Stock Pick

  • Why the Life360 share price is up 17% in two days and could keep rising

    A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price

    A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price

    The Life360 Inc (ASX: 360) share price is charging higher for a second day in a row.

    In morning trade, the location technology company’s shares are up 8% to $5.57.

    This means the Life360 share price is now up 17% over the last two trading sessions.

    Why is the Life360 share price racing higher?

    There are a couple of reasons why investors have been scrambling to buy the company’s shares this week.

    The first is the market rebound, which has been most pronounced in the beaten down tech sector.

    For example, the S&P ASX All Technology index is up 4% today, which means it has rebounded almost 9% over the last two sessions.

    What else is boosting its shares?

    Also giving the Life360 share price a big lift this week was a bullish broker note out of Goldman Sachs on Tuesday.

    According to the note, the broker has initiated coverage on the company’s shares with a buy rating and $7.50 price target. This implies potential upside of 35% for investors over the next 12 months despite its recent rally.

    Goldman commented:

    Life360 is heading into its seasonally strongest quarter and is preparing to launch the integration of Tile within the core Life360 app. Execution risk remains (from a technological and go-to-market standpoint), however we are positive on the potential for an integrated Life360/Tile membership to grow subscriber penetration, pricing and retention over time. We see Life360 as reaching a volume/pricing inflection point, with potential structural profitability tailwinds on the horizon from a reduction in effective app store fees.

    We see scope for re-rating as Life360 demonstrates pricing leverage, improving unit economics and progress to cash flow breakeven in FY23. We value the Subscription business at 5.5x FY24 EV/GP (90% of our EV) in line with freemium app peers.

    All in all, Goldman appears to believe it isn’t too late to jump onboard with this one.

    The post Why the Life360 share price is up 17% in two days and could keep rising appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. 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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  • Here’s why the Block share price is jumping 9% today

    A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.

    A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.

    The Block Inc (ASX: SQ2) share price has been one of the best performers on the ASX 200 on Wednesday.

    In morning trade, the payments company’s shares are up 9% to $96.47.

    This compares favourably to a 1.4% gain by the ASX 200 index this morning.

    What’s going on with the Block share price?

    The Block share price is racing higher on Wednesday following an incredibly strong night of trade for the company’s NYSE listed shares.

    On Wall Street, the Afterpay owner saw its shares jump a whopping 12% last night. This was driven by a broad market rebound, with beaten down tech stocks among the biggest movers.

    For example, the PayPal share price jumped 6.5% and buy now pay later provider Affirm saw its shares rocket almost 14% higher.

    This helped drive the tech-focused NASDAQ index 3.35% higher for the session.

    What else?

    Also giving the Block share price a boost on Tuesday night was a bullish broker note out of Deutsche Bank.

    According to the note, as we reported here, the broker has put a buy rating and US$95 price target on the company’s shares.

    Deutsche Bank has been pleased with the progress the company has made connecting its three ecosystems – Afterpay, Cash App, and Square. It is expecting this to lead to wider adoption and stronger margins.

    Based on current exchange rates, Deutsche Bank’s price target equates to A$146 for its locally listed shares.

    This implies potential upside of 51% for the Block share price on the ASX even after today’s stellar gains.

    The post Here’s why the Block share price is jumping 9% 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 positions in and has recommended Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. 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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  • Fortescue share price higher on green hydrogen update

    A group of businesspeople hold green balloons outdoors.

    A group of businesspeople hold green balloons outdoors.

    The Fortescue Metals Group Limited (ASX: FMG) share price is pushing higher on Wednesday.

    In morning trade, the mining giant’s shares are up 2% to $17.59.

    Why is the Fortescue share price rising?

    Investors have been bidding the Fortescue share price higher today for a couple of reasons.

    The first is another very positive day of trade on the ASX 200 index following a strong night on Wall Street.

    This has seen fellow mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) push higher this morning as well, helping take the ASX 200 index 1.4% higher.

    What else?

    Also potentially giving the Fortescue share price a lift today was the release of an announcement relating to its Fortescue Future Industries (FFI) business.

    According to the release, FFI has entered into a global strategic collaboration with energy infrastructure developer Tree Energy Solutions (TES). This collaboration aims to accelerate the development of a world leading green hydrogen and green energy import facility in Germany.

    As part of the agreement, Fortescue will make a 130 million euros (US$127 million) investment. From this, 100 million euros (US$98 million) will be used for the construction of the TES terminal in Wilhelmshaven, Germany.

    FFI will also gain a shareholding in TES and a 30% stake in TES subsidiary Deutsche Grüngas und Energieversorgung. The latter is the project company that will build the TES Green Energy Hub in Wilhelmshaven.

    Fortescue’s executive chairman, Dr Andrew Forrest AO, said:

    The United Kingdom and Europe urgently need green solutions to replace fossil fuels and this investment will enable Europe to do exactly that. Not in 2050, but in four years from now.

    From the beginning of FFI, our philosophy was to drive performance across the entire new renewable GH2 value chain while delivering returns to our shareholders. This investment reinforces this commitment and is a significant step forward in FFI’s journey to become one of the world’s largest green energy producers.

    Where is the money coming from?

    This investment will be funded by FFI’s unutilised capital commitment of US$1.1 billion.

    However, to reflect this investment, the guidance for FFI’s anticipated capital expenditure in FY 2023 has been revised higher to US$230 million from US$100 million. The guidance for FFI’s anticipated operating expenditure of US$500 – US$600 million is unchanged.

    The post Fortescue share price higher on green hydrogen update 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.

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  • Guess how much directors have been spending on AGL shares so far this week

    A young woman sits on her lounge looking pleasantly surprised at what she's seeing on her laptop screen as she reads about the South32 share priceA young woman sits on her lounge looking pleasantly surprised at what she's seeing on her laptop screen as she reads about the South32 share price

    The AGL Energy Limited (ASX: AGL) share price has been on a roll this week, and four of the company’s directors will be benefiting more than they previously would have.

    The insiders snapped up a combined total of 71,500 shares in the S&P/ASX 200 Index (ASX: XJO) energy producer and retailer on Friday.

    The AGL share price last closed at $7.18. That’s 12% higher than it was this time last week.

    The stock appears to have been driven higher as the market digests its $20 billion plan to ditch coal in favour of renewables.

    For context, the ASX 200 has also lifted 3% over the last seven days.

    So, how much have AGL directors poured into the company’s shares this week? Let’s take a look.

    AGL insiders snapped up 70,000 shares on Friday

    AGL directors have been on a buying spree, each directly or indirectly purchasing up to 30,000 shares in the company.

    Here’s a breakdown of all the insider buying that went on at the energy giant on Friday:

    • Newly instated chair Patricia McKenzie indirectly purchased 14,500 AGL shares for an average price of $6.797 a piece
    • New director Miles George led the buying, purchasing 30,000 shares for $6.68 apiece
    • Director Vanessa Sullivan indirectly bought 12,000 AGL shares, securing the best price at $6.60 per stock
    • Finally, Graham Cockroft purchased 15,000 shares for $6.89 apiece

    For those playing along, that means the four forked out a combined total of $481,506.50 for their additional holdings.

    Interestingly, the buying activity came just one day after the company revealed its new path forward.

    Its latest strategy will see it ditching coal by 2036. That’s up to 10 years earlier than was previously planned.  

    To flick the switch on coal, AGL plans to spend $20 billion to increase its renewable and firming capacity – a move that could see Australia’s largest emitter reach net zero.

    The newly revealed strategy follows the company’s failed plan to separate its coal assets from its energy retail arm.

    Based on the recent insider buying, the company’s directors appear hopeful the new plan could help bolster the embattled stock’s future value.

    The AGL share price has dumped 68% over the last five years. Though, it’s currently 14% higher than it was at the start of 2022.

    Comparatively, the ASX 200 has lifted 17% since this point in 2018. Though, the index has fallen 12% year to date.  

    The post Guess how much directors have been spending on AGL shares so far this week appeared first on The Motley Fool Australia.

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    Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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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  • Why did the Wesfarmers share price get hammered so hard in September?

    A man holds his head in his hands, despairing at the bad result he's reading on his computer.

    A man holds his head in his hands, despairing at the bad result he's reading on his computer.

    The Wesfarmers Ltd (ASX: WES) share price was hurt in September. How much? It went down 9%. For a business as big as Wesfarmers, losing almost a tenth of its market capitalisation is a big decline.

    It did even worse than the S&P/ASX 200 Index (ASX: XJO), which ‘only’ fell by 7.3% over the month.

    So, why did Wesfarmers fall so much?

    Increased market volatility

    Wesfarmers is connected to the Australian economy, so it’s not immune to changing investor sentiment about different parts of the market. It operates a number of businesses like Bunnings, Kmart and Officeworks.

    Inflation has picked up in Australia (and around the world). This is having and could have, a number of impacts on Wesfarmers.

    The ASX share may be dealing with higher costs in a number of different areas like wages, the supply chain, raw materials and so on.

    Wesfarmers has said that it wants to keep providing good value for customers, so this tactic could hurt margins if it doesn’t pass on the increased costs of inflation.

    A tricky thing for investors is that central banks are increasing interest rates to bring down inflation.

    If interest rates go up then it hurts the Wesfarmers share price and underlying value, in theory. That could explain why it has fallen 26% in 2022 and why it dropped 9% last month.

    How are sales in FY23 going?

    Investors often like to look at the outlook and the trading update to inform their viewpoints on a business.

    Wesfarmers said that in the first seven weeks of FY23, sales growth had been “particularly strong” in Kmart Group, with sales “significantly higher” on both a one-year and two-year basis.

    Bunnings is also continuing to see positive sales growth on a one-year and two-year basis. Sales in Officeworks were in line with the prior year.

    WesCEF (the chemicals, energy and fertiliser business) is expected to “continue to benefit from elevated commodity prices” and “will continue to evaluate capacity expansion opportunities for its existing operations” as well as working on the Mt Holland lithium project.

    But, FY23 isn’t the company’s only focus. It’s also looking at the long-term. Wesfarmers said with its FY22 result:

    The group will continue to develop and enhance its portfolio, building on its unique capabilities and platforms to take advantage of growth opportunities within existing businesses and to pursue investments that create value for shareholders over the long term.

    Broker rating on the Wesfarmers share price

    One of the brokers that released updated thoughts on the business in September was Ord Minnett. The broker has a lighten rating on the Wesfarmers share price, with a price target of $43.20.

    The broker thinks that some retailers could see pressure on their margins in the next year or two.

    Ord Minnett’s projections put the Wesfarmers share price at 21 times FY23’s estimated earnings with a projected grossed-up dividend yield of 5.7%.

    The post Why did the Wesfarmers share price get hammered so hard in September? appeared first on The Motley Fool Australia.

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    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 positions in and has recommended Wesfarmers Limited. 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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  • These were the best-performing ASX 200 shares in the first quarter of FY23

    A person sitting at a desk smiling and looking at a computer.A person sitting at a desk smiling and looking at a computer.

    It may feel like the end of the year is fast approaching, but the financial year is only just getting started.

    Unlike the calendar year, the financial year ends on 30 June.

    So, as we turn a new leaf in October, we’ve just closed the chapter on the first quarter of FY23.

    Across these three months, the S&P/ASX 200 Index (ASX: XJO) staged a comeback before being bogged down again by concerns about rising interest rates.

    The benchmark index started the new financial year on a strong footing, climbing by as much as 8.5% by mid-August. 

    However, investors’ fortunes turned in September, leading to the ASX 200 registering a 1.4% fall in the first quarter of FY23.

    While some ASX 200 shares struggled, others shrugged off the market weakness to punch higher. 

    With that in mind, let’s take a look at the five best-performing ASX 200 shares in the first quarter of the new financial year.

    Pilbara Minerals Ltd (ASX: PLS)

    Topping the ASX 200 tables in 1Q23 was none other than ASX lithium share Pilbara. Its share price nearly doubled across the quarter, rocketing by 99% to finish at $4.56.

    ASX lithium shares have been on a tear this year, reaching levels of hype we perhaps haven’t seen since the days of ASX buy now, pay later shares.

    Key events from the quarter include Pilbara’s appointment of a new managing director, its full-year FY22 report, and results from its regular battery minerals exchange (BMX) auctions.

    Notably, Pilbara delivered a maiden $560 million profit in FY22 as revenue skyrocketed by 577% to $1.2 billion.

    Whitehaven Coal Ltd (ASX: WHC)

    ASX coal miner Whitehaven took out second place, surging by 86.2% across the quarter to finish at $9.01.

    The global energy crisis has led to a renaissance in coal prices this year.

    According to Business Insider, coal prices were sitting at around US$120 per tonne at the beginning of the year. Fast forward 10 months and these prices are above US$300/tonne as Russia’s invasion of Ukraine has thrown energy markets into turmoil.

    There hasn’t been much news from Whitehaven recently aside from its FY22 report. The company delivered a bumper set of results as revenue soared 216% to $4.9 billion while its net loss from the prior year turned into a profit of nearly $2 billion.

    New Hope Corporation Limited (ASX: NHC)

    Fellow ASX coal miner New Hope rounded out the podium finishes, producing an 81.8% gain across the quarter to finish at $6.29.

    New Hope operates on a slightly different financial calendar than the rest of the ASX, releasing its FY22 results a couple of weeks ago.

    These results were headlined by a 143% upswing in revenue, which hit $2.6 billion, and a more than 12-fold increase in profit, which landed at $983 million. A monster dividend also set investors’ tongues wagging.

    The company produced 7.9 million tonnes of saleable coal in FY22, a reduction of around 18% compared to the prior year. But sky-high coal prices more than made up for this reduced supply.

    New Hope’s average realised prices surged from $101.36/tonne in FY21 to $281.84/tonne in FY22. Its average realised price in the fourth quarter came in at a stunning $493.52/tonne. 

    Sayona Mining Ltd (ASX: SYA)

    The next cab off the rank is Sayona Mining, which saw its shares fly 60% across the three months to 24 cents.

    This impressive performance was enough to bed down a place in the ASX 200 index, with Sayona joining the ranks in the recent September rebalance.

    Across the quarter, Sayona released updates on its planned restart of lithium production at the North American Lithium (NAL) operation in Quebec. In September, the company confirmed plans were on track with 94% of procurement completed, 95% of required permits received, and construction ramping up.

    On the last day of September, Sayona also released its full-year results, turning a $4.4 million loss in FY21 to an $83.7 million profit in FY22.

    The company ended the financial year with total lithium reserves of 41.3 million tonnes at a grade of 1.05%, up from 12.1 million tonnes at 1.00% in the prior year.

    Lovisa Holdings Ltd (ASX: LOV)

    Last but not least, jewellery retailer Lovisa continued its lofty ascent, climbing 54% across the quarter to finish at $21.27. 

    Lovisa’s FY22 report in August was a highlight, sending shares racing higher as results came in ahead of the market’s expectations.

    The ASX retail share achieved revenue of $459 million, up 56% from the prior year, while net profit more than doubled to $60 million.

    Operating a vertically-integrated business model, Lovisa boasts extremely high gross margins for a retailer, which sat at 78.9% in FY22.

    Lovisa’s global rollout continued at pace, opening a further net 85 stores during FY22 to take its total store network to 629 stores across 24 countries.

    The post These were the best-performing ASX 200 shares in the first quarter of FY23 appeared first on The Motley Fool Australia.

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    Motley Fool contributor Cathryn Goh 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 Lovisa Holdings Ltd. 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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  • Buy these ASX 200 shares with big fully franked yields: experts

    Kid holding banks notes alongside a whit piggybank, symbolising dividends.

    Kid holding banks notes alongside a whit piggybank, symbolising dividends.

    If you’re looking for ASX 200 dividend shares to buy, then you might want to check out the two listed below.

    Both have recently been named as buys by experts. Here’s why they rate them highly:

    Medibank Private Ltd (ASX: MPL)

    The first ASX 200 dividend share that could be a top option for income investors this month is Medibank.

    It is of course the health insurance giant that has been delivering services to Australians for 45 years and now has 2 million policyholders across its AHM and Medibank brands.

    The team at Citi is positive on the company. Particularly given its expectation for another strong performance from its private health insurance business in FY 2023 and its positive exposure to higher interest rates.

    Citi is expecting this to lead to Medibank paying fully franked dividends of 15.9 cents per share in FY 2023 and 16.3 cents per share in FY 2024. Based on the current Medibank share price of $3.52, this will mean yields of 4.5% and 4.6%, respectively.

    Citi also sees value in its shares. It currently has a buy rating and $4.00 price target on them.

    Telstra Corporation Ltd (ASX: TLS)

    Another ASX 200 dividend share to consider is Telstra. This telco giant has come back in favour with income investors this year after the company returned to growth at long last.

    For example, in FY 2022, although Telstra posted a 4.7% decline in revenue, it was still able to deliver an 8.4% increase in underlying EBITDA to $7.3 billion. This was driven by its key mobile business, which reported EBITDA growth of 21.2% over the prior corresponding period.

    Much to the delight of shareholders, this allowed the Telstra board to increase its dividend for the first time in years.

    And with Telstra now embarking on its T25 strategy, which is targeting high-teens underlying earnings per share (EPS) compound annual growth rates from FY 2021 to FY 2025, further increases could be on the horizon.

    The team at Morgan Stanley expect this to be the case. They are forecasting fully franked dividends per share of 17 cents in FY 2023 and 18 cents in FY 2024. Based on the latest Telstra share price of $3.85, this will mean yields of 4.4% and 4.7%, respectively.

    Morgan Stanley has an overweight and $4.60 price target on the company’s shares.

    The post Buy these ASX 200 shares with big fully franked yields: experts 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 positions in and has recommended Telstra Corporation Limited. 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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  • Could investors call on Telstra shares to be defensive in September?

    A cute little kid in a suit pulls a shocked face as he talks on his smartphone.

    A cute little kid in a suit pulls a shocked face as he talks on his smartphone.

    The ASX share market has been acting like a rollercoaster in 2022 – but largely like the downward, hair-raising section. The Telstra Corporation Ltd (ASX: TLS) share price has seen a decline too this year, though it’s only down by 9%.

    September was a rough month for investors. The S&P/ASX 200 Index (ASX: XJO) as a whole declined by 7.3%. But, that’s just the combined movement from all the different names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and Woodside Energy Group Ltd (ASX: WDS).

    Telstra share price resilience

    Telstra did see a bit of a decline in September, but not as much as the market.

    Last month, the Telstra share price only declined by 3%.

    This means that the telco outperformed the ASX share market by more than 4%.

    Ideally, a defensive ASX share wouldn’t even fall when markets go backwards. However, volatility is just part of the fun of investing.

    I think that delivering outperformance when the market goes down is solid from Telstra.

    What happened during the month?

    September was another interesting month for markets as central banks increased interest rates again to try to bring inflation down. The Reserve Bank of Australia (RBA) increased the interest rate by 50 basis points (0.50%) while the US Federal Reserve went for a 75 basis point (0.75%) rise.

    Higher interest rates are theoretically meant to have the effect of pushing down asset valuations. That has certainly happened this year, with the Telstra share price also seemingly experiencing a decline.

    But there were a couple of interesting announcements regarding Telstra.

    Shareholders were given a presentation at its 2022 retail shareholder meeting.

    Telstra went through its T22 strategy’s achievements, such as the $2.7 billion of cost reductions since FY16 and the $2 billion of asset monetisation, or almost $5 billion including Amplitel. It also highlighted that there has been a 71% reduction in annual contact centre calls since FY18.

    The telco also highlighted its T25 strategy which includes further cost reductions, growing profit and achieving a strong position with its 5G network. Telstra also reminded shareholders that in FY22 it grew underlying earnings per share (EPS) by 48.5% and the total dividend was grown by 3.1% to 16.5 cents per share.

    The other announcement related to Telstra’s desire to work with TPG Telecom Ltd (ASX: TPG) on a regional network share agreement. The ACCC said it’s calling for further submissions from stakeholders. Under the deal, Telstra would get access to much of TPG’s mobile spectrum in a range of outer-urban and regional areas. TPG would shut down 556 mobile sites in those areas and receive mobile network services from Telstra for mobile coverage.

    Optus hack

    One of the biggest pieces of recent news in the telco space was that some Optus customers had their important information (such as phone numbers and addresses) accessed/hacked.

    The broker Morgan Stanley has an overweight rating on the telco with a Telstra share price target of $4.60 – that’s a possible rise of around 20% over the next year. The broker thinks the Optus hack will benefit Telstra if it leads to customers switching over.

    However, Telstra has its own data breach to deal with. The telco has confirmed that as many as 30,000 current and former workers had their names and email addresses exposed, according to reporting by the Australian Financial Review.   

    The post Could investors call on Telstra shares to be defensive in September? appeared first on The Motley Fool Australia.

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    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 positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • The CSL dividend is being dished out today. Here’s the lowdown

    A man smiles as he holds bank notes in front of a laptop.A man smiles as he holds bank notes in front of a laptop.

    Regardless of what the market has in store, it’s set to be a good day for CSL Limited (ASX: CSL) shareholders today. 

    The time has come for the company to pay its latest final dividend. Here’s what you need to know.

    It’s payday for CSL shareholders

    In August, CSL lifted the lid on its FY22 results. In the process, the ASX 200 biotech giant declared a final dividend of US$1.18, partially franked at 10%. 

    For this dividend, CSL has used an AUD/USD exchange rate of 67.11 US cents, so it’s equivalent to around $1.76 in Aussie dollars.

    CSL shares went ex-dividend for this payment back on 6 September. Therefore, any CSL shares bought on or after this date won’t be eligible for today’s payout.

    CSL hasn’t run a dividend reinvestment plan (DRP) since 2004, so shareholders will be receiving this dividend in cash.

    Today’s US$1.18 payment is in lockstep with the final dividend CSL declared in FY21. Total dividends were also in line with the prior year, coming in at US$2.22 per share.

    In Aussie dollars, CSL has paid out roughly $3.18 in dividends this year. At current levels, this puts CSL shares on a trailing dividend yield of around 1.1%.

    Looking ahead, broker Goldman Sachs is forecasting CSL to raise its annual dividends by 14% in FY23 to US$2.52. This represents a prospective forward dividend yield of 1.3%.

    How did CSL fare in FY22?

    CSL maintained its annual dividend payouts in FY22 despite its net profit after tax (NPAT) sliding by 6% to US$2.3 billion.

    COVID lockdowns put a clamp on CSL’s plasma collections, which are a crucial component for manufacturing its treatments.

    As a result, the company’s Behring business delivered muted revenue growth of 4% in FY22. What’s more, collections came at a higher cost, which pushed down gross margins.

    CSL’s vaccine business, Seqirus, helped to offset some of this weakness. Seqirus achieved full-year revenue growth of 13%, driven by growth in seasonal influenza vaccines.

    Where to next for the CSL share price?

    CSL shares have held up fairly well so far in 2022, falling by just 1% to currently sit at $287.40.

    They’ve comfortably outperformed the S&P/ASX 200 Index (ASX: XJO), which has tumbled 10% since the beginning of the year.

    Taking a look around the grounds, brokers are mostly bullish on the CSL share price.

    Citi currently has a buy rating on CSL shares with a 12-month price target of $340, implying potential upside of 18.3%.

    Analysts at Morgan Stanley have an overweight rating on CSL shares and a 12-month price target of $323, which implies potential upside of 12.4%.

    JP Morgan also has an overweight rating on CSL shares, with a price target of $330. This represents potential upside of 14.8% over the next 12 months.

    Meanwhile, analysts at Goldman Sachs aren’t quite ready to press the buy button yet. The broker has a neutral rating on CSL shares and a 12-month price target of $291, roughly in line with where the CSL share price is sitting today.

    The post The CSL dividend is being dished out today. Here’s the lowdown appeared first on The Motley Fool Australia.

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    JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Cathryn Goh 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 CSL Ltd., Goldman Sachs, and JPMorgan Chase. 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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  • Why Twitter stock skyrocketed today

    A woman is very excited about something she's just seen on her computer, clenching her fists and smiling broadly.A woman is very excited about something she's just seen on her computer, clenching her fists and smiling broadly.

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

    What happened

    Shares of Twitter (TWTR 22.24%) soared today after Elon Musk finally agreed to buy the social media company for $44 billion, the original price he offered several months ago. The Tesla CEO’s decision appears to conclude several months of legal wrangling as Musk had sought to get out of the deal by claiming, among other things, that bots were inflating Twitter’s user base.

    The stock popped shortly after noon when Bloomberg broke news of the deal. Twitter finished the day up 22.2% at $52 a share, 4% below the originally negotiated buyout price of $54.20.

    So what

    Seemingly to avoid an upcoming deposition and a court battle, Musk sent a letter to Twitter Monday night saying he intended to close the transaction as the two parties had initially agreed to back in April.

    Twitter said in response that the company intends to close the deal with Musk at a price of $54.20 a share. The news seems to bring a monthslong saga to a close, though the fact that Twitter is still trading at a discount to the buyout offer indicates some skepticism among investors that the deal will close.

    A deal could be completed as soon as this Friday.

    Now what

    A buyout seems to be the best option for Twitter shareholders because the social media platform never really fulfilled its potential as a business. User growth has stalled, and its advertising never developed the kind of targeting and value to small business that Facebook’s did.

    It’s unclear where the company will go in Musk’s hands, but he’s likely to take risks with it that the current management otherwise wouldn’t. 

    The deal hasn’t officially closed. Given that Musk seems to have been backed into a corner, it makes sense for him to finally go through with the purchase.

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

    The post Why Twitter stock skyrocketed today appeared first on The Motley Fool Australia.

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    Jeremy Bowman 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 Tesla and Twitter. 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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