Category: Stock Market

It’s shaping up to be a week jam-packed with big ASX news for the ANZ Group Holdings Ltd (ASX: ANZ) share price. Well, the big news for this ASX 200 big four bank has already started this Monday.

Last week, ANZ shares closed at $28.42 each but just after lunchtime today, the bank overcame a shaky start to clock a brand-new 52-week high. Yep, ANZ shares rose as high as $28.52, the new high watermark for the bank. It’s also the highest ANZ shares have traded since late 2021.

But this could just be the start of a very big week indeed for this bank stock.

ANZ currently has one of the largest financial mergers in recent ASX history in limbo. Way back in 2022, ANZ announced that it wished to acquire the banking arm of Suncorp Group Ltd (ASX: SUN) for a tidy sum of $4.9 billion.

However, this would-be marriage hit some snags before it could even be consummated. In August last year, the Australian Competition and Consumer Commission (ACCC) announced that it would block the merger on competition grounds. Here’s what the ACCC said at the time:

The proposed acquisition of Suncorp Bank by ANZ would further entrench an oligopoly market structure that is concentrated, with the four major banks dominating. It also limits the options for second-tier banks to combine and strengthen in a way that would create a greater competitive threat to the major banks.

However, ANZ and Suncorp didn’t take this news lying down. ANZ subsequently applied for an appeal of the ACCC’s original ruling to the Australian Competition Tribunal. The results of this appeal are due to be handed down tomorrow.

A big week of ASX news for ANZ shares

Given the initially positive reaction from ANZ shares to the Suncorp merger, as well as the negative reaction when the ACCC pumped the brakes, we can probably assume with some confidence that a successful appeal will bode well for the ANZ share price tomorrow. Conversely, a denied appeal could have the opposite effect.

Saying that, we recently covered one ASX expert’s views on what they think is likely to happen. Last month, my Fool colleague Bronwn looked at what analysts at ASX broker Citi are predicting. Citi put out a note that argued Suncorp’s banking sale is “more likely to occur than not”.

But of course, we’ll only know for sure when we get the response from the Tribunal tomorrow. So keep an eye on what happens with the ANZ share price then.

The post How will ANZ shares react to a big week of ASX news? appeared first on The Motley Fool Australia.

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More reading

• Which ASX 200 large-cap shares offer the best dividend yields in 2024?
• 2 excellent ASX dividend shares that analysts love
• Big news: 15 ASX 200 shares smashing 52-week highs this Tuesday
• 3 top ASX bank shares hit 52-week highs today: Is there still value to be found?
• ANZ share price hits 52-week high following Q1 update

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen 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 S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. In afternoon trade, the benchmark index is up a fraction to 7,658.6 points.

Four ASX shares that are acting as a drag on the market today are listed below. Here’s why they are falling:

Lendlease Group (ASX: LLC)

The Lendlease share price is down 17% to $6.22. Investors have been selling the international property and infrastructure company’s shares after it released its half-year results. Lendlease reported a disappointing statutory loss after tax of $136 million. The company’s earnings were impacted by a reduction in investment property valuations, redundancy costs, and an additional provision in relation to UK building remediation regulations.

New Hope Corporation Ltd (ASX: NHC)

The New Hope share price is down 6% to $4.75. This morning, this coal miner released a second-quarter update and reported underlying EBITDA of A$179.9 million. This is down 26.5% over the prior corresponding period due primarily to lower realised pricing. This brought its half-year underlying EBITDA to $424.8 million, which is down 59.1% year on year.

Nuix Ltd (ASX: NXL)

The Nuix share price is down 11% to $1.73. This investigative analytics and intelligence software provider’s shares are falling following the release of its half-year results. Nuix reported a statutory loss after tax of $4.8 million, which is down from a $1.3 million profit a year earlier. Legal costs were largely to blame.

Orora Ltd (ASX: ORA)

The Orora share price is down 6.5% to $2.71. Investors have been selling this packaging company’s shares following the release of its half-year update. Orora posted a 5.5% decline in revenue to $2,139.1 million but a 0.5% lift in underlying net profit after tax to $108.6 million. The latter was short of the market’s expectations.

The post Why Lendlease, New Hope, Nuix, and Orora shares are dropping today appeared first on The Motley Fool Australia.

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More reading

• Nuix share price sinks 15% after swinging to half-year loss
• Lendlease share price crashes on $136m half-year loss
• 2 ASX 200 shares trading at a ‘deep discount to their deserved valuation’
• Are these ASX dividend shares strong buys for passive income?
• Forget term deposits and buy these ASX dividend shares

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 Orora. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has slipped into the red. The benchmark index is currently down slightly to 7,655.4 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is up 14.5% to $5.78. This has been driven by the release of the infant formula company’s half-year results. A2 Milk reported a 3.7% increase in revenue to NZ$812.1 million and a 15.6% jump in net profit after tax to NZ$85.3 million. Looking ahead, management has upgraded its FY 2024 revenue guidance to low to mid single-digit growth.

APM Human Services International Ltd (ASX: APM)

The APM share price is up 50% to $1.24. Investors have been buying this human services provider’s shares after it received and rejected a takeover approach. CVC Asia Pacific offered to acquire APM by way of a scheme of arrangement for $1.60 per share. This represented a 93% premium to its last close price and valued the company at approximately $1.5 billion. Its board believes the proposal does not sufficiently reflect the fundamental value of APM.

Boral Ltd (ASX: BLD)

The Boral share price is up 4% to $6.08. This follows news that its largest shareholder, Seven Group Holdings Ltd (ASX: SVW), has made a takeover offer. The investment company is looking to acquire the building materials company for up to $6.25 per share in scrip and cash.

Reliance Worldwide Corporation Ltd (ASX: RWC)

The Reliance Worldwide share price is up 6% to $4.67. This morning, this plumbing parts company released its half-year results and revealed a 2% decline in sales but a modest lift in net profit after tax. This appears to have been better than the market was expecting.

The post Why A2 Milk, APM, Boral, and Reliance Worldwide shares are pushing higher today appeared first on The Motley Fool Australia.

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• Guess which ASX 200 stock is surging 9% on robust cash generation?
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• A2 Milk share price jumps 12% on solid half-year results
• Here are the top 10 ASX 200 shares today

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 Reliance Worldwide. The Motley Fool Australia has recommended A2 Milk and APM Human Services International. 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 all-time high final Ampol Ltd (ASX: ALD) dividend, revealed today, will come as good news to passive income investors.

The S&P/ASX 200 Index (ASX: XJO) energy stock reported its full-year results this morning.

If it’s some handy passive income you’re after, here’s what you need to know about the Ampol dividend.

Ampol dividend hits all-time high!

Among the highlights of 2023, the ASX 200 energy stock reported a 2% year-on-year boost in earnings before interest and tax (EBIT) – excluding significant items – to $1.30 billion.

This helped net borrowings come down to $2.20 billion, as at 31 December, from the $2.46 billion reported at the end of 2022.

And while statutory net profit after tax (NPAT) declined 25% year on year to $549 million, this didn’t deter management from declaring a record final dividend payout.

This came in the form of a fully franked final dividend of $1.20 per share as well as a special dividend of 60 cents per share.

That equates to a final passive income payout of $1.80 per share. This is 16% higher than the final Ampol dividend in 2022 and notched a new record for the energy company.

For the full year, Ampol will have delivered a total of $2.75 per share in dividends. That equates to a total payout of $655 million, or 89% of NPAT, which is at the top of the company’s payout range.

At the current share price of $38.17, Ampol shares trade on a fully franked yield (part trailing, part pending) of 7.2%.

If you’d like to bank the record dividend payment, you’ll need to own shares at market close on 29 February. Ampol shares trade ex-dividend on Friday, 1 March. Eligible investors can then expect to see that passive income land in their bank accounts on 27 March.

Commenting on the all-time high Ampol dividend, CEO Matt Halliday said:

The balance sheet is strong, providing Ampol with the flexibility to invest in our core fuels and convenience businesses, and to prudently invest in the energy transition while delivering our highest ever dividends to shareholders.

The post On the hunt for passive income? Here’s what you need to know about the record Ampol dividend appeared first on The Motley Fool Australia.

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More reading

• ASX 200 energy stock Ampol charging higher on record 2023 sales
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Motley Fool contributor Bernd Struben 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 Star Entertainment Group Ltd (ASX: SGR) share price isn’t going anywhere on Monday.

That’s because the casino and resorts operator’s shares were slammed into a trading halt before the market open this morning.

Why is the Star Group share price halted?

The company requested a trading halt on Monday after it received some more bad news.

Its request states the following:

The Trading Halt is necessary as The Star expects to make an announcement to ASX regarding correspondence received from the NSW Independent Casino Commission (NICC) on 19 February 2024 regarding the commencement of an inquiry under the Casino Control Act 1992 (NSW).

The Star Group share price is expected to be offline until Wednesday.

What’s going on?

The NICC has announced a second inquiry into The Star, to investigate the Sydney casino’s suitability. The regulator has appointed Adam Bell SC to conduct the inquiry, before the independent manager’s term ends in June.

Chief Commissioner, Philip Crawford, commented:

There was a substantial shift required and The Star has had 18 months to demonstrate that it has the capability and resources to regain its casino licence.

However, when the manager was extended for the second time in December last year, the NICC wasn’t satisfied that The Star was progressing its remediation in a timely fashion. Crawford adds:

The NICC has had concerns about the extent that remediation is attributable to the manager’s oversight and direction versus what is being driven by The Star’s reform agenda. Bell Two will bring us back to the Bell Report and The Star’s efforts to regain its casino licence in the shadow of that report.

Bell Two starts today and will run for approximately 15 weeks. The final report is due to the NICC on 31 May. Crawford warned The Star:

There is much at stake for The Star, so the NICC is giving the casino every chance it can to demonstrate whether it has the capacity and competence to achieve suitability.

The post Star Group share price is frozen in further Sydney license limbo appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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.

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Westpac Banking Corp (ASX: WBC) shares are racing ahead of rival S&P/ASX 200 Index (ASX: XJO) bank stocks today.

In early afternoon trade on Monday, the Westpac share price is up 2.4% at $25.17 a share.

Here’s how the other big four ASX 200 bank stocks are performing at this same time:

• Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares are down 0.1%
• National Australia Bank Ltd (ASX: NAB) shares are down 0.4%
• Commonwealth Bank of Australia (ASX: CBA) shares are up 0.6%

For some broader context, the ASX 200 is up 0.1%.

Here’s why Westpac is, well, leading the pack.

What’s boosting Westpac shares today?

Westpac stock is marching higher today following the release of the bank’s quarterly update.

ASX 200 investors don’t appear put off by the slip in the bank’s net interest margin (NIM), nor its profits coming in below consensus expectations.

Core NIM dropped 0.04% from the second half of 2023 to 1.80%. And net profit was down 6% to $1.5 billion.

Investors are likely shrugging off these dips because they were already largely baked into Westpac shares. Management had previously cautioned the bank was facing persistent inflationary headwinds. And they forecast a contraction in NIM amid stiff, ongoing competition in the lucrative Aussie mortgage markets.

It’s also worth noting that, excluding notable items, net profit for the three months was $1.8 billion, in line with 2H 2023. And management highlighted that the quarterly profit headwinds related solely to hedge accounting which they said “will reverse over time”.

Of some concern for Westpac shares, high interest rates and inflation do appear to be impacting Aussie households and some of the bank’s loan books. Westpac reported credit impairment provisions of $5.1 billion at the end of 2023. That came in $1.5 billion above the expected losses of the bank’s base case scenario.

But Westpac shares could be in for some more tailwinds, with only 31% of the bank’s $1.5 billion on market share buyback completed. When a company buys back its shares, that leaves fewer shares available and tends to support the share price.

The post Why are Westpac shares leaping ahead of rival ASX 200 bank stocks on Monday? appeared first on The Motley Fool Australia.

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More reading

• Westpac share price on watch following $1.8 billion quarterly profit
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• Forget Westpac and buy these top ASX dividend stocks
• Big news: 15 ASX 200 shares smashing 52-week highs this Tuesday

Motley Fool contributor Bernd Struben 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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ASX earnings season continues this week, with ASX 200 healthcare stock Cochlear Ltd (ASX: COH) reporting its latest numbers this morning.

As we covered at the time, investors didn’t really like what Cochlear had to say. The company’s shares are currently down a hefty 2.16% at $327.30 each.

That was despite Cochlear revealing a 20% rise in revenues for the half-year ending 31 December. Underlying net profits also rose enthusiastically, up 21% year on year to $192 million.

Perhaps investors are disappointed that Cochlear has decided to pause its share buyback program. But there are probably not too many investors that would feel let down by what Cochlear announced in the dividend department.

Cochlear revealed this morning that its next interim dividend would be worth $2 per share, partially franked at 70%.

Everything you need to know about Cochlear’s record interim dividend

This is a pretty special dividend for Cochlear, as it’s the largest single shareholder payout in the company’s history. For one, it represents a 14.3% increase over last year’s final dividend of $1.75 per share. But it’s also a 29% spike over last year’s interim dividend of $1.55 per share.

Cochlear shares are scheduled to trade ex-dividend for this upcoming payment next month on 21 March. So for anyone who wants to bag this dividend but doesn’t presently own Cochlear shares, 20 March is the last day you can buy shares with the rights to this dividend attached.

Investors wishing to receive additional Cochlear shares instead of a cash payment will be disappointed though. Cochlear is not currently running a dividend reinvestment plan (DRP). So receiving the cold hard cash is the only option.

Payday will then roll around on 15 April.

This upcoming payment is set to have a decent impact on the company’s dividend yield. At the current share price, Cochlear shares are trading on a trailing yield of 1.01%, but with this dividend factored in, the company now has a forward yield of 1.15%.

The post Everything you need to know about the record Cochlear dividend appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

Motley Fool contributor Sebastian Bowen 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 Cochlear. The Motley Fool Australia has recommended Cochlear. 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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If you’re wanting to receive the next Commonwealth Bank of Australia (ASX: CBA) dividend, then you will have to get a wriggle on.

That’s because the banking giant’s shares will soon be going ex-dividend for its interim payout.

When a share goes ex-dividend, it means the rights to the forthcoming payment are settled.

So, even if you were to buy CBA shares on that date, the dividend wouldn’t end up in your bank account. Instead, it would go to the seller of its shares, even though they no longer own them.

The CBA dividend

Last week, CBA released its half-year results and reported a 0.2% lift in operating income to $13,649 million and a 3% decline in cash net profit after tax to $5,019 million. The latter was driven by a combination of margin compression and higher operating expenses.

However, despite the falling profits, the CBA board elected to increase its interim dividend.

It declared a fully franked interim dividend of $2.15 per share, which was a 2.4% increase on last year’s payout.

This lifted its payout ratio to 72% from 68% a year earlier. The bank notes that this gives a good portion of Australia a nice income boost. It commented:

We have increased our dividend payout ratio, improving shareholder returns and benefitting more than 12 million Australians who own CBA shares either directly or through their superannuation holdings.

Ex-dividend date approaches

CBA shares will go ex-dividend for this payout on Wednesday 21 February.

This means that you need to own its shares before the close of play on Tuesday if you want to receive it.

As things stand, CBA intends to make its payment in a little over a month on Thursday 28 March, just before the Good Friday public holiday.

The post You need to act fast if you want to receive the next CBA dividend appeared first on The Motley Fool Australia.

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• Why these 3 top ASX 200 stocks grabbed the Motley Fool’s headlines this week
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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 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 S&P/ASX 200 Index (ASX: XJO) is up 0.3% during the Monday lunch hour, but this ASX 200 stock is racing ahead of those gains.

Shares in the plumbing and heating products company closed on Friday trading for $4.41. At the time of writing shares are swapping hands for $4.83, up 9.4%

Any guesses?

If you said Reliance Worldwide Corp Ltd (ASX: RWC), give yourself a virtual gold star.

ASX 200 investors are bidding up the company on the back of its half-year results for the six months ending 31 December (H1 FY 2024).

Read on for the highlights.

(Note, all figures in US dollars.)

ASX 200 stock leaps on debt reduction

• Net sales of $590 million, down 2% from H1 FY 2023, in line with guidance
• Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $125 million, down 3% year on year
• Adjusted net profit after tax (NPAT) of $68 million, up 0.3% on the prior corresponding half
• Cash flow from operations of $152 million, up 61% with net debt falling by $142 million year on year
• Interim dividend of 2.25 US cents per share unfranked, plus an on-market share buyback of $17.8 million

What else happened for Reliance Worldwide during the half?

Among the metrics that look to be sending the ASX 200 stock soaring today is the 61% year on year increase in cash flow. The company also noted its operating cash flow conversion was 121% of EBITDA, compared to 74% in H1 FY 2023. It credited the improvement to a reduction in working capital and lower inventory levels.

While Reliance Worldwide’s sales in the Americas were in line with the H1 FY 2023, sales slipped in the Asia Pacific and EMEA regions. However, investors look to be taking this in stride today as it’s in line with expectations management announced back in August.

Operating EBITDA (as opposed to adjusted EBITDA) was down 19% year on year to $113 million. This reflects the one-off costs related to the closure of its Supply Smart business in the Americas and restructuring in EMEA.

The ASX 200 stock also amended its distribution policy, while still intending to payout between 40% and 60% of annual NPAT. The new policy will see around half of the distributions delivered via dividends with the other half coming in the form of on-market share buybacks.

What did management say?

Commenting on the results sending the ASX 200 stock surging today, CEO Heath Sharp said:

We delivered sales ahead of expectations in the Americas, with new product sales underpinning our stable revenue performance. We have continued to execute strongly in rolling out SharkBite Max and PEX-a, as well as gaining increased traction with other new products such as EZ-Flo gas appliance connectors.

In Asia Pacific external sales were down 4%. While new housing starts in Australia were 15% lower, repair and remodel volumes continued to be relatively stable…

Our strong cash generation has enabled us to comfortably fund the acquisition of Holman Industries from our existing debt facilities.

What’s next for the company?

For the 2024 financial year, the ASX 200 stock expects net sales to be down by low single-digit percentage points compared to FY 2023. Reliance Worldwide said it is targeting stable operating margins and continued strong operating cash flow generation.

How has the ASX 200 stock been tracking?

It’s been a good year for Reliance Worldwide shareholders.

The ASX 200 stock has gained 36% in 12 months, not including dividends.

The post Guess which ASX 200 stock is surging 9% on robust cash generation? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 Reliance Worldwide. 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 Nuix Ltd (ASX: NXL) share price is having a very disappointing start to the week.

At one stage, the investigative analytics and intelligence software provider’s shares were down as much as 15% to $1.65.

This follows the release of the company’s half-year results this morning.

Nuix shares sink on results day

• Annualised contract value (ACV) up 17.3% to $199.6 million
• Statutory revenue up 12.3% to $98.4 million
• Statutory earnings before interest, tax, depreciation, and amortisation (EBITDA) down 17.6% to $17.2 million
• Statutory loss after tax of $4.8 million (compared to $1.3 million profit)

What happened during the half?

For the six months ended 31 December, Nuix reported a 17.3% lift in ACV to $199.6 million. This was slightly above its guidance range and driven by strength in its existing customer base. All three key regions (North America, EMEA and Asia Pacific) reported double-digit ACV growth.

Things weren’t quite as positive for its EBITDA, which fell 17.6% to $17.2 million largely because of legal costs. However, on an underlying basis, Nuix’s EBITDA was up 12.8% to $28.4 million.

For the same reasons, Nuix recorded a net loss after tax of $4.8 million.

Nuix ended the half with cash on hand of $24 million and no debt. Though, to shore things up, it has announced a $30 million multicurrency revolving credit facility from HSBC.

Management commentary

Nuix CEO, Jonathan Rubinsztein, commented:

During the half, the Nuix team has not only delivered on further momentum in top line growth, but also made significant progress on our core strategic growth initiative, Nuix Neo. We have continued to drive growth in ACV and Statutory Revenue, while remaining focused on costs, contributing to further growth in Underlying EBITDA. Commercial relationships with our customers remain strong, as evidenced by further momentum in our NDR and generally low churn.

Outlook

Failing to stop the Nuix share price from sinking today is news that the company has reaffirmed its targets for FY 2024.

This includes ~10% ACV and statutory revenue growth in constant currency, revenue growth exceeding underlying cost growth, and being underlying cash flow positive for the year.

The Nuix share price is still up 58% over the last 12 months following today’s weakness.

The post Nuix share price sinks 15% after swinging to half-year loss 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 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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