The Pinnacle Investment Management Group Ltd (ASX: PNI) share price may be in focus today as the company reported an NPAT of $176.7 million for the financial year ended 30 June 2026, with its stake in Metrics Credit Holdings contributing $12.6 million to the result.

What did Pinnacle Investment Management report?

• Net profit after tax (NPAT) of $176.7 million for FY26
• Approximately $12.6 million contributed to NPAT from Metrics Credit Holdings
• Pinnacle holds a 35% equity interest in Metrics Credit Holdings Pty Limited
• The Metrics funds—MXT, MOT, and MRE—have paused trading temporarily

What else do investors need to know?

The three Metrics-managed funds—Metrics Master Income Trust (ASX: MXT), Metrics Income Opportunities Trust (ASX: MOT), and Metrics Real Estate Multi-Strategy Fund (ASX: MRE)—have temporarily paused trading on the ASX, pending further announcements. This move has placed a spotlight on both the funds and their manager, Metrics Credit Partners, an affiliate of Pinnacle.

Investors should note that Pinnacle’s exposure to Metrics Credit Holdings represents a significant portion of its earnings, and any updates to the Metrics funds could impact Pinnacle’s reported results or future distributions.

What’s next for Pinnacle Investment Management Group?

Investors will be watching for further details on the reason for the trading pause in the Metrics funds and how any developments might affect Pinnacle’s future income from Metrics. The company continues to benefit from its diversified investment management affiliates, and maintaining strong relationships with its managers may remain a strategic focus.

Looking forward, any resolutions related to the paused funds, and further growth in affiliated manager platforms, could shape Pinnacle’s earnings profile for the coming year.

Pinnacle Investment Management share price snapshot

Over the past 12 months, Pinnacle Investment Management shares have declined 31%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

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The post Pinnacle Investment Management reports FY26 profit and Metrics funds update appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Karoon Energy Ltd (ASX: KAR) shares are taking a hit on Monday morning, and investors have another setback to digest.

The oil and gas producer’s shares are currently down 12.04% to $1.57, after finishing Friday’s session at $1.785.

It’s another frustrating development for shareholders, particularly after the stock had started to recover some ground over the past month.

So, what’s happened this time?

Why are Karoon shares crashing 12%?

In its announcement, Karoon revealed another operational setback at its Bauna oil project offshore Brazil.

The company identified an electrical fault at its SPS-92 well on 21 September, shutting down production the following day to investigate.

It turns out that one of the three electrical phases supplying power to the well’s downhole pump was faulty.

Production has since resumed using the remaining two phases, although the pump is operating at reduced capacity.

Unfortunately, getting the well back to full production won’t be a quick fix.

Karoon will need a drilling rig to replace the faulty cable system and is already working to secure the necessary permits and services.

Until then, it’s expecting to lose around 3,500 barrels of oil per day.

And with production taking another hit, Karoon has had to lower its expectations for the year.

The company now expects Bauna to produce between 5.4 million and 5.7 million barrels in 2026, down from 6 million to 6.7 million barrels previously.

Who Dat guidance remains unchanged. Karoon now expects total production of 6.6 to 7.2 million barrels of oil equivalent in 2026.

That’s compared with its previous forecast of 7.2 to 8.2 million barrels.

Unit production costs are also expected to increase from US$12 to 15 to US$15 to 16 per barrel.

What about the financial impact?

The good news is that Karoon is expecting its insurance to cover much of the financial damage.

The company anticipates to recover almost all lost production revenue and repair costs, subject to the terms of its insurance policies.

However, the cause of the failure remains under investigation. This means it’s still unclear when any insurance payments will be received.

CEO Carri Lockhart said the fault as disappointing, particularly as the new pump and cable system have been operating for less than 3 months.

Management is now focused on restoring SPS-92 to full production while also looking to increase production from Bauna’s other wells.

Foolish takeaway

I think today’s announcement adds to Karoon’s challenges, especially with the company already dealing with production issues at Who Dat.

The question now is how long it will take to complete the repairs and get production back on track.

I’ll be watching next month’s quarterly update for details on when Karoon expects to restore full production.

The post This ASX energy stock just crashed 12%. Here’s what’s gone wrong appeared first on The Motley Fool Australia.

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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.

Commonwealth Bank of Australia (ASX: CBA) shares are currently trading around $150.83 as we approach the end of the month.

Here’s what I think of the big four bank’s shares as we head into October.

What does the outlook look like?

One of the things I like about CBA is the strength of the underlying business.

The bank has leading positions across home lending and deposits, a huge customer base, and a strong digital offering. Those advantages have helped it generate consistently strong returns and make it the major bank I would most want to own.

The earnings outlook is steady rather than spectacular.

CBA generated earnings per share (EPS) of $6.58 in FY26. Consensus estimates point to this increasing to $6.67 in FY27 and $6.86 in FY28.

That is only modest growth, but I think there is value in the predictability of those earnings, particularly when combined with CBA’s dividend.

Dividends per share are expected to rise from $5.05 in FY26 to $5.15 in FY27 and $5.30 in FY28.

At today’s share price, the FY27 forecast implies a dividend yield of around 3.4%, before considering any franking benefits.

What about interest rates?

Interest rates could become an increasingly important part of the story in October.

The Reserve Bank of Australia is widely expected to raise the cash rate this week, with the possibility of another increase later in the year.

Higher rates can have mixed implications for banks.

They can provide some support for margins depending on how quickly lending and deposit rates move. At the same time, higher borrowing costs can put additional pressure on households and potentially weigh on credit growth.

For CBA, I think its large deposit base and strong position in Australian banking leave it relatively well placed to navigate that environment.

I would still watch how higher rates affect mortgage customers and competition across the sector, particularly if monetary policy remains restrictive for longer.

Is the valuation too high?

This is where the decision becomes more difficult.

At $150.83, CBA shares are trading on a PE ratio of roughly 22.6 times forecast FY27 earnings and around 22 times FY28 earnings.

That is not a cheap valuation for a mature bank expected to deliver fairly modest earnings growth.

Investors are clearly paying a premium for CBA’s quality, market position, and consistency.

For me, though, valuation is only one part of the equation. I would rather own an excellent bank at a reasonable price than choose a weaker business simply because its PE ratio is lower.

Foolish takeaway

I would still be comfortable buying CBA shares as we head into October.

The valuation is higher than I would ideally like, especially given the modest earnings growth currently forecast. But I think CBA remains the highest-quality major bank on the ASX and is well positioned to keep delivering for shareholders.

At around $150.83, I see CBA as a buy for investors prepared to own it for the long term rather than chase a quick return.

The post Should I buy CBA shares in October? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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.