Category: Stock Market

Well, this Monday certainly hasn’t started the week in the way that many investors would have hoped it would. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is down by roughly 0.7% to 7,470 points. However, one ASX 200 share is doing far worse. That would be the AGL Energy Limited (ASX: AGL) share price.

AGL shares are currently down a nasty 1.25% to $6.33 a share at the time of writing. But earlier in the trading day, this energy generator and retailer was down all the way to $6.22 a share, a loss of 2.5%.

$6.22 a share is both a new 52-week low, and a 19-year low for AGL. And that’s saying something for a company that is more than 180 years old. 

By this writer’s rough calculations, you have to go back to September 2002 to find the last time AGL shares were trading at the current level.

Today’s new low also means that the AGL share price is now down around 47.7% year to date. As well as by 57.8% over the past 12 months. The company is also down a painful 77% from its most recent all-time high. This was around $27.70 and was hit way back in April 2017.

Why is the AGL share price at a 19-year low?

As you might have gathered, AGL shares have been under enormous pressure over 2021. For one, the company made several downward revisions to its earnings guidance for FY21 before finally releasing its numbers last month.

The company ended up reporting a statutory loss of more than $2 billion. Revenues were down by 10% over the previous year to $10.9 billion. Underlying earnings per share (EPS) also fell by 31.6% to 86.2 cents.

At the time, AGL CEO Graeme Hunt blamed the results on a number of factors. Here’s some of what he said on these results at the time:

Our FY21 result reflects a challenging year for AGL Energy as we realised the impact of lower wholesale electricity prices, reduced electricity generation output at peak periods, and the roll-off of legacy supply contracts in Wholesale Gas…

Our result reflected the impact over the past two years of increasing generation supply and lower demand arising from the COVID-19 pandemic and milder weather.

With a series of earnings downgrades leading up to this report, which was also not too well received from investors, it’s perhaps no surprise the AGL share price has struggled in recent times.

Accel Energy demerger plans fail to inspire investors

But another anchor that seems to have attached itself to the AGL share price has been the company’s upcoming plans for a demerger. On 30 June, the company announced that it plans to separate its generational assets from its retailing business in a brand new company. This new company will be called Accel Energy. AGL is anticipating that this demerger will be completed by the fourth quarter of FY22.

AGL clearly thinks this demerger is in the best interests of shareholders. Even so, we can’t ignore how the AGL share price has fallen more than 30% since this announcement was made public. It’s fair to say the market has concerns here.

At the current AGL share price, the company has a market capitalisation of $3.95 billion. It also has a dividend yield of 10.25%.

 

The post AGL Energy (ASX:AGL) share price hits 19-year low appeared first on The Motley Fool Australia.

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• AGL Energy (ASX:AGL) hits record low, slides a further 12% in August
• AGL (ASX:AGL) share price struggles amid major management shake-up

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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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

APA Group (ASX: APA)

According to a note out of Ord Minnett, its analysts have upgraded this energy infrastructure company’s shares to a buy rating with a $10.75 price target. The broker has been looking at the utilities sector and believes APA is the top option. This is due to its strong free cash flows and growth opportunities. The latter includes both organic and inorganic opportunities. The APA share price is trading at $9.26 today.

GUD Holdings Limited (ASX: GUD)

A note out of Citi reveals that its analysts have upgraded this diversified products company’s shares to a buy rating with a $12.30 price target. The broker made the move on valuation grounds following a sizeable pullback in its share price. Citi believes this has left its shares trading at an attractive level, particularly in comparison to peers. The GUD share price is fetching $10.97 on Monday afternoon.

Qantas Airways Limited (ASX: QAN)

Analysts at UBS have retained their buy rating and lifted their price target on this airline operator’s shares to $6.25. According to the note, the broker believes that Qantas will be a stronger airline on the other side of the pandemic. It is also expecting the company’s profits to exceed pre-pandemic levels in FY 2024. This is expected to be underpinned by pent-up demand and its transformation program. The Qantas share price is trading at $5.40 on Monday afternoon.

The post Leading brokers name 3 ASX shares to buy today 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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended APA Group. 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 Suncorp Group Ltd (ASX: SUN) share price is having an uneventful day following its latest media release.

At the time of writing, Suncorp shares are up just 0.39% to $12.71 apiece. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.61% to 7,476 points.

What did Suncorp announce?

Investors appear unfazed by the company’s entry into the buy now, pay later (BNPL) market, moving Suncorp shares only marginally higher today.

According to the release, Suncorp has introduced its new BNPL offering in partnership with credit provider, Visa Inc (NYSE: V).

The BNPL solution, called “PayLater” will comprise both a physical and digital Visa debit card. This can be used in-store and online at more than 70 million merchant locations worldwide.

The offering is expected to be available to Suncorp customers via the Suncorp app sometime in November 2021.

Eligible customers are reportedly able to receive quick approval when applying online or through the Suncorp app. However, this will be primarily based on a credit check to assess the customer’s propensity to pay.

Once approved and when purchases are made, the payment plan will be split over four separate and equal interest-free instalments.

The card will have a limit of $1,000 per customer.

Suncorp CEO Clive van Horen touched on the bank’s latest product offering, saying:

Some customers prefer to use credit cards, while others want simple, short-term payment options from a trusted and secure bank.

This solution is also a win for Australian businesses, many of whom are doing it tough right now as we learn to live with COVID-19. Our PayLater offering eliminates additional costs to those businesses who are currently paying millions of dollars in traditional BNPL fees.

Suncorp share price summary

Over the past 12 months, Suncorp shares have accelerated by 40% with a year-to-date rise of 30%. The company’s share price reached a 52-week high of $13.26 last month before investors took profit off the table.

Suncorp presides a market capitalisation of roughly $16.2 billion, making it the 29th largest company on the ASX.

The post Suncorp (ASX:SUN) share price remains flat despite BNPL offering appeared first on The Motley Fool Australia.

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

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The Insurance Australia Group Ltd (ASX: IAG) share price is sliding today, down 1% in early afternoon trade to $5.34 per share.

Below we take a look at the insurance giant’s latest market announcement.

What did IAG announce?

The IAG share price is slipping lower today after the company reported CMC Hospitality has filed an application starting a representative proceeding against it in the Federal Court of Australia.

The S&P/ASX 200 Index (ASX: XJO) listed insurance giant could not yet provide details of the application as it had not been served with it. However, IAG noted the application “appears to relate to insureds who hold policies with CGU and business interruption losses related to COVID-19“.

CGU Insurance Limited is an intermediary-based insurance company that is part of IAG.

With a new wave of lockdowns impacting business operations across Australia’s most populous states, business interruption losses are growing into the multiple billions of dollars.

IAG stated it is among a number of other insurers who will be part of “an industry test case” in Federal Court hearings that are commencing today. It said the test case is “the most efficient process to obtain clarity and to resolve issues for customers with business interruption claims”.

The insurance company said it will follow the court’s final rulings and assess any business interruption claims “as quickly as possible” once the case is resolved.

As it stands, IAG said it “remains satisfied with the adequacy of its provision for business interruption claims”.

IAG share price snapshot

The IAG share price is up just over 13% in 2021, compared to a year-to-date gain of just under 12% for the ASX 200.

Over the past month IAG’s share price has gained 7%. The past month’s returns are largely credited to a strong results reported in early August for the 2021 financial year. That included a 170% increase in cash earnings from FY20 and a doubling of its dividend payout.

The post Here’s why the IAG (ASX:IAG) share price is slumping today appeared first on The Motley Fool Australia.

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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 ELMO Software Ltd (ASX: ELO) share price has started the week in a positive fashion.

In early afternoon trade, the human resources technology company’s shares are up 2.5% to $5.11.

Why is the ELMO share price is pushing higher?

Investors have been bidding the ELMO share price higher today following the release of a positive product announcement this morning.

According to the release, the company has launched a new module, COVIDsecure.

Developed in-house, COVIDsecure allows employers to automate record keeping of COVID testing and the vaccination status of their workforce. The company believes the module will act as the technology that supports businesses to reopen safely post-lockdown.

The module also provides employers with the ability to capture employees’ vaccination and test status for the entire or targeted areas of their business such as location, department, or even role.

Furthermore, employers can configure periodic expiry alerts so they can be notified when an employee is due to update their vaccine or test status. ELMO believes this alert functionality will be particularly useful for workers required by government regulation to submit for testing at regular intervals.

Management commentary

ELMO’s CEO and Co-Founder, Danny Lessem, spoke very positively about the new module.

He commented: “Many businesses have announced they will be mandating vaccinations among their workforce, ELMO’s COVIDsecure module makes it easier to keep records of the vaccination and testing status of that workforce, with employee consent.”

“ELMO’s COVIDsecure module gives employers a tool to help keep their employees and the community safe. The new module increases the breadth of our solution, further differentiates ELMO’s value proposition and provides new revenue opportunities,” he added.

The ELMO share price is down 22% in 2021. Shareholders will no doubt be hoping this news is the catalyst to getting the ELMO share price heading in the right direction again.

The post Why the ELMO (ASX:ELO) share price is charging higher today 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 Elmo Software. The Motley Fool Australia owns shares of and has recommended Elmo Software. 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 Westpac Banking Corp (ASX: WBC) share price is slipping amid reports the bank has delayed the potential sale of its wealth management business.

BT Panorama, a wealth management platform, is said to be the next business segment on Westpac’s chopping block. It’s reported to be in focus after the bank sold its life insurance business last month. However, its sale has reportedly been delayed following a technical glitch.

Right now, the Westpac share price is $25.78, 0.92% lower than its previous close.

That sets it up as the worst-performing of the four big banks today. The share price of the Commonwealth Bank of Australia is only just ahead of that of Westpac, having slipped 0.82%.

Meantime, those of the National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group Ltd (ASX: ANZ) have fallen just 0.09% and 0.05% respectively.  

Let’s take a closer look at today’s news of Westpac.

Is this why the Westpac share price is slipping?

The Westpac share price is bringing up the rear of its big bank peers amid reports it’s delayed the sale of its wealth management platform.

According to last month’s reporting by the Australian Financial Review, BT Panorama recently experienced technical difficulties. The publication noted Westpac had said the glitch wouldn’t affect the timeline of its sale.

However, The Australian today reported the sale will be delayed until 2022 due to the troubles.

Neither Westpac nor BT Panorama has commented on the reported difficulties or the sale and its reported delay.

Westpac didn’t respond to The Motley Fool Australia’s request for comment in time for publication.

However, market watchers interested in the Westpac share price might want to keep an eye out for official news of the sale.

According to The Australian, Westpac will be looking to sell BT Panorama separately from the platform’s superannuation business. The platform is said to be worth around $1 billion.

The newspaper reported Macquarie Group Ltd (ASX: MQG) and IOOF Holdings Limited (ASX: IFL) might be among the potential buyers.

The post Westpac (ASX:WBC) share price slumps amid reports of sale delays appeared first on The Motley Fool Australia.

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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 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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The Alumina Limited (ASX: AWC) share price shot up early on Monday, jumping 9.27% higher to $2.18 within the first few minutes of trade.

Those big gains have since retreated, but the Alumina share price is still trading higher, currently up 6.02% at $2.12.

Let’s take a look.

What’s driving the Alumina share price?

With no news released today, price increases and a supply shortage could be the forces behind a 25% rally in the Alumina share price in the last 7 trading sessions.

The company is engaged in a broad range of aluminium-related activities including bauxite mining, alumina refining and aluminium smelting.

Aluminium prices have hit their highest levels in more than a decade amidst potential shortages in China, according to a Reuters report.

The report said benchmark three-month aluminium climbed 2.7% to $2,722 a tonne, while the “most-traded” October aluminium contract on the Shanghai Futures Exchange closed 1.2% up at $3,311 a tonne, near its highest since August 2008.

To add some perspective, Alumina’s 1H21 results last month highlighted average realised aluminium prices of US$2,303/t.

According to reports, aluminium shortages have been fulled by production cutbacks in China. The government is increasing oversight on highly polluting industries in an attempt to meet its climate and emission goals.

Last Monday, Bloomberg said that producers in China’s southern Guangxi province would “cut output of energy-intensive materials in response to Beijing’s campaign to save power and restrain emissions”.

The Guangxi government has asked for production cuts in sectors including aluminum, alumina, steel, ferroalloys and cement. Some aluminum and alumina smelters will be required to cap output in September at half their capacity, while some new smelting projects will be delayed.

What’s next for Alumina?

The Alumina share price is up 10.3% year-to-date thanks to its recent rally. The company is bullish on the outlook for the aluminium market.

In its half-year results, the company said:

Global aluminium demand is now back to pre-virus levels, largely due to economies recovering post-COVID, helped by Government stimulus packages.

This is expected to grow with further economic recovery and greater demand for aluminium in a decarbonising world, largely due to its lightweight properties and recyclability.

From an operational perspective, the company’s “low-cost assets” were able to produce record bauxite and alumina outputs in the first half.

The post The Alumina (ASX:AWC) share price rocketed 9% to an 18-month high today appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun 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 MoneyMe Ltd (ASX: MME) share price is charging higher, up 6% in late morning trade to $2.28 per share.

Below, we take a look at the digital consumer credit company’s trading update that appears to be driving ASX investor interest.

What trading update did MoneyMe announce?

MoneyMe’s share price is leaping today after the company reported record originations of $112 million for July and August, the first 2 months of the new financial year (Q1 FY22).

The technology-oriented credit company achieved this in a period that’s seen much of Australia in lockdown.

It said originations increased 307% compared to the prior corresponding period (pcp) of July and August 2020. And they were up 7% on the $105 million of originations in April and May of this year.

The MoneyMe share price could also be getting a boost today with its report of an increase in the credit quality in its loan book. The average Equifax score in its loan portfolio stands at 675, up from 650 as at 30 June.

Additionally, the company said it’s reached $25 million in Autopay originations to date, with Autopay ramping up to $18 million in July and August from $6 million in Q4FY21 when it was launched.

The company’s partnership with EasyCars has given it access to hundreds of dealerships with direct to dealer auto-finance integration.

Commenting on the trading update, MoneyMe’s CEO Clayton Howes said:

We are incredibly pleased to see the strong originations growth and increasing credit quality in the business, especially in the current environment. It is a testament to our product diversification strategy and huge growth opportunity that exists.

The rapid growth in Autopay is exciting, and the new partnership with EasyCars will further accelerate our penetration into the auto-finance market by making Autopay more accessible to dealers.

MoneyMe share price snapshot

The MoneyMe share price is up an impressive 54% year-to-date. That compares to a gain of 12% for the All Ordinaries Index (ASX: XAO) so far in 2021.

Over the past month, MoneyMe’s share price is up 3%, while the All Ords has slipped into the red.

The post Why the MoneyMe (ASX:MME) share price is leaping 6% today appeared first on The Motley Fool Australia.

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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 Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price is moving lower in early trade on Monday. This follows Soul Patts releasing a trading update pertaining to its FY21 full-year performance.

At the time of writing, the Soul Patts share price is fetching $34.79, down 3.33%.

What’s moving the Soul Patts share price?

In a trading update, Soul Patts made shareholders aware of material impacts on its expected net profit after tax (NPAT) in FY21. While the term ‘impacts’ may sound menacing, the numbers are positive for the investment company.

Shareholders could be in for a treat as Soul Patts’ final report for FY21 fast approaches. According to the release, the company now anticipates group consolidated NPAT in the range of $316 million to $336 million. For comparison, NPAT for the full year prior came in at $170 million. Hence, the provided trading update indicates a potential 86% to 98% increase in earnings.

As explained in the update, there are 3 main reasons for the bottom line strength. Firstly, New Hope Corporation Limited (ASX: NHC) disclosed in its 31 July quarterly report that earnings before interest, tax, depreciation, and amortisation (EBITDA) are forecast to be $372 million. Soul Patts holds nearly a 40% stake in the coal-producing company.

Secondly, brickmaking company Brickworks Limited (ASX: BKW) has highlighted its expectation for record earnings in FY21. Soul Patts own approximately 46% of the company.

Lastly, base metal mining company Round Oak is expected to report net profits of $64 to $68 million for FY21. This would represent a radical shift from a $43 million loss in the previous financial year.

On the other hand, the company noted that these gains will be partially offset by a reduced contribution from TPG Telecom Ltd (ASX: TPG). As a result of the telecom giant’s merger with Vodafone, Soul Pattinson doesn’t receive a proportion of earnings based on its equity ownership. For that reason, it only received $18 million in dividends in FY21 from TPG. In contrast, Soul Patts was distributed with $72 million in accounted profit.

What about statutory profits?

The Soul Patts share price might be waning on Monday because of how the statutory profits could look in FY21. Specifically, the $1.05 billion accounting gain from the derecognition of TPG as equity won’t be repeated this year. Due to the one-off gain in the previous year, investors should expect a materially lower statutory profit.

Finally, the company will release its preliminary final report for the FY2021 financial year on 23 September. Likely, shareholders will be watching the Soul Patts share price with great anticipation leading up to this event.

The post Soul Patts (ASX:SOL) share price slips on FY21 earnings update appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom 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 decidedly not having a great start to the trading week this Monday. At the time of writing, the ASX 200 is down a hefty 0.7% today so far to 7,470 points. But one ASX 200 share that is defying this ASX 200 gravity today is Zip Co Ltd (ASX: Z1P). Zip Co shares are up today, presently by a healthy 2.3% to $6.94 a share. That’s after initially rising all the way to $7.05 earlier this morning too.

So why are Zip shares rallying so enthusiastically in the face of a sinking market?

Well, it’s not immediately clear. There are no major news or announcements out of Zip today so far. But it is worth noting that one of Zip’s fellow buy now, pay later (BNPL) peers are also defying the ASX 200’s malaise. Afterpay Ltd (ASX: APT) shares are up 0.97% to $131.98 so far.

A new BNPL competitor?

We did get some news out of the BNPL space today though, which may be affecting the Zip share price. Today, the ASX banking and insurance giant Suncorp Group Ltd (ASX: SUN) put out a press release on some new BNPL plans the company is initiating.

According to the release, Suncorp has announced a new BNPL product called ‘PayLater’. Suncorp says this new “interest-free” BNPL product “can be used to make payments at more than 70 million merchant locations worldwide, wherever Visa is accepted”.

Suncorp expanded on this by stating the following:

Available to Suncorp Bank customers from November via the Suncorp App, PayLater is designed to give customers more choice around how they pay, and at no additional cost to retailer…

Unlike some other banks offering digital-only BNPL, PayLater gives customers the option of a digital or physical PayLater Visa Debit card that can be used both in-store and online.

As the bank indicated, PayLater will not hit merchants with extra fees. This stands in stark contrast to other BNPL providers like Zip and Afterpay. Both of these BNPL providers charge a chunky surcharge on retailers running sales through their BNPL networks.

PayLater will also have a $1,000 limit, depending on eligibility, and will be available for purchases above $50. It will also have a capped $10 late fee per purchase for customers who fail to pay back their instalments on time.

About the Zip Co share price

Even though Suncorp’s announcement can easily be taken as a new threat to Zip (and Afterpay), today’s share price rises seem to fly in the face of this thesis. Either the market isn’t bothered by this announcement. Or it simply isn’t enough to stop some enthusiastic buying pressure for Zip shares today.

Year to date in 2021 so far, Zip shares are still up a healthy 24.7%. However, they are also only up a far more sluggish 1.01% over the past 12 months. At Zip’s current share price, the company has a market capitalisation of $3.81 billion.

The post Zip (ASX:Z1P) share price jumps 2% despite new BNPL competitor appeared first on The Motley Fool Australia.

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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. owns shares of and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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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