Category: Stock Market

National Australia Bank Ltd (ASX: NAB) reported its FY21 result to investors this week. Analysts have had a look – do they rate the NAB share price as a buy?

Firstly, let’s see how the result stacked up.

NAB FY21 result

The big four ASX bank said that it generated $6.36 billion of statutory net profit.

Meanwhile, the cash earnings came to $6.56 billion – that was an increase of 76.8% year on year. Excluding FY20’s large notable items, the NAB’s cash earnings increased by 38.6%.

NAB explained that its total revenue declined by 2.2%. Higher volumes were more than offset by lower markets and treasury income which was challenged by more limited trading opportunities.

The net interest margin (NIM) declined by 6 basis points to 1.71%. However, excluding the 6% reduction from markets and treasury (which includes the impact of holding higher liquid assets), NIM was flat which reflected lower funding and deposit costs and home repricing. But this was partially offset by the impact of the low interest rate environment combined with “home lending competitive pressures” and a mix shift towards more fixed rate lending.

Expenses officially fell 13.2%. Excluding large notable items in FY20, expenses actually rose 1.8% with important drivers such as performance-based compensation provisions, as well as hiring more people to support growth, partly offset by productivity benefits and lower restructuring related costs.

During the worst of the COVID-19 crash last year, the NAB share price fell heavily and there was a worry of bad debts. In this result, NAB’s credit impairment charge was a write-back ­of $217 million compared to a FY20 charge of $2.76 billion.

NAB said that its ratio of 90+ days past due and gross impaired assets to gross loans and acceptances reduced by 9 basis points to 0.94%.

The big four bank said:

The economic outlook is improving with restrictions easing. But uncertainties exist including the impact of tapering support and the extent and breadth of the rebound. To reflect this, collective provisions remain prudent at 1.35% of credit risk weighted assets.

Balance sheet and dividend

NAB’s balance sheet continues to strengthen. Its overall common equity tier 1 (CET1) ratio was 13% at the end of FY21, up 153 basis points over the year. That includes 29 basis points from the net proceeds of the sale of MLC Wealth, less the acquisition of 86 400.

However, it’s expected that the net pro forma CET1 ratio will be reduced by around 75 basis points by the acquisition of Citigroup’s Australian consumer basis as well as the remaining $2 billion share buyback, less proceeds from its BNZ Life sale.

NAB decided to more than double its annual dividend, from $0.60 per share in FY20 to $1.27 per share in FY21. This represented a cash dividend payout ratio of 63.7% of continuing operations.

Is the NAB share price a buy?

Opinions are somewhat mixed on the bank after the result.

For example, Citi is ‘neutral’ on NAB shares, with a price target of $29.50. It thinks it is one of the better big four banks after this result, but there remains a lot of competition in the property loan space. Citi is expecting slight underlying growth in FY22. The broker thinks NAB will pay a FY22 annual dividend per share of $1.45.

However, analysts at Macquarie Group Ltd (ASX: MQG) think that the NAB share price is a buy, with a price target of $30.50. Macquarie also believes NAB is doing better than its big competitors. But, despite the buy rating, Macquarie actually thinks NAB will generate less profit and pay a small dividend in FY22 compared to Citi’s estimates. Macquarie has projected an annual dividend per share of $1.35 from NAB in the current financial year.

The post Do analysts rate the NAB share price a buy after its FY21 result? appeared first on The Motley Fool Australia.

More reading

• How does the CBA share price performance stack up against the other big banks?
• Why does NAB’s (ASX:NAB) CEO want house prices to fall?
• Here are the top 10 ASX shares today
• Race to the top: These 3 ASX shares all smashed new 52-week highs today
• NAB (ASX:NAB) share price lifts as CEO calls for mortgage buffers to stem soaring house prices

Motley Fool contributor Tristan Harrison 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 All Ordinaries Index (ASX: XAO) is taking a bit of a beating so far this Thursday. At the time of writing, the All Ords is down by 0.73% at 7,681 points. But one All Ords share is defying this general market sentiment, and decisively so. That would be the Vulcan Energy Resources Ltd (ASX: VUL) share price.

Vulcan Energy shares are currently up a very pleasing 5.76% so far today at $10.84 a share. That’s a meaningful outperformance of the broader market.

So what’s causing Vulcan shares to rocket higher this Thursday?

Well, it’s not entirely clear. This lithium developer hasn’t released any major news or announcements today so far.

But we still might be able to dig a little deeper and guess what’s going on today.

What’s pushing up the Vulcan share price today?

Yesterday, we did get some news from Vulcan. That came in the form of an announcement the company has inked an agreement with Rhein Petroleum to purchase 3D seismic and drilling data.

As we covered yesterday, this agreement will help the company “understand the sub-surface” of the 315 square kilometres that this 3D data covers.

This was arguably not bad news for Vulcan. But, even so, yesterday saw the Vulcan share price lose a nasty 6.8% or so. My Fool colleague James posited this might have been the results of the announcement being “overshadowed by its ongoing short-seller attack and broad weakness in the lithium sector [yesterday]”.

Vulcan has indeed been struggling with short-seller attacks, most prominently that from J Capital that was published back in October.

With ASX lithium shares back in the hot seat today — we’ve seen gains from Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE) — perhaps investors have finally turned their attention to what Vulcan had to say yesterday and decided it was worth piling in today.

Whatever the reason, it would be a welcome change for Vulcan investors. Although Vulcan remains up a pleasing 291% year to date in 2021, it is down around 27% since 26 October.

At today’s Vulcan Energy share price, this company has a market capitalisation of $1.26 billion.

The post Vulcan Energy (ASX:VUL) share price lifts 6% to defy wider market selloff. Here’s why appeared first on The Motley Fool Australia.

More reading

• Why the Rio Tinto (ASX:RIO) share price underperformed the materials sector over the last 3 months
• Why Afterpay, Immutep, Pushpay, and Vulcan shares are falling
• Why are ASX 200 mining shares having such a lousy day?
• Why the Vulcan (ASX:VUL) share price is rising on Wednesday
• The Paladin (ASX:PDN) share price is up 19% in the last week. 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 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of Wall Street and is tumbling lower. At the time of writing, the benchmark index is down 0.65% to 7,376.6 points.

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

Chalice Mining Ltd (ASX: CHN)

The Chalice Mining share price is up a further 7% to $9.80. Investors continue to buy this mineral exploration company’s shares following the release of an update on its Gonneville deposit. That update reveals the largest nickel sulphide discovery in over 20 years and the largest platinum-group elements (PGE) discovery in Australian history. Bell Potter was impressed. It retained its (speculative) buy rating and lifted its price target by 85% to $11.73.

Estia Health Ltd (ASX: EHE)

The Estia Health share price is up over 5% to $2.21 following the release of its annual general meeting update. At the event, the aged care operator reported that its occupancy rate stood at 92.8% at the end of October. This was broadly in line with levels reported in August. Management also advised that cash flows have been solid and its debt has been further reduced to $57.5 million.

De Grey Mining Limited (ASX: DEG)

The De Grey Mining share price is up 4% to $1.20. This morning the gold explorer announced consistent infill results in Brolga Stage 1 pit. Management notes that results demonstrate thick mineralised intervals in the centre of Brolga. This could be a big positive as the recently announced scoping study of the Mallina Gold Project identified Brolga as an early production source.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price has jumped 8.5% to $15.51. This is despite there being no news out of the iron ore producer on Thursday. However, reports that embattled Chinese property giant Evergrande has avoided defaulting could be boosting Fortescue’s shares. If Evergrande were to collapse it could have dire consequences for the Chinese property market and iron ore demand.

The post Why Chalice, De Grey, Estia Health, and Fortescue shares are racing higher appeared first on The Motley Fool Australia.

More reading

• Why the Rio Tinto (ASX:RIO) share price underperformed the materials sector over the last 3 months
• Evergrande reportedly defaults, DMSA is preparing bankruptcy proceedings
• ASX 200 (ASX:XJO) midday update: Xero’s results and Nearmap’s guidance disappoint
• Dream run: Why the Chalice Mining (ASX:CHN) share price is up another 5% today
• Here are the top 10 ASX shares today

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

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The Pure Hydrogen Corp Ltd (ASX: PH2) share price is surging today, buoyed by positive developments for the company’s hydrogen plants. 

During mid-afternoon trade, the energy company’s shares are up 9.42% to 75.5 cents. This means that its shares have risen to an astonishing 70% in the space of just one week.

What did Pure Hydrogen announce?

Investors are pushing Pure Hydrogen shares higher on news of the company’s positive release.

According to the update, Pure Hydrogen provided more details regarding the term sheet signed with CAC-H2 on Tuesday.

Pure Hydrogen is seeking to build its presence across the east coast of Australia with three new waste hydrogen plants. The facilities will be constructed in the country’s three most populous cities, Sydney, Melbourne and Brisbane.

The first plant will be built north of Brisbane and is expected to be operational sometime in late 2022. The remaining plants in Melbourne and Sydney will be completed around mid-2023.

The key terms of the deal will see the minimum hydrogen supply of 1,000 kilos per day for six years. This can be expanded upon agreement, and there is an additional option to extend the contract for another six years.

CAC-H2 process will involve turning wood waste into hydrogen through a gasification process of pyrolysis. A second stage then follows which separates and purifies the hydrogen gas.

Pure Hydrogen will operate the plants, and undertake sales and marketing activities for the sale of hydrogen.

It is expected that further details in relation to each site and plant size will be released within the next month.

Pure Hydrogen share price summary

Since the beginning of 2021, Pure Hydrogen shares have taken off, leaping by more than 780%. When zooming out to the last 12 months, its shares have further accelerated to post an incredible gain of 860%.

Based on today’s price, Pure Hydrogen commands a market capitalisation of around $243.25 million, with approximately 313.88 million shares outstanding.

The post Pure Hydrogen (ASX:PH2) share price leaps 9% as first plant set to be operational next year appeared first on The Motley Fool Australia.

More reading

• Pure Hydrogen (ASX:PH2) share price rockets 25% amid major plant production news
• Why the Pure Hydrogen (ASX:PH2) share price is leaping to a multi-year high today
• Pure Hydrogen (ASX:PH2) share price jumps 5% on hydrogen vehicle plans

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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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.

What happened

Shares of Coinbase Global (NASDAQ: COIN) sank 8% on Wednesday after the digital-asset trading platform’s third-quarter results fell short of investors’ expectations.

So what 

Coinbase’s net revenue decreased by 41% sequentially to $1.3 billion. That was below Wall Street’s estimates, which had called for revenue of roughly $1.6 billion. 

The cryptocurrency exchange’s monthly transacting users fell to 7.4 million, compared to 8.8 million in the second quarter. Its trading volume, in turn, declined by 29% to $327 billion. 

All told, Coinbase’s net income plunged 75% to $406 million.

Now what

Coinbase’s fortunes are largely dependent on the continued success of Bitcoin and Ethereum, the two most popular and valuable cryptocurrencies. Bitcoin accounted for 19% of Coinbase’s trading volumes in the third quarter, while Ethereum represented 22%. Thus, the recent rally in Bitcoin’s and Ethereum’s prices to new all-time highs bodes well for Coinbase’s fourth-quarter results.

Looking further ahead, Coinbase’s fate is likely to correlate with cryptocurrency adoption trends.

“Coinbase is not a quarter-to-quarter investment, but rather a long-term investment in the growth of the cryptoeconomy and our ability to serve users through our products and services,” the company said in a letter to shareholders. “We encourage our investors to take this point of view.” 

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

The post Why Coinbase shares crashed on Wednesday appeared first on The Motley Fool Australia.

More reading

• Here’s why the Betashares Crypto Innovators ETF (ASX:CRYP) share price is surging 7% today
• How the Coinbase share price rocketed 40% last month
• ASX’s first cryptocurrency ETF is listing Thursday
• ASX set to welcome first cryptocurrency ETF… but there’s a catch

Joe Tenebruso 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.

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

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The Hazer Group Ltd (ASX: HZR) share price is wobbling in and out of the green today. Fortunately, it’s still sporting its recent gains.

At the time of writing, the Hazer share price is $1.68, flat with its previous close.

That leaves the creator of hydrogen and graphite-producing technology‘s gains for the last 30 days at 54%.

While there’s been no price-sensitive news from Hazer in the last 30 days, there have been several happenings that might have piqued the market’s interest.

Let’s take a look at what might have driven Hazer’s shares lately.

Hazer’s great month on the ASX

The Hazer share price has taken off over the last month, seemingly alongside the market’s interest in hydrogen.

This time last month, many shares in the ASX hydrogen sector were boosted when 2 Australian states released plans to kickstart a green hydrogen industry. Green hydrogen is that which is created using only renewable energy.

First, the Queensland government teamed up with Fortescue Metals Group Limited‘s (ASX: FMG) subsidiary Fortescue Future Industries to build a hydrogen equipment manufacturing centre.

Then, days later, New South Wales announced a $3 billion green hydrogen strategy.

The Hazer share price gained 9% on the day the Queensland-based plan was announced and was boosted another 24% when New South Wales released its strategy.

On 18 October, the market’s excitement for Hazer’s stock was renewed when the company released its quarterly activities report.

Finally, the Hazer share price gained 0.9% on Monday amid the announcement of the Australian Government’s Future Fuels and Vehicles Strategy.

The strategy includes providing additional funding for hydrogen refuelling infrastructure. Thus, it could help to increase the uptake of hydrogen-powered vehicles.

Hazer share price snapshot

Including its strong month’s performance, Hazer’s stock has gained 112% year to date.

It has also gained 162% since this time last year.

The post The Hazer (ASX:HZR) share price is having a bad day but it’s still up 50% in a month appeared first on The Motley Fool Australia.

More reading

• Hazer (ASX:HZR) share price rises as hydrogen refuelling gains federal funding
• The Hazer (ASX:HZR) share price jumps 8% as hydrogen ETF hits all-time high
• Why the Hazer (ASX:HZR) share price is lifting today
• How fast is green hydrogen growing and which ASX shares could benefit?
• Here’s why ASX hydrogen shares are leaping higher today

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 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 Global Energy Ventures Ltd (ASX: GEV) share price has come out of a trading halt today. This follows an update in regards to its capital raising efforts from the energy solutions company.

However, the news has not been well received by investors. At the time of writing, Global Energy shares are down a sizeable 9.68% to 14 cents. For context, the All Ordinaries Index (ASX: XAO) is down 0.71% to 7,682 points.

Successful placement

In a statement to the ASX, Global Energy advised it has successfully completed its institutional placement.

The company received firm commitments from both new and existing institutional, sophisticated, and professional investors to raise $10 million (before costs).

The placement will see 80 million new ordinary shares issued at a price of 12.5 cents apiece. This represents a 24% discount on the last closing price on 8 November, and a 10.5% discount on the 15-day volume-weighted average price.

The funds acquired from the placement will be used to accelerate the development of the Tiwi green hydrogen project in the Northern Territory. This includes:

• Tiwi green hydrogen project feasibility study;
• Ongoing engineering and approvals for the pilot compressed hydrogen ship;
• Administration costs; and
• General working capital.

The newly created shares are expected to be allotted and issued on 17 November.

In addition to the placement, Global Energy will undertake a non-underwritten share purchase plan (SPP), raising another $2 million. The terms will be the same as offered in the institutional placement.

The SPP will open on 22 November, with settlement on 13 December.

Global Energy managing director and CEO Martin Carolan commented:

The company’s launch into the upstream green hydrogen production with the Tiwi green hydrogen project provides a unique investment opportunity as the company positions compression as a first mover advantage into the production, storage and transport of hydrogen.

The capital raising will accelerate the development of the Tiwi green hydrogen project while also supporting our ongoing engineering, approvals and commercialisation for our proprietary ship design.

Global Energy share price summary

Over the last 12 months, Global Energy shares have accelerated by around 50%. They are also up 75% year to date.

Global Energy presides a market capitalisation of roughly $70 million, with approximately 457.17 million shares on its registry.

The post Global Energy (ASX:GEV) is raising $10m for its green hydrogen project. But investors aren’t impressed appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell today
• The Webjet (ASX:WEB) share price was $12 before COVID-19 hit. Can it ever get back there?
• The materials sector is leading the ASX 200 today. What’s going on with the Lynas (ASX:LYC) share price?
• Why Nvidia stock slumped on Wednesday
• Here’s why the Santos (ASX:STO) share price is falling again on Thursday

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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On Wednesday I looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

Computershare Limited (ASX: CPU)

According to a note out of Citi, its analysts have retained their sell rating but lifted their price target on this share registry company’s shares to $15.80. This follows the release of Computershare’s annual general meeting update, which saw the company reaffirm its earnings per share growth guidance of 2%. Citi suspects the market may have been hoping for an upgrade. Outside this, the broker remains bearish and sees little to drive its shares higher in the near term. The Computershare share price is trading at $19.31 today.

Platinum Asset Management Ltd (ASX: PTM)

A note out of UBS reveals that its analysts have commenced coverage on this fund manager’s shares with a sell rating and $2.25 price target. The broker hasn’t been impressed with Platinum’s performance and notes that its funds under management have been stagnating. UBS also fears a recovery could be hindered by its uncompetitive fees. The Platinum share price is fetching $2.91 on Thursday afternoon.

Wesfarmers Ltd (ASX: WES)

Analysts at Citi have retained their sell rating but lifted their price target on this conglomerate’s shares to $50.00. This follows news that the company has signed an agreement to acquire Australian Pharmaceutical Industries Ltd (ASX: API). While the broker believes the deal will be a small boost to its earnings, it isn’t enough for a change of rating. Citi continues to believe that Wesfarmers’ shares are overvalued at the current level. The Wesfarmers share price is trading at $58.86 on Thursday.

The post Top brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• Citi tips Wesfarmers (ASX:WES) share price to dip 16% following API deal
• These 3 ASX shares have just been named as broker buys
• Why API, Evolution, Flight Centre, and Sydney Airport shares are pushing higher
• ASX 200 (ASX:XJO) midday update: Sydney Airport agrees to takeover, Wesfarmers’ strikes API deal
• API (ASX:API) share price higher after accepting Wesfarmers takeover offer

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 owns shares of and has recommended Wesfarmers 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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Market watchers are keeping a vigilant eye on the Webjet Limited (ASX: WEB) share price as travel makes a comeback.

With more overseas flight routes reopening, one might presume this could bode well for the Webjet share price.

And perhaps so – Webjet shares have climbed more than 35% from a low in late August. But, in the past month, the Webjet share price has fallen back into the red.

It was trading at about $12 before the pandemic hit, and so we ask the question – can the travel giant touch that level once more?

Why don’t we check in and see what the experts are saying, and gauge their sentiment to help us answer this question.

What’s up with the Webjet share price lately?

It’s certainly not all doom and gloom for Webjet shareholders. Whilst the share price has slipped by 0.48% this past month, shares in competitor Flight Centre Travel Group Ltd (ASX: FLT) have fallen more than 10.5% in that time.

Plus, global border mobility has started to normalise, as global vaccination numbers finally hit specified targets.

The first glimmer of hope for international travel came back in September. That’s when the US announced it would open its borders to vaccinated travellers from 33 countries.

Australia also announced its border restrictions would lift by December, albeit in a staggered fashion at the state level.

Investors responded positively to the news, but the momentum has slowed over the past month.

So far this week, the Webjet share price has lost about 4.3% and Flight Centre is down 4.5%.

What’s the outlook for Webjet?

According to Bloomberg Intelligence, 11 analysts have a recommendation on Webjet. Six say hold or have a neutral rating.

Analysts at research firm ISS-EVA have the only sell recommendation, with no identified price target.

Broker JP Morgan has a neutral stance and maintains a $5.20 price target, according to its latest report. Its rating remains unchanged in FY22.

JP Morgan notes that “in the absence of near term liquidity concerns, we believe [recent lockdowns] should be of minimal consequence to investors” holding a long-term view.

Fellow broker Goldman Sachs sees things a bit differently. It has a $7 price target and reckons the reopening of international borders is a positive catalyst for Webjet’s earnings.

Goldman recently updated its view on international travel recovery. It now expects “pre-Covid travel levels to be achieved in late FY23 rather than FY24 in terms of international travel from Australia”.

Ord Minnett is even more constructive on Webjet shares, assigning a $7.12 price target.

UBS recently bumped its price target by 8% to $6.85. The Swiss investment bank agrees that international travel is likely to see a strong rebound, based on what has happened in other jurisdictions when they opened their borders.

Webjet has received 10 price target upgrades in the past two months from other firms such as RBC Capital Markets, Morgans, Citi and Macquarie. These brokers have price targets of $5.50, $6.20, $6.04 and $6.65 respectively.

Can the share price return to its former glory?

Only 4 out of the 11 brokers covering the Webjet share price recommend buying or are bullish on its direction. That’s only 36% of the group. Even if there was a higher consensus, not 1 have a price target that resembles $12 per share.

So, the experts don’t see a clear path for the Webjet share price to achieve its former glory of $12 – not just yet, anyway.

In terms of gauging sentiment, the spread between the highest and lowest valuations among the brokers is 65%. This illustrates the diverse range of opinions on the direction of the Webjet share price.

It appears that only time – and the company’s fundamentals – will tell if the market can ever reward Webjet by sending its shares back to that level again.

At the time of writing, the Webjet share price is trading at $6.23, which is 1.58% down on yesterday’s closing price.

Over the past 12 months, it has climbed 23%.

The post The Webjet (ASX:WEB) share price was $12 before COVID-19 hit. Can it ever get back there? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Here’s why travel shares led the ASX 200 on Monday
• Here are the top 10 ASX shares today
• Why is the Webjet (ASX:WEB) share price taking off on Monday?
• Why the Qantas (ASX:QAN) share price is flying 4% higher today

Citigroup is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group 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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The S&P/ASX 200 Index (ASX: XJO) is having a disappointing day of trading so far this Thursday. The ASX 200 is currently down 1.17% to 7,337 points.

However, ASX 200 resources shares are bucking the trend. Even though the ASX 200 is in the red, resources shares such as BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Metals Group Limited (ASX: FMG) are all giving investors some healthy gains today. Fortescue in particular is up more than 8% at the time of writing.

It’s not just the big iron ore miners either. Gold miners like Newcrest Mining Ltd (ASX: NCM) are also seeing healthy share price rises today.

But one ASX 200 resources share that is wobbling today is Lynas Rare Earths Ltd (ASX: LYC). The Lynas share price had a scare this morning when the company opened at $7.60, down almost 1.5% from yesterday’s closing price. However, it has since rebounded. It jumped as high as $7.88 but is currently sitting at $7.78, up 0.91% for the day so far.

What’s going on with the Lynas share price today?

Well, we haven’t had much in the way of news or announcements out of the company lately. Lynas’ last major update was its quarterly activities report for the first quarter of the 2022 financial year back on 22 October.

As my Fool colleague Brooke covered at the time, this saw Lynas report $121.6 million in revenue, its second-highest figure on record. The company also told investors that “global demand for rare earth materials is very strong”, and the company is expecting demand to continue to ramp up into 2022.

However, Lynas also disclosed that COVID restrictions in Malaysia had also led to Lynas having to close its Malaysian cracking and leaching plant for 11 days of the quarter just gone. The Lynas share price sunk on the announcement.

Recent news bodes well

In other news, we got another minor development at the start of this month for Lynas. As we also reported at the time, the Lynas share price got a boost when Japan Australia Rare Earths (JARE) reconfirmed its long-term support for Lynas.

JARE is a special purpose company created by Japan Oil, Gas and Metals National Corporation together with Sojitz Corporation. JARE is a major partner with Lynas, providing funding and loan facilities for the company’s business operations. This reaffirmation of the partnership sent the Lynas share price up by more than 3% at the time.

So it’s unclear why Lynas has had such a volatile day of trading so far on Thursday. However, there is a lot going on with this company at the moment, so perhaps investors are just trying to take it all in.

The Lynas share price is up more than 86% year to date in 20021 so far, and up around 148% over the past 12 months. At the current Lynas share price, this company has a market capitalisation of almost $7 billion.

The post The materials sector is leading the ASX 200 today. What’s going on with the Lynas (ASX:LYC) share price? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns shares of Newcrest Mining 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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