Category: Stock Market

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down slightly to 7,775.4 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is down almost 5% to $1.46. This appears to have been driven by a broker note out of Citi this morning. In response to its strategic review, the broker has downgraded the energy producer’s shares to a sell rating with a trimmed price target of $1.40. It was disappointed to see that Beach Energy’s strategic review revealed higher than expected capex with no boost to medium-term production. In light of this, it feels its shares are overvalued at current levels.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down over 3% to 8.7 cents. This is despite there being no news out of the lithium miner on Wednesday. However, it is worth noting that a number of ASX lithium stocks are in the red today. This follows another poor session for global lithium giants on Wall Street overnight. Core Lithium’s shares are down over 90% since this time last year. It was forced to suspend mining activities indefinitely due to falling lithium prices.

Helia Group Ltd (ASX: HLI)

The Helia Group share price is down almost 18% to $3.48. This follows news that Commonwealth Bank of Australia (ASX: CBA) intends to issue a request for proposal relating to its external Lenders Mortgage Insurance (LMI) requirements for the whole CBA group. While this could mean a bigger contract for Helia. It could also mean the loss of the lucrative contract. Helia notes that its current contract represented approximately 53% of its gross written premium in FY 2023. Clearly, the loss would be a devastating blow to the company.

RED 5 Limited (ASX: RED)

The RED 5 share price is down over 2% to 4.4 cents. This morning, the company revealed a number of changes to its executive leadership following the successful implementation of the merger with Silver Lake Resources Ltd (ASX: SLR). Its chairman said: “Under the leadership of Luke Tonkin as Managing Director and CEO, supported by a high calibre executive leadership team, I am confident we have the team in place to oversee the next chapter of the Company’s growth.”

The post Why Beach Energy, Core Lithium, Helia, and Red 5 shares are dropping today appeared first on The Motley Fool Australia.

More reading

• ASX 200 stock plunges 15% on CBA deal news
• Buy this ASX 200 energy stock if you want a big return
• 5 things to watch on the ASX 200 on Wednesday
• Why Beach Energy, Fortescue, Kina Securities, and Melbana Energy shares are dropping today
• Core Lithium share price hits a multi-year low: Will the tide change soon?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Scott Phillips.

In today’s investment landscape, many Aussies are on the lookout for passive income that offers not only a steady cash flow but also the potential for capital growth.

Among the many options for generating passive income, dividend shares are a standout.

Let’s delve into three ASX dividend shares that offer a solid track record of delivering consistent dividends to their shareholders. These ASX shares play a crucial role in their respective sectors, making them even more attractive investment options.

APA Group (ASX: APA)

First up is APA Group, a major player in Australia’s energy sector. The company manages the country’s largest network of natural gas pipelines, placing it in a critical position in the energy supply chain.

With a strong focus on growing and managing its assets efficiently, APA Group has a solid track record of delivering dividends to its shareholders.

Over the past decade, APA Group has consistently raised its dividends from 38 cents per share (cps) to 56 cps in the 12 months to December 2023.

However, the past year has been challenging for its shareholders. The APA Group share price dropped 16% over the 12 months due to market concerns about the shift to electricity and related regulatory issues.

Despite these challenges, this dip could present a buying opportunity for dividend-focused investors, as APA Group currently offers a dividend yield of 6.6% at its current share price of $8.39.

Sonic Healthcare (ASX: SHL)

Sonic is all about healthcare, providing essential diagnostic services like lab tests and radiology worldwide. Its work supports doctors and hospitals in delivering patient care, and with a global presence, Sonic’s diversified operations make it a resilient choice for investors.

Plus, its history of providing consistent dividends makes it an attractive option for income-focused portfolios.

Like APA Group, Sonic has consistently raised its dividends and now pays more than $1 annually — $1.05, to be exact. This represents a dividend yield of 3.95% at the current share price of $26.56.

Recently, the company downgraded its earnings outlook for FY24 as it faces inflationary pressures and currency exchange headwinds.

While this has pushed down the Sonic share price to its near three-year low, insiders are buying the shares at these levels, as my colleague Tristan highlighted.

Steadfast Group Ltd (ASX: SDF)

Last but not least, I think the insurance brokerage firm Steadfast is worth considering for dividend investors. The company operates in the insurance industry and mainly works with independent brokers across Australasia.

Steadfast supports these brokers with technology, market access, and other tools, driving collective strength and growth. This unique model has fuelled Steadfast’s steady growth, making it an interesting pick for those considering dividend investments.

Steadfast is the largest general insurance broker network in Australasia and boasts strong business fundamentals. The company’s shares have shown stable growth without significant fluctuations in the share price over its history.

Considering this, the recent drop in its share price might be an excellent opportunity to add this name to your portfolio.

At the current Steadfast Group share price of $5.65, the company has a dividend yield of 2.8%.

The post Passive income powerhouses! 3 ASX shares I’d consider buying for rising dividends appeared first on The Motley Fool Australia.

More reading

• Is the slashed Sonic Healthcare share price a ‘buying opportunity’?
• How to invest for retirement in an inflationary environment
• Buy these excellent ASX 200 dividend shares for very juicy yields
• Here are the top 10 ASX 200 shares today
• 10 ASX shares that have raised dividends for a decade

Motley Fool contributor Kate Lee 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 positions in and has recommended Apa Group and Steadfast Group. The Motley Fool Australia has recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is having a subdued session on Wednesday. In afternoon trade, the benchmark index is down slightly to 7,773.4 points.

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

Chrysos Corporation Ltd (ASX: C79)

The Chrysos Corporation share price is up almost 6% to $5.53. This is despite there being no news out of the mining technology company today. However, it is worth noting that the company did reveal some insider buying earlier this week. As I covered here, its director Gregory Holt picked up 12,000 shares through an on market trade on 12 June. Holt paid an average of $5.05 per share, which equates to a total consideration of $60,600. Chrysos Corporation shares are down by almost 35% since the start of the year and to a level that this director appears to believe is attractive.

Hansen Technologies Limited (ASX: HSN)

The Hansen Technologies share price is up over 2% to $4.15. This may have been driven by a broker note out of Goldman Sachs this morning. Although the broker has only put a neutral rating on the billing technology company’s shares, its price target of $4.85 is materially higher than current levels. In fact, even after today’s gain, Hansen Technologies shares have potential upside of 17% according to Goldman. The broker notes that Hansen Technologies’ “undemanding valuation reflects Powercloud and management uncertainty.”

Pantoro Ltd (ASX: PNR)

The Pantoro share price is up 2.5% to 8.5 cents. This morning, this gold miner revealed that its board has approved the initial 85,000 metre growth program for FY 2025. The company’s managing director, Paul Cmrlec, said: “This is a very exciting period in the development of the Norseman goldfield. For the first time we are in a position to re-develop the Norseman Mainfield with an outstanding balance sheet position, and operations generating strong cashflow.”

WA1 Resources Ltd (ASX: WA1)

The WA1 Resources share price is up 21% to $19.67. Investors have been buying the niobium explorer following the release of results from the initial metallurgical testwork program. This program is being undertaken on niobium mineralisation from its Luni deposit at the 100% owned West Arunta Project in Western Australia. The good news is that the program has produced high-grade niobium concentrates with low impurities and at industry-comparable recovery rates through a practical two stage flotation regime.

The post Why Chrysos, Hansen Technologies, Pantoro, and WA1 Resources shares are pushing higher appeared first on The Motley Fool Australia.

More reading

• 2 ASX mining shares rocketing over 16% on big news
• Insiders are buying these ASX shares after selloffs
• Why Lovisa, Premier Investments, Silver Lake, and WA1 Resources shares are tumbling 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 positions in and has recommended Chrysos and Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Chrysos. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is slightly in the red in trading on Wednesday. But one ASX 200 stock has taken a much steeper dip.

Helia Group Ltd (ASX: HLI) shares have sold off sharply from the open on Wednesday following news about a potential change to a major contract it holds with Commonwealth Bank of Australia (ASX: CBA).

The ASX 200 stock closed trading on Tuesday at $4.22 apiece. At the time of writing, Helia shares are 15% lower and swapping hands at $3.58 each. Meanwhile, CBA shares are currently flat.

What happened with this ASX 200 stock?

Helia announced before the open on Wednesday that Commonwealth Bank intends to review a contract it has with the company. The contract involves its lender’s mortgage insurance (LMI) requirements.

Helia currently provides LMI for CBA’s new high loan-to-value ratio (LVR) residential mortgage loans. This contract is set to expire on 31 December 2025 and represents about 53% of Helia’s gross written premium (using FY 2023 numbers).

The bank notified it will issue a request for proposal (RFP) for the ASX 200 stock’s LMI offering. An RFP is a company document aimed to solicit or tender a contract with another firm to complete a project. It is akin to a company pitch, although relates to specific projects versus entire businesses.

The development may have caused uncertainty about Helia’s future with CBA, which is one of the company’s major clients. At least that could be the market’s view, based on its initial reaction to the update, even though no final decision has been made.

Helia’s response

There wasn’t a negative tone from the ASX 200 stock in its announcement. Instead, Helia CEO Pauline Blight-Johnston remained optimistic about the “opportunity to continue or extend” the relationship.

Helia is Australia’s first LMI provider and has played a pivotal role in the property market since 1965.

We harness the power of almost 60 years’ experience to help aspiring home buyers realise their property dreams and get into homes sooner.

Blight-Johnson also highlights the 50-year relationship between the pair, where Helia has provided LMI to the bank.

What’s next for the ASX 200 stock?

Despite the current uncertainty, Helia’s financial results in FY 2023 were sound. The company achieved a net profit after tax (NPAT) of $275.1 million, a 37% increase from the previous year.

For FY 2024, it revised its insurance revenue guidance to $360 million to $440 million, down from $427 million previously. At its current price, Helia also offers a trailing dividend yield of 6.9%. Note, this is the trailing yield – if the dividend rate changes going forward, so too will the yield.

In the last 12 months of trade, the ASX 200 stock has climbed more than 10% into the green. CBA shares, on the other hand, have been a darling of the ASX this year, trading 14% higher since January.

The post ASX 200 stock plunges 15% on CBA deal news appeared first on The Motley Fool Australia.

More reading

• Why Beach Energy, Core Lithium, Helia, and Red 5 shares are dropping today
• CBA, DroneShield, and these ASX stocks just hit 52-week highs
• ‘Attacked from all angles’: Why this fundie is betting against the momentous rally in CBA shares
• What is the outlook for CBA shares in FY25?
• 3 reasons to be positive on ASX 200 shares in FY25 (and 3 to be wary)

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

The market may be having a mixed session, but that hasn’t stopped a couple of ASX mining shares from rocketing today.

Here’s what you need to know about these two big movers:

Firefly Metals Ltd (ASX: FFM)

The Firefly Metals share price is up over 16% to 81 cents.

Investors have been scrambling to buy this ASX mining share after it released an update on exploration activities at the Green Bay Copper-Gold Project in Canada.

According to the release, another batch of high-grade copper and gold assays support FireFly’s strategy for rapid and substantial resource growth at the project.

The latest results reveal that consistently high-grade mineralisation extends continuously for 460 metres outside the current resource boundary. Management notes that these results will form part of the next upgrade in the resource, which currently stands at 39.2Mt at 2.1% for 811,000t CuEq.

FireFly’s managing director, Steve Parsons, said:

We continue to generate exceptional step out drilling results which point to substantial growth in the high-grade copper and gold resource at Green Bay. Given the consistently strong drilling results we are achieving, we are doubling the number of rigs to four. This is aimed at accelerating our resource growth while also seeking to make new discoveries.

Green Bay is a large district scale copper-gold mineralised system with huge potential outside the current resource and known mineralisation. We are aiming to unlock the value of this wider project area and therefore we are about to start regional geophysical surveys to define lookalike copper-gold targets for drill testing.

WA1 Resources Ltd (ASX: WA1)

The WA1 Resources share price is up 21% to $19.67. This follows the release of results from the initial metallurgical testwork program. This program is being undertaken on niobium mineralisation from its Luni deposit at the 100% owned West Arunta Project in Western Australia.

According to the release, the program has produced high-grade niobium concentrates with low impurities and at industry-comparable recovery rates through a practical two stage flotation regime.

The ASX mining share’s managing director, Paul Savich, commented:

We consider this an excellent outcome towards unlocking the significant inherent strategic value of Luni. Flotation of niobium minerals is widely recognised as the key challenge to developing a conventional process flowsheet for a niobium deposit. This is because flotation typically provides most of the upgrade from ore to concentrate and incurs a majority of the recovery losses.

Our testwork is currently optimising this regime, with clear potential for improvement through the comminution, classification and flotation steps. Other beneficiation techniques such as gravity and magnetic separation are also being assessed.

The post 2 ASX mining shares rocketing over 16% on big news appeared first on The Motley Fool Australia.

More reading

• Why Chrysos, Hansen Technologies, Pantoro, and WA1 Resources shares are pushing higher
• These four ASX All Ords shares just earned hefty broker upgrades. Here’s why
• Why Lovisa, Premier Investments, Silver Lake, and WA1 Resources shares are tumbling 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 Scott Phillips.

ASX 200 insider buys are often a source of bullishness in a company’s stock price. Many investors consider a director or executive buying interests in the company they head to be confident in the future of its operations.

Shares of automotive retailer Eagers Automotive Ltd (ASX: APE) have edged higher on Wednesday and opened the day more than 1% in the green. At the time of writing, the ASX 200 share is swapping hands at $10.44 apiece.

While there is no market-sensitive news for the company today, filings from Tuesday reveal that one ASX 200 insider has bought up shares in the auto retailer for the first time in eight years.

The buys could be a welcome relief, too. Eagers’ stock price has clipped more than 28% in the red this year to date, with a 15% drop in the last month alone.

ASX 200 insider buy details

Eagers revealed in mandatory filings on Tuesday that director Marcus Birrell bought 200,000 shares for $2.1 million consideration.

The purchases were made through 11 separate on-market transactions via Birrell’s investment vehicle, Birrell Investments Ltd, and were all executed on Monday this week. These latest ASX 200 insider buys increase Birrell’s shareholding to 2.2 million ordinary shares in the company.

Notably, Birrell’s last acquisition was in July 2016, shortly after Eagers completed its purchase of Birrell Motors earlier that year.

Eagers shares nudged higher on Tuesday, finishing 2% higher, with the buying strength continuing into the Wednesday morning session.

Other insider moves and market updates

This ASX 200 insider buy follows a trend among Eagers’ directors. Billionaire Nick Politis is a large shareholder via his entities WFM Motors Pty Ltd and NGP Investments. He has also recently increased his stake, The Australian reports.

Since 22 May, Politis has added 420,000 shares, investing a total of $4.5 million. This brings his position in the company to 72.9 million shares.

Perhaps spurring the ASX 200 insider buys is the recent performance of Eagers’ stock price.

In May, the company warned that it expected a sharp reduction in earnings this year. Management projected the company would produce earnings “approximately 85% of the underlying profit before tax for the first half of 2023”. In other words, a 15% year-over-year decline was expected for H1 FY 2024.

Still, many experts are focusing on the company’s fundamentals rather than the short-term movements in its stock price. Perhaps the latest ASX 200 insider buys reflect this sentiment, too.

Bell Potter rates Eagers a buy with a price target of $13.35 per share, which represents a 29% upside potential at the time of writing.

The broker anticipates dividends of 64.5 cents per share in FY 2024 and 73 cents per share in FY 2025 (both fully franked). These forecasts imply forward dividend yields of 6.1% and 7%, respectively.

Could ASX 200 insider buys instil confidence?

The recent ASX 200 insider buys in Eager Automotive stock could be interesting developments for the company’s share price.

Investors were optimistic about the share on Wednesday despite the lack of other market-sensitive news for the company.

In the last 12 months of trade, the Eagers share price has slipped more than 20% in the red and underperformed the S&P/ASX 200 Index (ASX: XJO) by nearly 26%.

The post This ASX 200 insider is buying up company shares for the first time in 8 years! appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Forget Westpac shares and buy these ASX income stocks
• Buy these ASX dividend stocks with 5% to 6% yields
• Insiders are buying these 6 ASX All Ords shares
• The worst three performing ASX 200 shares in May unmasked

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

These four ASX All Ords shares could help the All Ordinaries Index (ASX: XAO) achieve a strong year of returns.

That’s according to Barrenjoey and Citi.

The brokers raised their outlook for the four companies, with the price target for one stock 98% above today’s levels.

Which companies are we looking at?

Read on!

(Broker data courtesy of The Australian.)

Four ASX All Ords shares with improved forecasts

The first ASX All Ords share earning a broker upgrade is Mirvac Group (ASX: MGR).

Shares in the diversified property group are up 2.1% today, trading for $1.91 apiece. Despite that lift, the Mirvac share price remains down 7% in 2024. Mirvac shares trade on an unfranked trailing dividend yield of 5.1%.

And Barrenjoey foresees a significant upswing ahead for the company. The broker raised Mirvac stock to an overweight rating with a $2.10 price target. That’s 10% above current levels.

The second ASX All Ords share with an improved broker outlook is property investor, developer and manager Dexus (ASX: DXS).

The Dexus share price is up 1.1% at the time of writing at $6.52 a share. Shares remain down 14% in 2024. Dexus shares trade on a partly franked trailing dividend yield of 7.7%.

Barrenjoey has a bullish outlook for the company. The broker raised Dexus to a neutral rating with a $7.50 price target. That’s more than 15% above current levels.

Which brings us to the third ASX All Ords share getting a broker upgrade, Iluka Resources Ltd (ASX: ILU), the largest global producer of zircon.

Shares in the critical minerals miner are up 0.3% today at $6.39. Shares remain down 4% in 2024. Iluka Resources shares trade on a fully franked trailing dividend yield of 1.1%.

Citi foresees strong share price growth from here. The broker raised Iluka to a buy rating with a $7.80 price target. That’s 22% above current levels.

Rounding off the list of ASX All Ords shares earning a broker upgrade is resource explorer FireFly Metals Ltd (ASX: FFM)

The FireFly share price is, well, flying higher today. Shares are up 16.1% at the time of writing, trading for 81 cents apiece. That sees the FireFly share price up 26% in 2024.

Investors enthusiasm has been stoked by this morning’s announcement that FireFly has hit “more outstanding wide high-grade copper-gold intersections” from its drilling campaign at the Green Bay Copper-Gold Project, located in Canada.

Even after today’s big boost, Barrenjoey thinks the stock can run a lot further from here. The broker started FireFly Metals at an overweight rating with a $1.60 target price. That’s some 98% above current levels.

The post These four ASX All Ords shares just earned hefty broker upgrades. Here’s why appeared first on The Motley Fool Australia.

More reading

• Will ASX REITS be boosted by Australian workers returning to the office?
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ANZ Group Holdings Ltd (ASX: ANZ) shares have rallied over the past year, rising by 23.39%, compared to a rise of just 6.54% for the S&P/ASX 200 Index (ASX: XJO). Hence, investors may be wondering if FY25 could be another good year for the company.

ANZ’s financial year doesn’t follow the same calendar as most other companies or individuals. It finishes in September, so the outlook commentary can apply to the end of FY24 as well as FY25.

Three years ago, the Reserve Bank of Australia (RBA)’s cash rate was close to 0% and now it’s 4.35%. This could have an important influence on the upcoming period.

HY24 result revealed rising cost-of-living challenges

ANZ recently reported its FY24 first-half result. It revealed it made $3.55 billion of cash net profit (down 1% compared to the FY23 second half), and it generated $3.4 billion of statutory net profit after tax (NPAT) (down 4% compared to the FY23 second half).

The ANZ CEO Shayne Elliott described the result as “strong”, and attributed some of the performance to its “disciplined focus on productivity and delivery”.

The ASX bank share boasted that its digital offering, ANZ Plus, had grown to almost 690,000 customers and was approaching $14 billion in deposits at the end of April. The net promoter score (customer satisfaction) was “consistently higher” than peers while attracting, on average, 35,000 customers every month, around half of which were new to the bank.

ANZ also said it had unlocked $200 million of savings through productivity measures during the period, making things simpler and delivering “enduring benefits” for the bank. That included further automation across home loan application processing and simplifying its technology.

The ANZ CEO noted while borrowers have generally remained resilient, there are “many who are challenged by rising cost-of-living”.

The ASX bank share revealed that the Australian portfolio of home loans, which were at least 90 days overdue, had more arrears in March 2024 than in March 2023 or March 2022.

Subdued economies

ANZ is not expecting the Australian or New Zealand economies to bounce back in the short term. Elliott said:

Both the domestic and international environments are expected to remain challenging across the remainder of the year. The Australian and New Zealand economies are likely to remain subdued, while geopolitical tensions, electoral uncertainty and the introduction of interventionist trade and industry policies will continue internationally.

Despite these conditions, we are well positioned with the diversity of our businesses, prudent management, and the strength of our customers holding us in good stead. In fact, our work to build a well-managed, de-risked and diversified bank, coupled with our unique international presence, means we are well placed to succeed in this environment.

Profit forecast for ANZ shares

The broker UBS currently forecasts that the ASX bank share could generate net profit of $7 billion in FY24 and $7.3 billion in FY25. This suggests that FY25 net profit could increase by 4.4% year over year.

UBS has predicted that ANZ shares could, excluding franking credits, have a dividend yield of just under 6% in FY25.

The broker has a price target of $30 on the business, suggesting the ANZ share price could slightly rise over the next 12 months.

The post Are ANZ shares undervalued considering its FY25 outlook? appeared first on The Motley Fool Australia.

More reading

• Is the ANZ share price ‘the best value of the major banks’?
• Is there any chance of an interest rate cut in Australia next week?
• If I buy 1,000 ANZ shares, how much passive income will I receive?
• Big bank bargain: Are this week’s tumbling ASX 200 bank shares a good buy?
• Will the US Fed finally cut interest rates this week?

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 Scott Phillips.

DroneShield Ltd (ASX: DRO) shares have been on a tear in 2024, soaring more than 316% into the green since January.

The counter-drone technology company’s stock hit an all-time closing high of $1.54 per share on Tuesday.

Investors continue to bid up DroneShield shares after a string of positive updates, which have many experts bullish. Let’s take a closer look.

Why DroneShield shares keep soaring

The driving force behind DroneShield’s stellar performance is arguably the company’s cutting-edge drone detection and disablement technology. This technology has attracted significant global demand from militaries, governments, and critical infrastructure sectors around the world.

And the growth numbers speak for themselves. In the first quarter of FY 2024, DroneShield reported a 900% year-over-year in revenue to $16.4 million. This meteoric growth has not gone unnoticed by investors, who have been eagerly buying up shares since that date.

Another significant milestone was the NATO Support and Procurement Agency (NSPA) approving the first counter-small UAS (CUAS) procurement framework agreement in the organisation’s history. According to my colleague James, CEO Oleg Vornik said this was one of the “most strategically” important events since the company was founded.

Additionally, DroneShield secured a major repeat order from a US Government customer worth $5.7 million for its Counter-UxS systems. In my opinion, this contract win underscores the growing recognition and demand for DroneShield’s products.

Frazis Capital believes these defence contracts underline the potential growth of DroneShield shares as well. According to my Foolish colleague Bernd, the fund notes most of its FY 2024 revenue forecasts are from “high margin” defence contracts.

In addition, investor sentiment towards DroneShield shares remains highly positive. The company’s recent successful capital raises are good evidence of this.

In April, DroneShield completed an oversubscribed share purchase plan, raising $15 million from investors despite receiving $40 million worth of applications for the offer. In another share placement, the company raised $30 million by selling 37.9 million shares at 80 cents each.

What’s next for the company?

DroneShield’s growth prospects look fairly robust, with analysts projecting continued revenue increases.

Bell Potter recently rated DroneShield shares a buy, forecasting $97 million in sales and $24.4 million in earnings for FY 2024. According to CommSec, the stock is also rated a strong buy.

CEO Vornik has a bullish scenario that suggests DroneShield could grow sales to $500 million per annum within five years, driven by rising demand for counter-drone technology in both public and private sectors.

This is a 9x increase on FY 2023 revenues of $55 million if it were to occur.

Foolish takeaway

DroneShield shares have caught a strong bid in the last 12 months, driven by its technology and strategic contract wins. That has seen the company’s share price climb a massive 571% during that time.

And experts project further gains, given the company’s expanding market and revenue projections.

The post Surely DroneShield shares can’t just keep rising? appeared first on The Motley Fool Australia.

More reading

• CBA, DroneShield, and these ASX stocks just hit 52-week highs
• Why the ‘opportunity is immense’ for DroneShield shares: fundie
• Does DroneShield stock pay dividends?
• If I’d put $5,000 into DroneShield shares just 1 year ago, here’s what I’d have now
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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Sayona Mining Ltd (ASX: SYA) shares are having a relatively positive session.

At the time of writing, the lithium miner’s shares are flat at 3.5 cents.

This compares favourably to many of other ASX lithium stocks today.

For example, Pilbara Minerals Ltd (ASX: PLS) shares are down 1.5%, Core Lithium Ltd (ASX: CXO) shares have tumbled 3%, and Liontown Resources Ltd (ASX: LTR) shares are almost 4% lower.

Why are Sayona Mining shares outperforming?

It appears that the release of an announcement this morning has given investor sentiment a boost and kept the lithium miner’s shares above water.

According to the release, the results from 36 new drillholes totalling 8,803 metres at its 75% owned North American Lithium (NAL) operation in Quebec, Canada, are demonstrating “the high-grade nature of this strategic asset.”

The company notes that all the drilling results from the 2023 exploration program are now complete, validated, and released. Furthermore, the first results from the 2024 exploration drilling program, which is currently underway, are now being reported.

Management believes the 2023 drill program has been successful in demonstrating the potential to increase the mineral resource base at NAL. It highlights that it was designed to test extensions to mineralisation and provide in-fill data for the upgrade of mineral resource categories.

The latest drilling results include the identification of high-grade lithium mineralisation outside the mineral resource estimate (MRE) pit shells. This is particularly the case in the North-West and South-East extensions. It feels this supports the potential conversion of some of the inferred resources to indicated category within the MRE pit shells.

‘Superb quality’

Sayona Mining’s interim CEO, James Brown, appeared to be very pleased with the strong drilling results. He commented:

We are delighted to have another strong set of drilling results from North American Lithium which continue to highlight the superb quality of this mine. The results reported today have shown that mineralisation continues outside of the existing MRE pit shells so the next key step will be to complete a recalculation of the MRE to include recent drilling. Additionally, we will also complete a further 30,000 metres of drilling throughout 2024 to better understand the full potential of the NAL mineralisation.

The news hasn’t been enough to prop up the shares of Piedmont Lithium Inc (ASX: PLL), which owns the remaining 25% interest in the NAL project. Its shares are down 3% to 15 cents at the time of writing.

The shares of both Sayona Mining and Piedmont Lithium remain down over 80% on a 12-month basis.

The post Why are Sayona Mining shares outperforming other ASX lithium stocks 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.