Category: Stock Market

Investors in the Vanguard Australian Shares Index ETF (ASX: VAS) would be a happy bunch right about now, I’d wager. It was only back in late October that VAS units were going for under $83.50 each. But at the close on Thursday, those same units were priced at $95.63.

This means that investors in this popular exchange-traded fund (ETF) have enjoyed more than a 14% unit price appreciation in just four months. Investors can also add another approximately 0.76% to that return as a result of VAS’s December dividend distribution.

Index fund aficionados might notice that this stonking gain is well outside the norms of what VAS investors usually achieve. After all, ETF provider Vanguard tells us that VAS units have averaged a return of 9.03% per annum (with dividends reinvested) since its ASX inception in 2009. That’s as of 31 January.

That’s the average return for 12 months, not four. So we’ve witnessed a very lucrative window for this index fund indeed.

So what can explain this super-sized return that the Vanguard Australian Shares ETF has enjoyed since October last year?

How have VAS units returned 14% in four months on the ASX?

Well, to answer that, let’s do a refresher on how an index fund like this works. Index funds work by closely tracking an underlying index and replicating its holdings and allocations. Hence the name.

In VAS’s case, the index employed is the S&P/ASX 300 Index (ASX: XKO).

The ASX 300 holds the largest 300 shares on the Australian share market, weighted by market capitalisation. That’s everything from Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW) and Telstra Group Ltd (ASX: TLS) to JB Hi-Fi Ltd (ASX: JBH), Ampol Ltd (ASX: ALD) and Harvey Norman Holdings Limited (SX: HVN).

Because it is weighted by market capitalisation, the larger shares (such as CBA) have more weighting and influence in the index, and thus the ETF, than the smaller ones (like Ampol).

Given that the Vanguard Australian Shares ETF merely tracks the ASX 300 Index, it won’t be too surprising to learn that the ASX 300 Index has also returned around 14% since October last year. So it would have been very strange if VAS units didn’t return something similar.

These returns can be further explained by a look at how the most influential shares in the ASX 300 Index, and the VAS ETF, have performed over this period.

Take the CBA share price. It’s up more than 20% since the end of October. The other big four bank shares have all returned a similar result. Whilst the CSL Ltd (ASX: CSL) share price is up almost 24%.

So given how some of the largest shares in the ASX 300 have performed in recent months, it’s easy to see why the Vanguard Australian Shares ETF has followed suit.

The post 14% in 4 months: How has the Vanguard Australian Shares ETF (VAS) managed it? appeared first on The Motley Fool Australia.

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More reading

• How much would I need to invest in ASX shares for a retirement income of $80,000 per year?
• A once-in-a-decade chance to get rich from ASX 200 shares?
• Is the Vanguard Australian Shares Index ETF (VAS) a good buy for beginners?
• Retirees: Here’s how to boost your pension in 2024
• Thinking about buying the Vanguard Australian Shares ETF (VAS)? Here’s what you’re really buying

Motley Fool contributor Sebastian Bowen has positions in CSL, Telstra Group, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has positions in and has recommended Harvey Norman and Telstra Group. The Motley Fool Australia has recommended CSL and Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Thursday, the S&P/ASX 200 Index (ASX: XJO) recovered from a shaky started to record a decent gain. The benchmark index rose 0.5% to 7,698.7 points.

Will the market be able to build on this on Friday and end the week on a high note? Here are five things to watch:

ASX 200 expected to edge higher

The Australian share market looks set to end the week in a positive fashion following a decent night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 8 points or 0.1% higher this morning. In late trade on Wall Street, the Dow Jones is down slightly, the S&P 500 is up 0.3%, and the NASDAQ is up 0.5%.

Oil prices soften

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a subdued finish to the week after oil prices edged lower overnight. According to Bloomberg, the WTI crude oil price is down 0.3% to US$78.25 a barrel and the Brent crude oil price is down slightly to US$83.66 a barrel. Higher than expected US inventories has put pressure on prices.

Life360 results

The Life360 Inc (ASX: 360) share price will be on watch on Friday when the location technology company releases its FY 2023 results. Goldman Sachs is forecasting subscription revenue of US$221.7 million for the year, which represents annual growth of 51%. EBITDA is expected to come in at US$15.9 million, which is the top end of Life360’s guidance range of US$12 million to US$16 million.

Gold price rises

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good session after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.5% to US$2,054.6 an ounce. Gold hit a one-month high after US inflation data came in line with expectations.

Xero remains a buy

Xero Ltd (ASX: XRO) shares are a top buy according to Goldman Sachs. In response to its investor day event, the broker has reiterated its buy rating on the cloud accounting platform provider’s shares with an improved price target of $152.00. This implies almost 20% upside for investors over the next 12 months.

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• 2 ASX energy shares going gangbusters on today’s earnings results
• Xero share price falls despite strategy update and new AI solution
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Life360 and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Life360, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Since listing on the ASX in its own right back in late 2018, Coles Group Ltd (ASX: COL) has carved out a name for itself as a generous dividend payer. The supermarket giant has increased its annual dividend most years since 2019 without delivering a single dividend cut.

That’s unlike the shares of its arch-rival Woolworths Group Ltd (ASX: WOW).

Earlier this month, Coles revealed its latest half-year earnings report, which detailed the company’s next dividend payment.

Coles began by announcing a 3.7% rise in revenues to $22.22 billion over the period. As well as a 4.2% bump in underlying earnings. The company also revealed that its next interim dividend would be worth 36 cents per share, fully franked.

That dividend is flat on what the company paid out for the same period last year. Paired with Coles’ final (and fully franked) dividend of 30 cents per share from September, it keeps the company’s annual dividend steady at 66 cents per share.

This gives the Coles share price both a forward and trailing dividend yield of 3.91%. That’s based on the company’s closing share price of $16.90 yesterday.

How to secure the next Coles dividend

But if you wish to receive this next dividend from Coles, and you don’t already own this company’s stock, time is running out.

Coles is scheduled to trade ex-dividend for this upcoming payment on Tuesday, 5 March. That’s next week, and means the last day you can buy Coles shares with the rights to this payment attached is on Monday, 4 March.

If you buy Coles shares on Tuesday onwards, you’ll miss out. So expect to see a bit of a drop in the Coles share price when the markets open on Tuesday morning, reflecting this inherent loss of value.

For eligible shareholders, Coles will then finally fork out the cash on 27 March. Unless of course, you opt for the dividend reinvestment plan (DRP). If you do so by 7 March, you have the option of receiving additional Coles shares in lieu of the cash payment.

The post Want to cash the latest Coles dividend? Here’s what you need to do appeared first on The Motley Fool Australia.

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More reading

• 1.6m Australians facing ‘mortgage stress’, Coles’ margins fall: Scott Phillips on Nine’s Late News
• Top brokers name 3 ASX shares to buy today
• Why the Coles share price could keep rising after the result
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today

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 positions in and has recommended Coles Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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With $7,000 of money to spare, I’d avoid going on a shopping spree and instead invest in ASX dividend shares to build an extra income.

Once I have the right ASX portfolio holdings in place, I can use the passive income this delivers to buy the extra goodies I’ve had an eye on.

Here’s how I’d aim to turn a spare $7,000 into an annual $1,000 extra income.

A diversified ASX investment for $1,000 in annual extra income

With $7,000 to spare, I could invest $1,000 in seven different ASX dividend stocks.

If I were to take this route, I’d primarily target companies paying franked dividends, so I can hold onto more of my extra income when the ATO comes knocking.

I’d also be sure to invest in a range of quality companies trading at fair prices. And ones that are operating in different sectors and parts of the world. That kind of diversity will lower my overall investing risks.

I could achieve similar diversity by investing in a high-yielding ASX exchange-traded fund (ETF).

The BetaShares Australian Dividend Harvester Fund (ASX: HVST), for example, holds anywhere from 40 to 60 ASX dividend shares at any given time.

The ETF’s top three holdings are BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and National Australia Bank Ltd (ASX: NAB).

BHP, CBA and NAB shares all pay fully franked dividends. And they have lengthy track records of making two annual payments, helping secure that extra income.

But HVST’s holdings are more diversified than just the financial and materials sectors. The ETF is also invested across the healthcare, consumer discretionary, energy and industrial sectors, among others.

As for that extra income, as at 31 January HVST had a 12-month dividend yield of 6.6%, franked at 79.5%.

This equates to a gross yield, which includes those handy franking credits, of 8.9%. The one-year gross return, which includes share price moves, is 8.45%.

Judging by the blue-chip portfolio holdings and with history as my guide, I believe that’s a sustainable long-term return from this ASX dividend ETF.

Now at those returns, my spare $7,000 would see me earning an annual passive income of $592. That’s a fair bit short of my goal.

To garner that $1,000 in yearly extra income at a return of 8.45%, I’d need to own $11,905 of HVST shares.

So I’ll be a bit patient and reinvest those dividends into the ETF as they come in.

In a little over six years, I’ll have reached that level.

And, if I can hold off going on that spending spree a bit longer, my spare $7,000 will have grown to $12,621 after seven years, offering an annual extra income of $1,066.

The post $7,000 of money to spare? Here’s how I’d aim to turn that into $1,000 in annual extra income appeared first on The Motley Fool Australia.

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More reading

• Invest $833 in this ASX share each month to create passive income of $840 in 2024!
• This 6.7% ASX dividend stock pays cash every month

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.

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It’s hard to believe we’re two months into 2024 and have already put another earnings season to bed… but, here we are!

For investors, the new year has kicked off quite nicely, with the S&P/ASX 200 Index (ASX: XJO) already up a not-too-shabby 0.98%.

With the hope of keeping the positive returns flowing, we asked our Foolish writers which ASX shares look like top buying opportunities right now. Here is what the team came up with:

6 best ASX shares for March 2024 (smallest to largest)

• IPD Group Ltd (ASX: IPG), $506.56 million
• Global X Battery Tech & Lithium ETF (ASX: ACDC), $589.06 million
• Johns Lyng Group Ltd (ASX: JLG), $1.75 billion
• Flight Centre Travel Group Ltd (ASX: FLT), $4.70 billion
• Woolworths Group Ltd (ASX: WOW), $39.85 billion
• CSL Ltd (ASX: CSL), $138.28 billion

(Market capitalisations as of market close 29 February 2024).

Why our Foolish writers love these ASX stocks

IPD Group Ltd

What it does: IPD Group is an Australian electrical product distributor, serving the country’s electrical equipment needs for more than 70 years. I tend to think of it as the Bunnings of specialised electrical products.

By Mitchell Lawler: There are arguably many demand drivers for electrical equipment in the years to come. Whether it is data centres, electric vehicle infrastructure, or construction growth to meet an increasing population – IPD Group is poised to soak up the expansion. 

After many acquisitions, IPD is quickly becoming a one-stop shop for a diverse range of equipment, including power distribution, power monitoring, industrial motor control, and automation. 

Importantly, the company has demonstrated solid growth in recent years. In the latest half, IPD delivered net profit after tax (NPAT) growth of 22.5% to $9.8 million. 

The high insider ownership among management also gives me confidence that this team is committed to the company’s long-term success.

Motley Fool contributor Mitchell Lawler does not own shares of IPD Group Ltd.

Global X Battery Tech & Lithium ETF

What it does: This exchange-traded fund (ETF) tracks the Solactive Battery Value-Chain Index, which contains stocks for companies involved in battery technology.

By Tony Yoo: Battery materials, especially lithium, have been in a painful funk for 15 months now. But investors could start looking at picking up shares for cheap with a view to the long-term demand for batteries from the electrification of fossil fuel-powered devices. 

Rather than attempting to pick the wild fortunes of individual miners, this ETF provides diversification to invest in the industry as a whole. The transition to a less carbon-intensive future is real and, I believe, will be a long-running theme for years to come.

Motley Fool contributor Tony Yoo does not own units of the Global X Battery Tech & Lithium ETF.

Johns Lyng Group Ltd

What it does: The core service this ASX 200 company provides is restoring buildings and contents after an insured event, such as a fire, storm, or flooding. It also has increasing capabilities and exposure related to catastrophe work.

By Tristan Harrison: The Johns Lyng share price dipped after the company reported its FY24 first-half result. While catastrophe revenue may not have been as strong as some investors wished, it’s not the sort of work that is going to grow consistently year after year – I expect it to be lumpy. And, short-term declines can present opportunities.

Johns Lyng’s ‘business as usual’ (BAU) revenue rose 13.7% to $426.1 million, and its normalised NPAT grew by 15.8% to $25 million, demonstrating operating leverage within the business. Plus, it upgraded revenue guidance for FY24 by 3.5%.

Furthermore, I’m excited by the company’s expansion in the strata industry. Acquiring strata managers can result in more consistent (and growing) revenue and also create synergies with the core business.

I am planning to buy more Johns Lyng shares soon. 

Motley Fool contributor Tristan Harrison owns shares of Johns Lyng Group Ltd. 

Flight Centre Travel Group Ltd

What it does: The ASX 200 company is one of the world’s largest travel agency groups. Flight Centre operates in more than 23 countries, with a corporate travel management network that spans more than 90 countries.

By Bernd Struben: I believe the Flight Centre share price remains materially undervalued over the longer term.

Given the company’s earnings and revenue growth, not to mention its return to profitability, I think it has the potential to eventually retrace to pre-COVID levels of more than $40 a share. That essential doubling in the share price won’t come overnight. But the company is certainly moving in the right direction.

For its half-year results, Flight Centre achieved NPAT of $86 million, up from a net loss of $20 million in 1H FY23. The company also reported a 99% increase in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $189 million.

And we saw the return of the interim dividend, which followed on from the reinstatement of the final dividend in September. Flight Centre trades on a fully-franked trailing yield of 1.4%.

Motley Fool contributor Bernd Struben does not own shares of Flight Centre Travel Group Ltd.

Woolworths Group Ltd

What it does: Woolworths is Australia’s largest supermarket operator. It also owns the Big W brand and has a growing presence in the pet care market.

By James Mickleboro: With the company’s shares trading within sight of a 52-week low, I think now is a great time to invest in this high-quality company. Particularly given its leadership position in a defensive market with high barriers to entry.

In addition, recent weakness in the Woolworths share price means it offers an attractive dividend yield in the region of 3.2%.

Goldman Sachs remains very positive on the company. So much so that it has Woolworths shares on its coveted conviction list with a buy rating and $40.40 price target.

Motley Fool contributor James Mickleboro does not own shares of Woolworths Group Ltd.

CSL Ltd

What it does: CSL is the largest healthcare company in Australia. It has an extensive global plasma collections operation, as well as a world-leading vaccine and blood medicine division. 

By Sebastian Bowen: CSL shares have had a rough time of late. Even though the company reported a very solid earnings report this month, investors still haven’t forgiven CSL for its disappointing heart attack drug trial.

I think this presents an opportunity for CSL shares this March, though. The company is still growing at a healthy pace and has recently hiked its dividend by 12%.

CSL’s plasma collections business remains lucrative and should underpin earnings growth for years to come. I think you could do a lot worse than CSL shares at the recent pricing.

Motley Fool contributor Sebastian Bowen owns shares of CSL Ltd.

The post Top ASX shares to buy in March 2024 appeared first on The Motley Fool Australia.

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More reading

• I’m listening to Warren Buffett and loading up on cheap ASX shares in March
• 1 ASX growth stock down 30% to buy right now
• Why Flight Centre, Fortescue, Kelsian, and Neuren shares are dropping today
• Flight Centre shares plunge 7% despite return of the interim dividend
• Flight Centre share price on watch amid 565% half-year profit surge

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Global X Battery Tech & Lithium ETF, Ipd Group, Johns Lyng Group, and Goldman Sachs Group. The Motley Fool Australia has recommended CSL, Flight Centre Travel Group, Global X Battery Tech & Lithium ETF, Ipd Group, and Johns Lyng Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Neuren Pharmaceuticals Ltd (ASX: NEU) share price gained 1.1% to close at $19.36 on Thursday despite encountering some turbulence in late afternoon trading.

Most of the gains occurred at the beginning of today’s session with the stock rising to an intraday high of $19.70 shortly after the open.

The ASX biotech then released its full-year FY23 report about 25 minutes prior to the market close today.

A small drop in the Neuren share price occurred at the time of the news release, but it quickly steadied.

We will see the full market reaction to the report tomorrow.

In the meantime, let’s take a look at the numbers.

Neuren Pharmaceuticals share price steady at market close

Here are the highlights for the full-year FY23:

• Revenue of $231.9 million, up from $14.5 million in FY22
• Profit after tax of $157 million, up from $184,000 in FY22
• Net cash from operating activities of $185 million
• Cash and short-term investments at 31 December 2023 of $228.5 million
• Diluted earnings per share (EPS) of $1.201

Neuren received $231.9 million in revenue after licencing its first drug, Daybue, to US partner Acadia Pharmaceuticals (NASDAQ: ACAD).

This included $59.4 million for the first commercial sales milestone, an upfront $145.7 million under the expanded global licence agreement, and $26.8 million from quarterly royalty income.

Other income included interest income of $5.7 million and foreign exchange gains of $2.4 million.

What else happened in FY23?

The Neuren Pharmaceuticals share price recorded the strongest growth of any ASX 200 stock in 2023.

Neuren shares ripped up the charts, gaining 214% over the 12 months to 31 December.

Most of that gain came on the back of FDA approval and the initial sales success of Daybue, which is a world-first drug treatment for Rett syndrome.

The Neuren share price surged again in December after the company released top-line results from its Phase 2 clinical trial of NNZ-2591 in children with the debilitating Phelan-McDermid syndrome (PMS).

There are currently no approved treatments for PMS. According to the release, a significant improvement was observed by both clinicians and caregivers from treatment during the trial.

What did management say?

Neuren CEO Jon Pilcher said:

2023 delivered a profit of A$157 million, an exceptional US launch of DAYBUE by Acadia, US$100 million up-front from an expanded partnership with Acadia for trofinetide worldwide and outstanding results from the first clinical trial of NNZ-2591 in patients.

Neuren has never been in a stronger position, with substantial ongoing cash flows and a series of value creating catalysts approaching in 2024.

What’s next for Neuren Pharmaceuticals?

Neuren Pharmaceuticals has been under pressure over the past fortnight since a US short-seller released a report describing Daybue as a “flop” amid “horror stories” of side effects among patients.

The short seller’s report was released in the US on 15 February, and Neuren issued a response that failed to stop the Neuren Pharmaceuticals share price crashing by 14.2%.

Ahead of today’s full-year FY23 report, Arcadia announced 4Q FY23 net sales of Daybue worth US$87.1 million in the US. This was at the top end of the company’s guidance range of US$80 million to $87.5 million, following on from net sales of US$67 million in Q3 FY23 and US$23 million in Q2 FY23.

Arcadia also provided full-year 2024 guidance of sales between US$370 million and US$420 million.

However, ASX investors were not pleased and the Neuren Pharmaceuticals share price fell 10.3%.

Neuren Pharmaceuticals share price snapshot

The Neuren Pharmaceuticals share price is down 22% in the year to date.

The post What’s with the Neuren Pharmaceuticals share price today? appeared first on The Motley Fool Australia.

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More reading

• Why Flight Centre, Fortescue, Kelsian, and Neuren shares are dropping today
• Why is this ASX 200 pharmaceuticals stock crashing 15% today?
• Here are the top 10 ASX 200 shares today
• A hot ASX stock with ‘multiple catalysts’ looming is 8% down. Time to buy
• Why Inghams, IAG, Neuren Pharmaceuticals, and Pro Medicus shares are sinking today

Motley Fool contributor Bronwyn Allen 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.

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The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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• Star Entertainment share price jumps 5% on strengthening outlook
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• Ramsay Health Care share price falls on profit crunch and dividend cut

Motley Fool contributor Sebastian Bowen has positions in Ramsay Health Care. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PolyNovo. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Earnings season is a common time of year for ASX 300 company directors to trade shares for their own investment portfolios.

This is because ASX listing rules encourage directors to delay personal trades until shortly after releasing their major financial reports.

It’s a good time to trade because all the latest financial results are on the table for all of us to see.

Go big or go home ASX REIT buy-up

The biggest insider buy so far this earnings season appears to be a $42 million ASX 300 REIT buy-up.

David Di Pilla, the managing director and CEO of the Healthco Healthcare and Wellness REIT (ASX: HCW) bought 31,912,867 shares in the real estate investment trust (REIT) this month.

Di Pilla paid an average price of $1.335. This on-market trade was worth $42.6 million and change.

The ASX 300 REIT explained the trade as follows:

As announced on 2 May 2023, HMC entered into a cash settled total return swap with Macquarie Bank Limited in respect of 31,912,867 units (TRS). HMC has now unwound the TRS and retained exposure to those units by acquiring them directly on market.

The acquisition was approved by HCW unitholders pursuant to Resolution 3 at the HCW Extraordinary General Meeting held on 24 July 2023.

The Healthco Healthcare and Wellness REIT share price was up 1.85%, trading at $1.375 at the close on Thursday.

Other major ASX 300 insider buys in February

Corporate Travel Management Ltd (ASX: CTD)

Founder and managing director Jamie Pherous bought 87,500 Corporate Travel Management shares this month in an on-market trade worth just shy of $1.4 million. He paid an average price of $15.98 for the ASX 300 travel stock. This is the first time Pherous has traded in the travel share in two-and-a-half years.

The Corporate Travel Management share price closed 0.51% higher at $15.92 on Thursday.

ASX Ltd (ASX: ASX)

ASX chair Damian Roche snapped up 10,000 shares in the market operator this month, buying at an average price of $64.363. His total investment was $643,628.

The ASX share price was up 0.94% to $65.75 in afternoon trading.

Nico Resources Ltd (ASX: NC1)

Nico Resources non-executive chair Peter Cook invested $300,000 in purchasing two million shares in the ASX 300 nickel miner. He paid an average price of 15 cents apiece. Nickel was added to the Critical Minerals List this month amid a massive and growing supply coming out of Indonesia, where China is funding the rapid development of mines.

The Nico Resources share price closed 2.86% higher at 18 cents.

IGO Ltd (ASX: IGO)

IGO managing director and CEO Ivan Vella purchased 41,500 IGO shares on-market at an average price of $7.274 this month. This investment in the nickel and lithium producer totalled $301,852. IGO chair Michael Nossal also upped his holdings by 25,000 shares, paying an average price of $7.234 per share or $180,840 in total.

The IGO share price was down 2.46% to $7.94 at the close on Thursday.

Whitehaven Coal Ltd (ASX: WHC)

Non-executive director Michael McCormack bought 30,000 Whitehaven shares this month in an on-market trade worth just over $214,000. He paid an average of $7.144 for the ASX 300 coal stock.

The Whitehaven share price closed 1.57% lower at $6.92 on Thursday.

The post $42 million tops the most notable ASX 300 insider buys this earnings season appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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 Corporate Travel Management. The Motley Fool Australia has recommended Corporate Travel Management. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Brokers are expecting good things from two S&P/ASX 300 Index (ASX: XKO) shares, judging by today’s rating and price target upgrades.

A price target is where a broker thinks a share price could be in 12 months from today. The higher the target, the more the brokers expect the company to deliver in terms of share price growth. Of course, there’s no guarantee any share price will rise a certain amount in 12 months – it might not rise at all.

Having said that, let’s look at two of the ASX 300 shares that brokers are more optimistic about.

Boss Energy Ltd (ASX: BOE)

Broker Bell Potter raised its rating on the energy company to a speculative buy with a price target of $6.34.

At the current Boss Energy share price, that implies a possible rise of around 30% from here.

As reported by my colleague James Mickleboro, Bell Potter said this about the ASX uranium share:

Our valuation is reduced slightly to $6.34/sh (previously $6.41/sh) on changes to our corporate expenditure and associated earnings. With the recent sell-off in BOE we have decided to move to a Speculative Buy (from Speculative Hold) in-line with our ratings structure.

Uranium fundamentals continue to support our thesis being 1) advancement in Nuclear energy across the globe (60 reactors currently under construction) filtering through to a growing demand for U3O8 and 2) a lack of near-term supply as producers exited the market post Fukushima.

The recent acquisition of a 30% interest in the Alta Mesa joint venture, diversifies BOE’s operations and revenue streams, making BOE one of only two geographically diversified uranium producers in CY24.

Thanks to a $62.3 million gain on its “investment in uranium and financial assets”, Boss Energy was able to report an accounting net profit of $57.6 million in the FY24 first-half result, up from a loss of $2.4 million in the prior corresponding period.

The ASX 300 share also announced it has passed another critical milestone in the development of its Honeymoon project, with the start of commissioning the first ion-exchange circuit within the processing plant. The business added it had seen successful modification and refurbishment of the re-agent systems.

Those achievements mean Honeymoon is now running 24 hours a day, seven days a week, accelerating its push towards production and ramp-up.

In the past year, the Boss Energy share price has risen by 90%.

APM Human Services International Ltd (ASX: APM)

The broker Jefferies has raised its price target on the ASX 300 share to $1.80. That would be a rise of around 12% from the current APM Human Services International share price.

Yesterday, the business reported its FY24 first-half result and announced it had received an enlarged bid from CVC of $2 per share, which was 25% higher than the $1.60 per share bid.

Jefferies’ price target is roughly halfway between the current price and the bid price.

However, there’s no guarantee there will be a binding bid submitted, though CVC has been granted a four-week exclusivity period until 27 March 2024. The offer is conditional on several elements, including due diligence, debt financing and regulatory approvals.

Since the start of 2024, the APM share price has risen close to 30%.

The post These 2 ASX 300 shares were just upgraded by brokers appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in APM Human Services International. 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 APM Human Services International. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Top broker Goldman Sachs reckons US big pharma stock Eli Lilly And Co (NYSE: LLY) has the credentials to replace electric vehicle producer Tesla Inc (NASDAQ: TSLA) in the Magnificent Seven.

That’s a pretty big call, but then again, Eli Lilly’s GLP-1 diabetes and obesity drugs are a pretty big deal.

Why could this US stock replace Tesla in the Magnificent Seven?

Just as electric vehicles have been a game changer in car manufacturing, GLP-1 drugs are a game changer in healthcare and the fight against the global epidemics of Type 2 diabetes and obesity.

Eli Lilly is the second-mover in the GLP-1 space. It has followed Novo Nordisk (NYSE: NVO), the Danish pharmaceutical company that invented the more well-known GLP-1 drugs, Ozempic and Wegovy.

But before we go any further, let’s recap who the Magnificent Seven are.

The club comprises seven of the largest US tech stocks by market capitalisation that have led market returns in recent years. All of them are involved in large technology-driven global growth trends.

They are Apple Inc, Amazon.com Inc, Alphabet Inc, Meta Platforms Inc, Microsoft Corp, Nvidia Corp, and Tesla Inc.

The chart below shows their share price percentage growth rate over the past two years.

Who is Eli Lilly?

US stock Eli Lilly is a major pharmaceutical company founded by Colonel Eli Lilly 150 years ago.

Eli Lilly’s diabetes drug is called Mounjaro. Its obesity drug, Zepbound, is simply a larger dose of the same ingredient in Mounjaro, which is tirzepatide.

Tirzepatide is a GIP and GLP-1 receptor agonist, so it activates both GIP (glucose-dependent insulinotropic polypeptide) and GLP-1 (glucagon-like peptide-1) hormone receptors.

This is what makes Eli Lilly’s products different to the GLP-1 products of its first-mover rival.

Novo Nordisk manufactures the world-renowned diabetes drug Ozempic and its obesity equivalent, Wegovy. The key ingredient in both drugs is semaglutide, which is a GLP-1 receptor agonist only.

Ozempic has the first-mover advantage in the GLP-1 space. The United States Food and Drug Administration approved Ozempic in December 2017, and then Wegovy in June 2021.

The FDA approved Eli Lilly’s Mounjaro for diabetes in May 2022 and Zepbound in November 2023.

While Ozempic and Wegovy are the most well-known GLP-1 brands, Zepbound is a significant threat given it is more effective for weight loss.

In clinical trials, Zepbound delivered an average of 21% weight loss over 72 weeks in patients with obesity, but without diabetes, at the highest dose.

This compares to a 15% to 16% average weight loss over 68 weeks in patients with obesity or overweight, but no diabetes, taking Wegovy.

The future of GLP-1s and these US stocks

Most experts agree the runway for obesity drugs, in particular, is enormous. Novo Nordisk estimates there are 988 million adults and children globally living with obesity. On top of that, there are 483 million people living with Type 2 diabetes. (Obesity is a common precursor to Type 2 diabetes.)

The astounding effectiveness of these drugs is why both US stocks have shot the lights out in recent times.

The chart below shows the percentage growth of each US stock over the past two years. As you can see, Eli Lilly has produced better share price growth.

Eli Lilly shares closed last night at $757.64, up about 202% over the past two years.

Novo Nordisk shares closed at $121.54, up 137% over the same timeframe.

Back to the Magnificent Seven…

All of this excitement over GLP-1s is why Goldman Sachs analyst Chris Shibutani reckons Eli Lilly may be either the 8th magnificent US stock or a replacement for Tesla in the Magnificent Seven.

As reported on TipRanks, Shibutani says:

While LLY has traditionally not been discussed as part of the Mag-7 club given it’s not a Tech stock, we believe it is now well-established in the narrative of companies contributing to a major technological development that could have large societal ramifications.

The analyst notes a rotational preference for Eli Lilly over the electric vehicle maker in recent times.

We note that recent price action between LLY and TSLA, for example, has been exhibiting a clear rotational preference for LLY as the increasingly favored name between these two mega-cap compounders.

This is because Tesla is “between two major growth waves”. Meantime, Eli Lilly is “entering a powerful new product cycle” after the US FDA approved Zepbound in November.

He added:

It may not be surprising to see this rotation continue, in our view, as mutual-funds continue to right-size their LLY positions.

Shibutani said the US healthcare stock “screens better” than Tesla on several metrics, including valuation, stock price growth, and catalysts.

He cites studies that Eli Lilly is undertaking on obesity-related outcomes. The first study relates to sleep apnea, which is often caused by obesity.

Due in March, the results of that study will be of particular interest to Resmed CDI (ASX: RMD) investors.

Resmed, which makes CPAP machines used by sleep apnea sufferers, took a more than 30% hit to its share price last year as excitement grew over GLP-1s.

Resmed CEO Mick Farrell sought to allay investors’ concerns by explaining that the total addressable market for sleep apnea was huge at 1.4 billion by 2050. But he said the company did expect GLP-1s to take away 200 million of that.

Of the 19 analysts covering the US big pharma stock on TipRanks, 16 say Eli Lilly shares are a buy. Three say hold.

Of the 34 analysts covering Tesla shares, 12 say buy, 17 say hold, and five say sell.

The post Goldman Sachs says this US stock is replacing Tesla in the Magnificent Seven appeared first on The Motley Fool Australia.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Bronwyn Allen has positions in Novo Nordisk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Goldman Sachs Group, Meta Platforms, Microsoft, Nvidia, ResMed, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Novo Nordisk and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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