Month: May 2022

The Electro Optic Systems Holdings Ltd (ASX: EOS) share price could finish the day higher following a company update.

During the first hour of market open, the defence contractor’s shares touched an intraday low of $1.85, before recovering lost ground.

At the time of writing, its shares are climbing in the green by 1.06% to $1.91.

Let’s take a look at what the company revealed to the ASX today.

Electro Optic Systems wins selection

The Electro Optic Systems share price is hovering in positive territory as investors digest the company’s latest release.

In today’s statement, Electro Optic Systems advised that it has been selected by the Australian government as the furnished equipment provider for its marine remote weapon stations (RWS).

In particular, the EOS R400 Marine (R400-M) RWS has been chosen to be supplied for the Australian Army’s littoral manoeuvre vessel – medium capability program.

Electro Optic Systems stated that the announcement coincides with its official R400-M RWS Australian launch at an event held at the INDO PACIFIC 2022 International Maritime Exposition.

The attendance comprised international naval delegations from 45 countries.

The event is used as a platform where customers and industry defence suppliers connect by promoting and selling military equipment.

The marine RWS, which is already in production for a major overseas customer, differs from the company’s Land R400 RWS. This is because certain components and surface finishes are more suitable for the highly corrosive maritime environment.

The Australian government has indicated that it could order 36 units of the company’s RWS for its program.

Electro Optic Systems share price snapshot

It has been a difficult year for Electro Optic Systems shareholders, with its share price tumbling by around 53%.

The company’s shares reached a 52-week low of $1.605 in March, before slightly shooting higher and then receding again.

On valuation grounds, Electro Optic Systems commands a market capitalisation of roughly $284.47 million.

The post Electro Optic Systems share price edges higher on government win appeared first on The Motley Fool Australia.

More reading

• Why EOS, Pendal, PolyNovo and Xero shares are charging higher
• Here’s why the Electro Optic share price is avoiding the bloodshed today

Motley Fool contributor Aaron Teboneras has positions in Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings 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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The BrainChip Holdings Ltd (ASX: BRN) share price is on the move again today. At the time of writing, BrainChip’s shares are trading 7.14% higher at $1.13 apiece.

The broader market is also in the green on Friday. The All Ordinaries Index (ASX: XAO) and the S&P/ASX 200 Index (ASX: XJO) are both currently up 1.4%.

Let’s take a look at what might be bolstering the $1.9 billion artificial intelligence (AI) stock higher today.

What’s going on with BrainChip lately?

The BrainChip share price is back in the green on Friday, bringing its gains for this week so far to 4.25%.

For context, the S&P/ASX All Technology Index (ASX: XTX) is currently 5% lower than it was at the end of last week. Although, it is up 3.9% today.

To quickly recap, the stock surged 14% on Monday before tumbling 15% on Tuesday. It regained 4% on Wednesday and ditched 1% on Thursday amid a tech sell-off.

The last time the market heard news from the company was this time last week when it responded to an ASX speeding ticket. Though, its reply didn’t clear up any confusion among market watchers.  

BrainChip said it had no idea what could have sent its share price up to 18% higher during intraday trade that day. And its movements since have come with no additional clarity.

However, Swiss human behavioural analytics AI company NVISO recently announced it’s using BrainChip’s technology to create a computer capable of reading human emotions.

BrainChip’s chief marketing officer Jerome Nadel said the company was excited about NVISO’s technology, the speed at which it has been developed, and the prospect of delivering it to the market.

The Swiss company is also using BrainChip’s technology to create in-cabin monitoring systems for cars.

While the news wasn’t released to the ASX or on BrainChip’s website, the company did share NVISO’s releases to social media.

BrainChip share price snapshot

The All Technology Index has slumped 33% in 2022.

Fortunately, the BrainChip share price has managed to dodge the dump. The AI stock has gained 43% year to date.

It has also increased 95% over the last 12 months while the benchmark tech index has tumbled 18%.

The post Why is the BrainChip share price leaping 7% on Friday? appeared first on The Motley Fool Australia.

More reading

• These 2 ASX tech shares have escaped obliteration so far this year
• BrainChip share price rebounds to gain 5%
• Why AUB, Block, BrainChip, and Pushpay shares are sinking
• Why did the BrainChip share price just crash 17%?
• 3 ASX All Ordinaries shares that managed to post decent gains on Monday

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 Scott Phillips.

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The Adore Beauty Group Ltd (ASX: ABY) share price is surging today, up 22.22% to $1.54.

The broader market is also on the rebound, with the S&P/ASX All Ordinaries Index (ASX: XAO) up 1.5% after a shocker of a session yesterday.

Is the Adore Beauty share price just playing catch-up?

There’s been no news out of the online beauty retailer today. So, this mammoth gain may just be a case of catch-up following yesterday’s carnage.

ASX shares were hammered yesterday. Investors around the world reacted with fear after higher than expected inflation numbers were released in the US. The All Ords lost 1.84% yesterday while the Adore Beauty share price shed 13.5%. So today, perhaps investors are seeing an opportunity to buy the dip.

Inflation is the key reason behind rising interest rates around the world. The Australian Reserve Bank raised the official cash rate for the first time since November 2020 earlier this month.

Rising interest rates mean people with mortgages are going to have less disposable income to spend. This is causing a bit of a rotation out of consumer discretionary shares like Adore Beauty. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is down 2.6% over the past month and down 20% over the past six months.

Market volatility provides opportunity

When markets are volatile, Motley Fool Australia’s Chief Investment Officer Scott Phillips says long-term investors need to grit their teeth and ride it out.

But big fluctuations in ASX share prices can also present buying opportunities. This is particularly so for investors interested in growth shares and micro and small caps with growing revenue, like Adore Beauty.

On 28 April, the online cosmetics retailer released its latest business update for Q3 FY22. It revealed a revenue gain of 9% on the prior corresponding period (pcp) to $42.7 million. Loyalty members contributed more than 60% of total revenue. Its compound annual growth rate (CAGR) is now 26%.

Active customer numbers increased 7% to 880,000 and returning customers increased 47% compared to the pcp. Plus, the company intends to launch a private label brand in the final quarter of FY22.

Broker’s vote of confidence

Broker UBS likes Adore Beauty’s continued operational growth and its prospects for future revenue growth. The broker says Adore Beauty shares are a buy with a 12-month price target of $4.70. That’s a whopping potential upside of more than 200%.

Adore Beauty share price snapshot

The company’s shares are down 63% this year to date and down 54% over the past 12 months.

Adore Beauty has a market capitalisation of $118 million with 91.4 million shares on issue.

The post You beauty! Adore Beauty share price soars 22% appeared first on The Motley Fool Australia.

More reading

• 3 quality ASX All Ordinaries shares that defied today’s sell-off
• 3 quality ASX All Ordinaries shares tumbling 10% or more today
• 2 ASX growth shares that could be buys in May 2022
• 3 exciting small cap ASX shares to watch
• Are these 2 growing ASX e-commerce shares buys?

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 recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty 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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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is back on form and on course to end the week on a very positive note. The benchmark index is currently up 1.55% to 7,049 points.

Here’s what is happening on the ASX 200 today:

Tech sector rebounds

A key driver of the ASX 200’s gain has been a rebound in the tech sector. Tech shares including Altium Limited (ASX: ALU) and Block Inc (ASX: SQ2) are recording strong gains, leading to the S&P/ASX All Technology index rising 4.3% at lunch. This follows an improved night on the Nasdaq index and futures contracts pointing to a solid night on Friday.

Xero shares boosted by bullish brokers

The Xero Limited (ASX: XRO) share price is racing higher today after the cloud accounting platform provider was the subject of a number of bullish broker notes. One of those was from Goldman Sachs, which has retained its buy rating with a $118.00 price target. Elsewhere, Ord Minnett upgraded the company’s shares to a buy rating with a $97.00 price target.

Gold miners drag on ASX 200

One area of the market that isn’t rising with the ASX 200 is the gold industry. A number of gold miners, such as Gold Road Resources Ltd (ASX: GOR) and Newcrest Mining Ltd (ASX: NCM), are falling today after the gold price tumbled overnight. This has led to the S&P/ASX All Ordinaries Gold index falling 0.9% today.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Block share price with a 12.5% gain. This follows a strong gain by its NYSE-listed shares overnight. The worst performer has been the IGO Ltd (ASX: IGO) share price with a 3% decline. This is despite there being no news out of the battery materials miner.

The post ASX 200 midday update: Block and Xero rebound, gold miners fall appeared first on The Motley Fool Australia.

More reading

• Blast off! Why is the Zip share price zooming 3% on Friday?
• Tech turnaround: ASX 200 tech shares surge higher on Friday
• Xero share price rebounds: Is now the time to invest?
• The Soul Patts dividend is being paid today. Here’s what you need to know
• 5 things to watch on the ASX 200 on Friday

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 Altium, Block, Inc., and Xero. 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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Shares in Megaport Ltd (ASX: MP1) are shifting higher on Friday and now trade 6% in the green at $7.01 apiece.

The Megaport share price has traded 62% in the red since market activity resumed in January.

What’s up with the Megaport share price?

Despite no market-sensitive updates today, investors are bidding up Megaport shares today, despite a heavy selloff that’s ensued since late April.

In that time, the Megaport share price has come off a high of $12.76 with authority, a 45% drop, along with weakness in the broad sector.

For instance, the S&P/ASX All Technology Index (ASX: XTX) has collapsed 16% in the last month of trade after another 11% dip in the past week of trade.

However, there’s no denying that positive sentiment exists for Megaport, and some sophisticated investors are looking at this weak period as an opportunity.

“[W]ith the world moving more and more of computing into the cloud, the thematic tailwinds just cannot be denied for this ASX share,” said Tony Yoo of TMF earlier this week.

Yoo said commentary from Firetrail Investments supports this view:

“We continue to believe the medium-term growth opportunity for Megaport is significant and will be realised within a reasonable timeframe,” Firetrail said.

Meanwhile, analysts at Shaw and Partners noted that there is “definitely some value” in Megaport with its stock price trading around $8 at the time.

Megaport share price snapshot

In the last 12 months, the Megaport share price collapsed more than 46% into the red after extending losses well into the new year.

The post Why is the Megaport share price rallying 6% on Friday? appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares destined for greatness: Firetrail
• 2 ASX shares that could surprise you in a year’s time
• The Appen share price is soaring 5% on Thursday. Could this be why?
• 3 stellar ASX growth shares analysts are tipping as buys this month
• These were the worst performing ASX 200 shares in April

Motley Fool contributor Zach Bristow 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 MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. 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 Insurance Australia Group Ltd (ASX: IAG) share price is outperforming in May but the company still boasts a strong dividend yield.

The last 12 months have seen the company stepping up its dividends once more. However, its stock is still trading significantly lower than it was pre-pandemic.

At the time of writing, the IAG share price is up 1.32% on the day at $4.62. That’s around 2% higher than it ended April but around 40% lower than it was at the start of 2020.

For context, the S&P/ASX 200 Index (ASX: XJO) has slipped 5% so far in May and is up around 4% from where it began 2020.

So, with that in mind, let’s take a look at how the company’s dividends compare with its share price in May.

Is IAG really trading with a 4% dividend yield?

Those who own IAG shares for the dividends will likely be stoked to know the company’s dividend yield is 4.16% as of Thursday’s close.

Over the last 12 months, IAG has paid out two dividends worth a combined 19 cents.

The first was its 13-cent final dividend of financial year 2021. The second was its interim dividend, worth 6 cents.

That represents a better annual payout than shareholders received over financial year 2021.

That year, the company skipped its final dividend before offering a 7-cent interim dividend.

Though, investors received a 20-cent final dividend and a 10-cent interim dividend in financial year 2020.

That makes this financial year’s combined payouts a 171% improvement on financial year 2021’s, but a 36% reduction on those of financial year 2020.

It’s also worth noting that IAG’s three most recent dividends haven’t been franked. That means some shareholders haven’t been able to take advantage of the tax benefits often accompanying ASX dividends.

IAG is expected to announce its next dividend – the final dividend of financial year 2022 – on 12 August.

IAG share price snapshot

The IAG share price is outperforming the broader market in 2022. It has gained 3.5% year to date while the ASX 200 has slumped 7%.

However, the insurer’s stock has dumped 6% over the past 12 months. The ASX 200 has gained 0.6% over that period.

The post What is the dividend yield on IAG shares in May? appeared first on The Motley Fool Australia.

More reading

• The IAG share price has gained 6% in a month. Is this just the beginning?
• 4 ‘defensive growth’ ASX shares to buy in turbulent times: Wilsons
• Does IAG have a dividend reinvestment plan?
• What happened to the IAG share price in April?
• How does the IAG dividend compare to QBE?

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 positions in and has recommended Insurance Australia 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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The Aristocrat Leisure Limited (ASX: ALL) share price is back on form on Friday.

In morning trade, the gaming technology company’s shares are up 4% to $31.80.

Why is the Aristocrat share price storming higher?

There have been a couple of catalysts for the rise in the Aristocrat share price this morning.

The first is a rebound in the tech sector following an improved night of trade on the Nasdaq index. This has led to the S&P/ASX All Technology Index rising by a sizeable 3.9% on Friday.

Also giving the Aristocrat share price a boost was the release of a broker note out of Macquarie this week which appears to have been lost in the market selloff until now.

According to the note, the broker has retained its outperform rating and $44.00 price target on the company’s shares ahead of its half-year results release later this month.

Based on the current Aristocrat share price, this implies potential upside of 38% for investors over the next 12 months.

What did the broker say?

Macquarie believes the recent market weakness has created an opportunity for investors to pick up shares in a company that is well-placed for growth in the coming years.

This is due to strong performances across its businesses and potential M&A activity. In respect to the latter, the broker highlights that Aristocrat has over $1 billion in cash to play with.

It isn’t just Macquarie that is bullish on the Aristocrat share price. The team at Citi recently slapped a buy rating and $44.00 price target on the company’s shares.

It commented:

Aristocrat represents a compelling long-term growth story, with exposure to ongoing growth in mobile game penetration and potential to grow into new markets.

Despite the Playtech acquisition not proceeding, the immense opportunity in Real Money Gaming remains.

Foolish takeaway

I would have to agree with Citi and Macquarie on Aristocrat. At just 19x FY 2022 earnings based on Citi’s estimates, it appears to be one of the best value tech shares around. Especially given the positive growth outlook for its pokie machine and digital businesses and its sizeable cash balance.

The post Why the Aristocrat share price is storming higher and could keep rising appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• Unprecedented: Does this event mean we’re now in a bear market?
• 2 ASX 200 shares that analysts say are buys
• Aristocrat share price higher on bullish broker note
• Analysts name 2 ASX growth shares to buy with 30%+ upside

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 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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The Zip Co Ltd (ASX: ZIP) share price is ending the week on a high after yesterday’s catastrophic session.

And it’s not alone in its gains. The tech-adjacent stock is leaping alongside many of the S&P/ASX 200 Index (ASX: XJO)’s technology shares.

At the time of writing, the Zip share price is trading at 97 cents, 3.74% higher than its previous close.

For context, the ASX 200 is also in the green, gaining 1.35%.

Let’s take a look at what might be going on with the buy now, pay later (BNPL) provider’s shares.

Zip share price takes off on Friday

Zip shares are back on the horse after tumbling to a multi-year low of 91.5 cents in intraday trade yesterday.

And the BNPL stock was joined in the red by most ASX 200 tech shares. In fact, the S&P/ASX 200 Information Technology Index (ASX: XIJ) fell a whopping 8.7% on Thursday amid news of inflation overseas.

But today’s a new day. The tech sector is up 4.89% on Friday with none of its constituents recording a loss.

The Block Inc (ASX: SQ2) share price is leading the pack. It’s currently up 12.5%, clawing back some of yesterday’s 17.6% tumble.

Despite today’s partial rebound, the Zip share price is 77% lower than it was at the start of 2022. It has also dumped 85% since this time last year.  

The post Blast off! Why is the Zip share price zooming 3% on Friday? appeared first on The Motley Fool Australia.

More reading

• Tech turnaround: ASX 200 tech shares surge higher on Friday
• Why Block, IDP Education, Monash IVF, and Xero shares are dropping
• Blockdown! Why is the Block share price crashing by 16% today?
• Thursday thrashing: ASX tech shares tumble
• ASX 200 midday update: CBA’s Q3 update impresses, Xero and Block crash

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 Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. 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 Australian Strategic Materials Ltd (ASX: ASM) share price won’t be going anywhere on Friday.

This comes as the company requested its shares be placed in a trading halt today.

At such, the emerging critical metals producer’s shares are frozen at $5.26 cents apiece.

What’s happening with Australian Strategic Materials?

Prior to the market opening, management requested the Australian Strategic Materials share price be halted while it prepares an announcement.

According to the release, the company is planning to make an announcement in relation to an equity funding agreement and revisions to a framework agreement.

It’s worth noting that Australian Strategic Materials shares have lost considerable value in the past month. Its shares are now down more than 26% after touching an 11-month low of $5.20 yesterday.

The company has requested the trading halt remains in place until Tuesday 17 May or following the release of the announcement, whichever comes first.

Project ready for construction

Headquartered in Western Australia, the company is focused on supplying high-purity metals, alloys and powders to global manufactures.

These advanced materials are used in the clean energies, electric vehicles, aerospace, electronics, and communications space.

Australian Strategic Materials wholly owns the Dubbo Project which holds rare earths, zirconium, niobium, hafnium, tantalum, and yttrium.

With all major approvals and licences in place, the project is ready for construction, subject to financing.

The company intends to develop the site to meet the high demand of a range of existing and future technologies.

Notably, once established, the project will be one of the few supply options outside China, according to the company.

About the Australian Strategic Materials share price

Over the past 12 months, Australian Strategic Materials shares have risen by 24% following strong investor hype in mid-2021.

Although, when looking since the start of the current year, its shares have receded to post a decline of 50%.

Based on valuation grounds, Australian Strategic Materials has a market capitalisation of roughly $775.65 million.

The post Why is the Australian Strategic Materials share price frozen today? appeared first on The Motley Fool Australia.

More reading

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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. 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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S&P/ASX 200 Index (ASX: XJO) tech shares are enjoying a much-needed turnaround today.

At the time of writing tech shares are among the strongest performers, as witnessed by the 3.1% gain in the S&P/ASX All Technology Index (ASX: XTX), which includes companies outside of ASX 200 tech shares.

The ASX 200 itself is up 1.3% at this same time.

Why are tech stocks rebounding?

Tech shares look to be getting a lift from a late afternoon rally in the tech heavy Nasdaq yesterday (overnight Aussie time).

With barely an hour to go before the closing bell, the Nasdaq was down 2.2% for the day. Then investors piled in, seeing the index finish up a slender 0.1%.

After a tough year, these ASX 200 tech shares are leaping higher

WiseTech Global Ltd (ASX: WTC), like most every tech stock, has struggled this year amid fast rising inflation and interest rate hike expectations. That’s seen its share price tumble 34.5% year-to-date.

But today, the shareholders of the company which provides cloud-based software solutions for the logistics sector, can breathe easier, with shares up 2.3%.

Xero Limited (ASX: XRO), a business and accounting software provider, is also down 44.5% in 2022. But not today. At the time of writing, the Xero share price stands at $80.48, up 4.7%.

Leading the charge among ASX 200 tech shares is global payment systems giant Block Inc (ASX: SQ2). Block hasn’t been immune to the wider tech market rout, with shares down 37.1% since 4 January.

Today the Block share price is surging higher, up 12.1%.

The post Tech turnaround: ASX 200 tech shares surge higher on Friday appeared first on The Motley Fool Australia.

More reading

• Xero share price rebounds: Is now the time to invest?
• Why Block, IDP Education, Monash IVF, and Xero shares are dropping
• Blockdown! Why is the Block share price crashing by 16% today?
• Thursday thrashing: ASX tech shares tumble
• Why is the WiseTech share price slipping 5% lower today?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc., WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc., WiseTech Global, 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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