The Magellan Financial Group Ltd (ASX: MFG) share price is having a tough time. It’s down 3.1% today and down 7.4% for the week. That compares to the S&P/ASX 200 Index (ASX: XJO) which is down 1.6% today and 3.65% for the week.

Obviously, share prices change all the time, but things have been tough for Magellan in particular.

Since 11 August, the Magellan share price has declined by 24.4%.

What’s going on with the Magellan share price?

For starters, it’s worth noting that Magellan is a funds management business. Its revenue is largely dependent on funds under management (FUM). While FUM can change when investors put money into, or take money out of, the fund manager, it’s also what happens with its investment funds.

A falling share market can hurt Magellan’s FUM, revenue and subsequently the net profit after tax (NPAT). Investors often like to use the NPAT to value the Magellan share price.

The last FUM update we’ve heard from the business was another drop of FUM – August 2022 saw a decline from $60.2 billion to $57.6 billion, with net outflows of $1.3 billion.

Magellan is working on turning things around. It recently sent out a communication to investors talking about changes and efforts by the business.

Non-executive director Karen Phin has informed Magellan that she intends to retire from the board at the annual general meeting (AGM) in October 2022.

Also, in response to stakeholder feedback, the company gave more details about Hamish Douglass’ consultancy role where he will provide “valuable investment insights to the business”.

He will be paid at a rate of $400,000 per annum. Douglass will commence consulting services on 1 October 2022, but he will begin earning consulting fees from 7 February 2022. These fees are “commensurate” with the fees paid to other consultants engaged by the group.

Core funds management business

After a challenging FY22, Magellan has been focused on its core funds management business.

Magellan Chair Hamish McLennan said:

We recognise that our global equities strategy has underperformed relative to the market over the past 18 months and we are taking proactive steps to address this matter and deliver the strong investment performance for which we have been known over the past 16 years. Whilst markets may fluctuate in the short term, we remain committed to our investment philosophies and disciplined investment approach, which are designed to protect investor capital and generate wealth over the long term.

McLennan also pointed out that it has launched a number of staff retention initiatives, including a retention bonus plan. The chair said that the staff retention initiatives have allowed employees to remain focused on our clients and the business during a period of change and uncertainty.

Capital management

Magellan has also been trying to add value for shareholders in a few different ways.

One initiative was a share buyback of up to 10 million shares. And this continues to be in operation.

The second was a bonus issue of options to shareholders on a 1-for-8 basis, with an exercise price of $35 per option and a five-year term.

Finally, McLennan talked about how the company sold its holding of Guzman y Gomez for $140 million, which was 36.3% higher than its entry price in January 2021. He confirmed Magellan wouldn’t be making any further investments in private businesses through Magellan Capital Partners.

Magellan share price snapshot

Since the start of 2022 the Magellan share price has fallen almost 40%. Magellan shares are down 65% in the last 12 months.

The post Why is the Magellan share price underperforming the ASX 200 this week? appeared first on The Motley Fool Australia.

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More reading

• Why is the Magellan share price higher on Tuesday?
• 3 blue-chip ASX 200 shares touting the highest dividend yield in September
• Magellan share price drops 5% amid broader sell-off
• The Magellan share price has fallen over 10% in a month: Is it time to buy the dip?
• Steady compounders: 3 ASX 200 shares that have delivered over a decade

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

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The Link Administration Holdings Ltd (ASX: LNK) share price won’t be going anywhere on Friday.

This comes as the company requested that its shares be placed in a trading halt.

Currently, the administration services company’s shares are frozen at $3.20 apiece.

It’s worth noting that Link shares have fallen more than 24% over the past month.

Why is the Link share price halted?

Prior to the market opening, the company requested that the Link share price be halted while it prepares an announcement.

According to the release, the company is planning to make an announcement in relation to an update on the scheme of arrangement with Dye & Durham Corporation.

Link has requested that the trading halt remains in place until 26 September or following the release of the announcement, whichever comes first.

More on the Link deal

After deliberations and revised offers, Canadian-listed Dye & Durham is finally set to acquire Link for $4.81 per share.

Link shareholders accepted the takeover offer with a 98% majority in favour during late August.

And just two weeks ago, the Australian Competition and Consumer Commission (ACCC) gave the green light for Dye & Durham to buy out Link.

Link shareholders will also receive a net consideration of up to 13 cents per share from the sale of its Banking and Credit Management (BCM) business. However, this is provided that the business is sold and proceeds are received up to 12 months after the implementation of the revised scheme.

About the Link share price

Since this time last year, Link shares are down 23%, with year-to-date recording even heavier losses, down 40%.

In contrast, the S&P/ASX All Technology Index (ASX: XTX) has fallen 33% in 2022.

Link commands a market capitalisation of approximately $1.7 billion.

The post Why is the Link share price frozen on Friday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Link Administration Holdings Ltd. 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 gold price has been on a one-way ticket south in 2022, having collapsed off 52-week highs of US$2,052/ounce back in May this year.

In what would traditionally be seen as gold’s optimum environment – high inflation, volatile markets, geopolitical tensions – the yellow metal has failed to deliver.

The question then becomes of what impact this has on the investment prospects of ASX-listed gold miners, seeing as their share price fluctuates with volatility in the underlying gold markets.

What could this mean for gold players?

Gold has continued lower this past month whilst Treasury yields and the U.S. Dollar have made a glorious comeback from their former depths.

Sparking the comeback – inflation, primarily. Just last week U.S. inflation numbers came in far hotter than anticipated for September, adding to a ‘risk-off’ sentiment.

Meanwhile, central banks around the world have committed to raising policy interest rates in order to curb inflation.

At the time of writing, the US Treasury 10-year note has a yield of 3.71%, its highest mark since 2009.

This is important to know, as higher bond yields and surging interest rates increase the opportunity cost of holding gold, seeing as the precious metal pays no yield/interest.

The strong U.S. Dollar is also a concern for gold, seeing as both are considered to be ‘safe haven‘ assets in times of risk and uncertainty.

With gold’s demise, the U.S. Dollar has simultaneously surged back to multi-year highs, as seen on the chart below with the path of the 10-year yield described above.

The question then becomes of what this means for large gold players such as Northern Star Resources Ltd (ASX: NST).

Looking at its price chart, 2022 hasn’t been the best year for Northern Star. Like the gold it mines and produces, it has faltered and now trades around its yearly lows.

This hasn’t changed the opinion of brokers covering the share, however. Even after gold’s plummet, 100% of brokers still recommend to buy Northern Star shares, according to Refinitiv Eikon data.

This has been unchanged since June at least, and the consensus price target is now $10.70 per share, indicating roughly 30% upside potential at the time of writing.

Nevertheless, pressure continues on the Northern Star share price, and it remains deeply compressed in 2022, needing a large percentage gain to reverse the damage.

Shares are down 19% this year to date and now trade at $7.63, well off former highs of $11.48 on 19 April.

The post Gold just hit a 2 year low. What could this mean for the Northern Star share price? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Wednesday
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• Why did ASX 200 gold shares have such a rough day?
• Why is the Northern Star share price trading 4% down today?

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

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

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

Recessionary concerns, a few lackluster quarters, overpromised and underdelivered projections, and a tech crash have absolutely crushed payment processing giant PayPal Holdings, Inc. (NASDAQ: PYPL) this year. Shares are trading 67% lower than last year.

A drop like this is understandably concerning for investors, but there are several reasons it could also be a tremendous buying opportunity. Here’s a closer look at why investing at today’s rock-bottom prices is a genius move right now.

Making the right moves

The second quarter of 2022 was PayPal’s first non-profitable quarter since its spinoff from eBay Inc.(NASDAQ: EBAY) in 2015. Its earnings per share (EPS) fell to a loss of $0.29 per share from a gain of $1.01 last year, and its operating margin dropped by around 7%.

This loss wasn’t because the company did less business — in fact, revenue was 9% higher than last year. It was related to higher costs of borrowing and increased operational costs, as well as one-time charges from new products in PayPal’s investment portfolio.

On the positive side, free cash flow was up 22% year over year. Payment transactions rose 16%, boosting total payment volume (TPV) by 9%. And PayPal is directly addressing the increased cost of borrowing and operating with targeted cost-saving measures. The company plans a $900 million cost-saving initiative that should help improve its bottom line.

The fintech company also has $15.6 billion in cash and cash equivalents, and only $13.6 billion in debt, including its latest round of issuance.

Recent upgrades mean prices are likely to rise

PayPal’s focused moves to improve its operational costs have given analysts a fresh outlook on the stock, prompting those from Bank of America Corporation (NYSE:BAC) and Raymond James to upgrade their ratings on PayPal over the past few weeks. Share prices haven’t jumped much in response, up just 1.5% from before the upgrades, but the analyst moves are a positive sign that investor confidence may also be returning. During that same time, the S&P 500 index was down 1.5%.

Cost savings alone are not going to be enough to rally PayPal’s share price back to previous highs. That will take time. Short-term headwinds will likely impact the company if a recession unfolds, as many experts are predicting. But if we think long-term, its growth prospects still look promising.

PayPal was the first payment processing company in the world. Reinventing the services it offers its customers so it can adapt to new technologies and grow is nothing new. It has sufficient cash on hand to help it withstand a downturn, and today’s pricing means that investors are in an excellent position to profit if the company does make strides toward recovery.

As a long-term, patient investor, I personally believe PayPal is a genius buy right now.

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

The post Why buying PayPal is a genius move right now appeared first on The Motley Fool Australia.

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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Liz Brumer-Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends PayPal Holdings. The Motley Fool recommends eBay and recommends the following options: short October 2022 $50 calls on eBay. The Motley Fool has a disclosure policy. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended eBay and has recommended the following options: short October 2022 $50 calls on eBay. The Motley Fool Australia has recommended PayPal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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It has been another day to forget for the Block Inc (ASX: SQ2) share price on Friday.

In morning trade, the payments company’s shares have dropped 10% to $83.52.

This means the Block share price is now down over 50% since commencing trade on the ASX in mid-January.

Why is the Block share price falling?

As many readers will be aware, the locally listed Block shares are inextricably linked to the company’s shares on Wall Street.

So, when the Block share price tumbles in the United States, its ASX listed shares follow suit the following session.

And how the Block share price has tumbled on Wall Street in recent sessions!

After closing at US$61.50 on Tuesday night, the company’s shares have dropped over 9% to US$55.93 at last night’s close.

This follows a selloff of tech stocks amid news that the US Federal Reserve has made another major increase to interest rates and plans more aggressive hikes in the coming months.

Not only have rising interest rates put pressure on tech valuations, but they have also sparked fears that a recession could be just around the corner.

This has rubbed off on locally listed tech shares. The likes of Xero Limited (ASX: XRO) and Zip Co Ltd (ASX: ZIP) have both fallen heavily this morning. This has led to the S&P ASX All Technology index sinking a disappointing 3.5% on Friday.

The post Here’s why the Block share price is being smashed 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., Xero, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. and 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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The Sayona Mining Ltd (ASX: SYA) share price is down 15.5% since last Friday’s close amid a weakening in the materials sector.

Shares in the lithium producer currently trade for 24.5 cents each.

The S&P/ASX 200 Materials Index (ASX: XMJ) is down 2.2% over this period.

Meanwhile, other ASX lithium shares have gained since the close of last Friday.

Pilbara Minerals Ltd (ASX: PLS) is up 8.28% and Allkem Ltd (ASX: AKE) is up 1.96%.

The Sayona Mining share price has been performing poorly over the past week. That’s despite mostly positive developments for the lithium industry at large.

Due to significant volatility, its share price has been riding wild up-and-down whipsaws over the past week.

Let’s cover the company’s highlights.

What’s going on with the Sayona Mining share price?

Sayona Mining joined the S&P/ASX 200 Index (ASX: XJO) on Monday due to changes in the company’s market capitalisation.

Yesterday my Fool colleague Bronwyn included the company in a roundup post of other lithium shares. She noted that Sayona Mining had delivered the second-highest returns year to date out of the top five ASX lithium shares by market cap.

The company’s shares are currently up 86.5% over this period.

And then last Friday, Sayona Mining announced it would restart lithium spodumene production at its North American Lithium site in Canada.

Operations at the site are due to go live in Q1 2023.

Sayona Mining managing director Brett Lynch made the following comments regarding the restart:

We are delighted to see the continued progress towards the recommencement of lithium (spodumene) production at NAL in Q1 2023. Our project team has overcome potential challenges due to proactive forward planning and the early ordering of critical long‐lead equipment items, while the near completion of permitting and procurement puts us in an excellent position.

The post Why is the Sayona Mining share price in the doldrums this week? appeared first on The Motley Fool Australia.

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• Which ASX lithium shares are performing best in 2022?
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• These three ASX lithium shares defied Wednesday’s selloff

Motley Fool contributor Matthew Farley 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 Zip Co Ltd (ASX: ZIP) share price is having a disappointing finish to the week.

In morning trade, the buy now pay later (BNPL) provider’s shares are down 6% to 68.5 cents.

This means the Zip share price is now down almost 85% since the start of the year.

Why is the Zip share price falling?

Investors have been selling down the Zip share price on Friday following significant weakness in the tech sector.

For example, at the time of writing, the Block Inc (ASX: SQ2) share price is down 9% and the Sezzle Inc (ASX: SZL) share price is down over 7%.

This has led to the S&P ASX All Technology index dropping 3.4%, stretching its year to date decline to over 34%.

Today’s weakness has been driven by a selloff of tech stocks on Wall Street over the last two sessions after the US Federal Reserve made another major hike to interest rates.

The central bank also warned that more hikes were coming, which appears to have sparked fears that the US will fall into a recession in the near future.

Where next for Zip’s shares?

Opinion remains extremely divided on where the Zip share price will go from here.

For example, Citi currently has a sell rating and 80 cents price target, which is now higher than where its shares trade. Elsewhere UBS has a sell rating and lowly 45 cents price target.

Finally, the only bull I can find is Ord Minnett with an accumulate rating and $1.10 price target.

Time will tell which broker makes the right call.

The post Why is the Zip share price sinking 6% today? appeared first on The Motley Fool Australia.

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• 8 ASX 200 shares got kicked out of the index on Monday. How are they tracking?
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• Out in the cold: How are the ASX 200 evictees faring on Monday?

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. and ZIPCOLTD FPO. 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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Mineral Resources Limited (ASX: MIN) shareholders will be a little richer today as the company pays out its latest dividend.

The mining services company is rewarding its shareholders with a fully franked interim dividend of $1 per share.

At the time of writing, the Mineral Resources share price is down 0.41% to $69.67.

For context, the S&P/ASX 200 Index (ASX: XJO) is also heading south to edge 1.16% lower to 6,622.4 points.

Mineral Resources pays out final dividend

Mineral Resources delivered a subdued performance for its full-year result for the 2022 financial year.

In summary, Mineral Resources reported an 8% decrease in revenue to $3.4 billion.

On the bottom line, underlying net profit after tax (NPAT) slid 64% to $400 million.

Behind the result was record iron ore exports offset by lower realised prices due to weakened Chinese demand.

Nonetheless, higher lithium prices and initial lithium hydroxide earnings helped bump up the overall earnings figures.

The biggest loss for shareholders came from the board’s decision to slash the final dividend by 43% over H2 FY21.

Mineral Resources did not declare an interim dividend in the first half of FY 2022. This was because of market uncertainty and a substantial reduction in iron ore prices over the first half of the year.

In FY 2021, the board paid out $2.75 in dividends to shareholders.

When calculating against the current share price, Mineral Resources has a trailing dividend yield of 1.43%.

Mineral Resources share price snapshot

Over the past 12 months, the Mineral Resources share price has risen 46% on the back of the commodity boom.

However, numerous market shocks in 2022 following the Russian war in Ukraine and steep inflationary movements impacted the company’s shares.

Year-to-date, Mineral Resources shares are up 24%.

The company has a price-to-earnings (P/E) ratio of 38.76 and commands a market capitalisation of roughly $13.25 billion.

The post Own Mineral Resources shares? Your dividends are on the way appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Argosy Minerals Limited (ASX: AGY) share price is avoiding the market weakness today and pushing higher.

At the time of writing, the lithium developer’s shares are up 3% to 61 cents.

Why is the Argosy Minerals share price pushing higher?

The Argosy Minerals share price is rising today after the company released an update on its Rincon Lithium Project in Argentina.

According to the release, the current production well rotary drilling program is progressing better than scheduled. Production well PRP-03 has completed and drilled to a depth of 350m and production well PRP-04 is in progress at a current depth of 253m.

Management advised that it is encouraged with the extended depths of the production well drilling and lithium brine pumping test works conducted to date. It feels that this may enhance the outcomes and provide scope for improved results for the next stage estimation and feasibility works.

The current defined exploration target is estimated as 262,000 tonnes to 479,000 tonnes of lithium carbonate. Whereas the combined JORC indicated mineral resource and exploration target estimates outline the potential for 507,000 tonnes to 724,000 tonnes.

Argosy’s managing director, Jerko Zuvela, was pleased with the progress the company is making. He said:

We are pleased with the current progress of drilling works at our Rincon Lithium Project. This has indicated the increased depth extension prospectivity that may lead to considerably increasing the current shallow-depth JORC Indicated Mineral Resource estimate, deliver a brine Ore Reserve estimate, expand our current annual production target and mine-life estimates, and prepare a feasibility study for larger scale operations – all enhancing the long-term viability and status of our project.

The post Argosy Minerals share price charges higher on lithium 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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Brokers are always on the lookout for S&P/ASX 200 Index (ASX: XJO) shares that could be opportunities to buy.

Share prices are changing all the time, which can open up different investment opportunities for investors. A drop in share price could turn expert opinion from a hold to a buy on a business.

Results and business updates can change an expert’s view on a business as well. Sometimes a positive outlook can have a boosting influence on the share price of ASX 200 shares.

Let’s have a look at two of the latest ratings.

New Hope Corporation Limited (ASX: NHC)

New Hope has been rated as outperform by the broker Macquarie, with a target price of $6. A target price is where the broker is guessing that the New Hope share price will be in 12 months.

The New Hope share price has risen by more than 160%, Macquarie is suggesting it won’t move much from here.

The broker notes the big dividend. When New Hope announced its FY22 result, it revealed that its realised price for coal went up 178% to $282 per tonne, with net profit after tax (NPAT) rising 1,146% to $983 million.

With that, the ASX 200 share declared a final ordinary dividend of 31 cents per share and a final special dividend of 25 cents per share. That’s a total of 56 cents, so the combined final dividend equates to a grossed-up dividend yield of 13%. The total FY23 grossed-up yield was 19.9%.

In FY23, New Hope is expected by Macquarie to pay a grossed-up dividend yield of 38.5%. However, profit and the dividend are expected to reduce significantly.

IDP Education Ltd (ASX: IEL)

IDP Education has been rated as a buy by the broker UBS with a price target of $35.50. That suggests that the Idp Education share price could rise by more than 25%.

The broker noted the acquisition that the ASX share recently announced which helps it enter the African market.

Let’s have a quick look at what was in that update.

The global education services ASX 200 share, which operates in more than 50 countries, is acquiring Intake Education for up to $83 million.

It’s described as a leading student placement agency that has operations across Nigeria, Ghana, Kenya, Philippines, Thailand, Taiwan, India and the UK.

The IDP Education interim CEO Murray Walton said:

The geographic footprint of Intake complements IDP’s global network. Intake is the market leader for UK study in several countries and has the largest and most respected agency in West Africa which will accelerate IDP’s growth ambitions in this emerging region.

Using UBS’ profit predictions, the IDP Education share price is valued at 44 times FY23’s estimated earnings and 31 times FY24’s estimated earnings.

The post 2 ASX 200 shares rated as buys by leading brokers appeared first on The Motley Fool Australia.

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More reading

• Is the party just getting started for ASX 200 coal shares?
• Brokers name 2 ASX dividend shares to buy
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• 3 ASX 200 shares paying out ‘special’ dividends in 2022
• Top brokers name 3 ASX shares to buy today

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 positions in and has recommended Idp Education Pty Ltd. 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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