Category: Stock Market

The Kogan.com Ltd (ASX: KGN) share price is having a tough day on the market today.

Kogan shares are currently trading at $2.92, a 2.5% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 0.65% in late trade today.

However, that dip is nothing compared to the 7.3% drop Kogan shares experienced this morning.

So what is going on with the Kogan share price?

What’s going on with Kogan?

Kogan shares are falling today, but they are not alone in the sector. At the time of writing, online retailer Temple & Webster Group Ltd (ASX: TPW) is down 7.38%, while Redbubble Ltd (ASX: RBL) shares are falling 1.09%. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is sliding 0.71%.

Despite positive retail data from the ABS, United States consumer confidence data appears to have weighed on ASX shares.

In June, US consumer confidence fell to a 16-month low, Reuters reported. The consumer confidence index dropped 4.5 points to 98.7 points.

Independent Advisor Alliance chief investment officer Chris Zaccarelli told the publication:

Right now we are at an inflection point in the economy, where actual spending and economic activity is still positive, however, consumer confidence and financial conditions, especially interest rates, are indicating a slowdown ahead.

However, retail data released by the Australian Bureau of Statistics (ABS) today paints a better picture. Total retail turnover rose 0.9% in May 2022 compared to the previous month, the figures show.

This was a 10.4% boost compared to May 2021. Household retailing rose 0.4%, department store spending jumped 5.1%, food retailing leapt 0.6%, and other retailing increased 1.5%. However, clothing, footwear and personal accessory retailing declined 1.4%.

Share price snapshot

Kogan shares have dived more than 77% over the past year. They have descended 67% year to date.

For perspective, the benchmark ASX 200 index has lost 8% in a year.

Kogan has a market capitalisation of around $312 million, based on the current share price.

The post Kogan shares slide 7% nearing a 52-week low appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why is the Kogan share price jumping 12%?
• Why is the Kogan share price soaring 6% on Monday?
• These are the 10 most shorted ASX shares
• Why the Adore Beauty share price is jumping but Kogan is falling
• This top broker thinks the Kogan share price has 35% upside

Motley Fool contributor Monica O’Shea 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 Kogan.com ltd. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. 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/3yDcVKJ

The Breville Group Ltd (ASX: BRG) share price has lost more than 40% of its value in 2020 so far. That compares with a 12% loss in the benchmark S&P/ASX 200 Index (ASX: XJO).

But over the past five days, the market has picked up. The ASX 200 is up 2.76% and Breville is up 5.02%. Which begs the question as to whether a turnaround is afoot for this iconic white goods business.

No one — not even the experts — can predict the top or bottom of a market cycle. No doubt, we’re in a market correction now, and when it will end is anyone’s guess.

At a minimum, you’d have to think that people will need to get comfortable with rising inflation and interest rates before the market settles.

But what we do know is that many high-quality, established businesses are trading on the ASX at substantial discounts today. And at a 40% loss, you’d have to count Breville shares among them.

What the experts think…

As my Fool colleague James reported last week, Morgan Stanley has retained its overweight rating on Breville but has cut its share price target to $25.

Morgans has an add rating and a share price target of $32. In a recent note, the broker said:

In our opinion, BRG deserves to trade at a premium multiple. It is positioned to deliver double-digit sales growth consistently over the next few years as it grows its market share, notably in geographies into which it has recently launched. Our rating remains ADD.

Goldman is also positive on the Breville share price. The broker names it among eight other ASX 200 shares that are trading “at significant discounts” today.

Breville is 90 years old but still growing

Breville has big international expansion plans underway, as outlined in a recent investor presentation.

Breville reckons it has “a long way to go” with “large, untapped opportunity” worldwide. In FY22, Breville opened in Norway, Finland, Denmark, and Sweden. It was due to open in South Korea this month and is opening in Poland next month.

After that, the business is headed to Germany, Austria, Switzerland, Spain, Portugal, France, Mexico, and Italy. Breville’s 100% acquisition of Italian coffee group LELIT is expected on Friday. Breville is paying 113 million euros for the company.

Maybe not out of the bargain bin yet?

Today isn’t turning out to be such a good day for the Breville share price. It’s down 4.21% to $18.43 while the ASX 200 is down 0.74% at the time of writing. So, perhaps it remains in the bargain bin for now.

The post Is the Breville share price out of the bargain bin? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 9 ASX 200 shares now trading at ‘significant discounts’: broker
• Experts have named these top growth shares as buys
• Top brokers name 3 ASX shares to buy today
• Top brokers name 3 ASX shares to buy next week
• Down 20% in a month, is the Breville share price a bargain buy or a falling knife?

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. 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/xOpjWUb

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a sizeable decline. At the time of writing, the benchmark index is down 0.8% to 6,709.5 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:

Carsales.Com Ltd (ASX: CAR)

The Carsales share price is down 12% to $18.25. This has been driven by the completion of the auto listings company’s institutional entitlement offer. Carsales has raised approximately $842 million at a 14.5% discount of $17.75 per new share. The proceeds from this and its retail entitlement offer will be used to fund the acquisition of the remaining 51% of Trader Interactive.

Electro Optic Systems Hldg Ltd (ASX: EOS)

The EOS share price has crashed 27% to $1.12. This afternoon the struggling defence and space systems company announced that it has received binding commitments for an institutional placement to raise $15 million. These funds will be raised at a 22% discount of $1.20 per new share. EOS also revealed that its first half performance has been impacted by two contract delays. As a result, it expects to post a massive $45 million EBIT loss for the half.

Imugene Limited (ASX: IMU)

The Imugene share price is down 14% to 18.5 cents. This immuno-oncology company’s shares have fallen heavily over the last two trading sessions. This means that its shares have given back the majority of the gains recorded on Monday following a positive study update.

Tyro Payments Ltd (ASX: TYR)

The Tyro share price has sunk 17% to 65 cents. Investors have been selling this payments company’s shares after it announced the surprise exit of its managing director and CEO, Robbie Cooke. After five years with the company, Cooke is leaving to become the new leader of casino and resorts operator Star Entertainment Group Ltd (ASX: SGR).

The post Why Carsales, EOS, Imugene, and Tyro shares are sinking today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here’s why ASX 200 tech shares are taking a beating on Wednesday
• These 3 ASX All Ordinaries shares are hitting new 52-week lows today
• ASX 200 midday update: Carsales sinks, Liontown jumps on Ford agreements
• Tyro share price sinks 20% to new record low, what’s going on?
• Why is the Carsales share price crashing 15% lower 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 Electro Optic Systems Holdings Limited and Tyro Payments. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited, Tyro Payments, and carsales.com Limited. 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/fHnQ0x1

The earnings downgrade cycle may only just be starting and this ASX 200 sector is the latest to get the chop from a leading broker.

While big hikes in interest rates and recession fears have roiled the S&P/ASX 200 Index (ASX: XJO), ASX real estate shares are likely to feel an earnings squeeze over the coming months, according to Morgan Stanley.

Defensive qualities won’t save these ASX 200 shares from downgrades

Some might be surprised by the forecast. After all, real estate is meant to be one of the safer places to park capital when growth slows and inflation rises.

This is because their earnings tend to be protected by relatively long leases and rents often have an inflation adjustment mechanism.

But these aren’t enough to offset the rising cost of finance for several ASX 200 real estate shares, according to Morgan Stanley.

Financial de-engineering

ASX 200 real estate shares use financial leverage to maximise returns. This entails the creative use of debt and hedging contracts.

Their ability to generate returns and dividends for shareholders is getting constrained. The cost of three-year base rate hedges have jumped to an average of around 3% since March 2022. Morgan Stanley noted this used to cost 0.75% in the prior 12 months.

Moreover, the floating base rate, or Bank Bill Swap Rate (BBSW), currently stands around 1.8%. This reference rate was 0.1% in the preceding two years.

While many ASX 200 real estate shares have locked in their debt for the next six to 12 months, this only covers around 60% to 70% of their borrowings.

Further, rates are expected to stay elevated for the medium to longer term. This means these companies could face a refinancing headache over the coming year.

Another downgrade headwind for these ASX 200 shares

If this isn’t enough to rattle the sector, cap rates are likely to rise, Morgan Stanley warned. Property values drop as cap rates rise, and vice versa.

The real estate investment trust (REIT) cap rate spread above the 10-year Australian government bond yield is now circa 120 basis points. That’s the tightest in the last decade.

As a result of these headwinds, Morgan Stanley downgraded its recommendations on GPT Group (ASX: GPT) and National Storage REIT (ASX: NSR) to “underperform”.

The GPT share price is trading 4.68% lower at $4.375 while the National Storage share price is down 5.6% to $2.19 at the time of writing.

Other ASX real estate shares in the firing line

These aren’t the only real estate shares that got a ratings cut. The broker also downgraded Charter Hall Long WALE REIT (ASX: CLW), Healthco Healthcare and Wellness Reit (ASX: HCW), and Centuria Industrial Reit (ASX: CIP) to “equal-weight”. The three companies have shed 6.9%, 7.82%, and 6.11% respectively at the time of writing.

Morgan Stanley explained:

These five stocks have endured the largest downward EPS [earnings per share] adjustments in our modelling, largely because of their low existing cost of debt, and also relatively low/short rate hedge profile.

The post This is the latest ASX 200 sector to be hit by downgrades appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• In the green: Why the NAB share price is rising on Wednesday
• Here are 3 ASX financial shares going ex-dividend this week
• 3 ASX financial shares going ex-dividend today
• How did the Coles share price stay positive in June while the ASX 200 slumped?

Motley Fool contributor Brendon Lau 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/TCiSvgW

S&P/ASX 200 Index (ASX: XJO) tech shares are feeling the heat today.

While the ASX 200 is down 1.1% in late afternoon trading, technology stocks are broadly faring worse.

A look at the S&P/ASX All Technology Index (ASX: XTX), which contains some smaller companies outside of ASX 200 tech shares, reveals the index is down 3.7%.

Top ASX 200 tech shares sliding today

Today’s selling action sees cloud accounting services provider Xero Limited (ASX: XRO) down 5.6% to $77.98 per share.

Global online real estate advertising company REA Group Limited (ASX: REA) is trailing the benchmark too. REA shares are down 2.8% to $111.83.

And payment services provide Block Inc (ASX: SQ2) is following a similar path on the ASX today as its NYSE entity did yesterday (overnight Aussie time). The buy now, pay later (BNPL) giant, which acquired Afterpay back in January, closed down 5.5% in the US markets. It’s currently down 6.5% on the ASX, trading for $94.05 per share.

Carsales.com Ltd (ASX: CAR) is putting in the worst performance among the ASX 200 tech shares today. Shares in the online vehicle and boat classified company are down 12.3% to $18.20 per share.

Carsales looks to be under specific selling pressure following this morning’s announcement that it had successfully raised some $842 million for $17.75 per share. That’s a sharp discount from yesterday’s closing price of $20.76 per share.

Why is the tech sector under pressure?

ASX 200 tech shares are under selling pressure today following some heavy selling in US markets. As investors unloaded US tech stocks, the Nasdaq closed the day down 3%.

Investors remain jittery about the potential of a US recession, as inflation continues to run hot and global central banks join the Federal Reserve in hiking interest rates.

Last month the Fed hiked the official US benchmark rate by an outsized 0.75%. And investors are bracing for the potential of a similar rate increase from the influential central bank in July.

What next for ASX 200 tech shares?

Investor jitters have ramped up volatility in the global stock markets, with tech shares seeing some of the biggest price swings. And analysts are predicting there’ll be more big price moves ahead.

According to Jason Draho, head of asset allocation for the Americas at UBS Global Wealth Management (quoted by Bloomberg):

The one thing that we can say with conviction is that high market volatility is likely to persist until there’s clear evidence that inflation is declining and the Fed pivots towards a less hawkish stance, taking the off-ramp away from the recession destination.

The post Here’s why ASX 200 tech shares are taking a beating on Wednesday appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Down 6%, what is dragging the Block share price lower on Wednesday?
• Why is the Xero share price slipping 6% today?
• ASX 200 midday update: Carsales sinks, Liontown jumps on Ford agreements
• Why is the Carsales share price crashing 15% lower today?
• 5 things to watch on the ASX 200 on Wednesday

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 Block, Inc. and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc. and Xero. The Motley Fool Australia has recommended REA Group Limited and carsales.com Limited. 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/l0ihJtI

The Altium Ltd (ASX: ALU) share price is tumbling today despite no announcements from the electronic design software company.

This comes after its shares staged a mini-rebound this week, climbing as high as $28.88.

However, Altium shares have since retraced to fall 4.96% to $27.19 in late afternoon trade.

What’s driving Altium shares lower?

A broader fall across the Aussie share market is putting selling pressure on the Altium share price.

Overnight, the heavily weighted Nasdaq 100 Technology Index (NDXT) dropped 3.46% as investors became more pessimistic about the outlook for the economy.

United States consumer confidence plummeted to a 16-month low as the Federal Reserve tries to curb soaring inflation.

This negative sentiment is impacting the S&P/ASX All Technology Index (ASX: XTX), which is down 3.68% to 1,916.6 points today at the time of writing.

In addition, the drumbeat of a possible recession is again sparking talk from a number of economists.

According to the New York Times, a perfect storm of decade-high inflation, aggressive rate hikes, and weakened economic activity is causing concern.

Morgan Stanley believes the United States has a 30% chance of slipping into a recession within the next 12 months.

Another prominent investment house, Goldman Sachs, also thinks the recession odds are at 30% by 2023.

If this does occur, Australia won’t be spared by any means, as its economy is closely linked with the United States. 

It’s worth noting that Altium’s revenue base is predominately based in the United States, followed by Europe and then China.

The company remains debt-free and reported a net cash balance of US$195 million as of 31 December.

Altium share price snapshot

After reaching an all-time high of $45.30 on 31 December 2021, the Altium share price has continued to decline in 2022.

For the year-to-date period, its shares are down 40% on the back of extreme volatility mixed with negative investor sentiment.

For context, the benchmark Aussie tech index has lost 35% over the same timeframe.

Based on today’s price, Altium presides a market capitalisation of approximately $3.68 billion.

The post Why is the Altium share price down 5% today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 2 beaten down ASX shares named as buys by experts
• Could Altium shares benefit from the global chip shortage?
• Why no news could be good news for the Altium share price
• 5 things to watch on the ASX 200 on Tuesday
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Aaron Teboneras has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium and Goldman Sachs. 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/NQ8SGt7

The Temple & Webster Group Ltd (ASX: TPW) share price has slipped around 8% into the red on Wednesday.

At the time of writing, the company’s shares are trading at $3.37 apiece, a shade above their 52-week closing low on 17 June. Earlier in the session, the share price hit an intraday low of $3.19, a fall of almost 13%.

Let’s see what’s going on with the online homewares and furniture retailer today.

What’s affecting Temple and Webster shares?

Investors have sold Temple and Webster shares down today on no news. However, economic data out of the US points to a softening economy and weaker consumer sentiment.

The US consumer confidence index fell to a 16-month low, as ongoing concern about high inflation has consumers worried about the prospect of a recession, Reuters reports.

Similarly, the US goods trade deficit fell 2.2% to $104 billion in May. During the month, exports increased 1.2% whilst imports dropped 10 basis points.

In addition, wholesale inventories rose by 2% as US retail shares climbed higher throughout May, Reuters notes.

The US consumer confidence index, in blue, is plotted alongside the Australia consumer confidence index on the chart below.

The weakness in US consumer sentiment seems to have spooked investors in ASX retail shares during Wednesday’s session.

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has slipped almost 1% today.

Meanwhile, the S&P/ASX 300 Retailing Index is down 2%, paving the way for Temple and Webster shares to walk lower.

It was just last week when the company had spiked 11% into the green as investors went bottom fishing in the retail space in search of cheap shares with strong fundamentals.

Plus, the latest Australian retail data has shown we are still spending up, both online and in-store.

Retail trade rose 0.9% month on month and 10.4% year over year in May, according to Australian Bureau of Statistics (ABS) data.

Alas, Temple and Webster shares continue their downward descent today, extending losses to almost 70% over the last 12 months.

The post Temple and Webster shares tumble 8% amid bleak US consumer confidence appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Where to find value in growth? Here are 2 ASX shares I’d buy in July
• Why is the Temple and Webster share price surging 11% higher today?
• Why is the Temple & Webster share price surging 11% on Monday?
• Why the Adore Beauty share price is jumping but Kogan is falling
• Experts think these 2 ASX shares have more than 100% upside after the plunge

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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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/uAPwSe5

The S&P/ASX 200 Index (ASX: XJO) is giving investors a hump-day slump so far this Wednesday. At the time of writing, the ASX 200 has retreated by a chunky 0.8% and has slipped back to just above 6,700 points.

But let’s not dwell too long on that, so instead, it’s a good time to have a look at the ASX 200 shares that are currently topping the market’s share volume charts today, according to investing.com.

The 3 most traded ASX 200 shares by volume this Wednesday

Pilbara Minerals Ltd (ASX: PLS)

ASX 200 lithium stock Pilbara is our first share to take a gander at this Wednesday. So far today, a notable 17.13 million Pilbara shares have been traded on the markets. This volume may have been helped by the production update Pilbara delivered this morning.

The company reported a significant boost in lithium production from its Pilgangoora Project in Western Australia. Even so, this is not enough to stop a slide in Pilbara shares today it seems. The company is presently down by 1.26% at $2.36 a share.

Perhaps it is a combination of these two factors that have resulted in so many shares trading.

Lake Resources N.L. (ASX: LKE)

Another ASX 200 lithium stock is next up with Lake Resources. A sizeable 18.34 million Lake Resources shares have changed hands as it currently stands. Unlike Pilbara, there hasn’t been any news out of Lake Resources today.

However, the company’s shares have copped a hammering so far. The Lake Resources share price is currently down by a nasty 4.58% at 79 cents. This drop has probably been the cause of the elevated volumes we are seeing.

Liontown Resources Limited (ASX: LTR)

Our final and most traded share of the day so far goes to yet another ASX 200 lithium stock in Liontown Resources. At the time of writing, a whopping 33.62 million Liontown shares have bounced around the share market.

Unlike the other two shares we’ve discussed though, Liontown is on fire today, rising by more than 5.3% at $1.12, after going as high as $1.25 earlier this morning. It seems investors have been buoyed by an offtake agreement with the global car giant Ford that we went through earlier today. This announcement and share price rise are almost certainly behind the high volumes we are witnessing.

The post Here are the 3 most heavily traded ASX 200 shares on Wednesday appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Liontown, Metcash, Star, and Weebit Nano shares are charging higher
• In the green: Why the NAB share price is rising on Wednesday
• Here are 3 ASX financial shares going ex-dividend this week
• 3 ASX All Ords shares dodging selling pressure on Wednesday
• How did the Coles share price stay positive in June while the ASX 200 slumped?

Motley Fool contributor Sebastian Bowen has positions in Ford. 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/y5YplA7

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has rebounded strongly from intraday lows but remains in the red. At the time of writing, the benchmark index is down 0.6% to 6,720.9 points.

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

Liontown Resources Limited (ASX: LTR)

The Liontown share price is up 4% to $1.11. This morning this lithium developer announced offtake and funding agreements with auto giant Ford. In light of these developments, the Liontown board has given its approval to the development of the Kathleen Valley Lithium Project.

Metcash Limited (ASX: MTS)

The Metcash share price is up almost 3% to $4.30. This may have been driven by solid Australian retail sales data. In addition, this week a number of brokers responded positively to the company’s full year results release. UBS, for example, has put a buy rating and $5.00 price target on the company’s shares.

Star Entertainment Group Ltd (ASX: SGR)

The Star share price is up 3% to $2.79. This morning the casino and resorts operator named its new CEO. According to the release, Robbie Cooke will join the company after serving his notice period at payments company Tyro Payments Ltd (ASX: TYR). Prior to leading Tyro, Cooke was in charge of the lotteries, wagering, and gaming operations for Tatts Group.

Weebit Nano Ltd (ASX: WBT)

The Weebit Nano share price is up 6.5% to $2.29. This morning the semiconductor company announced that it has released its demonstration chips to SkyWater’s production fab. Management believes that this marks a significant milestone towards commercialisation into the semiconductor market. It also revealed that it is in discussions with early-adopter customers looking to leverage its faster memory technology to increase their competitiveness in the market.

The post Why Liontown, Metcash, Star, and Weebit Nano shares are charging higher appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• 3 ASX All Ords shares dodging selling pressure on Wednesday
• Why is the Weebit Nano share price charging 5% higher today?
• ASX 200 midday update: Carsales sinks, Liontown jumps on Ford agreements
• Liontown share price jumps 17% following ‘momentous milestone’

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 Tyro Payments. The Motley Fool Australia has recommended Tyro Payments. 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/FyniZ6l

With earnings season just over a month away, some investors might be considering which ASX dividend shares to buy or load up on following recent share price weakness.

ASX 200 mining shares have been major dividend payers in recent years. The big three are BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Limited (ASX: FMG).

For investors wanting to cash in on the commodities boom (and the profits made by the big miners), there’s still time to open a position or add to existing holdings before the next round of dividends.

BHP will release its full-year results and declare its final dividend payment on 16 August. Fortescue will do it on 29 August.

Rio reports on a different cycle. It will present its half-year results and declare its interim dividend on 27 July. It doesn’t report its full-year results for FY22 until February 2023.

Here are some predictions from a few top brokers on the dividend yields likely to be paid out for FY22 by the big ASX 200 mining shares.

The BHP dividend for FY22

‘The Big Australian’ has long been a stalwart stock for retiree investors. BHP’s usually generous and reliable dividends have delivered a solid annual income to retirees and other investors for decades.

My Fool colleague James reported new predictions for the FY22 BHP dividend last week.

Goldman Sachs is forecasting a US$3.50 (AU$5.07) per share fully-franked dividend in FY22. Based on the current BHP share price of $42.64 and the currency valuation, that’s a grossed-up yield of 17%.

Yep, no kidding.

Macquarie is on the same page as Goldman. In May, we reported that Macquarie expects BHP to pay a grossed-up dividend yield of 16.6% in FY22. At that time, BHP was trading at almost the same price as it is today.

The Rio Tinto dividend for FY22

James also reported this week that Goldman Sachs is tipping big dividends from Rio Tinto.

The broker is expecting an FY22 dividend of US$8.70 (AU$12.60) per share with 100% franking. Based on the Rio Tinto share price of $106.23 at the time of writing, that’s a grossed-up dividend yield of 17%.

Macquarie’s estimates are close at 16.3% — but remember, that was in May when Rio was trading about $4.50 higher. Either way, an impressive yield.

The Fortescue dividend for FY22

Macquarie forecasts a grossed-up dividend yield of 14% in FY22 from Fortescue. On the day we reported this prediction, the Fortescue share price closed at $19.92. Today, it’s lower at $18.35.

Weaker ASX 200 mining share prices mean boosted yields

June hasn’t been a great month for the S&P/ASX 200 Index (ASX: XJO). It’s down 7.3% since the close on 31 May. During this time, the S&P/ASX 200 Resources Index (ASX: XJR) has also dipped 7.8%.

When share prices fall, dividend yields go up. That’s because the dividend yield is expressed as a percentage of the share price.

While you have to be mindful of value traps, short-term drops in share prices due to general negative market sentiment can present a great opportunity. You can buy the dip and snap up reliable dividend-paying ASX shares for a lower price — and a higher yield — than usual.

During June, the BHP share price has dipped 4.5% and the Rio Tinto share price has dropped 7.2%.

The Fortescue share price has also fallen by X%.

The post Which ASX 200 mining share offers the best dividend yield for FY22? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Own BHP shares? Here’s how the ASX 200 miner plans to slash emissions
• How does the Fortescue dividend compare with its peers over the last 5 years?
• Why the BHP share price looks poised for a short-term boost: expert
• Here’s the Rio Tinto dividend forecast through to 2024
• Is the Fortescue share price really the cheapest ASX 200 materials share on the market?

Motley Fool contributor Bronwyn Allen has positions in BHP Billiton Limited, Fortescue Metals Group Limited, and Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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