Category: Stock Market

The S&P/ASX 200 Index (ASX: XJO) is having a poor session on Tuesday. In afternoon trade, the benchmark index is down 0.3% to 8,703.3 points.

Four ASX shares that are bucking the trend today are listed below. Here’s why they are rising:

BlueScope Steel Ltd (ASX: BSL)

The BlueScope Steel share price is up 22% to $29.80. Investors have been buying the steel products manufacturer’s shares after it received a takeover offer. A non-binding $30.00 per share offer has been tabled from a consortium comprising SGH Ltd (ASX: SGH) and US-based Steel Dynamics (NASDAQ: STLD). This would see SGH acquire all of BlueScope’s shares and then on-sell BlueScope’s North American businesses to Steel Dynamics. BlueScope is yet to make a decision on this proposal and is considering the offer.

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up 15% to $3.82. This is despite there being no news out of the counter drone technology company on Tuesday. Though, it is worth noting that drone stocks in the United States charged higher overnight. Investors may believe the US-Venezuela situation could lead to increased demand for counter drone solutions.

Monadelphous Group Ltd (ASX: MND)

The Monadelphous share price is up 2.5% to $27.68. This follows news that the diversified services company has won another contract from BHP Group Ltd (ASX: BHP). Monadelphous has been awarded a $175 million construction contract for BHP’s car dumper project located at Finucane Island in Port Hedland. The contract covers major civil, structural, mechanical, piping, and electrical works during a planned shutdown. Monadelphous’ managing director, Zoran Bebic, said: “We are pleased to build on our long-standing relationship with BHP and look forward to the safe and reliable execution of the car dumper works, following the successful delivery of the Car Dumper 3 Project at Nelson Point last year.”

SGH Ltd

The SGH share price is up 5% to $49.01. This follows news that it has made a non-binding offer to acquire BlueScope Steel. Commenting on the proposal, SGH’s managing director and CEO, Ryan Stokes, said: “We believe BlueScope’s Australian business is a strong strategic fit for SGH and we have a proven track record of driving performance improvement in domestic industrial businesses. We intend to leverage our disciplined operating model and capital allocation approach to deliver better outcomes for stakeholders.”

The post Why BlueScope, DroneShield, Monadelphous, and SGH shares are racing higher today appeared first on The Motley Fool Australia.

More reading

• Why 2025 was the year of the ASX small-cap shares
• This ASX 200 company is celebrating its second major contract win in as many months
• BlueScope shares jump 20% on takeover news
• My top 5 ASX stocks to buy in early 2026
• Monadelphous awarded $175 million BHP contract: Key details for investors

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 DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Steel Dynamics. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

Artificial intelligence (AI) stocks have been on fire in recent years. Over the past three years alone, Nvidia (NASDAQ: NVDA) has soared by a staggering 1,180%, as of this writing. In other words, if you’d invested $1,000 in Nvidia just three years ago, you’d have nearly $13,000 by today.

However, some investors are concerned that the AI sector has become a bubble poised to burst. If that’s the case, investing now could be a risky move. While nobody knows what lies ahead, here’s where investors stand on the future of AI stocks. 

Should you really invest right now?

Again, the future of any stock or industry is unknowable, at least to a degree. Even the experts can’t say where AI will be in six months or a year, and that uncertainty can be daunting.

That said, an investment’s long-term potential is far more important than any short-term volatility. So rather than asking whether an AI bubble is looming, the real question investors should ask is where AI will be in 10 or 20 years. And according to the majority of investors, the answer is promising.

Nearly two-thirds (62%) of American adults are confident that AI-focused companies will deliver strong long-term returns, according to The Motley Fool’s 2026 AI Investor Outlook Report. Among those who are already investing in AI stocks, a whopping 93% believe in the technology’s long-term potential.

But what if a bubble is around the corner? Experts emphasize that the earning potential could be worth the rough patches.

“For investors willing to weather near-term volatility, the AI transformation represents a once-in-a-generation opportunity to participate in technology that’s restructuring how the world works,” says Donato Riccio, Head of AI at The Motley Fool.

“Of course, we’ll see peaks and troughs in AI earnings cycles,” Asit Sharma, AI Stock Analyst at The Motley Fool, adds, “but the long-term potential of this market is still superior to almost any other current investment theme we can name.”

The key to protecting your portfolio

While you may not be able to avoid short-term volatility, investing in quality stocks is crucial to reap the long-term rewards. And there are some investments that may be better poised for significant growth over time.

Specifically, Sharma recommends seeking out companies building the foundations of AI technology.

“For the biggest opportunities, look to smaller semiconductor and data center ecosystem players, such as data interconnect specialists, high-bandwidth memory providers, and cutting-edge data storage designers,” he explains. “The ‘best of breed’ in these categories will likely outpace the market in the next three to five years.”

Wherever you choose to buy, be sure you’re researching the company’s fundamentals rather than relying on hype. Even weak companies can appear to thrive when the entire industry is soaring, but those stocks will struggle to bounce back after a downturn. Healthy organizations, however, are far more likely to recover from even severe volatility.

Nobody can say where AI stocks will go in 2026. We could be headed for a bubble, or the industry may have much further to climb. However, by investing in the right stocks and staying focused on the long term, you can capitalize on AI’s promising growth potential while still mitigating risks. 

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

The post Should you really invest in AI stocks in 2026? Here’s what other investors are saying appeared first on The Motley Fool Australia.

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.

More reading

• This previously hot uranium technology stock has been sold down heavily after a contract snub
• This exciting small cap ASX share just delivered its 7th consecutive record quarter
• Own ASX IOZ or other iShares ETFs? Dividends just announced!
• Up 38% in a year, Life360 shares sliding today on $120 million US acquisition news
• This might be the most underrated artificial intelligence ASX stock to own in 2026

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

More than half a billion dollars has been wiped off the value of uranium enrichment technology company Silex Systems Ltd (ASX: SLX) after it missed out on a major US contract.

The company said in a statement to the ASX on Tuesday that Global Laser Enrichment, which was the exclusive licensee of its uranium enrichment technology, had been selected for an award of up to US$28 million “to advance next generation laser-based uranium enrichment technology”.

Passed over for contract

While that was a positive, the licensee company was not selected for an award under a separate US$900 million program focused on “low enriched uranium”.

Silex owns a 51% stake in GLE, with major uranium producer Cameco Corporation owning the remainder.

Silex’s system utilises laser technology to enrich uranium, and the company stated in a recent investor briefing that this technology is anticipated to be lower in cost than other processes, with higher efficiency and throughput.

The company has validated the process at the pilot plant scale but has not yet deployed it on a commercial scale.

Forward plan still bright

Silex said on Tuesday it was actively pursuing the next steps to advance its Paducah Laser Enrichment Facility (PLEF) in Kentucky, “and commercial deployment of its laser enrichment technology”.

The company went on to say:

The significantly higher enrichment efficiency and throughput of the Silex technology places GLE in a very strong position relative to competitors using second generation centrifuge technology.

Silex said in terms of its path forward, it intends to “re-enrich” depleted uranium tailings from the US Department of Energy at the Paducah facility.

The company said further:

This would generate up to 5 million pounds of uranium and 2,000 metric tonnes of conversion capacity annually for up to three decades – enough domestic supply to fuel around 10% of current US nuclear reactor demand. This represents a nearly ten-fold increase in domestic natural uranium output, significantly enhancing US national energy security and fuel independence.

Silex also reaffirmed its commitment to commercialising its technology, saying it was the “world’s most advanced enrichment technology”.

The company added:

Subject to various factors, including industry and government support, a feasibility study for the PLEF, and supportive market conditions, the Silex uranium enrichment technology could become a major contributor to nuclear fuel production for the world’s current and future nuclear reactor fleet, through the production of uranium in several different forms.

Silex shares jumped on Monday, likely in anticipation of the contract announcement, but plunged more than 29% on Tuesday morning to be changing hands for $6.93.

The company was worth $2.71 billion at the close of trade on Monday.

The post This previously hot uranium technology stock has been sold down heavily after a contract snub appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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 Cameco. 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.

Orthocell Ltd (ASX: OCC) shares are having a good session on Tuesday.

In morning trade, the small cap ASX share has risen 3% to $1.13.

Why is this small cap ASX share charging higher?

Investors have been buying the regenerative medicine company’s shares following the release of a quarterly update.

According to the release, the small cap ASX share achieved record quarterly revenue of $3.2 million for the three months ended 31 December 2025. This was the seventh quarter in a row of record sales and represents a 7% increase over the previous quarter and a 45.2% increase on the prior corresponding period.

Importantly, this record revenue performance was primarily driven by increased market penetration in existing markets, particularly in Australia. Approximately $90,000 in Remplir U.S. sales were generated in December, which was in line with expectations.

North America entry

Management appears to believe that it won’t be long until its US sales start to become more meaningful.

The small cap ASX share revealed that its early U.S. results indicate that its hybrid market entry strategy, combining specialist distributors with internal field leadership, is successful and delivering positive momentum.

It also notes that the anticipated growth in Remplir adoption by U.S. surgeons represents the potential for a strong increase in revenue going forward, with momentum expected to build through 2026.

In addition, growth in Remplir sales is expected to be further supported by its entry into the Canadian market. Following the recent appointment of a second Canadian distributor, initial sales are targeted for the March quarter of FY 2026. It expects market adoption to grow steadily throughout 2026.

The small cap ASX share also highlights that with $49.4 million in cash reserves, no debt, and an R&D tax incentive refund of approximately $3.0 million expected soon, it is well-positioned to drive rapid product adoption and deliver a step change in revenue in FY 2026.

Commenting on the quarter, Orthocell’s CEO and managing director, Paul Anderson, said:

The seventh consecutive record revenue result for the December quarter is particularly pleasing, driven by strong performance in existing markets and early Remplir unit sales in the U.S. Early U.S. results show our hybrid market entry strategy, combining specialist distributors with internal field leadership, is successful and delivering positive momentum. With the U.S. momentum building and Canada coming online, we see significant upside as we replicate the successful Australia and Singapore approach on a larger scale in the U.S.

The post This exciting small cap ASX share just delivered its 7th consecutive record quarter appeared first on The Motley Fool Australia.

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• Guess which ASX healthcare stock is jumping 7% on big news

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

Do you own iShares Core S&P/ASX 200 ETF (ASX: IOZ)?

Or perhaps iShares S&P/ASX 20 ETF (ASX: ILC) or iShares S&P/ASX Small Ordinaries ETF (ASX: ISO)?

BlackRock has just announced the estimated distributions (dividends) for its ASX iShares exchange-traded funds (ETFs).

BlackRock will pay its next round of dividends on 19 January.

If you own any of these ETFs and want to top up your holdings ahead of this round of payments, you’d better be quick.

The ex-dividend date is tomorrow.

How much will iShares ASX ETF investors receive?

Here are the estimated dividends that investors will receive on 19 January.

The amounts will be finalised on Thursday, which is the record date.

Prefer to reinvest your dividends?

A distribution reinvestment plan (DRP) is available for all of the ASX iShares ETFs above.

A DRP allows investors to reinvest their distributions automatically each time dividends are paid.

It’s a helpful set-and-forget option for investors seeking compounding returns over the long term.

BlackRock will be accepting DRP elections up until 5pm today.

The post Own ASX IOZ or other iShares ETFs? Dividends just announced! appeared first on The Motley Fool Australia.

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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 recommended BlackRock. 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.

Life360 Inc (ASX: 360) shares are slipping today.

Shares in the S&P/ASX 200 Index (ASX: XJO) location sharing software developer closed yesterday trading for $31.97. In late morning trade on Tuesday, shares are swapping hands for $31.31 apiece, down 2.1%.

For some context, the ASX 200 is up 0.1% at this same time.

Here’s what’s happening.

Life360 shares slip on completed acquisition

Before market open this morning, Life360 announced that it has completed the acquisition of United States-based advertising technology company Nativo for around $120 million. This sum is comprised of 65% in cash and 35% in Life360 shares.

The company said the acquisition will help brands reach families with more relevant messages in more relevant places. And not just inside the Life360 app, but also across connected TV, mobile, and premium digital environments.

Life360 now has more than 50 million monthly active users (MAU) in the US. The company highlighted that this is in line with some of the US most popular media platforms, including Netflix Inc (NASDAQ: NFLX), Spotify Technology (NYSE: SPOT), and Pinterest Inc (NYSE: PINS).

Life360 shares could garner longer-term support as the company continues to expand its operations beyond its primary family connection and safety business and taps into more advertising revenue.

The ASX 200 tech stock noted that the acquisition of Nativo extends its insights into how families move, offering advertisers a single system for targeting creative messages.

What did management say?

Commenting on the completed acquisition that has yet to boost Life360 shares today, CEO Lauren Antonoff said, “Surpassing 50 million monthly active users in the US is a significant milestone that speaks to the trust families place in Life360.”

Antonoff added:

Families make countless decisions every day as they move through the world, and this partnership helps brands show up in those moments with relevance and respect. Together with Nativo, we’re building a differentiated advertising platform that connects brands to real families, in real moments, with real results.

Justin Choi, founder and CEO of Nativo, said that combining Life360’s “incredibly rich and accurate first-party insights” with Nativo’s platform “activates them in a way that rivals the advertising superpowers of the leading social media networks, while cultivating transparent, brand-safe, and meaningful connections to families”.

Choi concluded, “Nativo’s ad technology is purpose-built to unlock this opportunity in a way that enhances the user experience for Life360’s members.”

At the current Life360 share price, the company commands a market cap of AU$7.3 billion, well below that of the major US social media networks.

The post Up 38% in a year, Life360 shares sliding today on $120 million US acquisition news appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Netflix, Pinterest, and Spotify Technology. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Netflix and Pinterest. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When investors think about artificial intelligence (AI), they often picture chipmakers, software developers, or companies training large language models. What tends to get overlooked are the businesses that make AI work at scale. These are the infrastructure providers that connect data, compute, and users in real time.

That’s why I think Megaport Ltd (ASX: MP1) could be one of the most underrated AI stocks on the ASX in 2026.

Megaport isn’t building AI models. Instead, it provides the digital plumbing that allows AI workloads to function efficiently, and that role is becoming increasingly important.

AI demand is an infrastructure problem

Artificial intelligence is incredibly data-intensive. Training models, running inference, and moving large datasets between clouds and data centres all require fast, reliable, and flexible connectivity. This is where Megaport comes in.

The company operates a network-as-a-service platform that allows customers to dynamically connect to cloud providers, data centres, and enterprise networks on demand. Rather than relying on fixed, long-term contracts, customers can scale bandwidth up or down as their needs change.

As AI workloads grow more complex and distributed, that flexibility becomes a competitive advantage.

Expanding beyond connectivity

What makes the Megaport story more interesting is that it’s no longer just about connectivity.

The company has expanded its product offering to include compute through its newly acquired Latitude platform, which provides dedicated infrastructure designed for high-performance workloads.

This broadens Megaport’s role from simply moving data to helping customers process it more efficiently.

Importantly, this expansion builds on Megaport’s existing customer base and network footprint, rather than requiring an entirely new go-to-market strategy. Customers who already rely on Megaport for connectivity can now access additional infrastructure services within the same ecosystem.

That kind of expansion increases wallet share and deepens customer relationships, which is a key ingredient for long-term growth.

A large and growing end market

AI isn’t a short-term trend, and neither is the demand for the infrastructure that supports it.

Data volumes continue to rise, cloud architectures are becoming more complex, and enterprises are looking for ways to optimise performance while managing costs.

Infrastructure models that sit between traditional on-premise systems and public cloud, offering flexibility without excessive overhead, are increasingly relevant.

Megaport’s platform is designed specifically for this environment. While it may not attract the same attention as more obvious AI plays, it sits directly in the path of long-term digital infrastructure spending.

Why it’s an overlooked ASX AI stock

Part of the reason that I think Megaport feels underrated is that its role isn’t immediately obvious.

It doesn’t sell AI software. It doesn’t manufacture chips. And its revenue growth can be influenced by customer usage patterns rather than headline announcements. But that doesn’t make the opportunity any less real.

In fact, some of the best investment outcomes come from businesses that quietly become more important as industries evolve. And with this ASX AI stock down 32% since early November, now could be a good opportunity to invest.

Foolish Takeaway

Artificial intelligence needs more than algorithms to succeed. It needs infrastructure that can move, connect, and process data efficiently.

Megaport sits at the heart of cloud, connectivity, and compute, all of which are becoming more critical as AI adoption accelerates.

While it may not be the first stock investors think of when they hear “AI”, that’s exactly why I believe it could be one of the most underrated AI opportunities on the ASX in 2026.

For investors willing to look beyond the obvious, I think Megaport is a stock worth paying attention to.

The post This might be the most underrated artificial intelligence ASX stock to own in 2026 appeared first on The Motley Fool Australia.

More reading

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• 3 reasons to buy Megaport shares today

Motley Fool contributor Grace Alvino 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 Megaport. 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.

The copper price has reached a new all-time high in London trading, surpassing US$13,000 per tonne, as demand for the metal, which is crucial for electrification, remains strong.

There are some key Australian-listed stocks that provide good exposure to copper, but more on that later.

Firstly, why is demand for copper so strong, and what’s the outlook for this year?

Outages and demand bolstering price

MineLife director Gavin Wendt recently issued a research note on copper and said the rally in the copper price over 2025 reflected mine supply disruptions and distortions of trade flows caused by President Trump’s tariff policies.

In terms of the disruptions, an incident at Freeport McMoran‘s Grasberg mine in Indonesia, which was producing about 4% of global supply, would continue to have an impact this year.

As Mr Wendt said:

Grasberg is the world’s second-largest copper mine, contributing around 4% of global production. Two minor mining areas recovered production as planned in November, while the main area, which is responsible for 70% of output, is expected to slowly resume operations next year. A full recovery is expected in 2027. The disruption at Grasberg has added to the already high number of supply disruptions this year, including the flooding of the Kamoa-Kakula mine in the Democratic Repunlic of Congo in May and an accident hitting the El Teniente mine in Chile in July.

Mr Wendt said the copper supply chain was “under strain”, with mines in Chile struggling with falling ore grades, and refined metal flows being disrupted by tariff risks and unusually high US stockpiles.

He said:

The refined copper balance for 2026 is now showing a deficit of around 600,000 tonnes for 2026, following a deficit of 200,000 tonnes in 2025.

Stocks in focus

In terms of Australian-listed companies set to benefit, Wilsons Advisory issued a research note in early December, naming Sandfire Resources Ltd (ASX: SFR) as its preferred pick in the sector.

The Wilsons teams said:

As the only pureplay ASX 100 copper producer, Sandfire has a best-in-class track record of operational delivery, which continues to underpin reliable leverage to the copper price.

Sandfire shares hit a new record high of $18.45 on Monday and have more than doubled from 12-month lows of $8.05.

Australian mining giant BHP Group Ltd (ASX: BHP) is also highly leveraged to copper, with its three South Australian mines and its major Escondida mine in Chile contributing to the company’s production of more than two million tonnes of copper for the first time in FY25. BHP has boosted copper production by 28% since 2022, according to the company’s annual report.

Rio Tinto Ltd (ASX: RIO) is also highly leveraged to copper, having recently upgraded its copper production guidance to 860,000-875,000 tonnes for 2025, up from its previous guidance of 780,000-850,000 tonnes.

Wilsons also said in early December that outside of the majors, copper exposure could be had from the $14.5 billion Capstone Copper Corp (ASX: CSC), while at the junior end, South Australian miner Hillgrove Resources Ltd (ASX: HGO) was a pure-play copper company.

The post With the copper price hitting a new record, how can you get exposure? appeared first on The Motley Fool Australia.

More reading

• This ASX 200 company is celebrating its second major contract win in as many months
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Motley Fool contributor Cameron England 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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Monadelphous Group Ltd (ASX: MND) shares are trading higher after the company announced it had won a major contract with BHP Group Ltd (ASX: BHP), continuing the company’s bullish run in recent months.

The company said it had been awarded the construction contract for a car dumper project at Finucane Island in Port Hedland, Western Australia, which was part of BHP’s iron ore operations.

Monadelphous went on to say:

The contract, valued at approximately $175 million, includes civil, structural, mechanical, piping and electrical works associated with the replacement of key equipment during a planned major shutdown.

Monadelphous Managing Director Zoran Bebic said the contract win reflected the company’s deep experience in delivering such projects, built up over many years.

He added:

We are pleased to build on our long-standing relationship with BHP and look forward to the safe and reliable execution of the car dumper works, following the successful delivery of the Car Dumper 3 Project at Nelson Point last year.

ASX mining stock backing up another recent win

The new contract is the second major contract win in as many months for Monadelphous, which in December announced it had been awarded a $250 million contract with Rio Tinto Ltd (ASX: RIO) for the Brockman Syncline 1 iron ore development.

The company said at the time:

The multidisciplinary contract, valued at approximately $250 million, includes fabrication and supply, detailed earthworks and concrete, structural, mechanical, piping and electrical and instrumentation works associated with the construction of a new primary crusher and overland conveyor, as well as modifications to existing plant. Work under the contract will commence immediately and is expected to be completed in 2027.

ASX mining stock outlook strong

At the company’s AGM in late November, chair Rob Velletri said the company had in 2025, secured about $2.3 billion in new contracts and contract extensions, which was a record, plus had added another $570 million since the end of the financial year.

Mr Bebic said at the time the company was forecasting revenue for the half year ending December 30 of about $1.5 billion, with full-year revenue expected to be about 20% to 25% higher than the previous year.

Shares in Monadelphous Group have more than doubled over the past year, and were changing hands for $27.09 on Tuesday morning, up 0.3%.

The stock has increased from lows of $13.36 over the past year. The company was valued at $2.7 billion at the close of trade on Monday.

The post This ASX 200 company is celebrating its second major contract win in as many months appeared first on The Motley Fool Australia.

More reading

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

Insurance Australia Group Ltd (ASX: IAG) shares are in the red today.

Shares in the S&P/ASX 200 Index (ASX: XJO) insurance giant closed yesterday trading for $7.85. In morning trade on Tuesday, shares are changing hands for $7.80 apiece, down 0.6%.

For some context, the ASX 200 is up 0.2% at this same time.

Here’s what investors are mulling over today.

IAG shares dip on Queensland news

On 1 September 2025, IAG reported it had completed its acquisition of the Royal Automobile Club of Queensland (RACQ) for the tidy sum of $855 million, with IAG owning 90% of RACQ shares.

“Today is an exciting day as we begin our partnership with RACQ, supporting its member-first approach, welcoming around 840 new team members to IAG, and strengthening our commitment to Queensland,” IAG CEO Nick Hawkins said at the time.

IAG shares closed up 0.6% on the day.

Today, the ASX 200 insurance company announced the successful integration of RACQ Insurance (RACQI) into its main catastrophe cover, whole of account quota share (WAQS) arrangements, and aggregate stop-loss protection.

IAG also revealed that it has expanded its WAQS arrangements to now cover 35% of the consolidated business. Management reiterated that they have maintained RACQI’s separate standalone reinsurance program that comprised quota share and catastrophe protections.

Cutting to the chase, IAG shares could gain longer-term support with its RACQI branch now also covered by the catastrophe reinsurance program for the 2026 calendar year.

IAG’s total 2026 catastrophe reinsurance program provides a main catastrophe cover for two events up to $10 billion, with an attachment at $500 million.

The company noted that RACQI’s quota shares have now been replaced by IAG’s WAQS arrangements, adding that the total proportion ceded has increased by 2.5% to now represent 35% of IAG’s combined business.

What did management say?

Commenting on the reinsurance program integration that has yet to lift IAG shares today, chief financial officer William McDonnell said, “We are pleased to have integrated the RACQI business into the overall reinsurance program which will achieve the targeted synergies.”

McDonnell added:

Global reinsurance markets have improved during 2025, allowing us to renew reinsurance protection favourably relative to expectations. In addition, IAG received strong support from reinsurance partners in expanding the overall program, resulting in a further reduction in the volatility of our earnings.

How have IAG shares been tracking?

With today’s intraday dip factored in, IAG shares are down 8.5% over the past 12 months.

The ASX 200 insurance stock also trades on a 3.9% partly franked trailing dividend yield.

IAG is scheduled to announce its half-year results for the six months to 31 December on 12 February.

The post Why are IAG shares slipping today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.