 cents. This follows the release of Zip’s third quarter update. While that update revealed solid growth in absolute terms, it was still well short of UBS’ second half growth forecasts. In addition, the broker highlights Zip’s softening transaction frequency and suspects that its active customers includes inactive customers that will soon drop off. The Zip share price was trading at $1.16 on Tuesday afternoon.

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

More reading

• Why is the Fortescue share price down 5% on Tuesday?
• Here’s how some of the biggest ASX 200 shares are responding to the RBA’s rate rise
• Why Block, Domain, Metcash, and Zip shares are pushing higher
• Back in the green: Zip share price launches 6% on Tuesday
• How did the Fortescue share price stack up in April?

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 positions in and has recommended Kogan.com ltd and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/V36hfEa

The Lake Resources N.L. (ASX: LKE) share price struggled on the ASX today.

The lithium explorer’s shares fell by 6.68% to $1.745. In contrast, the S&P/ASX 200 Index (ASX: XJO) slid 0.42% in today’s trade.

Let’s take a look at what is happening at Lake Resources.

Lithium explorer falls

The Lake Resources share price has sunk to its lowest level since late March today. For perspective, the S&P/ASX 200 Materials (ASX: XMJ) index fell by more than 1% today while the shares of ASX lithium miner Core Lithium (ASX: CXO) also closed 4.53% lower.

In today’s news, Lake advised the market company secretary Garry Gill has resigned as joint company secretary. Peter Neilsen will remain in his role as company secretary and chief financial officer.

Commenting on the news, the company said:

The board expresses its appreciation to Mr Gill for his services to the company and wishes him well for the future.

Lake Resources is exploring lithium from multiple projects including the flagship Kachi Project in Argentina. Lake aims to produce 100,000 tonnes of lithium by 2030. Lithium is a critical component of Electric Vehicle (EV) batteries.

The lithium carbonate price has fallen 6.85% in a month to 462,500 yuan per tonne, Trading Economics data shows.

Lake Resources share price snapshot

The Lake Resources share price has soared 463% in the past 12 months and is up 73% this year to date.

In contrast, the benchmark index has returned about 4% in the past year.

Lake Resources has a market capitalisation of about $2.3 billion based on the current share price.

The post Why did the Lake Resources share price tumble 7% today? appeared first on The Motley Fool Australia.

More reading

• Why is the Lake Resources share price beating its sector today?
• What are the 10 biggest ASX shares in the lithium space
• Here are the top 10 ASX shares today
• Lake Resources share price spikes 14% as lithium prices begin to ease
• Analysts name 3 top ASX lithium stocks to buy now

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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/OKwtcR5

The Telstra Corporation Ltd (ASX: TLS) share price zipped higher over the past month following positive investor sentiment.

In April, the telco provider’s shares have gained around 2%. By compassion, the S&P/ASX 200 Index (ASX: XJO) fell almost 1% over the same period.

It’s worth noting that Telstra shares reached a 2-month high of $4.06 on 21 April before treading lower.

At Tuesday’s market close, the company’s shares finished 0.25% lower to $3.98.

Below, we take a closer look at what fuelled the Telstra share price.

What’s drove Telstra shares higher last month?

While the company’s kept relatively quiet on the news front during April, investors continued to buy up Telstra shares.

The positive outlook on the company is stemming from the successful implementation of its transformational T22 strategy. Management sees this as a way of simplifying and digitising the business.

However, the upcoming T25 strategy which builds on the T22 strategy is posed for driving growth. Its aim is to further support dividends through a number of cost-cutting and value-adding initiatives.

In addition, the appointment of new CEO, Ms Vicki Brady appeared to excite investors.

Ms Brady is scheduled to take over the helm from outgoing CEO Andy Penn on 1 September.

They both have been working together to ensure a smooth handover.

Lastly, Telstra has been busy conducting its planned $1.35 billion buyback program. Currently, management has spent $1.15 billion so far following the partial sales of the Towers transaction.

It is expected that the sale will be completed by the end of the financial year.

Telstra share price summary

In 2022, the Telstra share price has lost around 5%, despite reaching pre-pandemic levels.

If the company’s share price can push above $4.31 this year, it will be at a multi-year high from 2017.

Telstra commands a market capitalisation of around $46.42 billion, making it the 11th largest company on the ASX.

The post Why did the Telstra share price beat the ASX 200 in April? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Rates are up! Expert names 2 ASX shares for a global downturn
• The ASX 200 shares that fund managers are buying and dumping
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Best ASX shares to buy in May 2022

Motley Fool contributor Aaron Teboneras has positions in Telstra Corporation 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 positions in and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/4AGw9WZ

Today, the S&P/ASX 200 Index (ASX: XJO) slipped into the red following the Reserve Bank of Australia’s decision to lift the cash rate for the first time in 11 years. At the end of the session, the benchmark index finished 0.42% lower at 7,316.2 points.

Investors have been holding tight in preparation for central banks to increase interest rates amid high inflation prints. Today, the RBA handed down the much-awaited decision to boost the cash rate by 0.25%. Interestingly, tech and healthcare shares enjoyed some reinvigoration despite the expectation of further rate increases throughout the year.

Meanwhile, the other end of the market consisted of companies in the materials and real estate sectors. Notably, the real estate sector was the worst performer today as debts look set to become more expensive.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Stanmore Resources Ltd (ASX: SMR) was the biggest gainer today. Shares in the coal producer rallied 5.40% as some forecasts suggest wholesale electricity could double over the next year. Find out more about Stanmore Resources here.

Sliding in as the second biggest gainer today was Magellan Financial Group Ltd (ASX: MFG). The fund manager posted a gain of 5.40% amid reports that the company is moving on from Hamish Doughlass’s tenure on the board. Uncover the latest Magellan Financial Group details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Stanmore Resources Ltd (ASX: SMR)	$2.55	8.05%
Magellan Financial Group Ltd (ASX: MFG)	$17.17	5.4%
Block Inc CDI (ASX: SQ2)	$149.26	5.11%
GQG Partners Inc (ASX: GQG)	$1.45	4.32%
Lovisa Holdings Ltd (ASX: LOV)	$17.13	4.07%
Coronado Global Resources Inc (ASX: CRN)	$2.38	3.93%
Pro Medicus Ltd (ASX: PME)	$45.24	3.36%
Yancoal Australia Ltd (ASX: YAL)	$5.30	3.31%
Domain Holdings Australia Ltd (ASX: DHG)	$3.53	3.22%
Idp Education Ltd (ASX: IEL)	$27.14	2.92%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Here’s why the Metcash share price just hit a 15-year high
• Here’s how some of the biggest ASX 200 shares are responding to the RBA’s rate rise
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Could Polynovo shares get kicked out of the ASX 200?
• RBA increases cash rate by 25bps and warns of more hikes

Motley Fool contributor Mitchell Lawler has positions in Block, Inc. and Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc., Idp Education Pty Ltd, and Pro Medicus Ltd. The Motley Fool Australia has positions in and has recommended Block, Inc. and Pro Medicus Ltd. The Motley Fool Australia has recommended Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/xvYK2f6