Month: May 2022

The S&P/ASX 200 Index (ASX: XJO) is having a pleasing end to the week so far this Friday. The ASX’s flagship index has recorded a gain of 1% at the time of writing at just over 7,100 points. But one ASX share in particular is smashing the ASX 200 today. That would be the US fintech company Block Inc (ASX: SQ2) share price.

Block, which owes its ASX listing to its new ownership of Afterpay, is on fire today, no way around it. Block shares are presently up a pleasing 9.2% at $126.83 a share after the company closed at $116.10 yesterday and opened at $123.79 this morning.

Block share price rockets more than 9%

So why are Block shares shooting so dramatically higher today? Well, there hasn’t been any news or announcements out of the company itself we can point to.

However, there is a palpable mood on the markets today. And it’s one that is benefiting shares like Block. ASX tech shares are almost all enjoying some strong gains this Friday. We can see this in other tech shares including Zip Co Ltd (ASX: ZIP), Altium Limited (ASX: ALU), and Xero Limited (ASX: XRO).

Further, last night saw Block Inc (NYSE: SQ) – the company’s primary US listing – rocket 6.19% to US$87.14 a share. This came after Block held an investor presentation over in the US on Wednesday.

As our Fool colleagues over in the US covered at the time, one analyst called this presentation “a compelling vision of how various components of its ecosystem will become increasingly connected and synergistic over time”. Another described Block as “on a path to “eventually [becoming] a bank”.

So it’s perhaps no wonder that Block’s ASX listing is also steaming ahead today.

The Block share price is now up 10% since last Friday’s close, but still remains deep in the red over the past month (down almost 25%) and over 2022 so far (down more than 28%).

At the current Block share price, this ASX 200 fintech share has a market capitalisation of US$50.59 billion.

The post Why is the Block share price leaping 9% on Friday? appeared first on The Motley Fool Australia.

More reading

• The Zip share price is rocketing 6% today. Here’s why
• ASX 200 midday update: BHP, IGO, and Woolworths charge higher
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today
• Has the ANZ dividend been growing?

Motley Fool contributor Sebastian Bowen has positions in Block, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Block, Inc., Xero, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. and Xero. 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 inflation threat that’s rocking global markets is unlikely to go away soon and that will put several ASX shares on the S&P/ASX All Ordinaries Index (ASX: XAO) at risk of a margin squeeze.

The warning comes from UBS as it pointed out that businesses are facing record levels of cost inflation.

ASX All Ordinaries shares resisting inflation pressure

The good news is that most ASX shares can weather the storm and we are already seeing signs of this.

UBS commented:

When we look at how input and output prices have been evolving through the cycle, we still see a picture that broadly supports margins being maintained.

Over the last 18 months, the pricing power beta measure has been showing that companies are upping their sales prices comfortably, even as they report intensifying input costs.

This was evident during the February profit reporting season. There were many examples of ASX All Ordinaries shares easily passing on higher costs to their customers due to strong underlying demand.

Higher input costs yet to be a big threat

It helps that consumers and companies are flushed with cash, and therefore able to stomach rising prices, according to UBS.

On the other hand, companies that can absorb inflationary pressure have the opportunity to win market share.

The broker added:

We surveyed our team of stock analysts across the sectors where COGS inflation is relevant. Aggregating together responses on more than 80 identified companies, we found that freight / shipping costs were most commonly cited as a current input cost concern.

Rising prices of oil and agricultural products were also heavily mentioned as having a meaningful impact on operations. In contrast to many offshore equity markets, rising prices of semiconductors and chips was not a widespread concern for Australian companies.

How long can ASX companies hold out?

But the ability for ASX All Ordinaries shares to lift prices might be waning. UBS noted that the business cycle might be maturing and the peak in margin cyclicality has passed.

This doesn’t mean that all ASX shares are going to face a margin squeeze. This is going to be a case-by-case story. The broker highlighted several that it believes will struggle to pass on the rising cost of goods.

ASX All Ordinaries shares most exposed to inflation risks

This includes ASX building material suppliers like the Adbri Ltd (ASX: ABC) share price, Brickworks Limited (ASX: BKW) share price and Boral Limited (ASX: BLD) share price.

UBS also reckons that food companies like the Collins Foods Ltd (ASX: CKF) share price, Inghams Group Ltd (ASX: ING) share price and Costa Group Holdings Ltd (ASX: CGC) will feel the squeeze.

Other price takers that could suffer are the AMA Group Ltd (ASX: AMA) share price, Kogan.com Ltd (ASX: KGN) share price and Redbubble Ltd (ASX: RBL) share price.

The post These ASX All Ordinaries shares have the greatest margin risks from surging inflation: UBS appeared first on The Motley Fool Australia.

More reading

• Why is the Kogan share price leaping 5% today?
• Calix share price bounces about on $16 million payday
• Why Boral, Eagers Automotive, PolyNovo, and Serko shares are dropping
• ASX 200 midday update: BlueScope and Fortescue rise, Boral tumbles
• Boral share price down 3% on earnings hit

Motley Fool contributor Brendon Lau has positions in COSTA GRP FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, Collins Foods Limited, Kogan.com ltd, and REDBUBBLE FPO. The Motley Fool Australia has positions in and has recommended Brickworks and Kogan.com ltd. The Motley Fool Australia has recommended COSTA GRP FPO and Collins Foods 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is back on form and charging higher. At the time of writing, the benchmark index is up 1.1% to 7,141.8 points.

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

BHP Group Ltd (ASX: BHP)

The BHP share price is up 2% to $47.08. This follows confirmation that Woodside Petroleum Limited (ASX: WPL) shareholders have voted in favour of the merger with BHP’s petroleum operations. If all goes to plan, eligible BHP shareholders will be issued one new Woodside share for every 5.534 BHP shares they hold.

Chalice Mining Ltd (ASX: CHN)

The Chalice Mining share price is up 14% to $6.54. Investors have been buying this mineral exploration company’s shares after it revealed that it has received the final outstanding approvals to undertake low-impact exploration drilling at the Hartog-Dampier targets at the Julimar Nickel-Copper-PGE Project. These targets are located to the north of the globally significant Gonneville PGE-Ni-Cu-Co-Au deposit.

IGO Ltd (ASX: IGO)

The IGO share price is up 5% to $11.67. This has been driven by news that the battery materials company has achieved the first and consistent production of battery grade lithium hydroxide from the Kwinana Lithium Hydroxide Refinery. IGO described the news as an important milestone for the lithium joint venture between it and lithium giant Tianqi Lithium Corporation. IGO owns 49% of the joint venture.

Life360 Inc (ASX: 360)

The Life360 share price is up 10% to $3.83. A rebound in the tech sector and the release of this location technology company’s annual general meeting update has boosted its shares. That update reveals that the company continues to expect its core Life360 subscription revenue to grow more than 50% in FY 2022.

The post Why BHP, Chalice Mining, IGO, and Life360 shares are storming higher appeared first on The Motley Fool Australia.

More reading

• Here’s why the Life360 share price has done a 180 today
• ASX 200 midday update: BHP, IGO, and Woolworths charge higher
• Here’s why the Chalice Mining share price is jumping 15% today
• BHP share price higher following Woodside shareholder merger approval
• IGO share price surges 7% higher on lithium update

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 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 Crown Resorts Ltd (ASX: CWN) share price gained ground as shareholders overwhelmingly voted to approve its takeover.

A resounding 99.75% of shareholders voted for the deal, although state regulators have yet to give their blessing, according to the Australian Financial Review.

Shares in the casino operator are up 0.5% to $12.88 at the time of writing, as private equity firm Blackstone Inc (NYSE: BX) cleared another obstacle in its bid for Australia’s largest casino operator.

Crown share price firms as board backs vote

The takeover offer is priced at $13.10 a share via a scheme of arrangement. Crown’s board threw its support behind the deal, pointing out that the independent expert Grant Samuel found the offer to be “fair and reasonable”.

Also, Crown’s board reckoned the offer was priced at a “significant premium”. Some may not quite feel that way given that the private equity giant is offering a 4.8% premium to the $12.50 that the Crown share price was trading at just ahead of the takeover announcement.

But given that Crown was unable to elicit a better counteroffer, I don’t think embattled shareholders wanting out are likely to get a better deal. At least they can take some comfort from knowing that the multiples Blackstone is offering are largely in line with comparable deals.

The further advantage is that post-takeover, Crown’s many regulatory issues become someone else’s problem.

What happens next

If the vote is carried, Crown will ask for a short adjournment at a court hearing on 24 May.

The company will then announce to the ASX Blackstone’s required gaming regulatory approvals and the date for the final court hearing.

The scheme will only be effective when Crown lodges the court orders approving the scheme with the Australian Securities and Investments Commission (ASIC).

It will take around seven days from there for the scheme to be implemented. Crown shareholders can expect their payment following that.

End to a volatile year could be near

Given the time value of money, this probably explains the slim discount to the Crown share price versus the offer price.

It has been a volatile 12 months for the company. The Crown share price had collapsed to a 10-year low of $8.61 in June last year before rallying on the takeover bid to trade flat.

The post Here’s why the Crown share price is climbing higher today appeared first on The Motley Fool Australia.

More reading

• Here’s why the Life360 share price has done a 180 today
• Critical Resources share price jumps 6% on ‘further significant’ lithium find
• Webjet share price tipped to rise: Broker says it ‘hasn’t wasted a crisis’
• The Zip share price is rocketing 6% today. Here’s why
• Johns Lyng share price slides following $13m of insider selling

Motley Fool contributor Brendon Lau 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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The Life360 Inc (ASX: 360) share price is back on the horse on Friday after tumbling around 5% yesterday.

Its turnaround comes after the company held its annual general meeting this morning wherein it reaffirmed its previously outlined guidance.

At the time of writing, the Life360 share price is $3.87, 11.53% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 1.1%.

And, as all good things are better shared, it’s worth noting the broader tech sector is having a good day on Friday.

Right now, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is up 4.58% and the S&P/ASX All Technology Index (ASX: XTX) is lifting 3.63%.

Let’s take a closer look at today’s news from the software development company.

What’s boosting Life360 stock today?

The Life360 share price is back in the green after the company readdressed its 2022 guidance.

As the company stated in April, it expects its core Life360 subscription revenue ­­– excluding Tile and Jiobit – to grow more than 50% this year.

Life360 is also expecting to report a non-GAAP underlying earnings before interest, tax, depreciation, and amortisation (EBIDTA) loss of US$32 million to US$38 million.

The company predicts it will end 2022 with US$65 million to US$70 million in cash and record a full year of positive operating cash flow in 2024.

Additionally, it noted its monthly active users have continued to grow since it released its latest quarterly results.

Life360 boasted more than 40 million monthly active users at the end of April, 25.6 million of which were in the United States. It also had 1.34 million Paying Circles at the end of April. That’s up from 1.3 million at the end of March.

Life360 share price snapshot

This year has been rough on the Life360 share price.

It has tumbled nearly 60% since the start of the year. Though, it’s fallen just 25% since this time last year.

The post Here’s why the Life360 share price has done a 180 today appeared first on The Motley Fool Australia.

More reading

• 2 beaten down ASX tech shares analysts say have major upside potential
• Top brokers name 3 ASX shares to buy today
• Thursday thrashing: ASX tech shares tumble
• Technophobia? Why ASX 200 tech shares are getting hammered again
• Unprecedented: Does this event mean we’re now in a bear market?

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 positions in and has recommended Life360, Inc. 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://www.fool.com.au/2022/05/20/heres-why-the-life360-share-price-has-done-a-180-today/

The Critical Resources Ltd (ASX: CRR) share price is again rebounding higher following the company’s latest update.

At the time of writing, the base metals and lithium exploration company’s shares are surging 6.25% to 8.5 cents.

It’s worth noting that this means Critical Resources shares are now up more than 23% in the past week.

Critical Resources stumbles upon further visual spodumene

Investors are bidding up the Critical Resources share price after the company encountered more visual spodumene at its Mavis Lake Lithium Project.

In its statement, Critical Resources advised it has discovered a further 17.5 metres of visual spodumene in two drill holes.

Below are the following results:

Hole 14

• 17.5 metres of approximately 18% silvery-white, fine to large spodumene laths hosted from 143.25 to 160.75 metres of pegmatite

Hole 15

• 9.7 metres of approximately 5% white-grey, fine to large spodumene laths hosted from 129.1 to 138.8 metres of pegmatite

Critical Resources noted that 14 out of 15 holes have intersected spodumene-bearing pegmatite mineralisation.

Following the current success of its 5,000-metre drill program, work has commenced to extend drilling to 10,000 metres. This includes 28 new targets which have been identified, including 11 high priority targets for exploration activities.

Samples and core from the above completed drill holes have been sent for analysis and are expected in due course.

Critical Resources managing director, Alex Biggs commented:

It is extremely pleasing to see further significant intercepts along strike. These results follow on from our recent 23.1m interception in hole 13 and continues to re-enforce the potential prospectively at Mavis Lake.

We are increasingly excited with what the rest of the drill program will uncover, and we look forward to updating our shareholders as this drill program continues.

Critical Resources share price snapshot

Over the past 12 months, the Critical Resources share price has soared by more than 250% in value.

The company’s shares hit a 52-week high of 14 cents in January, before losing ground in the following months.

Based on valuation grounds, Critical Resources presides a market capitalisation of around $119.01 million.

The post Critical Resources share price jumps 6% on ‘further significant’ lithium find appeared first on The Motley Fool Australia.

More reading

• Critical Resources share price leaps 12% on latest lithium project news

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. 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://www.fool.com.au/2022/05/20/critical-resources-share-price-jumps-6-on-further-significant-lithium-find/

The Unibail-Rodamco-Westfield (ASX: URW) share price is down 10% today while the rest of the market recovers from yesterday’s trouncing.

At the time of writing, the S&P/ASX All Ordinaries Index (ASX: XAO) is up 1.06% to 7,380 points. The URW share price is currently trading at $4.86, down 10% on yesterday’s close.

The move follows a news release from the company to the ASX shortly before the market closed yesterday.

In its release, the ASX global real estate developer said it would rebrand as Westfield three flagship shopping centres in Spain, Sweden and Poland.

The centres involved are the most important in their respective markets. They are Parquesur in Madrid, Taby Centrum in Stockholm, and Galeria Mokotow in Warsaw.

The three centres share a number of characteristics. These include excellent locations and public transport, distinctive architecture, and a best-in-class approach to the customer experience.

What did management say?

In a statement, Unibail-Rodamco-Westfield said it was focused on rebranding flagship centres in Europe’s wealthiest cities and catchment areas.

The company said:

The rebranding continues the expansion of the Westfield brand in Europe as the company drives new revenues through media advertising and brand experiences, turning its huge footfall of 550 million visits across its European assets into a qualified audience, while also leveraging the Westfield brand’s significant value to retailers, who see over 20% higher sales at URW’s centres even when compared to other A-category malls.

Unibail-Rodamco-Westfield chief customer officer Caroline Puechoultres added:

The significant opportunity afforded to both retailers and brands by this increasingly digitally linked network of destinations is unparalleled – through Westfield our partners can reach tens of millions of European consumers, driving new possibilities in advertising, brand marketing and retail.

What else is happening at Unibail-Rodamco-Westfield?

The company has a global portfolio of real estate assets worth 54.5 billion euros as of 31 December. About 86% are retail assets, including 84 shopping centres of which 53 in Europe and the United States are considered flagships.

On 28 April, the company released its Q1 FY22 update. It showed a 34.2% lift in turnover compared to Q1 FY21, representing “strong post-COVID-19 recovery and asset deliveries”.

The report revealed tenant sales at 93% of 2019 levels and an improvement in rent collection to 93% for Q1. It also reported “sustained” leasing activity with 521 deals in Q1, up 4% on 2019 and 60% being long-term leases.

URW share price snapshot

The URW share price is down 3% year-to-date. This represents a significant outperformance of the real estate sector’s benchmark index. The S&P/ASX 200 A-REIT Index (ASX: XPJ) has fallen 18% in 2022 so far.

There are mixed results among other property groups with a heavy retail focus. The Scentre Group (ASX: SCG) share price is down 11% in 2022 so far. Vicinity Centres (ASX: VCX) shares are up 6%.

The post Why is the Unibail-Rodamco-Westfield share price tumbling 10% today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 stocks dive 2.4% in worst trading day since Ukraine crisis hit

Motley Fool contributor Bronwyn Allen 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.

from The Motley Fool Australia https://www.fool.com.au/2022/05/20/why-is-the-unibail-rodamco-westfield-share-price-tumbling-10-today/

The Webjet Limited (ASX: WEB) share price is having a decent finish to the week.

In afternoon trade, the online travel agent’s shares are up 1.5% to $5.96.

This follows a positive reaction from brokers to yesterday’s full-year results release.

What was the reaction?

Overall, the reaction to Webjet’s full-year results was positive, with a number of brokers, such as such as Citi, Goldman Sachs, Morgans, and UBS reiterating their buy ratings today.

According to the note out of Morgans, its analysts have retained their add rating with a $6.55 price target.

Based on the current Webjet share price, this implies potential upside of 10% for investors over the next 12 months.

What did the broker say?

Morgans was pleased with Webjet’s performance in FY 2022, noting that its “result was stronger than expected with TTV [total transaction value], revenue and cashflow beating” the broker’s forecasts.

Another positive that its analysts highlighted was the company’s strong start to the new financial year. It commented:

The 1Q23 bookings, TTV and EBITDA are all currently tracking well head of 4Q22. May is currently tracking ahead of April, which was WEB’s most profitable month since March 2020, with all business segments profitable. WEB continues to target a return to pre-COVID booking levels in the 2H23.

All in all, Morgans believes this shows that Webjet is well-placed for growth thanks to the hard work it put in during the COVID-19 crisis. This includes cost reduction initiatives that will reduce its cost base by 20% once the business returns to scale.

In our view, WEB hasn’t wasted a crisis and will come out of COVID with a materially lower cost base, consolidated systems and a large business in the US. We maintain an Add rating on WEB with a $6.55 price target

Based on our forecasts, WEB is trading on an FY24 recovery year PE of 19.5x, which is at a discount to its five-year average PE (pre-COVID) of 20.6x.

The post Webjet share price tipped to rise: Broker says it ‘hasn’t wasted a crisis’ appeared first on The Motley Fool Australia.

More reading

• Webjet share price falls on earnings miss, but broker sees ‘results as a positive’
• ASX 200 midday update: Aristocrat’s earnings beat, Webjet flops, retailers smashed
• Webjet share price on watch amid 258% revenue jump in FY22
• 5 things to watch on the ASX 200 on Thursday
• Why is the Webjet share price outperforming on Monday?

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 Webjet 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://www.fool.com.au/2022/05/20/webjet-share-price-tipped-to-rise-broker-says-it-hasnt-wasted-a-crisis/

Well, it’s turning into a pretty welcome end to the week for ASX shares after a week of multiple market falls. The S&P/ASX 200 Index (ASX: XJO) is currently up a robust 1.21% and back over 7,100 points. But the Zip Co Ltd (ASX: ZIP) share price is faring even better.

Zip shares are currently up by a pleasing 6.3% at 92.5 cents each. That is well up from yesterday’s closing share price of 87 cents, which was also a new 52-week low for Zip.

Why are Zip shares zipping higher?

Well, we can’t say for sure. There hasn’t been any major news or announcements out of the buy now, pay later company today.

But what we do know is that ASX tech shares of most shapes and stripes are having a very pleasing day of gains this Friday.

The S&P/ASX All Technology Index (ASX: XTX) itself has risen by around 3.6% so far this Friday. And individual shares are doing well too. Take Altium Limited (ASX: ALU). Its shares are up by 6.5% so far today. Block Inc (ASX: SQ2), the new owner of Zip’s old rival Afterpay, is currently up by 9.2%.

These moves follow some big shifts in US tech shares overnight. US BNPL share Affirm Holdings Inc was up 5.15%, as was payments company PayPal Holdings Inc.

So it’s likely that the rise in the Zip share price today is just part of this trend back into tech shares on the ASX. And after Zip’s horror day yesterday, when it lost almost 4%, it will no doubt come as some sweet relief for investors.

At the current Zip share price, this ASX BNPL share has a market capitalisation of $628.85 million.

The post The Zip share price is rocketing 6% today. Here’s why appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: BHP, IGO, and Woolworths charge higher
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today
• Has the ANZ dividend been growing?
• These 3 shares are topping the ASX 200 volume charts on Thursday

Motley Fool contributor Sebastian Bowen has positions in PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Affirm Holdings, Inc., Altium, Block, Inc., PayPal Holdings, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended PayPal Holdings. 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://www.fool.com.au/2022/05/20/the-zip-share-price-is-rocketing-6-today-heres-why/

The Johns Lyng Group Ltd (ASX: JLG) share price is heading south during early afternoon trade on Friday.

This comes as a couple of insiders have decided sell off a portion of their shares.

At the time of writing, the building services group’s shares are down 4.34% to $5.95.

Management offloads shares

In today’s statement, Johns Lyng revealed that Scott Didier and Lindsay Barber have both sold shares in the company.

Managing director and group CEO Didier disposed of 1 million Johns Lyng shares on market at $6.25 apiece.

Following the transaction, Didier now holds more than 53.31 million fully paid ordinary Johns Lyng shares. This equates to a holding of around 20.6% on the company’s registry.

In addition, executive director and group chief operating officer Barber also reduced his portfolio with 1 million shares sold. The price received per Johns Lyng share was $6.65.

After completing the sale, Barber retains almost 12.82 million shares in the company. His current holding represents 4.95% on Johns Lyng’s books.

The company stated the pair sold these shares to manage their personal asset portfolios.

On a separate note, Didier recently relocated to the United States to leverage a number of opportunities. This comes after the company acquired Reconstruction Experts for US$144 million in December 2021.

Barber’s role includes oversight of operations in Australia and the United States.

The company is still assessing the financial impact of the recent catastrophic weather-related events in Queensland and New South Wales.

Although it is too early to ascertain the cost, at this stage, management has reaffirmed its previous FY22 earnings guidance.

As such, sales revenue for the full year is expected to be $802.4 million, up from $481.8 million in FY21.

Furthermore, earnings before interest, tax, depreciation, and amortisation (EBITDA) is forecast to reach $78.7 million in FY22. This reflects an 84% increase on the prior corresponding period (FY21: $42.7 million).

Johns Lyng share price snapshot

Over the past 12 months, Johns Lyng shares have gained 40%, but year to date have headed the other way, down 33%.

The company’s share price has been moving on a downhill trajectory since the start of May.

Currently, the relative strength index (RSI) is at 22, indicating the company’s shares have been heavily oversold.

The RSI is a momentum oscillator that is used to assess the strength or weakness of a share price. Normal levels range between 30 and 70, as anything outside reveals if the share price is attractive to buy, or expensive.

Johns Lyng commands a market capitalisation of roughly $1.66 billion.

The post Johns Lyng share price slides following $13m of insider selling appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Despite today’s sell-off, these 3 ASX 300 shares are topping all-time highs
• 3 ASX All Ordinaries shares rocking all-time highs today
• Top fund manager reveals 2 undervalued ASX shares to buy

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. has positions in and has recommended Johns Lyng Group Limited. The Motley Fool Australia has recommended Johns Lyng 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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