Category: Stock Market

There is plenty of interest around IperionX Ltd (ASX: IPX) again on Friday, with the share price rocketing in midday trade.

At the time of writing, the share price is up 13.66% to $4.66. By comparison, the S&P/ASX 300 Index (ASX: XKO) is up 0.98% to 8,683 points.

That move builds on a strong run, with shares now up about 32% over the past month.

The latest push higher follows fresh disclosures showing company directors have been buying shares on-market.

Here’s what stood out.

Directors step in with on-market buys

A series of Appendix 3Y filings released on Thursday showed multiple IperionX directors increasing their holdings.

Executive Chairman Todd Hannigan picked up 480,000 shares across late April trades. The total consideration came in at just over $2.07 million.

Chief Executive Anastasios Arima also added to his position, buying 110,000 shares worth roughly $494,000.

Non-Executive Director Lorraine Martin joined in as well, acquiring 4,600 ADS, valued at around $145,000. ADS are US-listed shares, with each 1 representing 10 of the company’s shares.

All 3 transactions were completed on-market and not through any issued securities or incentives.

Why investors are paying closer attention

Director buying does not guarantee anything, but it does draw attention.

When multiple insiders step in at the same time, it can shift how investors view the near-term outlook for the stock.

In this case, the purchases come after a period of extreme volatility in the share price.

IperionX pulled back from earlier highs of $8.505 in late January, before rebounding strongly in recent weeks.

Seeing management add exposure to their portfolios can be read as a sign of confidence in where things are heading.

It also means fewer shares are available to trade, which can make it easier for the price to move higher if buying picks up.

Foolish bottom line

IperionX shares have been trending higher for several weeks, with buyers stepping in consistently.

Over the past month, the stock has added more than 30%, with interest returning to critical minerals and US-based supply chains.

From my side, I see room for this to keep moving up in the short term if momentum holds and buying continues.

The insider buying helps support my view, as it shows management is stepping in at these bargain levels.

Looking further out, a lot comes down to how supply chains shift, especially with ongoing tension between the US and China.

If that keeps playing out, IperionX will likely stay on the radar.

The post This ASX 300 stock just jumped 13%. Here’s what’s behind the move appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Elsight, IperionX, Predictive Discovery, and Reliance shares are pushing higher today
• Guess which ASX 200 share could rise 90% according to Bell Potter
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today

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 Scott Phillips.

Woolworths Group Ltd (ASX: WOW) shares have taken a tumble this week and are down over 8% since last Friday.

The supermarket giant’s shares were sold off following the release of its third-quarter update on Thursday.

Is this a buying opportunity for investors? Let’s see what analysts at Bell Potter are saying.

Broker gives its verdict on Woolworths quarterly update

Woolworths delivered sales growth ahead of Bell Potter’s expectations. However, it notes that increased costs are hitting its margins. It said:

Woolworths reported +4.5% YoY growth in 3Q26 sales to $18,652m (vs. BPe of $17,745m), driven primarily by Australian supermarket sales growth. Key points: Australian Food: Australian Food revenues grew +6.0% YoY to $13,828m (vs. BPe of $13,549m and VA of $13,721m) noting the pcp was cycling the residual impact of supply chain disruptions. Trading has started 4Q26e strong at +5.4% YoY (+6.5% YoY ex-tobacco) over March-April, despite signs of increased customer caution and signs of pantry stocking in March

2026e guidance changes: (1) Australian Food EBIT is expected to grow at mid-high single digit rates, but no longer at the upper end of that range as WOW absorbs some supply chain cost pressures; and (2) 2H26e NZ EBIT is expected to be modestly down YoY in NZD terms.

In light of this, Bell Potter has trimmed its earnings forecasts for Woolworths through to FY 2028. It adds:

EPS changes are -4% in FY26e, -10% in FY27e and -5% in FY28e. Changes reflect lower GM assumptions, a higher AUDNZD and higher base interest rate assumptions.

Woolworths shares downgraded

According to the note, in response to the update, the broker has downgraded Woolworths shares to a hold rating with a reduced price target of $35.50 (from $38.25).

Based on its current share price of $34.59, this implies only modest upside over the next 12 months.

In addition, dividend yields of 2.6% and 2.7% are expected in FY 2026 and FY 2027, respectively, according to its estimates.

Commenting on its downgrade, Bell Potter said:

We downgrade from Buy to Hold. Food inflation looks to be returning which should be beneficial for the topline. This looks largely offset by the margin impact of absorbing supply chain inflation, which is likely to be amplified in 4Q26e as a run rate into FY27e, where outcomes will be dependent on an easing in Middle East tensions.

The post Why this leading broker just downgraded Woolworths shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Top 10 ASX shares bought and sold in April
• Why Appen, Catalyst Metals, South32, and Woolworths shares are sinking today
• Why Mineral Resources, Woolworths and Boss Energy shares are turning heads on Thursday
• Why did Woolworths shares just crash 10%?

Motley Fool contributor James Mickleboro has positions in Woolworths Group. 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 Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX materials stock Catalyst Metals Ltd (ASX: CYL) has been making headlines this week. 

It has crashed more than 16% since Monday. 

The company is a mid-tier Australian gold producer and developer with 100% ownership of two key projects:

• Plutonic Gold Operation (PGO) – an operating asset in Western Australia
• Bendigo Gold Project (BGP) – an advanced exploration project in Victoria

This recent fall has been influenced by a combination of a disappointing quarterly update and a softer gold price backdrop.

As James Mickleboro reported earlier this week, although the company posted a 9% increase in revenue to $54.8 million, it is still barely profitable at an EBITDA level. 

In addition, the performance of its Appen Global business may have spooked investors. It reported a 37% decline in revenue to $19.9 million.

Brokers see opportunity 

This ASX materials stock is now down almost 30% year to date, and almost 50% since hitting 52-week highs back in January. 

However, since this drop, brokers have been eyeing this ASX materials stock as a buy-low candidate. 

Earlier this week, I reported that Bell Potter has recently retained its buy recommendation along with a $14.60 price target on Catalyst Metals shares.

According to the broker, earnings per share are now expected to fall in FY26 by 19% and then recover and increase by 11% in FY27 and a further 14% in FY28.

This price target indicates more than 180% upside from today’s stock price of $5.17. 

Now, another broker is reinforcing this stock could be a buy-low candidate. 

Morgans rates Catalyst Metals as a buy

In a recent note out of Morgans, the broker said the reported gold production of 26.1koz at an AISC of A$2,901/oz fell below expectations. 

It noted that although the company generated a solid operating cash flow of A$103m at an average realised price of A$7,014/oz, it continues to strengthen its balance sheet, adding A$39m during the quarter to close with A$277m in cash and bullion while reinvesting heavily across growth and exploration initiatives. 

Growth momentum continues across the Plutonic Belt, with multiple new ore sources advancing (Trident, K2, Old Highway) alongside a high-grade discovery at Cinnamon, supports the pathway to c.200kozpa production. We maintain our BUY rating, with valuation supported by strong cash generation and a clear production growth pipeline, albeit with near-term cost pressures emerging.

At the time of writing, 5 analysts’ forecasts via TradingView have an average 12-month price target of $13.87.

This indicates roughly 170% upside from current levels.

The post Another broker just recommended this ASX materials stock appeared first on The Motley Fool Australia.

More reading

• Why Appen, Catalyst Metals, South32, and Woolworths shares are sinking today
• Broker tips this ASX materials stock to rise 139% after yesterday’s crash
• Why Catalyst Metals, G8 Education, Meteoric Resources, and Westgold shares are falling today
• Why are Catalyst Metals shares sinking today?
• Could these ASX stocks double by the end of 2026?

Motley Fool contributor Aaron Bell 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.

Betr Entertainment Ltd (ASX: BBT) released its quarterly results earlier this week, showing it had had a steady, if unexceptional, three months.

Earnings outlook in place

The company said in its statement to the ASX that revenue had increased 2% to $383 million compared with the same period the previous year, while for the first nine months of the year, revenue was up 16.6% to $1.19 billion.

Betr said it reaffirmed its EBITDA outlook for the second half to $5 to $8 million and for $13 to $19 million in FY27.

The company also said it was attracting new customers, with 35% of customers being new depositors in the quarter, which followed a brand relaunch.

Betr also said it had streamlined its operating model, with $6 million in annualised efficiencies realised during the quarter.

The company added further re the result:

Net cash outflows from operating activities (including corporate costs) were $8.9m. This included the tail of cash outflows associated with the marketing heavy December quarter, together with $2.0m of final costs relating to discontinued US operations, and $0.9m of non-recurring costs associated with initiatives to reduce the Group’s ongoing operating cost base. • Excluding these non-recurring items, underlying operating cash outflows were materially lower than the reported result, reflecting improving operating leverage and benefits from cost actions implemented during the quarter.

The company said it expected to have a “materially improved cash flow profile” as the full effect of cost-saving measures came into play.

Shares looking cheap

Morgans’ analysts ran the ruler over the quarterly result and liked what they saw.

The Morgans team said the quarter marked a “solid sequential improvement”.

Encouragingly, margins have normalised following the customer-friendly Spring Carnival period in Q2, and the business looks well placed to achieve its H2 targets. The one real negative was the cash position at period end, though this was impacted by a number of one-off items that won’t recur in Q4. With the internal focus firmly on value-generating customers, a leaner cost base now in place, and the streamlining of operations largely complete, we remain optimistic about the path ahead.

The Morgans team said they believe that Betr is trading “well below fair value and looks compelling at current levels”.

They said Betr has a proven management team, scalable proprietary technology, and a solid track record of executing value-accretive acquisitions.

Morgans has a price target of 35 cents on Betr shares compared with 18 cents currently, implying potential upside of 94.4%.

Betr is valued at $187.4 million.

The post This exciting ASX small cap could almost double in value according to Morgans appeared first on The Motley Fool Australia.

More reading

• Why is this $25 billion ASX mining stock charging higher today?
• Is this one of the best ASX 200 gold shares to buy in May?
• The five best ASX 200 stocks to buy and hold in April revealed
• Are Mineral Resources shares a buy in May?
• Why are shares in this ASX tech stock, which operates in the oil and gas space, charging higher?

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 mining stock Evolution Mining Ltd (ASX: EVN) is pushing higher on Friday, rising 3.5% to $12.31 in morning trade.

The move follows the release of its latest annual Mineral Resources and Ore Reserves Statement, which highlighted solid growth in both gold and copper reserves, along with encouraging exploration results.

Today’s gain adds to an already impressive run. Evolution shares are now up around 57% over the past 12 months, comfortably outperforming the S&P/ASX 200 Index (ASX: XJO), which has climbed just 6% over the same period.

So, what’s driving the rally?

Reserves growth boosts confidence

Evolution delivered a strong update on its underlying asset base.

The ASX mining stock reported total Mineral Resources of 31 million ounces of gold and 4.2 million tonnes of copper. Contained gold increased by 0.9 million ounces, representing 3% growth, with reserves also expanding across key operations.

That kind of growth is important for miners. It supports longer mine lives and provides a stronger foundation for future production.

Recent drilling has also added to the positive momentum. At Mungari and Cowal, the company confirmed high-grade gold results, reinforcing the potential for further resource expansion.

These developments not only extend the life of existing mines but also open the door to increased production over time.

Exploration and expansion in focus

The ASX mining stock isn’t slowing down. The company is ramping up its exploration efforts in FY 2026, targeting resource growth around core assets such as Ernest Henry and Northparkes. This reflects a broader strategy of building scale through both discovery and development.

A key part of that plan is the Northparkes expansion study, which is currently underway and expected to be completed by the end of FY 2027. The study aims to unlock further resource and reserve growth, particularly in copper. This commodity has strong long-term demand prospects.

The company plans to continue growing its resource base through ongoing exploration and technical studies, positioning itself for sustained long-term expansion.

Production outlook remains solid

Alongside its resource update, Evolution reaffirmed its FY 2026 production guidance.

The ASX mining share expects to produce between 710,000 and 780,000 ounces of gold, along with 70,000 to 80,000 tonnes of copper. All-in sustaining costs are forecast to range between $1,640 and $1,760 per ounce.

That steady outlook, combined with growing reserves, provides investors with a clearer picture of future earnings potential.

Managing Director and CEO Lawrie Conway said:

At Cowal, Mineral Resources and Ore Reserves have increased, driven by successful extension drilling to the south of Dalwhinnie and deeper drilling at Regal, providing increased confidence in mineable inventory. This positions Cowal for continued organic growth through disciplined resource delineation and execution focused mine planning.

Foolish Takeaway

Evolution Mining’s latest update ticks several key boxes: growing reserves, strong exploration results, and a clear pathway for expansion.

With a rising resource base and exposure to both gold and copper, the company appears well-positioned to benefit from favourable commodity trends, and investors are taking notice of the ASX mining stock.

The post Why is this $25 billion ASX mining stock charging higher today? appeared first on The Motley Fool Australia.

More reading

• Evolution Mining’s 2025 annual statement details resource and reserves growth
• 5 things to watch on the ASX 200 on Friday
• Buying ASX gold shares like Newmont and Northern Star? Here’s Goldman Sachs’ latest 2026 gold price forecast
• If I’d put $6K in this ASX mining stock 12 months ago I’d have over $20k now
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Marc Van Dinther 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.

Capricorn Metals Ltd (ASX: CMM) shares are on course to end the week in a positive fashion.

At the time of writing, the ASX 200 gold share is up almost 3% to $11.64.

This follows a rebound in the gold price overnight and the release of a bullish broker note out of Bell Potter.

Let’s now see what the broker is saying about this gold miner.

What is the broker saying?

Bell Potter was pleased with the company’s performance in the third quarter. It highlights that production was in-line with expectations and costs came in lower than expected. It said:

CMM has reported March quarter 2026 production of 30.4koz gold (vs BPe. 30.6koz) from its 100%-owned Karlawinda Gold Project in WA. All-In-Sustaining-Costs (AISC) were A$1,617/oz (vs BPe A$1,649/oz). The production result was in-line with our forecasts and sustained a run-rate at the top of CMM’s guidance range. AISC were 2% below our forecasts, reflecting strong cost control and a marginally lower strip ratio, partially offset by higher gold royalty charges.

While these are tracking to the top end of CMM’s guidance range, they remain among the lowest in the sector. CMM is generating strong operating cash flows that are funding a major capital expansion project and an aggressive exploration program while adding cash to the balance sheet and supporting a maiden dividend distribution.

Another positive is the progress the ASX 200 gold share is making with its Karlawinda Expansion Project. The broker adds:

The Karlawinda Expansion Project (KEP) is progressing to schedule, with commissioning targeted for 1QFY27 and aiming to lift production to ~150kozpa. This is set to deliver the first of two major growth catalysts. CMM continues to await final statutory approvals for the Mt Gibson Gold Project (MGGP), which is set to add production of ~150kozpa over an 11 year mine life. Successful exploration continues to expand the potential of the MGGP, where wide, consistent high grade intercepts were recently reported, adding to the growth opportunity.

Should you buy this ASX 200 gold share?

According to the note, Bell Potter has retained its buy rating on Capricorn Metals shares with an improved price target of $16.25 (from $16.10).

Based on its current share price, this implies potential upside of almost 40% for investors over the next 12 months.

Commenting on its buy recommendation for the “sector-leading” gold miner, the broker said:

EPS changes in this report are: FY26: -6%; FY27: -2% and FY28: +13%. CMM is a sector leading gold producer, unhedged and debt free. It is fully funded to grow production from ~120kozpa to ~300kozpa from two gold mines in WA, each with +10 year mine lives. CMM is run by a management team that has an excellent track record of delivery. Our NPV-based valuation is up marginally to $16.25/sh. We retain our Buy recommendation.

The post Is this one of the best ASX 200 gold shares to buy in May? appeared first on The Motley Fool Australia.

More reading

• This ASX gold stock could charge more than 70% higher: Broker
• Why is this ASX gold stock charging higher on dividend news?
• Capricorn Metals reports record cash flow and first dividend in March 2026 quarter
• Which ASX 200 stock is falling despite big news
• Capricorn Metals reports Mt Gibson gold results

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.

The S&P/ASX 200 Index (ASX: XJO) gained 2.2% in April, but these five ASX 200 stocks left those gains in the dust.

Below, we look at five of the top stocks to have bought at market close on 31 March and held onto through market close on 30 April.

NextDC Ltd (ASX: NXT)

First up, we have data centre operator and developer NextDC.

NextDC shares ended March at $11.14 and closed out April trading for $14.24. That saw this ASX 200 stock up 27.8% over the month just past.

There was plenty happening with the company. On 7 April, NextDC announced it was raising $1 billion in new funds via the issue of new hybrid securities. The new funds will support the development of new data centres and expand capacity.

The stock caught investor interest again on 20 April, when NextDC reported that its contracted utilisation increased by 60% to 667 megawatts (MW) in the March quarter. And the tech company’s forward order book increased by 83% to 544MW.

Megaport Ltd (ASX: MP1)

Megaport was another top ASX 200 stock to buy and hold in April.

Shares in the network-as-a-service solutions provider gained 26.3% over April to end the month trading for $9.16 each.

Megaport shares closed up 5.1% on 27 April after the company announced it had inked a new three-year contract valued at US$25.1 million (AU$35.4 million) with a United States-based technology firm.

Codan Ltd (ASX: CDA)

Codan shares also shot the lights out in April

Shares in the communications and metal detection company closed out March trading for $31.26 and ended April trading for $41.68 apiece. That put this ASX 200 stock up 33.3% over the month.

Almost half of those gains were delivered on 29 April.

Codan shares closed up 15.5% on the day, following the release of the company’s trading update.

Investors were overheating their buy buttons after Codan forecast full-year FY 2026 earnings before interest and tax (EBIT) of $235 million, up more than 60% year on year. Management expects net profit after tax (NPAT) to come in at $170 million, also up more than 60%.

Liontown Resources Ltd (ASX: LTR)

The fourth ASX 200 stock to buy and hold in April is Liontown.

Shares in the Aussie lithium miner surged 38.2% over the month, closing on 30 April at $2.35 each.

On 29 April, Liontown updated the market on the expansion plans for its Kathleen Valley Lithium Operation, located in Western Australia, committing $12 million to long-lead items.

And on 30 April, Liontown released its March quarter update.

Highlights from the quarter included the successful transition of Kathleen Valley to a fully underground operation, with targeted production rates achieved ahead of expectations.

Liontown reported a 51% quarter-on-quarter revenue boost to $197 million.

Which brings us to the top-performing ASX stock to have bought and held in the month just past.

Zip Co Ltd (ASX: ZIP)

Zip shares gained a blistering 56.8% over the past month, closing at $2.43 apiece on 30 April.

Zip shares closed up 13.7% on 17 April following the release of the buy now, pay later (BNPL) company’s quarterly update.

Investors were snapping up the ASX 200 stock after Zip reported record quarterly earnings before tax, depreciation and amortisation (EBTDA) of $65.1 million, up 41.5% year on year.

Zip also upgraded its full-year FY 2026 cash EBTDA guidance to no less than $260 million.

The post The five best ASX 200 stocks to buy and hold in April revealed appeared first on The Motley Fool Australia.

More reading

• Why these ASX shares jumped 15%+ in April
• Prediction: Zip shares could fly another 121% higher
• 3 ASX shares benefiting from the rise of digital infrastructure
• Liontown shares climb to 2.5-year high on record cash flow
• These 2 ASX All Ords shares are flying higher today, and tipped to jump another 70%

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

Mineral Resources Ltd (ASX: MIN) shares are storming higher on Friday.

In morning trade, the mining and mining services company’s shares are up 5% to $66.90.

Why are Mineral Resources shares rising?

Today’s gain appears to have been driven by a positive reaction to its quarterly update from brokers.

One of those is Bell Potter, which highlights that Mineral Resources delivered a strong quarterly performance despite weather challenges. It said:

MIN reported a strong quarter as the Onslow haul road withstood extreme weather conditions arising from two tropical cyclones. Quarterly attributable sales were: Onslow iron ore 4.2Mt (BP est. 4.4Mt); Pilbara Hub iron ore 2.1Mt (BP est. 2.1Mt); Wodgina SC6e 62kt (BP est. 64kt); and Mt Marion SC6e 53kt (BP est. 41kt). Mining Services volumes were 80Mt (BP est. 79Mt). Group average realised pricing was strong: Iron ore US$93/t (89% realisation to Platts 61% Fe index) and SC6e US$2,105/t (in line with the Fastmarkets SC6 index).

Bell Potter was also pleased to see that management has upgraded its guidance for FY 2026. And while higher diesel prices are impacting its costs, it is not enough for a change in its guidance. It said:

MIN upgraded FY26 volume guidance across Mining Services, Onslow and lithium. While higher fuel prices will impact costs in the current quarter, unit cost guidance was reiterated. Diesel supply has been uninterrupted to date. Onslow transhippers six and seven will be commissioned by 1Q FY27, expanding nameplate capacity to 38Mtpa (100% basis; currently 35Mtpa). With net debt/EBITDA expected to fall within its target range of <2.0x by the end of FY27, capital management decisions are in focus. The company is assessing potential production expansions at Wodgina (i.e. train 4) and Mt Marion (float plant) along with a potential Bald Hill restart (+125ktpa SC6e).

Should you invest?

According to the note, the broker has retained its buy rating on Mineral Resources shares with an improved price target of $75.00 (from $70.00).

Based on its current share price of $66.90, this implies potential upside of 12% for investors over the next 12 months.

Commenting on its recommendation, Bell Potter concludes:

Completion of the $1.2b MIN-POSCO lithium transaction will accelerate balance sheet deleveraging paired with higher cash flows from the ramp-up of Onslow iron ore sales. MIN is positioned to benefit from current lithium market pricing strength, holding around 213ktpa (SC6 attributable, pre-POSCO deal completion) of offline spodumene production capacity. MIN’s mining services platform delivers a stable earnings stream that is expected to expand with internal and third-party volume growth.

The post Are Mineral Resources shares a buy in May? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Capstone Copper, Gentrack, Mineral Resources, and WiseTech shares are racing higher today
• Why Mineral Resources, Woolworths and Boss Energy shares are turning heads on Thursday
• Mineral Resources shares jump 7% on guidance upgrade
• Mineral Resources upgrades FY26 volume guidance and posts robust lithium prices

Shares in Dug Technology Ltd (ASX: DUG) have raced almost 10% higher after the company reported strong quarterly sales figures.

Strong growth figures

The technology company, which provides software and compute as a service (CaaS) products to big players in the oil and gas sector, said in a statement to the ASX that its total revenue for the quarter was up 35% to US$22.4 million for the third quarter, compared with the same period last year.

The company said it had experienced strong year-on-year growth as well as margin expansion.

The company added:

Notably, the Company’s results for the first 9 months of FY26 have already surpassed the full-year results delivered in FY25. This performance continues to underscore the scalability of our business model and the increasing global demand for our MP-FWI Imaging technology.

The company said its services revenue remained the bedrock of the business and was up 16% year on year to US$15.3 million for the quarter, and the outlook was strong.

The company said:

The pipeline continues to build through new and emerging regions as clients, supported by a heightened oil-price environment, look to increase exploration and production activity. The Company continues to win more 4D projects, these are processing projects that are typically repeated every 18 months and allow clients to visualise how they are depleting a producing reservoir.

Dug Managing Director Dr Matthew Lamont said the company’s international expansion strategy “continues to pay off and our growing pipeline positions us well for the future”.

Broker likes the story

Shaw and Partners recently released a research report on Dug, which suggests the company is undervalued, even after today’s share price boost.

The broker said in a recent research note sent to its clients that Dug had sunk nearly $60 million into high-performance computing infrastructure over the past three years, which it could now leverage for outsized gains.

Shaw and Partners added:

New regions and a growing reputation support contract awards continuing to grow. Dug is favourably exposed to a rising oil price environment, has limited direct revenue exposure to the Middle East currently and has materially underperformed its oil and gas service peers … year to date, creating an opportunity for savvy investors.

Shaw said Dug had only recently expanded into the Middle East, with the region accounting for less than 8% of total revenue.

This was despite the Middle East and Latin America accounting for about 22% of global upstream capex in the sector.

Shaw said Dug was also demonstrating an ability to grow its “share of wallet” with existing customers.

Shaw and Partners has a price target of $3 on Dug shares compared with $2.34 on Friday morning, up 9.9%.

The post Why are shares in this ASX tech stock, which operates in the oil and gas space, charging higher? appeared first on The Motley Fool Australia.

More reading

• The five best ASX 200 stocks to buy and hold in April revealed
• Are Mineral Resources shares a buy in May?
• What’s going on with ResMed shares today?
• Why are Coles shares falling today?
• ANZ shares rise after reporting 70% cash profit jump

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

ResMed Inc. (ASX: RMD) shares are under pressure on Friday morning.

At the time of writing, the sleep disorder treatment company’s shares are down 1.5% to $29.43.

As a comparison, the ASX 200 index is up 0.7% in early trade today.

Why are ResMed shares falling?

Investors have been selling the company’s shares today after it released its third-quarter update, which appears to have been softer than the market was expecting.

According to the release, ResMed delivered an 11% (8% in constant currency) increase in revenue to US$1.4 billion. This was driven by increased demand for its portfolio of sleep devices, masks, and accessories.

ResMed’s gross margin increased by 290 basis points during the quarter. This was primarily driven by component cost improvements and manufacturing and logistics efficiencies, as well as a small positive impact from product mix and foreign currency movements.

However, offsetting some of this was an 11% jump in selling, general, and administrative (SG&A) expenses. ResMed revealed that this was mainly due to additional expenses associated with its VirtuOx acquisition, employee costs, marketing, and technology investments.

SG&A expenses, excluding acquisition and portfolio review related expenses, were 19.5% of revenue in the quarter, compared with 19% in the prior corresponding period.

This led to the company’s net income increasing 9% to US$398.7 million or 20% to US$417.2 million on a non-GAAP basis.

Operating cash flow was strong for the quarter and came in at US$554 million.

This allowed the ResMed board to declare a quarterly cash dividend of US$0.60 per share. Australian shareholders will receive an equivalent amount in AUD, based on the exchange rate on the record date, and reflecting the 10:1 ratio between CDIs and NYSE shares.

Management commentary

Commenting on the company’s performance, ResMed’s CEO, Mick Farrell, said:

Our third quarter results reflect the continued strength of our global business, driven by ongoing demand for our market-leading products and disciplined execution of our strategy. Year-over-year, we delivered 11% reported revenue growth, 290 basis points of non-GAAP gross margin expansion, and 21% increase in earnings per share.

These results highlight the momentum behind our strategy, and the continued progress we are making in shaping the future of sleep health, breathing health, and healthcare in the home. As we advance through the remainder of our fiscal year 2026, we remain focused on expanding access to care globally, scaling our digital health capabilities, and delivering further strong, profitable growth.

The post What’s going on with ResMed shares today? appeared first on The Motley Fool Australia.

More reading

• Resmed reports double-digit revenue and profit increases in Q3 FY26
• 5 things to watch on the ASX 200 on Friday
• How to build a $500,000 ASX share portfolio in 25 years
• What’s making healthcare the worst sector on the ASX 200, down 39% in a year?
• CSL, Resmed, Cochlear shares crash to multi-year low: Buy, sell or hold?

Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.