Category: Stock Market

The Lynas Rare Earths Ltd (ASX: LYC) share price is heading south today despite no new announcements from the company.

At the time of writing, the rare earths producer’s shares are down 4.37% to $8.98.

In context, the S&P/ASX 200 Materials (ASX: XMJ) sector is one of the best performers on the ASX. The index which contains 39 companies that involve mining, forest products and construction materials is up 1.57% to 19,426 points.

What’s driving Lynas shares to the ground lately?

Following the recent fall in Neodymium-Praseodymium (NdPr) prices, it appears investors are seeking to offload Lynas shares on Tuesday.

The company produces NdPr which is a magnetic rare earth alloy used in many modern technologies.

Since the beginning of March, the price of NdPr has been on a trending decline. In fact, in the past month, the commodity has lost more than 20% in value.

Lynas is considered as the world’s second largest producer of NdPr, behind China which accounts for 60% of the global production of rare earths.

These deposits comprise a group of 17 metals that are critical to the manufacturing of many electronic products. This includes mobile smartphones, electric vehicles, aircraft engines, wind turbines, as well as military equipment.

While the NdPr price is cooling off for now, it’s important to remember that Western countries are trying to suppress China’s dominance in the sector.

If political tensions between the West and the Asian giant rise, this could have a profound impact on crucial products.

Lynas is seeking to disrupt China’s supply of rare earths and become a vital company for advanced economies.

However, for this to happen, the company will need to increase production output significantly.

Lynas share price review

Over the past 12 months, the Lynas share price has rocketed close to 40% following positive investor sentiment.

Although, since the start of the year, its shares have recorded wild swings of more than 20% in either direction.

The company’s shares are currently down 12% in 2022.

Lynas has a price-to-earnings (P/E) ratio of 29.28 and commands a market capitalisation of roughly $8.06 billion.

The post What’s going on with the Lynas share price today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: AMP asset sale talks, Syrah rockets
• Why Adbri, Eroad, Lynas, and Perpetual shares are tumbling
• Should you buy Iluka or Lynas shares for rare earths exposure?
• Lynas share price lifts amid record quarterly result
• The Lynas share price has rocketed 50% in six months. Can it keep rising?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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While it hasn’t been immune to the big reset in Aussie markets, the cannabis sector has certainly remained buoyant this year.

Whilst most sectors have seen last year’s gains evaporate in 2022 so far, ASX cannabis shares appear to be flowering along nicely, with several names outstripping peers in adjacent markets.

Here are three standouts from the bunch.

Emyria Ltd (ASX: EMD)

Emyria has been busy these past few months – very busy. In February, the biotech advised it had expanded its proprietary MDMA analogue library with the University of Western Australia.

The following month, Emyria announced the launch of its “second highly bioavailable, ultra-pure CBD capsule, EMD-RX7”.

According to the company, “EMD-RX7 demonstrates more than 4 times the bioavailability (a measure of the amount of the drug reaching the bloodstream) compared to the only registered CBD oil – Epidyolex – in a recent pharmacokinetic animal study meaning lower doses may be required for clinical results.”

Last week, it provided more colour on its first ultra-pure CBD medicine, EMD–RX5. It said that patient dosing for a phase one clinical trial was completed and that preparations had been made for phase three pivotal trials as well.

At the time of writing, the Emyria share price is trading up 3.23% on the day at 32 cents. That takes its gains to 60% over the last 12 months.

Cronos Australia Ltd (ASX: CAU)

Shares in Cronos Australia have remained buoyant these past 12 months with a near 118% return. Shares are also up 52% this year to date to now trade at 30 cents.

In recent times, the big move for this cannabis player was its merger with CDA Health Pty Ltd back in December, placing the latter as a wholly-owned subsidiary of Cronos.

CEO Rodney Cocks said the merger will enable Cronos to “take the company to the next level of growth”.

In its most recent earnings release, Cronos printed cash receipts of $28.5 million and was net cash flow positive from operations (CFFO) with $9 million in CFFO for HY FY22.

It also mentioned that “[m]edicinal cannabis unit sales for the first half of FY2022 exceed unit sales for all of FY2021”.

Incannex Healthcare Ltd (ASX: IHL)

Shares in Incannex have also held returns over the last year, although have lost some of those gains in March. After some volatility, shares now rest at 46 cents apiece, after plunging from a high of 73 cents in March.

Investors had a tough time digesting the company’s news it executed a term sheet to acquire APIRx Pharmaceutical USA, LLC.

The price was US$93 million and Incanncex mentioned that it is budgeting $5-$10 million on product expenditure for APIRx in the first year of operation.

As TMF reported at the time, “the company claim[ed] it now has an expanded total addressable market (TAM) of more than US$400 billion annually.”

Since the announcement, shares have slipped hard and are down 31% in the past month of trade, but are up 77% in the last year.

The post How have ASX cannabis shares been performing so far in 2022? appeared first on The Motley Fool Australia.

More reading

• Incannex (ASX:IHL) share price slips on acquisition news
• Here’s why the Incannex (ASX:IHL) share price is on ice today
• The Incannex (ASX:IHX) share price is up a whopping 50% in a week. What’s the deal?

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 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 Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Since hitting its peak in November 2021, Netflix‘s (NASDAQ: NFLX) stock has tumbled relentlessly, losing half its value. The streaming video pioneer added fuel to the sell-off fire when it guided for much lower subscriber growth in the 2022 first quarter, suggesting that its pandemic-related growth spurt was well and truly over.

This wouldn’t be the first time Netflix’s management erred on the side of conservatism, and a growing number of analysts are suggesting that the stock sell-off has gone too far. In fact, recent analysis suggests investors could be in for a shocker when the streaming leader reports its first-quarter results after the market close on Tuesday, April 19. 

One number to rule them all

Investors have long obsessed over Netflix’s subscriber growth as the proxy for its ongoing opportunity. That’s why the stock sold off in January when management forecast just 2.5 million new subscribers for the first quarter, a significant decline from the 8.28 million it delivered in the fourth quarter. It’s important to remember that historically, the first quarter is seasonally slower for Netflix, so management’s lower guidance makes sense.

Since its peak in November, Netflix shares have slumped more than 50%. That said, a number of Wall Street analysts are convinced that its subscriber growth will easily outstrip estimates, which could lead to a significant recovery for the floundering stock. 

Analysts’ consensus estimates are currently calling for Netflix to increase its global subscriber base by roughly 2.8 million — ahead of the company’s guidance — but some on Wall Street are expecting even more robust growth. Wells Fargo analyst Steven Cahall recently raised his subscriber forecast from 2.5 million to 2.9 million, citing the firm’s analysis of monthly active users (MAUs). Guggenheim analyst Michael Morris is even more bullish, calling for 3 million net new subs, citing third-party Apptopia download data. 

The wild card

There is a wild card in the deck in terms of Netflix’s subscriber numbers. The company announced early last month that it had suspended service in Russia, in response to the country’s invasion of Ukraine. That followed earlier moves in which the streaming company refused to broadcast Russian state-controlled television channels and suspended production of all of its Russian-language original programming. 

Netflix has never reported exactly how many subscribers it had in Russia, though most analysts estimate the number between 1 million and 2 million, and have included those as reductions in their quarterly estimates.

A quick review of Netflix’s forecasts suggests that more often than not, the company beats its subscriber growth estimates, and given its tendency of being conservative in its guidance, that also makes perfect sense.

Netflix stock is currently trading at just 23 times 2023 earnings estimates, its lowest valuation in nearly a decade. This suggests that the selling may have gone a bit too far, giving Netflix the potential for an earnings surprise when the company reports results on Tuesday, April 19, after the market close. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Netflix investors could be in for a shocker this week appeared first on The Motley Fool Australia.

More reading

• Why Netflix could be a buy in the coming weeks
• 3 reasons to buy Netflix, and 1 reason to sell

Danny Vena owns Netflix. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Netflix. The Motley Fool Australia has recommended Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Shares in Northern Star Resources Ltd (ASX: NST) are rangebound today and now trade 35 basis points higher at $11.48 apiece.

After surging hard in April, the Northern Star share price has thrust from a low of $10.15 to rest just shy of 52-week highs.

As the price of gold manages to curl upwards, Northern Star has seen its share price rocket north in quite a synchronised fashion.

This relationship has clipped a 30% gain for the Northern Star share price in the past 3 months of trade.

What was announced today?

Northern Star posted an announcement from Black Cat Syndicate Ltd (ASX: BC8) that the latter has entered into binding agreements to acquire the company’s Coyota and Paulsens Gold operations.

Under the terms, it is proposed Black Cat will pay a cash consideration of $14.5 million at completion, “with a further $15.0 million secured and payable on or by 30 June 2023.”

To fund the acquisition, Black Cat is pleased to announce that firm commitments have been received to raise $35 million by way of a placement at an issue price of [55 cents] $0.55 per share to institutional and sophisticated investors.

Shares in Black Cat Syndicate are down 15% today, bringing losses to 23% for the last year.

Bloomberg Intelligence analyst Yi Zhu recently commented that Northern Star’s portfolio restructuring efforts could be a net positive, in a research note.

“Northern Star aims for gold production of 2 million ounces by calendar 2026, up 425,000 ounces or 27% from 2021 following asset restructuring over the past 12 months,” she wrote.

Noteworthy is the Saracen Minerals transaction of February 2021, which has “estimated to have driven up the company’s net present value (NPV) by $1.5-$2.0 billion”.

Furthermore, “[t]he divestiture [of its Mungari assets] strengthened Northern Star’s balance sheet by A$400 million,” adding a question mark over what could eventuate from Black Cat’s purchase, announced today.

“Northern Star will likely benefit from higher sustained earnings over the long term, as output is expected to climb 27% from the 1.6 million ounces (moz) reported in fiscal 2021 ended June to a target of 2.0 moz by 2026,” Zhu added.

In the last 12 months, the Northern Star share price has held gains and is up less than 1%. This year to date however, it has gained 22% after a 7% gain.

The post What’s boosting the Northern Star share price on Tuesday? appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• Here’s why the Northern Star share price is climbing today
• ‘Thriving’ ASX gold shares to see more growth in 2022: expert
• Here are the top 10 ASX mining companies by market cap
• 5 things to watch on the ASX 200 on Wednesday

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 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 Bruce Jackson.

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If you’re looking to boost your income with some dividend shares, then the two listed below could be worth considering.

Analysts have recently named these ASX 200 dividend giants as buys. Here’s what you need to know about them:

BHP Group Ltd (ASX: BHP)

The first ASX 200 dividend share to look at is BHP. This mining giant is the owner of a portfolio of world class operations across a diverse range of commodities and geographies.

With commodity prices rallying hard this year, BHP has been generating significant free cash flow again. This has many analysts tipping the Big Australian to reward shareholders with big dividends in the near term.

For example, Macquarie is forecasting fully franked dividends per share of ~$5.08 in FY 2022 and then ~$3.60 in FY 2023. Based on the current BHP share price of $53.56, this implies yields of 9.5% and 6.7%, respectively.

Furthermore, although the BHP share price has stormed 24% higher in 2022, Macquarie believes it can keep rising. The broker has an outperform rating and $61.00 price target on the miner’s shares.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that could be a buy is banking giant Westpac.

Australia’s oldest bank’s shares have underperformed many other big banks materially over the last 12 months. This has been driven by concerns over its margins and ability to deliver on its cost cutting plans.

The team at Morgans isn’t concerned and remain very positive on the bank’s outlook and cost reduction plans. In light of this, the broker believes Westpac’s shares are great value at the current level.

In addition, the broker is expecting Westpac to pay fully franked dividends per share of $1.19 in FY 2022 and $1.60 in FY 2023. Based on the current Morgans share price of $24.38, this will mean yields of 4.9% and 6.6%, respectively, over the next two years.

Morgans has an add rating and price target of $29.50 on its shares.

The post 2 ASX 200 dividend giants named as buys by brokers appeared first on The Motley Fool Australia.

More reading

• Does Westpac have a dividend reinvestment plan?
• The BHP share price has had a stellar start to the year. Is it just the beginning?
• How ASX dividend shares can provide support through periods of uncertainty
• Own BHP shares? Here’s why the miner could be gearing up to offload more carbon-heavy projects
• Here are the top 10 ASX mining companies by market cap

Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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 Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Westpac Banking Corp (ASX: WBC) has historically been one of the ASX’s more reliable dividend paying shares.

It’s been paying out dividends since 1983 and – prior to the pandemic ­– had never missed a payment.

In fact, the only interim or final dividend skipped by the big bank was its interim dividend of financial year 2020.

But owners of Westpac shares might not know they can up their holding in the bank, for free! Well, that’s not entirely accurate, but there is a way for shareholders to increase their investment without shelling out any cash.

That is, Westpac’s dividend reinvestment plan. Let’s take a look at the nitty-gritty of the plan.

At the time of writing, the Westpac share price is $24.39, 1.16% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is also up on Tuesday, having gained 0.67%.

All the details on Westpac’s dividend reinvestment plan

Owners of Westpac shares have more than one choice as to how they receive their dividend payments.

Of course, they can take them as cash. The bank can deposit its dividends directly into shareholders’ bank accounts. Investors can then choose how they spend the extra funds.

Alternatively, shareholders can engage with Westpac’s dividend reinvestment plan. It allows investors to receive additional Westpac shares to the value of the dividends that would otherwise be paid to them.

Shareholders still receive franking credits from dividends reinvested under the plan.

How many shares an investor receives relative to their holding is determined by the market price of Westpac’s stock.

Any residual value – that is, that which doesn’t equal the value of a share – is carried forward to the next dividend payment.

There are no brokerage fees, commission, or stamp duty on shares handed out through the dividend reinvestment plan.

Owners of Westpac shares can choose to partly participate in the dividend reinvestment plan. They can also back out or join in at any time up until close of business the day after a dividend’s record date.

But, unfortunately for some, the plan is only open to shareholders living in Australia or New Zealand.

Westpac is expected to drop its interim results and the details of its upcoming dividend on 9 May.

No doubt, all eyes will be on the Westpac share price in the lead up to its release.

The post Does Westpac have a dividend reinvestment plan? appeared first on The Motley Fool Australia.

More reading

• Do CBA shares offer the highest big bank dividend yield?
• What to expect from the Westpac half year result
• Why are ASX 200 bank shares having such a stellar start to the week?
• Is the NAB share price entering a ‘sweet spot’?
• How much are Westpac shares worth in April?

Motley Fool contributor Brooke Cooper 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 Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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One of the hottest areas of the market again this year has been the lithium industry. A number of ASX lithium stocks are smashing the market and recording very strong gains.

The good news for investors is that it may not be too late to invest in many of these lithium shares.

For example, the three ASX lithium stocks listed below have been rated as buys with plenty of upside potential. Here’s what analysts are saying:

Allkem Ltd (ASX: AKE)

A note out of Morgans reveals that its analysts have retained their add rating and lifted their price target on this lithium giant’s shares to $16.98. This follows the release of its third quarter update, which revealed strong pricing from tight markets.

Morgans recently said: “We maintain our ADD rating given the strong growth outlook for the company and the potential 24% [now 25.6%] upside to our valuation. AKE’s diverse products and geographical mix adds opportunities to capture value as the market evolves. There is further potential upside that are not in our numbers such as Olaroz stage 3 and/or another lithium hydroxide plant. Should the lithium market continue to remain strong AKE still has a large amount of untapped growth potential.”

Lake Resources N.L. (ASX: LKE)

The team at Bell Potter is positive on this lithium developer. It recently retained its speculative buy rating and lifted its price target materially to $2.83. This followed the announcement of a non-binding offtake agreement with auto giant Ford.

The broker commented: “LKE’s key project is the 50ktpa lithium carbonate Kachi Lithium Brine Project in Argentina. This project is expected to employ direct lithium extraction technology which has enormous ESG benefits compared with incumbent brine and hard rock lithium production methods. With this development project, uncommitted product offtake and an independent share register, LKE has significant strategic appeal.”

Vulcan Energy Resources Ltd (ASX: VUL)

Finally, this lithium developer is another that analysts are positive on. One of those is Germany-based Alster Research, which currently has a buy rating and $20.00 price target on the company’s shares. Its analysts believe Vulcan is well-placed to service the European car market.

Alster commented: “We remain confident about Vulcan’s operational development and improvement in becoming a provider of renewable energy and lithium with a zero-carbon footprint, which is why we reiterate our BUY recommendation.”

The post Analysts name 3 top ASX lithium stocks to buy now appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Top brokers name 3 ASX shares to buy next week
• 3 ASX 200 shares hopping to new 52-week highs today
• Why Allkem, Domino’s, Qantas, and Uniti shares are racing higher
• Lithium boom: Allkem share price hits record high on Q3 update

Motley Fool contributor James Mickleboro owns Allkem 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 Bruce Jackson.

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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a solid gain. The benchmark index is currently up 0.65% to 7,572 points.

Here’s what is happening on the ASX 200 and elsewhere today:

AMP asset sale talks

The market has given a lukewarm response to news that AMP Ltd (ASX: AMP) is in talks with “multiple” parties in relation to the potential sale of its Collimate Capital business. One of those parties is DEXUS Property Group (ASX: DXS). Collimate is the new name of AMP’s private markets business, which it is currently in the process of demerging. It is a global asset manager and a leader in real assets.

Syrah shares jump

The Syrah Resources Ltd (ASX: SYR) share price is shooting higher today after the graphite producer secured a loan agreement with the US Department of Energy (DOE). Syrah revealed that it has finalised a non-binding term sheet for a conditional US$107 million loan from the DOE. This will be used to fund the initial expansion of its Vidalia active anode material facility in Louisiana to 11.25ktpa AAM production capacity.

Hub24 update

The Hub24 Ltd (ASX: HUB) share price is pushing higher following the release of the investment platform provider’s third quarter update. Hub24 revealed platform inflows of $2.6 billion for the quarter, up 36.4% on the prior corresponding period. This led to the company finishing the period with funds under administration (FUA) of $68.3 billion, which was flat due to negative market movements.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Imugene Limited (ASX: IMU) share price with a 7% gain despite there being no news out of the biotech. Going the other way, the worst performer has been the Lynas Rare Earths Ltd (ASX: LYC) share price with a 4.5% decline. This appears to have been driven by a bearish broker note out of Ord Minnett.

The post ASX 200 midday update: AMP asset sale talks, Syrah rockets appeared first on The Motley Fool Australia.

More reading

• Hub24 share price rallies despite inflows cooling off
• Syrah Resources share price booms 19% amid show of US support
• Keen to bag the Washington H Soul Pattinson dividend? Read this
• AMP share price on watch amid Collimate Capital sale talks with Dexus and ‘multiple’ parties
• 5 things to watch on the ASX 200 on Tuesday

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. owns and has recommended Hub24 Ltd. The Motley Fool Australia owns and has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Core Lithium Ltd (ASX: CXO) share price is again on the move today following strong interest in the company.

In the past month, the lithium producer’s shares have risen by around 30%. In comparison, the All Ordinaries (ASX: XAO) is just 4% higher over the same time frame.

At the time of writing, Core Lithium shares are swapping hands at $1.47, up 6.91%.

Let’s take a look at what’s been powering the company’s share price recently.

What’s driving Core Lithium shares higher?

Investors have been snapping up the company’s shares as it progresses its wholly owned Finniss Lithium Project in the Northern Territory.

Since the beginning of the year, the Core Lithium share price has ascended on the back of market confidence in lithium demand.

Popular belief is that Core Lithium will play a key role in meeting the future lithium supply gap. This is expected to grow rapidly as the demand for electric vehicles and renewable energy ramps up over the next decade.

Last month, the company advised that drilling works intersected high-grade spodumene mineralisation across multiple targets at the Finniss project. This led to the Core Lithium share price accelerating from $1.26 to as high as $1.63 in the following days.

The first production of lithium concentrate at Finniss is scheduled in Q4 2022. Once online, the Finniss Lithium Project will be the first Australian lithium-producing mine outside Western Australia.

The Australian Federal Government is focused on increasing the capabilities of onshore refinement of critical minerals.

Last year, Core Lithium’s Finniss was awarded Major Project Status (MPS) by the Federal Government.

Achieving MPS underlines the importance of the strategic significance of this project to Australia. It provides extra support, including a single-entry point for regulatory approvals, project support and coordination with government authorities.

Share price snapshot

It has been a stellar year for Core Lithium shares, surging to a record high of $1.675 before taking a slight breather.

When looking at the past 12 months, its shares are up an outstanding 435%.

Based on today’s price, Core Lithium has a market capitalisation of roughly $2.5 billion, with over 1.7 billion shares outstanding.

The post Why is the Core Lithium share price powering up 7% today? appeared first on The Motley Fool Australia.

More reading

• 3 ASX lithium shares that rocketed between 10% and 24% today
• Here are the top 10 ASX shares today
• Up 427% in a year, Core Lithium share price surges 11% again today
• Core Lithium share price clips gains today but remains up 110% for the year
• Here’s why the Core Lithium share price is in the green on Monday

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Hub24 Ltd (ASX: HUB) share price is well in the green this morning after the company released its third-quarter market update.

In morning trade, shares in the wealth management software provider are up 3.07% to $26.22. However, this still puts HUB24 shares closer to their 52-week low of $21.64 than their 52-week closing high of $33.13 in October last year.

Let’s check the details of the company’s third quarter.

Hub24 share price lifts as funds hold steady

• Platform inflows up 36.4% on the prior corresponding period to $2.6 billion
• Total funds under administration (FUA) at the end of March remain even at $68.3 billion
• Platform advisers increased to 3,432, representing a 24.4% improvement from the prior year
• Completion of Class Ltd acquisition reached
• Xplore Wealth integration continues to progress

What else went on for Hub24 during the third quarter?

The third-quarter update handed down by HUB24 today reflects the challenging conditions seen in equity markets so far this year.

While the Sydney-based financial platform provider notched up another quarter of positive net inflows, the impact wasn’t as visible on the company’s FUA. This is the byproduct of falling indices on a year-to-date basis, as the world is confronted with new dilemmas.

Despite $2.6 billion of net inflows, FUA sat relatively steady at $68.3 billion at the end of March. Negative market movements to the tune of $2.6 billion cancelled out the added funds during the quarter. This seemed to spur a plunge in the company’s share price after market open this morning before it rallied.

In addition, Hub24 continued to advance its integration of Xplore during the quarter. Now, the company expects fund transfers to occur in the first half of FY23. Meanwhile, the SMSF and portfolio management software company, Class, is now fully under the wing of HUB24.

How has the Hub24 share price fared compared to competitors?

Although the Hub24 share price hasn’t been the most rewarding investment since the beginning of the year, it also hasn’t been the worst.

Taking a look at its ASX-listed rivals, HUB24 has delivered a better result compared to Netwealth Group Ltd (ASX: NWL) and Praemium Ltd (ASX: PPS). HUB24 might be down around 9% YTD, but Netwealth and Praemium are 25.78% and 52.04% worse for wear respectively.

The HUB24 share price currently trades on a price-to-earnings (P/E) ratio of 153 times.

The post Hub24 share price rallies despite inflows cooling off appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares expected to pay HUGE yields in 2022
• Is the ANZ share price too cheap to ignore?
• Why Tesla stock popped on Monday
• Syrah Resources share price booms 19% amid show of US support
• Here are the 5 best performing ASX travel shares of 2022 so far

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Hub24 Ltd, Netwealth, and Praemium Limited. The Motley Fool Australia owns and has recommended Hub24 Ltd and Netwealth. The Motley Fool Australia has recommended Praemium Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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