Month: May 2022

News of AGL Energy Limited (ASX: AGL)’s new major investor broke last week, but it’s claimed their hold on the company’s shares might not be all it’s cracked up to be.

Corporate governance advisory group Ownership Matters has rebutted tech mogul Mike Cannon-Brookes’ reported claims that there’s no “financial wizardry” going on with his recently acquired 11.2% stake in AGL’s shares.

On the contrary, the research group says Cannon-Brookes’ stake is “sorcery”.

Ownership Matters has warned that much of the billionaire’s stake could be withdrawn at any time with three days’ notice. That could leave the billionaire with significantly less voting power on the company’s upcoming demerger.

At the time of writing, the AGL share price is $8.22, up 0.24% on its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.56%.

Let’s take a closer look at the latest news on AGL.

Expert criticises Cannon-Brookes’ holding

Much of Cannon-Brookes’ hold on AGL shares – and the accompanying voting rights – could reportedly be recalled before shareholders go to the ballot box on the company’s controversial demerger next month.

The split will birth energy retailer AGL Australia and energy generation business Accel Energy. Shareholders will have their chance to vote on the scheme on 15 June.

Cannon-Brookes has made his opposition to the split clear. He has previously said the company’s plan is “flawed” and “makes no sense, or cents”. But much of his stake could be pulled from his grasp before the shareholder vote.

Cannon-Brookes’ holding was acquired in a complex matter through broker JPMorgan.

Ownership Matters claims 40 million AGL shares are on loan to Cannon-Brookes for “a pitiful fee”. It also states the shares can be recalled with three days’ notice.

It has reportedly urged institutional investors to recall loaned stock ahead of the vote or up their fees.

“Shareholders of AGL who participate in securities lending programs ought to be mindful to recall their shares to ensure that their voting rights are clawed back at the record date for voting entitlements of the scheme,” Ownership Matters founder Simon Connal said, as quoted by the Australian Financial Review (AFR).

Cannon-Brookes responded to claims that shareholders are concerned his exposure to AGL might not be all it’s cracked up to be.

He told the AFR:

There’s no financial wizardry to try to be a sham or to try to fake it out here.

There is a literal way of actually achieving that amount of a stake, and I’m under contract to make sure that that will be paid for.

I’m putting more than 650 million bucks into this thing because I think it can do a lot better than it’s currently doing, and I speak for 11.28%.

Ownership Matters is reportedly not concerned by Cannon-Brookes’ stance against the demerger. Instead, it’s said to be worried that market participants might be misinformed of the billionaire’s position on the company’s register.

AGL share price snapshot

The past few weeks have been tough on the AGL share price.

The company’s stock has slumped nearly 5% since Cannon-Brookes upped his campaign against AGL’s planned demerger. That’s roughly in line with the performance of the S&P/ASX 200 Index (ASX: XJO) over that period.

However, the AGL share price has gained more than 30% since the start of 2022 while the ASX 200 has slumped nearly 6%.

Over the last 12 months, however, the energy company has underperformed the index by 6%.

The post Own AGL shares? Expert warns Cannon-Brookes’ stake might not be all it seems appeared first on The Motley Fool Australia.

More reading

• Cannon-Brookes warns AGL dividends at risk from demerger
• AGL share price makes partial recovery as expert declares demerger favourable
• AGL share price follows market lower despite demerger milestone
• Why are ASX 200 energy shares leaping higher today?
• Here’s why the AGL share price was cooking with gas in April

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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.

from The Motley Fool Australia https://ift.tt/VCYKjQ5

Shares of Appen Ltd (ASX: APX) have struggled so far in 2022 and now trade down in the red.

At the time of writing, the Appen share price is $6.38 apiece, a 2% dip on the day.

Zooming out, the Appen share price is down 42% this year to date, as global tech baskets remain bottom-heavy and continue to present challenges to investors.

What’s up with the Appen share price?

Tech stocks have taken a beating in 2022 as global equity markets undergo somewhat of a testing moment. The result has been a bloodbath to global tech baskets since trading restarted in January.

In particular, the S&P/ASX All Technology Index (ASX: XTX) has collapsed more than 30% and is down 15% in the past month alone.

As such, it’s been an incredibly difficult time for names such as Appen.

Not helping the picture was the company’s underperformance in its most recent earnings back in February.

This is one point analysts at JP Morgan note in their downward revision on the company in a note at the time.

“Appen’s FY21 result was a miss on JPM estimates and [Appen’s] guidance,” it noted. “Cash conversion was weak…No guidance provided for FY22, with management highlighting higher 1H22 costs…Order book to date appears worse than in prior years,” it said just to name a few.

As a result, the broker downgraded its recommendation to neutral, urging clients to hold for the time being.

We believe APX’s 2026 target to double revenue seems very ambitious given management recent track record. Although the stock has likely oversold in the short term, the lack of visibility on growth and heightened levels of reinvestment means we would prefer to stay on the sidelines until management starts delivering on their guidance. Downgrade to Neutral.

Meanwhile, 33% of analysts covering the company advocate it as a buy right now, according to Bloomberg data.

In particular, Barrenjoey Capital Markets and Jefferies value the company at $13.20 and $12 per share respectively, suggesting large upside if they are correct.

Macquarie on the other hand values it at $5.70 per share, advocating clients to sell at the same time. Bell Potter holds the same view. That’s behind the consensus price target of $8.17 per share, per Bloomberg.

Appen share price snapshot

In the last 12 months, the Appen share price has slipped more than 41% into the red and is down 42% this year to date.

The trend has continued and shares have sunk a further 5% in the past month of trade.

The post What’s up with the Appen share price on Wednesday? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• These are the 10 most shorted ASX shares
• The Appen share price is soaring 5% on Thursday. Could this be why?
• What would happen if Appen shares were removed from the ASX 200? 
• Leading brokers name 3 ASX shares to buy today

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 Appen 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.

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

The Latin Resources Ltd (ASX: LRS) share price is in the red today.

The company’s shares are currently swapping hands at 11 cents, a 4.35% drop. For perspective, the
S&P/ASX 200 Resources Index (ASX: XJR) is down 0.51% today.

Let’s take a look at what is happening at Latin Resources

New acquisition

Latin Resources shares are falling today, but they are not alone among ASX lithium shares. The Core Lithium Ltd (ASX: CXO) share price is down 2.63% today. Meanwhile, Lake Resources NL (ASX: LKE) is falling 3.18% and shares in Pilbara Minerals Ltd (ASX: PLS) are sliding 1.58%.

In today’s news, Latin Resources announced it would acquire a high-grade lithium tenement in Brazil.

Latin Resources plans to acquire the tenement at the “highly prospective” Salinas Lithium Project in Bananal Valley via its 100% owned subsidiary Belo Lithium Mineracao Ltda.

As part of the agreement, Latin Resources will pay US$15,000 cash and US$15,000 ordinary shares. After 12 months, Latin will pay a further US$75,000.

Commenting on the news, managing director Chris Gale said:

We are very pleased to have exercised our option to acquire the Bananal 830.691/2017 tenement, securing 100% ownership of the area where we will be undertaking an extensive diamond drilling program.

Based on what we have seen so far from the results of the current maiden diamond drilling,
we are very confident that this tenement contains significant potential for high-grade lithium
pegmatites.

Recent drilling at the site has shown high-tenor lithium grades of spodumene pegmatites including 3.22% lithium oxide.

Share price snapshot

The Latin Resources share price has surged 80% over the past 12 months, exploding a massive 279% this year to date.

In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has shed 1% over the past year.

Latin Resources has a market capitalisation of about $211 million, based on today’s share price.

The post Why is the Latin Resources share price sliding today? appeared first on The Motley Fool Australia.

More reading

• Latin Resources share price sinks 10% despite lithium project update
• Why is the Latin Resources share price powering ahead today?
• Here’s why the Latin Resources share price is on ice today

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/RrnaPpy

The CSR Limited (ASX: CSR) share price is climbing higher this morning following the company’s full-year results.

At the time of writing, shares in the building products manufacturer are 2.02% in the green, swapping hands for $5.81 apiece.

CSR share price strengthens amid exceptional earnings

• Trading revenue up 9% year on year to $2.3 billion
• Net profit after tax (NPAT) increased by 20% to $193 million
• Earnings per share (EPS) of 39.7 cents
• Final fully franked dividend of 18 cents per share declared
• Building products earnings before interest and tax (EBIT) up 24% to $228.2 million
• Finished the year with $178 million in net cash

What else happened during the year?

The March ending full year was a solid 12-month stint for the Australian building products maker. Notably, this result marks the second consecutive year of increases in the company’s NPAT result.

According to the report, CSR benefitted from strong demand across its building products division. In fact, thanks to the elevated market activity, the company achieved a record $228 million in earnings from the business segment.

In addition, operations at the company’s aluminium business were in full swing during the year. Improved pricing conditions resulted in a 70% boost to the segment’s earnings, hitting $40 million over the 12-month period.

When accounting for significant items, such as property sales, CSR’s statutory net profits dialled up to $271 million. This represents a staggering increase of 86% compared to the previous year. The stellar earnings figure is being met with optimism towards the CSR share price.

What did management say?

CSR managing director and CEO Julie Coates commented on the robust result:

All of CSR’s businesses have performed very well during the year. In Building Products, our team worked hard to support the demand in residential housing with strong operational execution. The organisational change we have made streamlining the business over the last 18 months along with the initiatives aligned to our supply chain strategy have supported our ability to deliver for CSR’s customers against a challenging backdrop.

Furthermore, Coates noted that the company will continue to work towards improving productivity and optimising operations. The positive comments are reflective of the CSR share price today.

What’s next?

Looking ahead, sustained demand for detached housing projects is anticipated for the company. Meanwhile, apartment and non-residential markets are also expected to improve after a slow patch in recent years.

Turning to the property division, CSR is forecasting EBIT of ~$52 million for the 2023 full year. This reflects the next round of proceeds from Horsley Park in New South Wales, and the sale of a site in Warner in Queensland.

Lastly, the company informed shareholders that it is expecting EBIT of somewhere between $33 million and $49 million for its aluminium segment for the year ending March 2023.

CSR share price snapshot

While the CSR share price is in the red compared to where it was a year ago, it is outperforming the broader materials sector.

Shares in the building products company are down 1.4% over the 12-month timeframe. Whereas, the materials sector is 8.2% worse off.

The company is currently trading a price-to-earnings (P/E) ratio of 11.3 times.

The post CSR share price lifts as company constructs 20% more profit appeared first on The Motley Fool Australia.

More reading

• Do CSR shares have a dividend reinvestment plan?
• Is the CSR share price fully valued in April 2022?
• How big will the CSR dividend be in 2022?
• Top broker warns this ASX 200 share may be next to issue a profit warning

Motley Fool contributor Mitchell Lawler has positions in CSR 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 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/OqroyKv

Shares of Origin Energy Ltd (ASX: ORG) have tracked higher in the past month of trade and now rest more than 4% in the green in that time.

After a rocky period last year, the Origin Energy share price has taken off in 2022 and risen more than 30% since trading resumed in January.

In wider market moves, the S&P/ASX 200 Energy Index (ASX: XEJ) has also climbed 26% this year to date, meaning Origin has outpaced the broad sector this year.

What’s up with the Origin Energy share price?

Global energy markets have embarked on a huge rally in 2022 amid a wave of macroeconomic and geopolitical crosscurrents.

Brent Crude now trades at US$101 per barrel, a level not seen in a number of weeks according to Trading Economics. It also remains at multi-year highs.

“Brent crude futures tumbled over 3% to around $102-per-barrel, a level not seen in two weeks, dragged down by a stronger dollar and lingering concerns about weakening global demand, particularly from top consumer China due to tightening lockdowns,” it notes.

Despite the pullback, it is still up more than 51% for the last 12 months.

Meanwhile, natural gas also remains propped up amid similar concerns “as traders continued to monitor supply and demand prospects amid high volatility” per the same reports.

It is these factors in particular that are driving the Origin share price in 2022, analysts at investment bank JP Morgan reckon.

The broker said that buoyant LNG and energy markets are helping drive outsized returns relative to the benchmark S&P/ASX 200 Index (ASX: XJO).

“[W]e believe the strong performance from the stock price (Origin is +31% YTD versus the ASX200 at 0%) is largely attributable to increases in LNG prices” it mentioned.

However, investors might need to remain cautious on the divergence of ASX listed energy companies and their underlying markets, the broker added.

This could be a risk heading forward, and helps JP Morgan remain on the sidelines with a neutral stance. It advocates that clients hold for now.

While the Integrated Gas business is improving (driven by higher benchmark oil prices), electricity and gas retail margins remain under pressure. The fact that higher wholesale prices will be largely offset by increased fuel costs in FY2023 also suggests it could be sometime before improvements arise. However, higher LNG prices could surprise to the upside.

JP Morgan joins 7 other brokers covering Origin in its neutral stance, whereas 5 firms reckon that it’s a buy, according to Bloomberg data.

The consensus price target from this list is $6.86, meaning that Origin appears to be fairly priced based on these figures.

Origin Energy share price snapshot

In the last 12 months, the Origin Energy share price has soared over 68% into the green. This year to date, the trend has continued, and it has eclipsed the ASX 200 and even the broad ASX energy index.

The post The Origin share price is absolutely smashing the ASX 200 in 2022. Why? appeared first on The Motley Fool Australia.

More reading

• 3 ASX All Ordinaries shares that smashed new 52-week highs today
• How is the Origin Energy share price managing to hit multi-year highs today?
• Origin share price gains as surging commodity prices boost revenue to $2.5b
• How might the election outcome impact the outlook for ASX energy shares?
• 3 ASX 200 stocks smashing 52-week highs today

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 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/uqElsS9

Crypto investors haven’t had the best of years so far.

Bitcoin (CRYPTO: BTC), the world’s top crypto by market cap, is down 35% since 1 January.

The number two token, Ethereum (CRYPTO: ETH), has slipped even further, down 38% year-to-date.

Most of the top-100 cryptos are down as much or far more for the calendar year. (Save the stablecoins, which are either up or down a fraction of a percent.)

In fact, it’s been such a tough slog for crypto investors that only one of the top-100 tokens has returned more than 1% this year.

And that token is…

UNUS SED LEO (CRYPTO: LEO)

LEO defies selloff

While the rest of the cryptos went the other direction, LEO has gained an impressive 44% in 2022.

Up 4% over the past 24 hours, LEO is currently trading for US$5.41.

At that price the token has a total market valuation of US$5.2 billion, making it the number 23 crypto in virtual circulation.

Launched in May 2019, LEO hit all time highs earlier this year, trading for $8.04 on 8 February. It’s lost 33% since those highs.

According to CoinMarketCap:

LEO is a utility token that’s used across the iFinex ecosystem… The cryptocurrency allows Bitfinex users to save money on trading fees. The extent of the discount depends on how much LEO the customer has in their account.

One of the unique aspects about this crypto is that it was designed to eventually cease to exist. “A token burn mechanism means iFinex is committed to buying back UNUS SED LEO from the market on a monthly basis.”

iFinex states that the burn mechanism will continue until all of the tokens have been redeemed.

Diversify your crypto holdings

With an eye on the wildly different returns offered by the huge variety of cryptos on offer, we leave you with this advice from Richard Galvin, CEO of Digital Asset Capital Management (courtesy of the Australian Financial Review):

Our view is that only holding bitcoin as your crypto exposure would be like buying BHP Group Ltd (ASX: BHP) as your Australian equity exposure.

We wouldn’t say it is a good or a bad idea in of itself, but the opportunity set is far, far wider in our view. Our Global Digital Asset Fund usually holds eight to 12 key active positions in different coins or tokens, and we feel confident that this will outperform bitcoin and ethereum as single holdings over time.

Happy investing!

The post The only crypto returning big gains in 2022 revealed appeared first on The Motley Fool Australia.

More reading

• Is the Telstra share price a safe haven buy right now?
• How is the AFIC share price performing with the ASX 200 volatility?
• Why is the ResMed share price climbing today?
• GrainCorp share price falls despite record-breaking half-year profits
• What’s going on with the AVZ Minerals share price?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. 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/nX1t43d

Could the Telstra Corporation Ltd (ASX: TLS) share price be a contender to act as a safe haven against the volatility the ASX share market is seeing?

During the COVID-19 crash of early 2020, the Telstra share price did not fall as dramatically as many other ASX shares did.

Over the last month, Telstra shares have dropped around 2% while the S&P/ASX 200 Index (ASX: XJO) share price has declined around 6% in that time.

Telstra generates relatively consistent profit and cash flow every month, thanks to the essential nature of its services to Australians.

But inflation and interest rates rising present a different conundrum for investors compared to a global pandemic. Is the telecommunications business an opportunity?

Broker opinions on the Telstra share price

As one of the biggest businesses on the ASX, there are plenty of analysts that look at the company.

One of the most recent ratings comes from the broker Morgan Stanley, with a price target of $4.60 and a buy rating. That implies a possible rise that’s comfortably more than 10%.

One of the reasons for its optimism is that in the US, 5G telco peer T-Mobile is seeing good operational progress with customers quickly taking to fixed wireless home internet. So far, the changing economic environment in the US is not hurting consumer demand for telco services.

Another broker that rates Telstra as a buy is Ord Minnett. The price target is $4.50, also implying more than 10% upside. One of the positives that the broker has pointed out is the potential for the telco to sell more of its telco tower assets.

Recent updates

One of the major ways that investors like to value businesses is by looking at the profit direction.

Telstra is now expecting its profit to start rising after years of being impacted by the shift to the NBN.

A few months ago, the company said in its T25 strategy to FY25 that it’s expecting a compound annual growth rate (CAGR) of mid-single digits for underlying earnings before interest, tax, depreciation and amortisation (EBITDA) and a high-teen growth rate for underlying earnings per share (EPS).

In the recent FY22 half-year result, the company reported “strong” mobile growth with EBITDA rising 25%, post-paid average revenue per user (ARPU) rising 5%, and post-paid services increasing by 84,000.

It also reported that underlying EBITDA rose 5.1% to $3.5 billion, while underlying EPS went up 55% to 6.2 cents.

The company said that it is continuing to see growth in the mobile market on the back of its investment in customer-centric plans.

Telstra also boasts that its 5G network is now more than twice the size of Telstra’s nearest competitor, with more than 77.5% of the population covered and almost 2.8 million 5G devices connected to its mobile network.

The business has also made other moves, such as the acquisition of the Digicel Pacific company. Digicel Pacific has 2.5 million customers and leading businesses in PNG, Fiji, Vanuatu, Tonga, Nauru, and Samoa.

Telstra dividend

The board of Telstra has an intention to grow its dividend over time, as earnings and cash flow grow.

At the current Telstra share price, it’s expecting to pay a grossed-up dividend yield of 5.8%.

The post Is the Telstra share price a safe haven buy right now? appeared first on The Motley Fool Australia.

More reading

• How is the AFIC share price performing with the ASX 200 volatility?
• How to deal with the current share market calamity
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 recommended T-Mobile US. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended T-Mobile US. 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/hlqwRYD

The S&P/ASX 200 Index (ASX: XJO) has seen a lot of volatility in 2022. How are things going for the Australian Foundation Investment Co Ltd (ASX: AFI), also known as AFIC, share price?

The ASX 200 currently registers a decline of 7.1% for the year. However, the index has been through a couple of declines – one during January 2022 and the latest drop over the last few weeks.

AFIC share price performance

AFIC, the biggest and one of the oldest listed investment companies (LICs), has also seen a decline since the start of 2022. The AFIC share price has dropped by 5.5%. That means that the LIC’s share price has outperformed by 1.6%.

Both AFIC and the ASX 200 represent portfolios of ASX blue-chip shares. The performance of those holdings will influence how the price of the LIC and ASX 200 perform.

In the ASX 200 are blue chips like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), CSL Limited (ASX: CSL), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group Ltd (ASX: ANZ), Macquarie Group Ltd (ASX: MQG), Wesfarmers Ltd (ASX: WES) and Telstra Corporation Ltd (ASX: TLS).

LIC holdings

The following are AFIC’s largest holdings and their weightings, at the end of April 2022. Readers may notice that the list of names is in a different order because the LIC has decided on a different weighting to the index:

CBA (9.1%)

BHP (7.4%)

CSL (7.2%)

Macquarie (5.1%)

Transurban Group (ASX: TCL) (4.6%)

Westpac (4.1%)

Wesfarmers (4%)

NAB (4%)

Woolworths Group Ltd (ASX: WOW) (3.1%)

Investment underperformance over one year

While the AFIC share price has gone up around 8% over the last year, the ASX 200 is down slightly by 0.6%.

However, when looking at the actual underlying investment performance in the year to 30 April 2022, AFIC disclosed that it has underperformed its benchmark.

The LIC’s net asset per share growth plus dividends, including franking, over the previous year was 9.6%. However, the S&P/ASX 200 Accumulation Index (ASX: XJOA) return over the same time was 11.7%.

However, AFIC isn’t necessarily trying to outperform an index in the short term.

It says that it “aims to provide shareholders with attractive investment returns through access to a growing stream of fully franked dividends and enhancement of capital invested over the medium to long-term.”

AFIC aims to provide low-cost investing. It has an annual management fee of 0.14%, with no performance fees. Its investment style is “long-term, fundamental, bottom-up”.

Market commentary

AFIC noted that corporate activity continued to be a “feature” of the market in April 2022 with a bid for Ramsay Health Care Limited (ASX: RHC), the restructuring of AMP Ltd (ASX: AMP) and a takeover bid for Pendal Group Ltd (ASX: PDL).

The LIC noted utilities as the strongest performing sector, partly thanks to the performance of the AGL Energy Limited (ASX: AGL) share price.

The materials sector declined 4.3% over April amid the easing of commodity prices because of ongoing lockdowns in China.

However, the weakest sector was IT, which fell 10.4%. AFIC explained the tech weakness was due to rising bond yields.

The post How is the AFIC share price performing with the ASX 200 volatility? appeared first on The Motley Fool Australia.

More reading

• Is the Telstra share price a safe haven buy right now?
• How to deal with the current share market calamity
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

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 positions in and has recommended CSL Ltd. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited and Wesfarmers Limited. The Motley Fool Australia has recommended Macquarie Group Limited, Ramsay Health Care Limited, and Westpac Banking Corporation. 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/OuRqhl2

The ResMed Inc (ASX: RMD) share price is heading north during early Wednesday morning.

At the time of writing, the sleep treatment focused medical device company’s shares are up 1.40% to $28.25.

Why are ResMed shares edging higher today? 

Following the company’s third quarter results released on 29 April, investors are eyeing ResMed shares as they go ex-dividend today.

While typically a company’s shares travel lower on the ex-dividend date, this hasn’t been the case this morning. This is because of the heavy losses ResMed has recorded in the past few weeks, hitting an 11-month low of $27.51 yesterday.

It appears that bargain hunters are swooping in to take advantage of the recent share price weakness.

What does this mean for ResMed shareholders?

For those eligible for ResMed’s quarterly dividend, shareholders will receive a payment of US 4.2 cents per share on 16 June. The dividend is unfranked, which means investors will unfortunately miss out on the tax credits.

The latest dividend reflects a 7.69% increase when compared to the prior corresponding period (US 3.9 cents per share).

In case you were wondering, the company does not have a dividend reinvestment plan (DRP).

Are ResMed shares a buy now?

Following the company’s financial scorecard, a couple of brokers weighed in on the ResMed share price.

The team at Goldman Sachs cut its 12-month price target by 6% to $33.70 for the healthcare company’s shares. Its analysts believe that there is still more upside in ResMed shares despite missing its performance targets recently.

Based on the current share price, this implies an upside of about 19% for investors.

Furthermore, Macquarie also slashed its rating on ResMed shares by 2.7% to $36.50 a pop. This also implies an upside of around 29% from where the company trades today.

ResMed share price summary

Over the past 12 months, ResMed shares have gained 14% on the back of positive investor sentiment. On the other hand, the S&P/ASX 200 Index (ASX: XJO) has fallen by 1% over the same timeframe.

ResMed shares reached a 52-week high of $40.49 in August, before backtracking amid inflationary movements and soaring living costs.

Based on today’s price, ResMed commands a market capitalisation of roughly $11.41 billion and has a trailing dividend yield of 0.56%.

The post Why is the ResMed share price climbing today? appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 profitable ASX growth shares with 40%+ upside
• Broker names 2 of the ‘best’ blue chip ASX 200 shares to buy now
• Hoping to bag the Resmed dividend? Read this
• Guess which ASX 200 shares are defying today’s sell-off to climb higher
• 2 medical tech ASX shares Morgans loves right now

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 recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. 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/QTd312R

The GrainCorp Ltd (ASX: GNC) share price is falling on Wednesday morning.

At the time of writing, the grain exporter’s shares are down 3% to $10.22 following the release of its half-year results.

GrainCorp share price falls despite record result

• Revenue up 49.9% to $3,842.1 million
• Earnings before interest, tax, depreciation and amortisation (EBITDA) up 200% to $427 million
• Net profit after tax up 382% to $246 million
• Fully franked interim dividend increased 50% to 12 cents per share
• Additional fully franked special dividend of 12 cents per share declared

What happened during the first half?

For the six months ended 31 March, GrainCorp reported a 49.9% increase in revenue to $3,842.1 million and a 200% jump in EBITDA to $427 million.

The latter was driven by strong growth across both the Agribusiness and Processing segments.

GrainCorp’s Agribusiness segment reported a 200% increase in EBITDA to $376 million. This reflects an increase in total grain handled and strong supply chain margins for grain exports. An increase in opening grain inventories also contributed to storage and export volumes.

Whereas the Processing segment delivered a 192% increase in EBITDA to $70 million for the half. This was driven by increased oilseed crush margins and ongoing efficiency improvements. Crush margins were supported by strong global demand for vegetable oils, thanks to global production challenges in canola and soybean, disruption of supply out of the Black Sea region, and strong demand for renewable fuel feedstocks.

This strong profit growth allowed the GrainCorp board to declare a 12 cents per share fully franked interim dividend and an additional 12 cents per share fully franked special dividend. This compares to an interim dividend of 8 cents per share a year earlier.

Management commentary

GrainCorp’s Managing Director and CEO, Robert Spurway, commented:

I am pleased to announce an exceptional first half result, which is a record for GrainCorp. The result reflects excellent performance across all business areas and resilience in our supply chain.

Recent weather patterns and continued La Niña conditions have provided excellent planting conditions for the 2022-23 winter crop to date, building confidence in grain supplies from ECA and further supporting export sales and supply chain margins.

GrainCorp is in a strong position to maximise opportunities through the current cycle, while also progressing our strategic initiatives in our core, growth and ESG areas. Planning is well underway for additional investment in the lead-up to the 2022-23 harvest to efficiently manage the volumes to be delivered by growers.

Outlook

Possibly weighing on the GrainCorp share price this morning is the company’s full-year guidance.

While a very strong result is expected, there has been no change to its previous guidance. Some investors may have been betting on another upgrade from management after two in as many months.

GrainCorp continues to guide to underlying EBITDA of $590 million to $670 million and underlying net profit after tax of $310 million to $370 million.

The post GrainCorp share price falls despite record-breaking half-year profits appeared first on The Motley Fool Australia.

More reading

• What’s driving the Graincorp share price to all-time highs?
• These were the best performing ASX 200 shares in April
• Why has the Graincorp share price already rallied 17% in April?
• These were the best performing ASX 200 shares last week
• Can the Graincorp dividend really triple in 2022?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/JyDC8E3