Category: Stock Market

There are a few different reasons why I like Fortescue Metals Group Limited (ASX: FMG) shares.

Fortescue is one of the world’s biggest iron ore miners along with BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO).

Fortescue is one of the larger positions in my share portfolio. However, I must acknowledge that the average purchase price for my shares is materially lower than the current Fortescue share price of $20.15.

I decided to invest in the business when the iron ore price was below US$100 per tonne. These are the three factors why I bought shares and plan to hold my investment for the long term:

Reputation for big dividends

There are two main ways for investors to benefit from shares – dividends and the rise in share prices.

As a resources business, Fortescue usually trades on a low price-to-earnings (p/e) ratio. When combined with a high dividend payout ratio, this can lead to a high dividend yield. The dividend yield can be particularly high when the relevant commodity price goes to a relatively high level.

Fortescue is benefiting from a reasonably strong iron ore price and this is translating to good cash flow and big dividends.

The dividend estimate on Commsec suggests Fortescue will pay a grossed-up dividend yield of 13.25% in FY22.

Green industry focus

Fortescue has a division called Fortescue Future Industries (FFI) which is aiming to decarbonise the iron ore miner’s operations. FFI also wants to help industries lower emissions in hard-to-abate sectors such as shipping, airplane fuel, trains, and so on.

FFI is building a portfolio of projects that will enable the business to create 15mt of green hydrogen per annum by 2030. It has entered into a memorandum of understanding with E.ON, to supply up to five million tonnes of green hydrogen by 2030. It has also established a ‘working alliance’ with Airbus to facilitate the decarbonisation of the aviation industry with green hydrogen.

I think FFI has a lot of potential if it’s able to execute on most of its goals. Trillions of dollars may be needed to be spent on decarbonisation in total in the coming years, which could benefit FFI and Fortescue.

Inflation hedge

In my opinion, some commodity businesses can prove to be an effective inflation hedge.

If there’s more money in the economic system and the same amount of commodities, it would be natural for commodity prices to go up.

Of course, commodity prices don’t perfectly track the inflation rate. Resource prices can see wild swings year to year or even quarter to quarter. Supply and demand is an important part of this.

Is Fortescue an effective inflation hedge? Time will tell. But, since the beginning of 2022, the Fortescue share price is essentially flat while the S&P 500 Index (SP: .INX) has fallen by around 20%.

Foolish takeaway

I’m not currently looking to buy more Fortescue shares, I’d prefer to buy at a cheaper price considering it’s already a decent size of my portfolio. However, I am quite optimistic about Fortescue’s long-term future with its green industrial endeavours.

The post 3 reasons why I plan to own my Fortescue shares for the long term appeared first on The Motley Fool Australia.

More reading

• How soon can Fortescue start making money from green hydrogen?
• What’s the outlook for Fortescue shares with Twiggy at the helm?
• Fortescue share price pushes higher following leadership changes
• ASX 200 midday update: BlueScope and Fortescue rise, Boral tumbles
• Why I think these are the best ASX dividend shares to buy right now

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

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Back in February, Zip Co Ltd (ASX: ZIP) announced that it would be moving to acquire its fellow ASX buy now, pay later (BNPL) share Sezzle Inc (ASX: SZL). At the time, this was the largest ever merger of two ASX BNPL shares if we don’t include Block Inc (ASX: SQ2)’s takeover of Afterpay.

But in the months following this announcement, both the Zip and Sezzle share prices have slumped. Badly.

Back in February, Zip held a capital raise to fund the Sezzle acquisition at $1.90 a share, which was a 14% discount to the Zip share price at the time. On Friday, Zip shares were going for 92 cents each after the company touched a multi-year low of 87 cents on Thursday. Likewise, Sezzle shares have fallen from over $2 in February to around 60 cents as of yesterday.

So these share price movements have caused some doubts as to whether the merger will still go ahead on the previously announced terms (or at all). Not that the companies have said anything.

Shotgun wedding: Will Zip investors pay later if it buys Sezzle now?

But one ASX expert investor is hoping that the merger doesn’t happen. According to reporting in the Australian Financial Review (AFR) this week, Andrew Brown, founder of hedge fund East 72, reckons Sezzle’s entire future is resting on the Zip acquisition, saying “I don’t see how they’re going to raise any capital, other than on the most distressed terms”.

But he’s not advocating Zip press ahead with the deal:

When you strip the balance sheet down basically in US dollars for Sezzle, they’ve got $US110 million in receivables, they’ve got $US95 million they owe the merchant interest program… They’ve got accrued expenses of $US14 million, so without Goldman and Bastion [Sezzle’s securitised funding lenders] if the merchants start wanting their money back… they’ve got a real problem…

The bigger question if you’re a Zip shareholder, which I obviously am not, is why is Larry Diamond [Zip’s CEO] effectively paying $200 million even at the much-reduced Zip share price… Because it’s a scrip swap for Sezzle, it’s not worth anything … somebody might look to buy Zip down the track, but Zip should not buy Sezzle; it should pay the fee and walk away.

So that’s pretty emphatic there. It will be interesting to see if this ASX BNPL marriage happens later this year, all of these things considered. But it’s fairly certain Mr Brown won’t be attending the wedding.

The post ‘Just horrific’: Why this fundie says Zip should abandon its Sezzle takeover appeared first on The Motley Fool Australia.

More reading

• The Zip share price is rocketing 6% today. Here’s why
• Zip just joined forces with another ASX 200 company
• Zip share price dives to yet another multi-year low
• Is the Zip share price set to hit another unhappy milestone this week?
• Why is the Zip share price down almost 25% in a month?

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 Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. 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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As an ASX bank share, National Australia Bank Ltd. (ASX: NAB) is concurrently known for being a strong dividend payer. It seems that to spiritually qualify as an ASX bank on the Australian share market, a bank needs to have a strong shareholder income policy.

This is reflected in all four of the ASX big four banks’ share prices today. All four currently have trailing, fully franked dividend yields over 4% today, with the exception of Commonwealth Bank of Australia (ASX: CBA), which is presently offering a dividend yield of 3.59%. In NAB’s case, we have a current dividend yield of 4.51%.

4.52% is objectively a pretty strong number for a dividend yield. It beats the pants off any savings account or term deposit the bank is currently offering. But many ASX income investors don’t just look at a raw dividend yield when it comes to choosing an income share. That can lead to picking a dividend trap. Thus, these investors often look to see if a company has been growing its dividend recently. After all, a growing dividend is a sign of a healthy and successful business. So has NAB been growing its dividend in recent times?

Has the NAB dividend been on the rise?

Well, it depends on what timeframe you want to use. NAB will pay its investors an interim dividend of 73 cents per share on 5 July. Its last dividend was the final dividend of 67 cents per share that shareholders got back in December.

These two dividend payments combine to give NAB shares their current yield of 4.51%. The interim dividend is indeed a healthy increase on 2021’s interim payment of 60 cents per share. It also looks pretty good against 2020’s interim dividend of 30 cents (although that was largely dictated by the pandemic back then).

However, zooming out and the comparison starts to become less rosy for NAB. 2019 saw the bank pay two dividends worth 83 cents per share each. Before that, NAB paid an annual total of $1.98 in dividends per share from 2014 to 2018.

So yes, the NAB dividend has been increasing over the past 12 months. But no, it has not been on a growth trajectory over any longer time frame. In fact, NAB’s dividends have been going backwards over the past four years or so. Something for income investors to consider today.

The post Has the NAB dividend been growing? appeared first on The Motley Fool Australia.

More reading

• 3 cheap ASX shares set to boom with higher interest rates: Wilsons
• Can ASX 200 banks really see a 15% profit jump if the cash rate hits 1%?
• Why I think NAB shares could be the smartest big four ASX bank to buy
• Is the NAB share price cheap with its recent pullback?
• This is the best ASX bank share to buy in a rising rate environment: Citi

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

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If you’re looking to strengthen your portfolio with some ASX 200 blue chips, you may want to look at ResMed Inc (ASX: RMD) shares.

Why ResMed shares?

ResMed is a global leader in the development, manufacturing, distribution, and marketing of medical devices and cloud-based software applications that diagnose, treat, and manage sleep and respiratory disorders.

These include sleep disordered breathing, chronic obstructive pulmonary disease (COPD), neuromuscular disease, and other chronic diseases.

It has been growing at a consistently solid rate for over two decades and despite battling supply chain disruptions, ResMed has continued its growth in FY 2022. It recently reported 12% increase in third-quarter revenue to US$864.5 million and a 5% lift in operating income to US$234.3 million.

What are brokers saying?

In response to the update, analysts at Citi retained their buy rating with a $35.50 price target. This implies potential upside of 25% for investors over the next 12 months.

Citi is positive on ResMed’s growth outlook and, despite the aforementioned supply issues, still expects it to win a greater market share due to a competitor product recall. It commented:

“RMD cut its additional device guidance in FY22 by $100m to $200-250m due to the difficulty in sourcing semiconductors as it attempts to fill the void left by the Philips recall (whose device sales were ~US$800m pa).

We forecast $225m in extra sales (from US$360m) in FY22 – we expect this to continue in FY23 where we assume ~US$350m (from US$315m) of extra sales. Despite the short-term impact, we continue to expect ResMed will make a permanent 10% market share gain in devices due to the Philips’ recall.”

All in all, with ResMed shares “trading at PE of ~28x FY24E, below historical avg of ~32x,” the broker feels that now is an opportune time to invest.

The post Why this broker says ResMed is an ASX 200 share to buy appeared first on The Motley Fool Australia.

More reading

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

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Last week, the BHP Group Ltd (ASX: BHP) share price pushed higher and recorded a 3% weekly gain.

This was driven largely by news that Woodside Petroleum Limited (ASX: WPL) shareholders have voted in favour of the merger with BHP’s petroleum assets.

So, with the merger now less than two weeks away from completion, BHP shareholders are on the cusp of receiving another dividend.

What is the latest BHP dividend?

The latest BHP dividend won’t be the cash payment that shareholders have been accustomed to in recent years. This time around, eligible shareholders will be receiving an in-specie dividend.

An in-specie dividend is a dividend that is paid in assets rather than cash.

In respect to the latest BHP dividend, those assets will be shares in Woodside, with shareholders set to receive one new share for every 5.534 BHP shares they hold on Thursday 25 May. Any entitlement to a fraction of a Woodside share will be rounded down to the nearest whole share.

This means that if you had 212 BHP shares, which is the equivalent of a $10,000 investment, you would receive 38 new shares in Woodside. These have a market value of $1,093.26 based on the current Woodside share price.

What’s next?

To be eligible for the next BHP dividend, investors will need to own the Big Australian’s shares before they trade ex-dividend on Wednesday 25 May. From that day onwards, the dividends will stay with the seller.

After which, eligible shareholders will receive the dividends/shares in Woodside on the afternoon of 1 June when the merger is expected to complete.

Those new shares will then commence normal trading on the ASX a day later on Thursday 2 June.

It’s also worth noting that Woodside is changing its name and ticker code next Wednesday. The new merged group will be known as Woodside Energy Group Ltd with the ticker code WDS.

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

More reading

• Why is the Woodside share price dropping 4% today?
• Why BHP, Chalice Mining, IGO, and Life360 shares are storming higher
• ASX 200 midday update: BHP, IGO, and Woolworths charge higher
• BHP share price higher following Woodside shareholder merger approval
• 5 things to watch on the ASX 200 on Friday

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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It’s been a pretty wild week for the Commonwealth Bank of Australia (ASX: CBA). The CBA share price ended up closing at $104.60 on Friday, up 0.77% for the day after some big falls on Thursday.

Perhaps news of the bank’s new digital mortgage platform has been helping to boost investor sentiment this week.

Yes, on Tuesday, CBA’s management announced the launch of ‘Unloan’, a new digital platform designed to provide “one, simple, low-cost interest rate”.

In a company press release, CBA told Australians the following:

Owner-occupiers who refinance to Unloan will pay an interest rate of 2.14% (2.06% comparison rate) and investors 2.44% (2.36% comparison rate). Digital applications take as little as ten minutes and customers receive a loyalty discount that grows by 0.01% p.a. every year, up to 30 years.

Customers looking to refinance their properties up to a value of $3 million and up to 80% of their value can start applying now.

In addition, the bank also announced a new app called ‘Kit’. Kit will be a “money app and digital information tool for kids, aimed at helping them learn about money, how to save, how to budget, and how to manage their spending”. The app is currently in pilot.

So is the CBA share price a buy now?

With all of these new products on the way, could this make the CBA share price a buy?

Well, those are really two different questions. According to an article in The Australian this week, ASX brokers like what they see coming out of CBA. The article quotes analysts at broker and investment bank Macquarie as saying the following:

While CBA’s strategy may require additional investment, we see a large proportion of investment as the cost of staying in business and hence expect banks to maintain/increase their investment spend in the medium term… CBA should be able to reduce the cost of originating a mortgage and reduce customer churn by offering a loyalty discount.

However, that wasn’t enough to stop Macquarie analysts from maintaining an “underperform” rating on CBA shares. As we covered last week, Macquarie still has a $90 share price target on CBA shares for the next 12 months. The broker reckons CBA shares don’t warrant their premium valuation compared to the other ASX banks.

Another ASX broker in Goldman Sachs is also struggling to see value in CBA shares today. It has its own “sell” rating on CBA right now, with a 12-month share price target of $89.86 a share. Goldman’s concerns over CBA shares are similar, citing a premium valuation as the most pressing concern.

At the current CBA share price, this ASX 200 bank share has a market capitalisation of $175.18 billion, with a dividend yield of almost 3.6%.

The post Is the CBA share price a buy following the bank’s digital mortgage launch? appeared first on The Motley Fool Australia.

More reading

• Is QBE considered an ASX dividend share?
• These were the worst performing ASX 200 shares last week
• Here are the 3 most traded ASX 200 shares on Friday
• Why is the Block share price leaping 9% on Friday?
• The Zip share price is rocketing 6% today. Here’s why

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 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.

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If you’re looking for dividend shares with attractive yields, then you may want to look at the ones listed below.

Here’s why analysts rate these ASX dividend shares as buys:

Bank of Queensland Limited (ASX: BOQ)

The first ASX dividend share that could be a top option is Bank of Queensland.

This regional bank has been tipped as a buy by analysts at Morgans. In fact, they “see exceptional value” in its shares at the current level. Particularly given the success of its transformation program, its above-system growth, and cost synergies from the recent ME Bank acquisition.

The broker currently has an add rating and $11.00 price target on its shares. This compares favourably to the latest Bank of Queensland share price of $7.50.

As for dividends, Morgans is forecasting fully franked dividends per share of 49 cents in FY 2022 and then 54 cents per share in FY 2023. This implies yields of 6.5% and 7.2%, respectively.

Dexus Industria REIT (ASX: DXI)

Another ASX dividend share that has been rated as a buy is Dexus Industria.

This industrial and office focused property company, formerly known as APN Industria, owns interests in office and industrial properties across the country.

Macquarie is bullish on Dexus Industria due to strong demand and its sizeable industrial development pipeline. It expects this to underpin attractive dividends in the near term.

For example, Macquarie is forecasting dividends per share of 17.3 cents in FY 2022 and 18.6 cents in FY 2023. Based on the latest Dexus Industria share price of $3.12, this will mean yields of 5.5% and 6%, respectively.

Macquarie also sees plenty of upside of the company’s shares and has an outperform rating and $3.59 price target on them.

The post Analysts name 2 ASX dividend shares to buy with juicy yields appeared first on The Motley Fool Australia.

More reading

• Could Bank of Queensland shares deliver 46% upside AND a 4.5% dividend yield in 2022?
• How does the Bank of Queensland dividend compare to the other ASX 200 banks?
• 2 high-yield ASX 200 dividend shares to fight inflation according to brokers
• How has the Bank of Queensland share price travelled since the company’s half-year results?
• Is there upside in the Bank of Queensland share price in May?

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) returned to form last week and recorded its first weekly gain of the month. The benchmark index climbed 1.1% to end the period at 7,145.6 points.

While a good number of shares rose with the market, some climbed more than most. Here’s why these were the best performers on the ASX 200 last week:

Chalice Mining Ltd (ASX: CHN)

The Chalice Mining share price was the best performer on the ASX 200 last week with a 27.5% gain. The majority of this gain came on Friday when the mineral exploration company received the final outstanding approvals to undertake low-impact exploration drilling at the Hartog-Dampier targets at the Julimar Nickel-Copper-PGE Project. These targets are located to the north of the globally significant Gonneville PGE-Ni-Cu-Co-Au deposit.

Allkem Ltd (ASX: AKE)

The Allkem share price was some way behind with a 17.6% gain over the five days. This was driven by a rebound in risk assets following recent weakness. And as lithium shares had been heavily sold off over the last four weeks, they bounced back stronger than most. For the same reason, the Pilbara Minerals Ltd (ASX: PLS) share price rose 15.4% last week.

Nickel Mines Ltd (ASX: NIC)

The Nickel Mines share price was on form and charged 12.2% higher last week. This follows news that the company’s 80%-owned Angel Nickel Project has now commenced commissioning of its fourth and final RKEF line well ahead of schedule. Nickel Mines’ Managing Director Justin Werner said: “To now have all four RKEF lines operating by mid-May, well ahead of their scheduled October delivery, is a remarkable achievement.”

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix share price wasn’t far behind with a 12% gain over the five days. This appears to have been driven by a positive reaction to the biopharmaceutical company’s annual general meeting presentation. At the event, management said the launch of its Illuccix product in the U.S. has “exceeded our expectations and we are seeing robust demand for the product.”

The post These were the best performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

• 2 stellar ASX 200 growth shares analysts rate as buys
• 3 ASX mining shares that went gangbusters on Friday
• Here are the 3 most traded ASX 200 shares on Friday
• Why BHP, Chalice Mining, IGO, and Life360 shares are storming higher
• Here’s why the Chalice Mining share price is jumping 15% today

Motley Fool contributor James Mickleboro has positions in Orocobre Limited and TELIXPHARM DEF SET. 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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Does the QBE Insurance Group Ltd (ASX: QBE) share price qualify as an ASX dividend share? Good question.

QBE is an ASX 200 financials share that has a long history as an Australian company. It was listed on the ASX back in 1973 but had existed in some form or another for almost 100 years prior to that.

At Friday’s close, QBE shares were trading at $12.47 each, down 0.16% for the day. That’s towards the upper end of the company’s 52-week range of $10 and $12.88 but still well below the pre-COVID highs of more than $15 that we saw back in early 2020.

But let’s talk dividends. So is QBE an ASX dividend share?

Is QBE Insurance an ASX dividend income share?

Well, the answer is a resounding yes.

QBE is an ASX share that has been paying its investors dividends for more than two decades. Saying that, its more recent dividends have been quite a bit lower than what QBE has historically forked out.

The company’s last dividend was its April final payout. This was a payment of 19 cents per share, partially franked at 10%, that investors received on 12 April.

Before that, investors received QBE’s interim dividend of 11 cents per share last September. The company skipped its final dividend payment last year but forked out a total of 31 cents per share in 2020.

But back in 2019, investors were seeing a total of 53 cents per share in dividends from QBE. In 2018, the company doled out a total of 26 cents per share, while 2017 resulted in a total of 55 cents.

So QBE Insurance is definitely an ASX dividend share, albeit one with a rather volatile payment history.

At the current QBE share price, this ASX 200 financials share has a trailing dividend yield of 2.40%, along with a market capitalisation of $18.47 billion.

The post Is QBE considered an ASX dividend share? appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• Here are the 3 most traded ASX 200 shares on Friday
• Why is the Block share price leaping 9% on Friday?
• The Zip share price is rocketing 6% today. Here’s why
• ASX 200 midday update: BHP, IGO, and Woolworths charge higher

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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Thanks to a strong finish to the week, the S&P/ASX 200 Index (ASX: XJO) recorded its first weekly gain of the month. The benchmark index rose 1.1% to end the period at 7,145.6 points.

Unfortunately, not all shares were able to climb with the market. Here’s why these were the worst performers on the ASX 200 last week:

Metcash Limited (ASX: MTS)

The Metcash share price was the worst performer on the ASX 200 last week with a 9.5% decline. This was despite the wholesale distributor announcing the renewal of a major contract with Drakes Supermarkets in Queensland. Sales by Metcash’s Food pillar to Drakes Queensland stores in FY 2021 were ~$220 million. Concerns over consumer spending due to inflation and high energy prices may have offset this news.

Boral Limited (ASX: BLD)

The Boral share price wasn’t far behind with a decline of 9.45% over the five days. Investors were selling this building products company’s shares after it revealed that its earnings have taken a hit from inclement weather and higher energy prices. This means that Boral will fall short of its underlying earnings before interest and tax (EBIT) guidance of $145 million and $155 million.

Nufarm Ltd (ASX: NUF)

The Nufarm share price was out of form and dropped 9.1% last week. This was driven by the release of the agricultural chemicals company’s half-year results. For the six months ended 31 March, Nufarm reported a 41% increase in underlying EBITDA to $330 million. This was in the middle of the company’s guidance range of $320 million to $340 million. It appears that some investors may have been expecting Nufarm to hit the top end of its guidance range.

Sims Ltd (ASX: SGM)

The Sims share price was a poor performer with an 8.3% decline over the period. This appears to have been driven by a broker note out of Goldman Sachs. Its analysts downgraded the scrap metal company’s shares to a neutral rating with a $21.30 price target. Goldman made the move on valuation grounds and prefers BlueScope Steel Limited (ASX: BSL) at current levels.

The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most traded ASX 200 shares on Friday
• Why Australian Vanadium, John Lyng, Nufarm, and Unibail-Rodamco-Westfield are dropping
• Why is the Block share price leaping 9% on Friday?
• These ASX All Ordinaries shares have the greatest margin risks from surging inflation: UBS
• The Zip share price is rocketing 6% today. Here’s why

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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