Category: Stock Market

The Tesserent Ltd (ASX: TNT) share price has been struggling lately despite several pieces of seemingly positive news having been released by the company.

Over the last month, Tesserent’s stock has fallen 22.41%. Right now, the Tesserent share price is 22.5 cents. This time last month it was 29 cents.

So, what spurred the cyber security company’s share price to tumble? Let’s take a look.

Tesserent struggles on the ASX

The Tesserent share price has been sliding lately despite the company posting strong financial year 2021 earnings and releasing news of an exciting acquisition.

The company released its results for financial year 2021 on 30 August.

Within them, it noted it had made a $4.9 million profit after tax and its revenue had been boosted 233% to reach $67.3 million.

However, the market showed indifference to Tesserent’s seemingly successful 12 months. The Tesserent share price ended the day exactly where it started it, before plunging 11% lower the following session.

The market’s cold reaction to Tesserent’s FY21 results was the second time a seemingly positive announcement fell flat for the company in August.

On 19 August, Tesserent announced its plan to acquire Australian cybersecurity company, Loop Secure.

Despite lifting during the session in which the company announced its acquisition, the Tesserent share price closed exactly where it had finished the previous day’s trade.

Tesserent plans to acquire Loop Secure for around $13.5 million, paying $9 million in cash and the rest in shares.

Tesserent share price snapshot

The Tesserent stock’s recent slide has added to its ongoing woes.

Right now, the company’s share price is 36% lower than it was at the start of 2021. It has also fallen 8% since this time last year. However, it is currently up 4.65% on the day.

The company has a market capitalisation of around $230 million, with approximately 1 billion shares outstanding.

The post Why is the Tesserent (ASX:TNT) share price down 22% in a month? appeared first on The Motley Fool Australia.

More reading

• Tesserent (ASX:TNT) share price fails to fly despite 230% revenue growth in FY21
• Why the Tesserent (ASX:TNT) share price is surging 7% 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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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.

Apple (NASDAQ: AAPL) stock took a hit late last week after a federal judge struck down some of the company’s App Store rules regarding how payment systems are managed in apps running on its products (like iPhones and iPads). The court’s decision involved a case brought by Fortnite creator Epic Games. While the ruling could hurt Apple, other requested changes Epic was demanding as part of its lawsuit did not get the court’s approval. Epic management said it plans to appeal.

The gist if the judge’s ruling is that developers are now allowed to send their app’s users to outside payment systems from within the app. The ruling does not require Apple to allow users to use Apple’s in-app payment system without paying Apple the 15% to 30% commission fee it charges.

App makers, game developers, and companies like Spotify (NYSE: SPOT) have long fought against the 30% fees Apple takes for transactions that take place on iOS devices, arguing that they should be able to use any payment system to sign up customers, rather than exclusively going through Apple’s payment system for accounts accessed on Apple devices. 

While there’s a chance the rulings that didn’t go Epic’s way will be overturned upon appeal, the case ended up being a partial win for Apple. It can still collect fees on transactions in its payment system. But the ruling also reinforced a trend that clearly suggests Apple’s grip on the App Store is loosening.

Earlier this month, for instance, Apple said it will allow “reader apps” and allow apps to use a single link to sign up customers on their own websites instead of using Apple’s payment system. This latest case pushes the envelope further, requiring that Apple has to allow other (outside) payment options for in-app purchases. The impact of changes like this on a growing tech company like Spotify could be profound. 

The Apple tax

Apple takes 30% of any transactions occurring in the Apple App Store or within its ecosystem. That may seem fair on the surface because the transactions are happening via Apple devices, but there are reasons these fees are being challenged in court and even in Congress right now. The basic argument is that Apple has gone too far in its efforts to control how app developers for its devices can make money.

The tech giant’s developer rules have long contained “anti-steering” provisions — essentially, developers were forbidden from even letting their customers know there was a way to pay for their services outside of the App Store. Developers were not allowed to provide a link from within the app, nor could they offer a third-party payment platform. All they could do was ask you to log in to your account, implying that you had to go to their website to sign up for the service. If you’ve ever downloaded an app hoping to try it only to see a login screen when the app first opens, this is the reason why. 

This developer provision has been particularly problematic for Spotify because the company has a free ad-supported business that it wants to make easy to use for customers. But Spotify ultimately wants customers to sign up for a premium service. To get around Apple’s anti-steering rules, the company literally says, “You can’t upgrade to Premium in the app. We know, it’s not ideal.” (see screenshot to the left) 

Apple opened up the “single link” option recently after Japan’s Fair Trade Commission started an investigation. But for Spotify, being able to integrate an in-app purchase option that isn’t subject to that 30% fee would be a game-changer because it’ll make it easier to convert more of its free service customers into paid subscribers. 

Spotify could be leveling the playing field

One big advantage Apple has always had over Spotify is the integration between its software and hardware — or in this case, between its ownership of the payment system and its ownership of apps like Apple Music and Apple Podcasts. Unquestionably, it’s easier to sign up for paid subscriptions to Apple’s apps with Apple’s form of payment, which is why the company doesn’t want apps steering customers to other in-app payment options. 

It isn’t just about the 30% fee though. When Spotify was forced to use Apple’s payment system, it gave up the ability to gather information about its customers. Apple closely guards information like users’ email addresses, demographics, phone numbers, and even street addresses. Spotify could try to collect that data by getting users to sign up outside of the Apple ecosystem or by asking the questions directly, but it was certainly forced to jump through hoops compared to the process for signing up for Apple’s own apps. 

If Spotify can make signup and payment simple for new users and collect data directly, the streaming company will not only be able to avoid the 30% fees, it should gain more insights about its users that will help it serve up more effective ads. And that’s where Spotify’s revenue and profit growth could come from. 

Don’t sleep on Spotify

Slowly, Apple’s grip on its App Store and payments is being loosened, and that’s great news for companies like Spotify. Whether it’s in music or podcasts, it has been fighting an uphill battle against Apple’s competing apps and payment rules for years. Now that some of those restrictions are being lifted, Spotify may have a chance to build an experience that matches or beats Apple’s own offerings. Don’t underestimate the impact this could have on Spotify, especially as it spends hundreds of millions of dollars to try to take on Apple in the booming podcasts business. 

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

The post Apple’s epic loss could be a big win for Spotify appeared first on The Motley Fool Australia.

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Travis Hoium owns shares of Apple and Spotify Technology. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Apple and Spotify Technology. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. 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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Shareholders of insurance giant Insurance Australia Group Ltd (ASX: IAG) haven’t had much to cheer about the past few years.

The IAG share price is in the red in early trade on Tuesday after finishing 1.31% down Monday to close at $5.26. That’s a 12.6% rise in the past 12 months, but a 3.8% descent in the past 5 years.

Hardly exciting for ‘buy-and-hold’ enthusiasts.

But while the COVID-19 Delta strain paralyses much of Australia, multiple experts are picking it as a bargain buy.

The Firetrail Australian High Conviction Fund last month revealed that it’s one of the non-banking ASX finance shares that it’s overweight on.

According to CMC Markets, 7 out of 11 analysts rate IAG shares as a “strong buy”. One rates it as a “moderate buy”.

And there are no analysts currently recommending to sell.

Why are IAG shares so popular with experts at the moment?

Despite doubling its final dividend, IAG’s financial results last month underwhelmed the market.

So why are fund managers so bullish?

Aberdeen Standard Investments head of Australian equities Michelle Lopez hinted at some of the tailwinds that currently make insurance stocks attractive.

“Looking forward, the premium rate cycle momentum is expected to persist for longer and the competitive environment remains rational, allowing insurers to earn-through pricing increases and restore margins,” she posted last week on Livewire.

“Furthermore, outsized provisions that were booked by insurers like IAG for COVID business interruption claims continue to look conservative given the modest actual claims experience observed to date, as well as the conservative levels of risk margin that have been incorporated into these estimates.”

Depending on how some legal cases play out, Lopez reckoned investors might see a rainbow next year.

“Insurers like IAG may benefit from provision releases and capital surpluses in 2022.”

This may have already started playing out, with IAG revealing its cash earnings jumped 170% in last month’s financial report.

“Another positive during the year was its reported insurance profit of $1,007 million, which is an increase of 35.9% over FY 2020,” reported The Motley Fool’s James Mickleboro.

“This was due mainly to lower natural perils costs, positive credit spreads, and a first-half COVID-19 benefit largely from lower motor claims in Australia. This translated to an improved reported insurance margin.”

The post Why experts have high hopes for the IAG (ASX:IAG) share price appeared first on The Motley Fool Australia.

More reading

• Is the IAG (ASX:IAG) share price bouncing back in September?
• Why the IAG (ASX:IAG) share price has underperformed the ASX 200 in the last year
• How have ASX financial shares performed during the August 2021 earnings season?
• Here’s why the IAG (ASX:IAG) share price is slumping today
• Here’s why the IAG (ASX:IAG) share price is up 10% in a month

Motley Fool contributor Tony Yoo 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 Insurance Australia 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 share price of ASX IT specialist Dicker Data Ltd (ASX: DDR) has surged higher this year, buoyed by news the company is making a key strategic acquisition.

Dicker Data shares set a new 52-week high price of $16.60 on 26 August. They have now slid back down to $13 (at the time of writing). However, it still means the Dicker Data share price has risen a whopping 78% over the past 12 months.

Company background

Dicker Data is one of the most established distributors of computer software and hardware in Australia. It partners with many leading international technology vendors, including Cisco Systems Inc (NASDAQ: CSCO), Intel Corporation (NASDAQ: INTC), Dell Technologies Inc (NYSE: DELL), and Microsoft Corporation (NASDAQ: MSFT).

As an IT distributor, Dicker Data doesn’t sell directly to consumers. Instead, it partners with more than 6,900 resellers across Australia and New Zealand. Dicker Data claims to take a customer-centric approach, and works proactively with its resellers to help grow their businesses.

Recent news affecting the Dicker Data share price

The Dicker Data share price took off following the announcement it was acquiring the Exeed Group for $68 million.

Exeed is the second-largest IT distributor in New Zealand, with FY21 full-year normalised earnings before interest, tax, depreciation, and amortisation expenses (EBITDA) expected to be around $15 million. By comparison, Dicker Data (on its own) reported EBITDA of $51 million for the first half of FY21.

Crucially, the deal will give Dicker Data a major foothold in the New Zealand market. Annual revenues for the combined entities is expected to be NZ$500 million.

Dicker Data chair and CEO David Dicker described the deal as “a very satisfying outcome”. Investors liked it too, with the Dicker Data share price rocketing 16% higher the day following the announcement.

What about the financials?

In the wake of the Exeed acquisition news, Dicker Data also released its interim FY21 financial report, covering the six months ended 30 June 2021.

Revenues were up 6.3% versus the prior corresponding period (to $1.07 billion). This might seem like only a modest increase, but the company pointed out it experienced a spike in demand in the first half of FY20. A global shortage of computer chips also had a negative impact on sales over the first half of FY21.

The company said, despite the ongoing chip supply issues, orders were still being placed by resellers, with no cancellations. Dicker Data also stated it was identifying other new growth areas and opportunities. These included return-to-work solutions, 5G technology, and cloud technology.

Dicker Data share price snapshot

Despite the company’s reassurances, Dicker Data shares plunged following the release of the company’s interim results. After surging to new highs on the back of the news of the Exeed acquisition, the Dicker Data share price fell almost 19% on the day of the results announcement.  

Since then, the shares seem to have stabilised at around $13. Nervous shareholders will now be hoping that chip supply issues won’t continue to hurt the company’s top-line growth over the second half of FY21 and beyond.

The post The Dicker Data (ASX:DDR) share price is up 80% over the last 12 months appeared first on The Motley Fool Australia.

More reading

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• Which ASX shares are set to finish the week as the top movers on the ASX 300?
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• Why Altium, Catapult, Dicker Data, & PolyNovo shares are charging higher
• Dicker Data (ASX:DDR) share price surges 5% as directors buy the dip

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Rhys Brock has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Dicker Data Limited and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Intel and has recommended the following options: long January 2023 $57.50 calls on Intel and short January 2023 $57.50 puts on Intel. The Motley Fool Australia owns shares of and has recommended Dicker Data 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 MGC Pharmaceuticals Ltd (ASX: MXC) share price is charging higher on Tuesday.

In early trade, the cannabis company’s shares are up 11.5% to 6.7 cents.

Why is the MGC Pharma share price charging higher?

Investors have been bidding the MGC Pharma share price higher on Tuesday following the release of a positive update on its UK operations.

According to the release, the company’s CannEpil+ product has been approved for UK import and prescription by the Medicine and Healthcare products Regulatory Agency (MHRA).

CannEpil+ is a biosimilar effect-identical product of CannEpil, which is a phytocannabinoid treatment for drug-resistant epilepsy. The release notes that the approval was facilitated by its UK distribution and clinical access partner, Elite Pharmaco.

It notes that this will be the first time that UK authorities have approved an epilepsy treatment that is on a clinical pathway containing THC. This is in response to the urgent need of some patients to have access to a clinical product which has demonstrated its efficacy at treating drug-resistant epilepsy.

CannEpil+ will initially be used to treat ten patients in the UK who suffer from drug-resistant epilepsy. MGC Pharma will be providing CannEpil+ free of charge to these patients on compassionate grounds for six months.

Management commentary

MGC Pharma’s Co-Founder and Managing Director, Roby Zomer, commented: “The approval for the import of CannEpil+ to the UK and the associated compassionate prescriptions is an important step towards our global roll out of the treatment, and our continued commitment to patients. Achieving MHRA approval has been an ongoing process for some time with our UK partner Elite Pharmaco, and we expect the first patients in the UK to begin treat with CannEpil+ in the coming months.”

“The development of our Data Collection App will optimise our understanding of both CannEpil, CannEpil+ and other future treatments, and ultimately provide patients with a better treatment for Refractory Epilepsy, and therefore improving their quality of life. It is also a vitally important foundation for building strong relationships with UK medical regulators and health organisations which will benefit MGC Pharma going forward, as we look to roll out further clinical trials and products in the UK,” he added.

The MGC Pharma share price is now up over 200% in 2021.

The post MGC Pharma (ASX:MXC) share price jumps 11% on UK approval appeared first on The Motley Fool Australia.

More reading

• MGC Pharmaceuticals (ASX:MXC) share price rockets 40% on supply deal

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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Ever since Afterpay Ltd (ASX: APT) announced in August that US fintech Square Inc (NYSE: SQ) would buy it out, shareholders have had a dilemma.

It’s a pretty enviable ‘problem’ though. Do you sell your Afterpay shares or hold onto them to convert into Square stock?

One of Afterpay’s biggest fans, Frazis Capital Partners portfolio manager Michael Frazis, revealed last month that his team took the money and ran.

“We sold our Afterpay shares,” Frazis said.

“We owned about 6% in Square, which is one of our largest positions… We’re going to maintain 6% or 7% in Square,… which we think is about right.”

Keeping some Afterpay shares up her sleeve

However, Tribeca Investment Partners portfolio manager Jun Bei Liu told The Motley Fool this week that she had the opposite idea.

“We took some profit but we still remain a shareholder of Afterpay,” she told Ask A Fund Manager this week. 

“I’m still not ruling out that there might be somebody else that will come in to bid for Afterpay — just simply because Afterpay is a first mover and is the market leader in this space. It’s the innovator, and also is the one with the most active user within its ecosystem.”

Ophir Asset Management co-founders Andrew Mitchell and Steven Ng took a similar view to Liu.

“We still own Afterpay in case a bidding war breaks out with potential suitors such as Apple Inc (NASDAQ: AAPL) or PayPal Holdings Inc (NASDAQ: PYPL),” said the fund managers last month.

“Further consolidation in the BNPL industry will likely follow with perhaps 2 to 3 key players left at maturity.”

Liu told The Motley Fool that her team sold down partially because Square is a broader business than Afterpay.

“Though we believe it’s a really great thing for Afterpay to move to the next level, it does reduce that buy now, pay later exposure,” she said.

“Because it’s now part of a bigger group and Square does make quite a lot of money from Bitcoin and a lot of other things. That is quite different from what we used to invest in.”

Square’s $39 billion takeover of the Australian buy now, pay later player is expected to wrap up early in the new year.

The post Why I’m holding my Afterpay (ASX:APT) shares: expert appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo owns shares of PayPal Holdings and Square. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Apple, PayPal Holdings, and Square. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Apple and PayPal Holdings. 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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These 3 S&P/ASX 50 Index (ASX: XFL) shares are outperforming their peers, gaining more than 10% in a single month.

The gains are even more impressive given the ASX 50 index itself has fallen by 2.96% over the last 30 days.

So, what’s been sending the ASX 50’s top performers skyrocketing? Let’s take a look.

The top performing ASX 50 shares of the last month

These big-name companies have been outperforming their peers over the last month.

Qantas Airways Limited (ASX: QAN)

The recent performance of the Qantas share price has seen the airline leading the ASX 50 pack.

Qantas shares have gained an impressive 19% over the last 30 days. At Monday’s market close, shares in Australia’s largest airline were swapping hands for $5.31 apiece.

The market has been pushing Qantas higher since the company released its earnings for the 2021 financial year, which included a detailed plan to resume offering international flights.

South32 Ltd (ASX: S32)

The South32 share price is nipping at Qantas’ heels, having gained 15.8% since this time last month.

Right now, investors can get a piece of the ASX 50 mining company for $3.44.

South32’s gains for the month have come about despite the company posting disappointing results for FY21.

However, as The Motley Fool Australia reported last week, the values of many commodities South32 deals with have been taking off, likely pulling the South32 share price up with them. Additionally, some brokers are backing the company as one to watch over the coming years, which has probably excited the market.

Aristocrat Leisure Limited (ASX: ALL)

Finally, taking home the ASX 50’s third-best performance of the last 30 days is Aristocrat Leisure.

The Aristocrat Leisure share price has soared 13.7% since this time last month despite the company’s silence.

As my Foolish colleague reported yesterday, the gaming technology company’s stock might be being boosted by Aristocrat’s continuous growth.

The ASX 50’s worst performer

Unfortunately, where there are winners there must also be losers.

Right now, the worst-performing ASX 50 share of the last 30 days is iron ore giant BHP Group Ltd (ASX: BHP).

The BHP share price has fallen 20% over the last month, potentially driven lower by the company’s plan to merge its oil assets with Woodside Petroleum Limited (ASX: WPL).

The post These 3 ASX 50 shares have gained more than 10% in 30 days appeared first on The Motley Fool Australia.

More reading

• Why I’m holding my Afterpay (ASX:APT) shares: expert
• Can the Temple & Webster (ASX:TPW) share price hit $16?
• The Australian Ethical Investment (ASX:AEF) share price is up 124% this year!
• The Bank of Queensland (ASX:BOQ) share price has fallen 4% since Wednesday. What’s happening?
• Coles (ASX:COL) share price on watch amid latest push to Kmart market

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 Temple & Webster Group Ltd (ASX: TPW) share price has been a very strong performer over the last six months.

During this time, the online furniture and homewares retailer’s shares have gained an impressive 40%.

Where next for the Temple & Webster share price?

The good news is that one leading broker believes the Temple & Webster share price can keep on rising from here.

According to a note out of Morgan Stanley, its analysts were pleased with the company’s performance in FY 2021 and also the solid start it has made to the new financial year.

In case you missed it, Temple & Webster reported an 85% increase in revenue to $326.3 million and a 141% jump in EBITDA to $20.5 million in FY 2021. It also revealed revenue growth of 49% for the period 1 July to 27 August.

Driving this growth was the accelerating shift from offline to online, a thriving housing market, strong customer growth, and an increase in revenue per active customer.

In response to this update, Morgan Stanley put an overweight rating and $16.00 price target on its shares.

Based on the current Temple & Webster share price of $12.89, this implies potential upside of 24% over the next 12 months.

Why is Morgan Stanley bullish?

Morgan Stanley is bullish on Temple & Webster due to its belief that the company’s strong revenue growth will continue.

This is due partly to the company’s reinvestment program, the structural shift online, and the launch of mobile apps.

All in all, Morgan Stanley believes Temple & Webster is on track to triple its annual revenue to $1 billion in the next four years.

In light of this, the broker sees a lot of value in its shares at the current level and is recommending them as a buy.

The post Can the Temple & Webster (ASX:TPW) share price hit $16? appeared first on The Motley Fool Australia.

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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 shares of and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Ethical investing is becoming an increasingly common theme for the modern investor. Increasingly, investors not only want to grow their wealth, but they also want to feel good about where that growth comes from. Climate change, the ongoing COVID-19 pandemic, and the many social justice movements that have gained traction globally over the past 12 months have all made people more aware than ever of the impacts the companies they invest in have on society and the environment.

So, it’s no wonder then that Australian Ethical Investment Limited (ASX: AEF) has seen its price rally 124% so far this year (to $11, as at the time of writing).

What is Australian Ethical?

Australian Ethical is a wealth management company with over $6 billion in funds under management (FUM). The company offers a range of managed funds (catering to various risk appetites), as well as superannuation and pension products.

Managed funds pool together cash from multiple individual investors, and then the fund manager decides on how to invest the money. A fund mandate document normally sets out the terms of the investment, including the fund’s strategy and any performance benchmarks – exceeding the annual return on the S&P/ASX200 Index (ASX: XJO), for example.

While other investment vehicles and exchange-traded funds (ETFs) just screen out companies that fall short of various environmental, social and governmental (ESG) targets, Australian Ethical claims to actively seek out companies that are doing good.

So, what does it invest in?

The managed funds in the Australian Ethical product suite are weighted differently according to their risk level and investment objectives. For example, the Australian Ethical Australian Shares fund, which is high risk and focused on long-term growth, invests heavily in the financial and healthcare sectors. However, one of its top ten holdings is New Zealand-based sustainable energy provider Contact Energy Limited (ASX: CEN), which claims that over 80% of its energy is generated by renewable sources.  

The financials

Australian Ethical makes money by charging fees on its investment products. Operating revenue jumped 18% in FY21 (to $58.7 million), on the back of a 50% increase in FUM. Australian Ethical also earned a one-off $2.9 million performance fee on its Emerging Companies Fund, after it beat its one-year retail benchmark return by a whopping 17.3%.

Commenting on the result, Australian Ethical CEO John McMurdo stated: “The planets are aligning very quickly for Australian Ethical with societal, political and economic tailwinds pointing to a business case for responsible investing that is impossible to ignore.”

He went on to say that the company was “embarking on an aggressive growth strategy that reinforces [Australian Ethical’s] existing market share and expands it where we see the most potential.”

Recent moves in the Australian Ethical share price

After a brief dip around June and July, the Australian Ethical share price has taken off again. Since the release of the company’s full-year results on 26 August, the Australian Ethical share price has gained almost 16%.

And after those incredibly bullish comments from CEO John McMurdo, the Australian Ethical share price will definitely be one to watch over the coming months.  

The post The Australian Ethical Investment (ASX:AEF) share price is up 124% this year! appeared first on The Motley Fool Australia.

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Motley Fool contributor Rhys Brock owns shares of Australian Ethical Investment Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment 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 Bank of Queensland Limited (ASX: BOQ) share price has struggled in the last few days.  

After closing yesterday’s trading session at $9.30, shares in the bank have tumbled more than 4% from their highs last Wednesday.

Let’s take a look at what’s been weighing down the Bank of Queensland share price.

Weaker market drags Bank of Queensland share price

The Bank of Queensland hasn’t released any price-sensitive news that could explain the slump in its share price.

As a result, weakness in the bank’s shares can be attributed to several factors

Firstly, general weakness in the broader market over the past few days could explain why the Bank of Queensland share price has struggled.

Concerns over the US economy triggered a broad market sell-off with many investors looking to take profits after a strong gain in 2021.

In addition, shares in the Bank of Queensland could be the victim of weaker sentiment across the banking sector.

This follows several downgrades for notable banks such as Macquarie Group Ltd (ASX: MQG) and National Australia Bank Ltd. (ASX: NAB).

More on the Bank of Queensland share price

Despite struggling over the past few days, shares in Bank of Queensland have had a stellar year thus far.

Since the start of 2021, the bank’s share price has gained more than 24%.

By comparison, the broader S&P/ASX200 Index (ASX: XJO) has only managed to claw 12% for the year.

There have been various catalysts that have helped propel the Bank of Queensland share price higher this year.

The Bank of Queensland has had a strong start to the first-half of FY21.

For the first-half, the bank recorded a 9% increase in cash earnings to $165 million and a 66% lift in statutory net profit after tax to $154 million.

The bank also boosted its interim dividend by 54% to 17 cents per share, fully franked.

In addition, shares in the bank received a boost after announcing its interest to acquire Money Equity (ME) Bank.

Following a capital raise, the Bank of Queensland received approval for the acquisition in early July.

Shares in the bank have also been on the receiving end of some positive broker reports.

Most recently, analysts at JPMorgan rated the Queensland-based bank as the third-best financial share on the market.

The post The Bank of Queensland (ASX:BOQ) share price has fallen 4% since Wednesday. What’s happening? appeared first on The Motley Fool Australia.

More reading

• Why the Bank of Queensland (ASX:BOQ) share price has beaten the ASX 200 in the last year
• The Bank of Queensland (ASX:BOQ) share price is up 5% in 2 weeks
• Top broker picks best ASX 200 bank shares to buy coming out of reporting season
• The Bank of Queensland (ASX:BOQ) share price is now trading on a forecast 4.4% fully franked dividend yield
• The Bank of Queensland (ASX:BOQ) share price is rated as a strong buy by brokers

Motley Fool contributor Nikhil Gangaram 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 Macquarie 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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