Month: May 2022

The New Hope Corporation Limited (ASX: NHC) share price has risen by close to 60% in 2022. Could the coal miner keep going up?

New Hope is one of the largest coal miners in Australia. It currently has a market capitalisation of more than $3 billion according to the ASX.

What has happened to the New Hope share price?

A couple of months ago the business announced its FY22 half-year result.

With that result, it disclosed that the average sales price achieved at 31 January 2022 was A$192.38 per tonne. That represented an increase of 147% compared to a year ago. The closing realised price for the reporting period was A$236.66 per tonne.

The miner reported underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $554.4 million, which was a rise of 583%.

It generated $330.4 million, which compares to a loss of $55.4 million in the prior corresponding period.

The CEO of New Hope, Rob Bishop, said that the company is “well-positioned to continue generating strong, sustainable shareholder returns, with demand for high-quality, lower-emissions thermal coal expected to remain robust in the short to medium term as supply remains constrained.”

Mr Bishop pointed to “strong demand and lower than normal stock levels held by customers” as reasons for why the thermal coal price has been pushed well above the long-term average. New Hope said that its forward sales book will support “robust returns”.

The business grew its interim dividend from 4 cents to 17 cents, while also declaring a 13 cents per share special dividend.

Is the New Hope share price an opportunity?

According to reporting by the Australian Financial Review, Merlon Capital Partners lead portfolio manager Neil Margolis thought that the New Hope share price was attractive in 2020.

Mr Margolis points out that despite the large rise of New Hope, it is still on a cash flow yield “well north” of 50%. However, the fund manager doesn’t think a US$300 per tonne spot price will be maintained. For that reason, Merlon has been taking some profits.

However, Mr Margolis does still see value in the business, stating:

Being screened out by many large institutional investors on ESG is a reason it still offers value. We favour active ownership over divestment and have engaged constructively with the board indicating our preference for existing mines over expansion, responsible site remediation and the return of all surplus cash-flows and franking credits to shareholders, rather than pursuing capital destructive growth projects and acquisitions.

Expectations for FY22

The forecast on Commsec is that New Hope will generate $1.04 of earnings per share (EPS) and pay an annual dividend of 73 cents per share.

That puts the New Hope share price at 3.5x FY22’s estimated earnings with an estimated FY22 grossed-up dividend yield of 29%.

The post The New Hope share price has rallied 60% in 2022. Is there more to come? appeared first on The Motley Fool Australia.

More reading

• Why did ASX coal shares having such a stellar run on Thursday?
• Why are some ASX coal shares flaming out today?
• Top brokers name 3 ASX shares to sell today
• Why Bank of Queensland, Iluka, New Hope, and Zip shares are falling today
• Here’s why the New Hope share price is sliding 7% today

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 Scott Phillips.

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Leading brokers are keeping their faith in stalwart blue-chip ASX share, CSL Limited (ASX: CSL). This is despite the biotherapies company’s shares trading 20% down on their pre-pandemic peak of $336.40.

CSL finished the session on Friday at $268.16, down 2.93% for the day and almost 8% down year-to-date.

A major reason for the CSL share price being this low is two very tough years during the pandemic. CSL relies on blood plasma donations to develop its suite of medicines and vaccines. COVID-19 lockdowns around the world, particularly in the United States, made this incredibly difficult.

What has been happening lately for CSL?

As my Fool colleague Monica reported on Tuesday, plasma collections are now roughly back to pre-pandemic levels. CSL is also using new technology to reduce the time it takes to donate plasma by 30%.

In addition, CSL is awaiting the finalisation of its acquisition of Swiss company, Vifor Pharma. Vifor is a world leader in the development and manufacture of products to treat kidney disease and iron deficiency. CSL recently told the ASX that everything was on track for the purchase to be completed next month.

The company also presented at the 2022 Macquarie Australia Conference in Sydney this week.

So, what are the experts saying about CSL?

Citi recently reaffirmed its buy rating on CSL with a share price target of $335 price target. This implies a potential 25% upside on Friday’s closing price.

Bell Potter likes CSL’s leadership position in plasma therapies and also what the Vifor Pharma buy will do for the company. The broker explained:

The soon to be completed acquisition of Vifor Pharma will add global leadership in pharmaceutical products for renal disease and iron deficiency.

The global growth in plasma volumes is expected to be around a solid 8% per annum for the foreseeable future and, in addition, the group is planning to launch new products from its very extensive Research and Development portfolio.

History of the CSL share price

The CSL share price began a fantastic decade of growth in late 2011 when it was trading at about $30. Over about the next five years, CSL shares grew in value by 225%. They cracked the $200 mark in mid-2018 and the $300 mark in early 2020.

CSL currently trades on a price-to-earnings (P/E) ratio of 52.79 and pays an annual dividend yield of 1.12%.

The post The CSL share price has tumbled 8% this year. Here’s why these top brokers still have faith appeared first on The Motley Fool Australia.

More reading

• 2 strong blue chip ASX 200 shares to buy after the market selloff according to analysts
• Broker names 3 ‘champion’ ASX 200 shares to buy and hold
• CSL share price lifts as plasma collections continue recovery
• Here’s why the CSL share price beat the market in April
• 2 highly rated blue chip ASX 200 shares brokers rate as buys

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. 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.

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If you’re looking for an easy way to invest in international shares for diversification purposes, then exchange traded funds (ETFs) could be the way to do it.

But which ETFs could be top options right now? Listed below are three excellent ETFs that could be worth considering as long term investments:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

This popular ETF gives investors exposure to the growing Asian economy. The BetaShares Asia Technology Tigers ETF provides investors with easy access to a number of the most promising tech shares in the Asian market. This means you’ll be owning a slice of well-known companies such as ecommerce giant Alibaba, search engine company Baidu, and WeChat owner Tencent. BetaShares highlights that the technology sector is underrepresented in the Australian share market and may also provide a complement for investors with an existing allocation to U.S. based technology companies.

BetaShares Crypto Innovators ETF (ASX: CRYP)

The BetaShares Crypto Innovators ETF could be an ETF to consider if you’re interested in the high risk world of cryptocurrencies. BetaShares notes that the fund gives investors exposure to the growth potential of the crypto economy through a portfolio of companies that are at the forefront of the crypto world. This includes crypto trading platforms, crypto mining and mining equipment firms, and other companies servicing crypto markets. Among its holdings you’ll find Coinbase, Core Scientific, Galaxy Digital, Riot Blockchain, and Silvergate.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ETF to look at is the VanEck Vectors Morningstar Wide Moat ETF. When everybody’s favourite investor, Warren Buffett, looks for an investment, he has a preference for companies with sustainable competitive advantages or moats. VanEck has taken this into account and built a whole ETF around it. This ETF currently contains 52 attractively priced companies with sustainable competitive advantages. These include the likes of Alphabet (Google), Boeing, Coca Cola, Kellogg Co, Meta Platforms (Facebook), Philip Morris, and Walt Disney.

The post 3 high quality ETFs for ASX investors to buy this month appeared first on The Motley Fool Australia.

More reading

• 2 excellent ETFs for investors to buy in May
• 3 top ETFs for ASX investors to buy and hold for 10 years
• The Betashares Crypto Innovators ETF has dumped 23% in a month. Is it now a bargain?
• 2 exciting ETFs for ASX investors this month
• 3 high quality ETFs for ASX investors to buy today

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 Betashares Crypto Innovators ETF. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking for an easy way to invest in international shares for diversification purposes, then exchange traded funds (ETFs) could be the way to do it.

But which ETFs could be top options right now? Listed below are three excellent ETFs that could be worth considering as long term investments:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

This popular ETF gives investors exposure to the growing Asian economy. The BetaShares Asia Technology Tigers ETF provides investors with easy access to a number of the most promising tech shares in the Asian market. This means you’ll be owning a slice of well-known companies such as ecommerce giant Alibaba, search engine company Baidu, and WeChat owner Tencent. BetaShares highlights that the technology sector is underrepresented in the Australian share market and may also provide a complement for investors with an existing allocation to U.S. based technology companies.

BetaShares Crypto Innovators ETF (ASX: CRYP)

The BetaShares Crypto Innovators ETF could be an ETF to consider if you’re interested in the high risk world of cryptocurrencies. BetaShares notes that the fund gives investors exposure to the growth potential of the crypto economy through a portfolio of companies that are at the forefront of the crypto world. This includes crypto trading platforms, crypto mining and mining equipment firms, and other companies servicing crypto markets. Among its holdings you’ll find Coinbase, Core Scientific, Galaxy Digital, Riot Blockchain, and Silvergate.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ETF to look at is the VanEck Vectors Morningstar Wide Moat ETF. When everybody’s favourite investor, Warren Buffett, looks for an investment, he has a preference for companies with sustainable competitive advantages or moats. VanEck has taken this into account and built a whole ETF around it. This ETF currently contains 52 attractively priced companies with sustainable competitive advantages. These include the likes of Alphabet (Google), Boeing, Coca Cola, Kellogg Co, Meta Platforms (Facebook), Philip Morris, and Walt Disney.

The post 3 high quality ETFs for ASX investors to buy this month appeared first on The Motley Fool Australia.

More reading

• 2 excellent ETFs for investors to buy in May
• 3 top ETFs for ASX investors to buy and hold for 10 years
• The Betashares Crypto Innovators ETF has dumped 23% in a month. Is it now a bargain?
• 2 exciting ETFs for ASX investors this month
• 3 high quality ETFs for ASX investors to buy today

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 Betashares Crypto Innovators ETF. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There are a lot of shares to choose from on the Australian share market.

In order to narrow things down for investors, listed below are two ASX shares that are highly rated by analysts. Here’s what they are saying about them:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first ASX share for investors to look at is this pizza chain operator. Its shares have been having a tough year due to weakness in Japan and concerns over inflationary pressures.

However, it is worth remembering that these issues are expected to be short-lived. In light of this, it may be best focusing on the long term, which looks very positive thanks to its store expansion plans.

The team at Morgans remain positive on the company and believe recent share price weakness is a buying opportunity.

The broker commented: “We upgraded to ADD after the result and, although inflationary pressures have worsened since then, we continue to believe there is meaningful upside to the current share price over the next 12 months.”

Morgans has an add rating and $100 price target on the company’s shares.

Nitro Software Ltd (ASX: NTO)

Another ASX share to look at is Nitro Software. It is the global document productivity software company behind the Nitro Productivity Suite. This suite offers businesses of all size integrated PDF productivity and eSignature tools.

Its shares have also been hammered this year. This has been driven by a selloff in the tech sector, which has been felt hardest among loss-making companies. And while Nitro isn’t expected to be profitable for several years, it is well-funded and has a huge market opportunity to grow into in the future.

Goldman Sachs is very positive on Nitro and sees it as a great long term pick for investors.

It commented: “We appreciate that a material re-rate likely requires a change in sentiment towards unprofitable tech companies, however we think NTO screens attractively relative to tech peers and on a longer-term view. Our focus now shifts to NTO’s execution on its pipeline of new business and e-sign cross-sell opportunities, with concerns over balance sheet now eased. We see NTO as an attractive long-term growth opportunity at a discounted valuation.”

Goldman has a buy rating and $2.35 price target on the company’s shares.

The post Analysts say investors should buy these top ASX shares appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Why analysts say investors should buy these beaten down ASX shares
• The Domino’s share price just hit a 52-week low. Is it time to tuck into some?
• Why Nitro, PointsBet, Sezzle, and Siteminder shares are racing higher
• Nitro share price storms 23% higher on record quarter

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 recommended Dominos Pizza Enterprises Limited and Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking at dividend shares to buy, then you may want to check out the ones listed below that are on a Morgans’ best ideas list this month.

Here’s why these ASX shares could be among the best dividend shares to buy next week:

BHP Group Ltd (ASX: BHP)

The first ASX dividend share to look at is the Big Australian. This mining giant has been tipped to pay big dividends in the near term thanks to sky high commodity prices.

For example, Morgans is expecting BHP to pay fully franked dividends per share of $3.93 in FY 2022 and $2.95 in FY 2023. Based on the current BHP share price of $46.80, this will mean yields of 8.4% and 6.3%, respectively.

Morgans also sees meaningful upside for its shares and has an add rating and $54.30 price target on them. The broker explained why it is bullish:

We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct Covid-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.

Wesfarmers Ltd (ASX: WES)

Another ASX dividend share that Morgans rates highly is this conglomerate. Morgans likes the company due to its quality portfolio, strong management team, and robust balance sheet.

As for dividends, the broker expects fully franked dividends of $1.62 per share in FY 2022 and $1.81 per share in FY 2023. Based on the current Wesfarmers share price of $49.60, this will mean yields of 3.3% and 3.65%, respectively.

As with BHP, the broker also sees decent upside for its shares. It has an add rating and $58.50 price target on them. The broker commented:

WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. While COVID-related staff shortages are a challenge, the core Bunnings division (>60% of group EBIT) remains a solid performer as consumers continue to invest in their homes. We see the recent pullback in the share price as a good entry point for longer term investors.

The post Broker names 2 of the ‘best’ ASX dividend shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Which ASX 200 mining shares were the worst-performing on Friday?
• The BHP share price is tumbling 3% on Friday. What’s going on?
• Guess which ASX 200 shares are defying today’s sell-off to climb higher
• Why is the Wesfarmers share price defying today’s ASX 200 bloodbath?
• What’s the outlook for the BHP share price in May?

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Inflation has been a central concern of ASX investors for a few months now. But ever since learning that inflation is now running at a two-decade high here in Australia, that concern has only grown more acute. Inflation and the higher interest rates that usually come with it can have wide-ranging consequences for ASX shares.

That’s why it is important to understand how inflation might affect a share portfolio, and what you can do to mitigate its corrosive effects. So let’s check out two ASX exchange-traded funds (ETFs) that could help in this endeavour.

2 ASX ETFs that could help protect against inflation

BetaShares Global Banks ETF (ASX: BNKS)

This ETF from BetaShares enables investors to invest in a wide range of banks from around the world in one fund. You’ll find US banks like JPMorgan and Wells Fargo here, as well as Royal Bank of Canada, HSBC Holdings, and Citigroup.

Bank shares are often identified as clear winners during times of inflation, given that they can easily preserve their margins if interest rates rise. Our own chief investment officer Scott Phillips discussed this very phenomenon this week. BNKS also pays out a healthy dividend distribution, further adding to its inflation-resistant properties.

BetaShares Global Energy Companies ETF (ASX: FUEL)

Any Australian who drives a fuel-powered vehicle would be acutely aware of the inflation-resistant nature of oil and other forms of energy.

Since energy consumption is usually a ‘need’ rather than ‘want’, there is always demand for energy in normal economic circumstances, even if prices are rising. Thus the companies that extract, refine, and sell energy products like petrol, diesel, and gas have an inherent advantage in periods of high inflation. And this FUEL ETF covers these kinds of companies.

It currently invests in energy giants like BP, Shell, Chevron, and Exxon Mobil. This ETF has already risen by almost 27% over the past six months, which is significant since this is the period that inflation concerns have significantly increased. FUEL also pays out a healthy dividend distribution.

The post These 2 ETFs could help to protect ASX investors against inflation appeared first on The Motley Fool Australia.

More reading

• Best ASX shares to buy in May 2022
• 5 ASX ETFs to combat inflation: fund manager
• Which ASX 200 shares have historically performed well during rising inflation?
• 3 high quality ETFs for ASX investors to buy today

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has positions in Chevron and JPMorgan Chase. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Banks ETF – Currency Hedged and BetaShares Global Energy Companies ETF – Currency Hedged. 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.

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The S&P/ASX 200 Index (ASX: XJO) was out of form last week and sank deep into the red. The benchmark index lost 3.1% of its value to end the period at 7,205.6 points.

Thankfully, not all shares were sold off. Here’s why these were the best performing ASX 200 shares last week:

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price was the best performer on the ASX 200 last week with a 5.8% gain. This fund manager’s shares were rising after it released its latest funds under management (FUM) update. Magellan revealed that its total FUM fell by $1.4 billion or 2% to $68.6 billion during April. As this was a big improvement on recent outflows, some investors appear optimistic the worst could now be over for fund outflows.

Amcor (ASX: AMC)

The Amcor share price wasn’t far behind with a gain of 5.4%. Investors were buying the packaging company’s shares following the release of its third-quarter update. That update revealed a 15.6% increase in net sales to US$3,708 million and a 7.2% lift in gross profit to US$731 million. This went down well with Morgans, which retained its add rating and lifted its price target on Amcor’s shares to $18.60.

Hub24 Ltd (ASX: HUB)

The Hub24 share price was a positive performer with a 4.5% gain last week. This appears to have been driven by the investment platform provider’s appearance at an investor conference. At the event, Hub24 spoke positively about its outlook and reaffirmed that it is targeting platform funds under administration (FUA) of $83 billion to $92 billion in FY 2024. This compares to its current FUA of $51 billion.

Reliance Worldwide Corporation Ltd (ASX: RWC)

The Reliance share price was on form and rose 4.3% over the five days. This appears to have been driven by a broker note out of Morgan Stanley. According to the note, to broker has upgraded the plumbing parts company’s shares to an overweight rating with a $5.40 price target. It believes the company’s shares have been unfairly dragged lower amid fears of slowing new housing construction. However, Morgan Stanley notes that the company has more exposure to the repair and renovation market, which it expects to be more resilient.

The post These were the best performers on the ASX 200 last week appeared first on The Motley Fool Australia.

More reading

• These were the worst performers on the ASX 200 last week
• Here are the top 10 ASX shares today
• On a dire day for the ASX, the BrainChip share price just leapt 11%. What’s going on?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Guess which ASX 200 shares are defying today’s sell-off to climb higher

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 Hub24 Ltd and Reliance Worldwide Corporation Limited. The Motley Fool Australia has positions in and has recommended Amcor Limited and Hub24 Ltd. The Motley Fool Australia has recommended Reliance Worldwide Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Experts have rated some leading ASX dividend shares as buys. These are businesses that are both good value according to brokers and are projected to provide a good source of income for investors.

Not every business that pays a dividend is automatically an attractive ASX dividend share. The valuation can influence whether a business may be able to achieve good capital growth or not.

Here are two businesses that brokers like right now:

Centuria Industrial REIT (ASX: CIP)

This real estate investment trust (REIT) is a large pure-play business when it comes to industrial property in Australia.

It’s currently rated as a buy by the brokers at Macquarie, with a price target of $4.27. That implies a possible double-digit return for the Centuria Industrial REIT share price over the next year.

Macquarie expects that Centuria Industrial REIT will pay a distribution yield of 4.8% in FY22 and 5.2% in FY23.

At the end of the third quarter of FY22, its portfolio occupancy was 98.5%, while the weighted average lease expiry (WALE) was 8.7 years.

The fund manager of the ASX dividend share, Jesse Curtis, explained the tailwinds that the business is currently seeing:

Centuria Industrial REIT continues to harness the strong tailwinds of Australia’s industrial real estate market having delivered another strong quarter. Portfolio leasing remains robust with strong tenant customer demand evidenced by leasing volume achieved and high occupancy across the portfolio. Centuria Industrial REIT’s assets are strategically located in markets with low vacancy rates and limited supply and are positioned to benefit from rising rents.

The increasing trend of onshoring and reshoring supply chains to ensure business continuity, together with continued adoption of e-commerce, has further accelerated demand for last mile, infill locations that are in close proximity to densely populated areas.

Metcash Limited (ASX: MTS)

Metcash is a diverse business. It supplies IGA supermarkets and various liquor stores including Cellarbrations, The Bottle-O, IGA Liquor, Duncans, and Thirsty Camel. It also owns hardware businesses including Mitre 10, Home Timber & Hardware, and Total Tools.

It’s rated as a buy by the broker UBS with a price target of $5.

The broker noted the recent long-term supply agreement with Australian United to supply its national network of supermarkets and convenience stores, including its Foodworks supermarkets, for another five years.

Sales to Foodworks in FY21 accounted for around $900 million of the total sales of the $9.4 billion Metcash food pillar.

The ASX dividend share has committed to a dividend payout ratio of around 70% of underlying net profit after tax (NPAT). The FY22 interim dividend was increased by 31% to 10.5 cents. Metcash says it has a “strong focus on shareholder returns”.

On UBS’ numbers, the Metcash share price is valued at 16x FY22’s estimated earnings.

The broker thinks that FY22 Metcash grossed-up dividend yield is going to be 5.5% and in FY23 it will be 5.8%.

The post 2 buy-rated ASX dividend shares for income: experts appeared first on The Motley Fool Australia.

More reading

• Guess which ASX 200 shares are defying today’s sell-off to climb higher
• Here’s why the Metcash share price just hit a 15-year high
• Why Block, Domain, Metcash, and Zip shares are pushing higher
• Brokers rate these ASX dividend shares as buys
• 2 ASX 200 dividend shares experts are tipping as buys

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 recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Last week was one to forget for the S&P/ASX 200 Index (ASX: XJO). The benchmark index lost 3.1% of its value to end the period at 7,205.6 points following a global market selloff.

While a good number of shares dropped with the market, some fell more than most. Here’s why these were the worst performing ASX 200 shares last week:

AVZ Minerals Ltd (ASX: AVZ)

The AVZ share price was the worst performer on the ASX 200 last week with a 21.2% decline. Investors were selling this lithium developer’s shares after the release of an update on its Manono Lithium Project in the Democratic Republic of the Congo. Although AVZ revealed the positive news that a mining licence has been granted, it also spoke about an ownership dispute. This could see the company ultimately owning just 51% of the project.

ARB Corporation Limited (ASX: ARB)

The ARB share price wasn’t far behind with a disappointing 20.7% decline. The catalyst for this was the release of a market update from the 4×4 parts manufacturer. That update reveals that the company expects to report a 12% increase in revenue to $700 million in FY 2022. However, due to a large increase in costs, its margins and earnings are under significant pressure.

Imugene Limited (ASX: IMU)

The Imugene share price was a very poor performer and sank 18.2% over the five days. Investors were selling this biotech’s shares after it announced the termination of a supply agreement with Merck. Although the company downplayed the news, it wasn’t enough for some investors to stick around.

Life360 Inc (ASX: 360)

The Life360 share price continued its slide and tumbled 17.9% last week. This follows significant weakness in the tech sector following a selloff on the Nasdaq index. Among the hardest hit were companies that are not yet profitable such as location technology company Life360. Not even its recent update, revealing a 129% increase in revenue to US$52.7 million and a 73% jump in annualised monthly revenue to US$166.1 million, has been able to stop its slide.

The post These were the worst performers on the ASX 200 last week appeared first on The Motley Fool Australia.

More reading

• Which ASX 200 mining shares were the worst-performing on Friday?
• Here are the top 10 ASX shares today
• On a dire day for the ASX, the BrainChip share price just leapt 11%. What’s going on?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why is the AVZ Minerals share price sliding 7% on Friday?

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. The Motley Fool Australia has recommended ARB Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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