Author: openjargon

Mega ASX 200 iron ore shares BHP Group Ltd (ASX: BHP) and Fortescue Ltd (ASX: FMG) were the top two most traded ASX stocks last month among investors using the SelfWealth trading platform.

Let’s review the top 10.

Top 10 most traded ASX shares in June

Here are the top 10 most traded ASX shares in June by volume (thus incorporating both buy and sell orders), according to Selfwealth Ltd (ASX: SWF).

We have also included the percentage of buy orders next to each ASX share.

Which ASX shares attracted the most buyer interest?

As you can see, ASX 200 mining giant Fortescue received the most buy orders among the top 10 shares.

The Fortescue share price tumbled 13.46% during the month of June. Perhaps investors saw greater value in the stock as the price declined.

Fortescue shares are now trading on a price-to-earnings (P/E) ratio of 7.92x. The Fortescue share price closed on Friday at a nine-month low of $22.10.

Top broker Goldman Sachs has a sell rating on Fortescue with a 12-month share price target of $16.20. But Michael Gable from Fairmont Equities says Fortescue shares are a buy.

BHP shares had the second strongest buying activity during the month.

The BHP share price closed on Friday at $43.40. Goldman has a buy rating on BHP with a 12-month price target of $48.40.

The iron ore price has been falling, and one major bank forecasts that the commodity will weaken further over the next year or so.

On Friday, the S&P/ASX 200 Index (ASX: XJO) closed at 7,959.3 points. It reached a new record high during intraday trading at 7,969.1. This was driven by news out of the US that inflation is easing.

The S&P/ASX All Ordinaries Index (ASX: XAO) closed at 8,206.1 points. The All Ords also set a new record high during intraday trading at 8,212.6 points.

Top 10 most traded US stocks in June

Here are the top 10 most traded US stocks in June among SelfWealth traders.

As shown, the quintessential artificial intelligence stock NVIDIA had the highest percentage of buy orders among the top 10 US shares.

The post Top 10 most traded ASX shares and US stocks in June appeared first on The Motley Fool Australia.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Bronwyn Allen has positions in Anz Group, BHP Group, and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Alphabet, Amazon, Apple, DroneShield, Goldman Sachs Group, Microsoft, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Advanced Micro Devices, Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Now could be the time to sell ASX Ltd (ASX: ASX) shares.

That’s the view of analysts at Goldman Sachs, which are feeling bearish about the ASX 100 stock.

What is the broker saying about this ASX 100 stock?

Goldman has been looking at the stock exchange operator ahead of its results next month.

It believes there are a number of key issues and trends for investors to look out for. The first is divisional trends. It said:

1) Divisional trends: a) Listings benign: Listed entities declined over 2H24 but fee increases could offset this pressure. Compared to 1H24, IPO volumes were benign and secondary raisings slightly softer. Any recovery here will be lagged as revenues are amortised. b) Derivatives/ Futures strong: over 2H24 v 1H24 benefiting from interest rate volatility. c) Cash market trading up on 1H24: with an improvement through late 2H24 – similar trend for CS.

And while Goldman expects improvements in collateral balances and fee changes, it sees corporate bonds as a drag. The broker adds:

2) Collateral balances expected to improve over 2H24: Albeit ASX flagged stability in the investment spread at 10bps but expected this to increase over time. 3) Corporate bonds: issuance likely to be a slight drag on interest income as deployed. 4) Fee changes: Listing fees generally up ~5% on average we think across Jul-24/Jan-25. We also note fee increases in Austraclear across holding and transaction fees.

Also worth looking out for are movements in its equity investments and regulatory risks. It commented:

5) Equity investment portfolio: a) Sympli: Implications for Sympli from ARNECC pausing the interoperability program and standing down their project team. We expect small losses from Sympli to persist. b) Grow Inc: Update on profitability and participation in latest funding round. 6) Other key issues: a) Progress on ASIC’s investigation into suspected contraventions of the ASIC Act 2001 and the Corporations Act 2001 in relation to the CHESS replacement program — see here — suggesting potential regulatory risks. b) Despite regulatory changes being implemented, we think the threat of competition is low, noting Capex requirements.

Sell rating retained

The note reveals that Goldman has held firm with its sell rating on the ASX 100 stock with an improved price target of $59.50.

Based on its current share price of $64.41, this implies potential downside of 7.6% for investors over the next 12 months.

The broker concludes:

We are Sell rated on ASX because: 1) Capex guidance remains elevated into FY25-FY27 from ongoing CHESS replacement project and technology revamp with risks on execution. 2) Risks arising from enhanced regulatory scrutiny on CHESS replacement and ASIC investigation. 3) Potential upside from a recovery in cyclical revenues is likely to be small with D&A drag to result in very muted earnings growth. 4) ASX’s Clearing and Settlement ROE is well below Group ROE target.

The post Sell this ASX 100 stock now: Goldman Sachs appeared first on The Motley Fool Australia.

More reading

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• 5 things to watch on the ASX 200 on Thursday

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 Goldman Sachs Group. 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.

BHP Group Ltd (ASX: BHP) shares will be on watch this week.

That’s because the mining giant is scheduled to release its fourth quarter update on Wednesday 17 July.

Ahead of the release of its update, let’s have a look at what the market is expecting from the Big Australian.

BHP Q4 preview

According to a note out of Goldman Sachs, it is expecting BHP to fall a touch short of the market’s expectations during the fourth quarter.

It is forecasting iron ore shipments of 74.1Mt for the three months. While this is up 6% quarter on quarter, it is lower than the consensus estimate of 74.9Mt. Goldman expects this to be achieved with a realised iron ore price of US$101 per tonne.

It is a similar story for copper, with the broker forecasting flat copper production of 467kt, which is just short of the consensus estimate of 470kt. A realised price of US$3.93 per pound is expected by Goldman, which is 12 cents lower than the consensus estimate of US$4.05 per tonne.

Metallurgical coal production could disappoint. It is expected to be down 24% quarter on quarter to 4.6Mt. This is lower than the consensus estimate of 4.9Mt.

Finally, nickel production is also forecast to come in lower than the market expects. Goldman has pencilled in production of 18.6kt versus the consensus estimate of 19.8kt.

BHP is also likely to provide the market with its guidance for FY 2025. And once again, the broker believes this could be lower than expectations. It commented:

BHP: we sit below on FY25 iron ore production vs. VA consensus; Pilbara iron ore 287Mt (100% basis) vs. VA cons at 293Mt and Qld met coal production of 18Mt (BHP share) vs. VA cons at 21Mt due to our view of ongoing catch-up on waste stripping and build-up of in-pit coal inventory.

Should you buy BHP shares?

Despite expecting BHP to fall short of the market’s expectations in both the fourth quarter and FY 2025, Goldman remains very positive on the miner’s shares.

It currently has a buy rating and $48.40 price target on its shares. Based on its current share price of $43.40, this implies potential upside of 11.5% for investors over the next 12 months.

Goldman also expects a 4.2% dividend yield in FY 2025, which boosts the total potential return to almost 16%.

Commenting on its bullish view, the broker said:

We rate BHP a Buy based on: (1) Attractive valuation, but at a premium to RIO: Although we believe this premium can be partly maintained due to ongoing superior margins and operating performance (particularly in Pilbara iron ore where BHP maintains superior FCF/t vs. peers), (2) Robust FCF, but still below RIO, (3) We remain bullish on copper and met coal, (4) Optionality with +US$20bn copper pipeline, but growth below RIO.

The post Own BHP shares? Here’s your Q4 preview appeared first on The Motley Fool Australia.

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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 Goldman Sachs Group. 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.

If you’re fortunate enough to have $10,000 available to invest into the share market, then you may be on the lookout for options.

In order to narrow things down for you, let’s take a look at three ASX 200 shares that are highly rated by analysts and could be good options for those funds. They are as follows:

Capricorn Metals Ltd (ASX: CMM)

Capricorn Metals could be a top option if you would like to add some gold exposure to your portfolio with that $10,000.

It is a gold exploration, development, and mining company whose primary asset its 100%-owned Karlawinda Gold Project (KGP) in Western Australia. Bell Potter is very positive on the company due to the quality of its KGP operation and management’s strong track record. It said:

CMM’s management team has a track record of capital efficient project funding, development, commissioning and operation. In our view, FY25 and FY26 should benefit from higher revenue and EPS increases by 32% and 6% respectively. CMM is a sector leading gold producer with a strong balance sheet, a management team with an excellent track record of delivery and clear organic growth options to lift group production to 270kozpa.

The broker has a buy rating and $6.53 price target on its shares.

Flight Centre Travel Group Ltd (ASX: FLT)

Another ASX 200 share for investors to consider buying is travel agent giant Flight Centre.

Morgans is a big fan of the company and sees a lot of value in its shares at current levels. Particularly given the transformation of its business model. It said:

FLT has the greatest risk, reward profile of our travel stocks under coverage. The risk is centred around execution given its changed business model, while the reward is material if FLT delivers on its 2% margin target. If achieved, this would result in material upside to consensus estimates and valuations. FLT is targeting to achieve this margin in FY25. With greater confidence in the travel recovery and the benefits of Flight Centre’s transformed business model already emerging, we think the company is well placed over coming years.

The broker has an add rating and $27.27 price target on its shares.

Light & Wonder Inc. (ASX: LNW)

Analysts at Goldman Sachs think that Light & Wonder could be an ASX 200 share to buy. It is a cross-platform global games company that provides gambling products and services.

The broker likes Light & Wonder due to its belief that it can continue to win market share in Australia and North America and deliver strong profit growth. It explains:

LNW is well-placed to continue winning market share in ANZ and North America gaming operations, driving earnings growth of +12% (2-year CAGR) to achieve its FY25 AEBITDA target of US$1.4bn, which we believe has not been factored into market expectations (GSe +3% above VA consensus). Additionally, we believe SciPlay is out indexing the social casino segment driven by higher monetisation rates and modest user growth, despite headwinds in the broader social gaming industry.

Goldman has a buy rating and $190.00 price target on its shares.

The post Where to invest $10,000 into ASX 200 shares appeared first on The Motley Fool Australia.

More reading

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• 5 things to watch on the ASX 200 on Thursday
• Bell Potter says these ASX 200 shares can deliver ~30% returns

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 Goldman Sachs Group and Light & Wonder. The Motley Fool Australia has recommended Flight Centre Travel Group and Light & Wonder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Pilbara Minerals Ltd (ASX: PLS) remains the most shorted ASX share with flat short interest of 21.3%. With analysts forecasting lithium prices to remain under pressure for some time, short sellers appear to believe this will weigh on this lithium miner’s profits.
• IDP Education Ltd (ASX: IEL) has 13.1% of its shares held short, which is up slightly since last week. This language testing and student placement company is being impacted negatively by student visa changes in a number of key markets.
• Liontown Resources Ltd (ASX: LTR) has 11.1% of its share held short, which is also flat week on week. Liontown will soon be adding more lithium supply to the market, with the Kathleen Valley Project commencing production in the coming weeks.
• Chalice Mining Ltd (ASX: CHN) has short interest of 11%, which is up significantly week on week. Short sellers aren’t giving up on this mineral exploration company’s shares despite them losing almost 80% of their value over the last 12 months.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest increase to 10.8%. Short sellers continue to target this travel agent giant’s shares amid concerns over weak consumer spending and revenue margin headwinds.
• Syrah Resources Ltd (ASX: SYR) has short interest of 10.5%, which is up week on week. This graphite miner’s shares have fallen heavily due to weak battery material prices, production suspensions, and ongoing cash burn.
• Australian Clinical Labs Ltd (ASX: ACL) has short interest of 10%, which is up since last week again. This health imaging company has warned that is expecting to report another significant profit decline in FY 2024. Short sellers don’t appear to believe improvements are coming any time soon.
• Westgold Resources Ltd (ASX: WGX) has short interest of 9.5%, which is up week on week. Short sellers don’t appear supportive of the gold miner’s proposed merger with Canada-based Karoa Resources.
• Sayona Mining Ltd (ASX: SYA) has short interest of 9.4%, which is up since last week. At present, Sayona Mining is burning through cash due to its unit costs being higher than its unit sale price.
• Lynas Rare Earths Ltd (ASX: LYC) has seen its short interest rise again to 9.1%. This appears to have been driven by ongoing rare earths price weakness.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• Where to invest $10,000 into ASX 200 shares
• Here’s how the ASX 200 market sectors stacked up last week
• Top 5 investment themes exciting ASX shares investors in FY25
• Here 3 ASX lithium shares to watch for FY25
• Are Liontown Resources shares a buy after surging 9% this week?

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 Idp Education. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.