The Megaport Ltd (ASX: MP1) share price is having a day to forget on Wednesday.

In afternoon trade, the network as a service company’s shares are down almost 10% to $7.85.

This means the Megaport share price is now down approximately 60% since the start of the year.

What’s going on with the Megaport share price today?

Investors have been selling Megaport and other tech shares on Wednesday following a selloff on Wall Street overnight.

The selling was heaviest on the tech-focused NASDAQ index, which dropped a whopping 5.2% in response to a hotter than expected US inflation reading.

There are now concerns that the US Federal Reserve could potentially increase rates as much as 1% next week in an effort to tame inflation. But doing so runs the risk of putting the US economy into a recession.

Another issue for the Megaport share price is the impact that rising rates have on valuations. As rates go higher, investors become less willing to pay over the odds to own shares. After all, if the risk-free rate is attractive, then you’ll need an even more attractive potential return to put your money at risk.

And given how Megaport’s shares are still trading at 72x estimated FY 2025 earnings, they certainly are on the riskier side of the market.

Should you invest?

The team at Goldman Sachs appear to believe that the Megaport share price deserves to trade at a premium. This is due to “the product leadership of the company, and the rapidly growing NaaS/SD-WAN addressable markets.”

According to a recent note, the broker has a buy rating and $10.30 price target on its shares. This implies potential upside of 31% for investors over the next 12 months.

The post Megaport share price slumps 10%: Is it a buy now? appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 tech shares being hit the hardest on Wednesday?
• With most investors thinking the next big move in the stock market is down, Warren Buffett says times like these are your friend
• Why are ASX 200 tech shares having such a cracking start to the week?
• Here are the top 10 ASX 200 shares today
• Megaport share price soars 10% as ASX tech shares trump on Thursday

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 MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. 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 volatility that we’re seeing on the ASX share market today is a good opportunity to buy shares in my opinion. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is down by 2.6%.

When share prices are lower, I get excited because it means we can buy our preferred investment ideas at cheaper prices.

Overnight, US tech shares got hammered as monthly US inflation was stronger in August than expected. The NASDAQ 100 (INDEXNASDAQ: NDX) fell by 5.5%.

In 2001, legendary investor Warren Buffett once said this:

To refer to a personal taste of mine, I’m going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing the ‘Hallelujah Chorus’ in the Buffett household. When hamburgers go up in price, we weep. For most people, it’s the same with everything in life they will be buying — except stocks. When stocks go down and you can get more for your money, people don’t like them anymore.

With that in mind, here are some ASX shares that are down heavily that I’ve got my eyes on:

Altium Limited (ASX: ALU)

The Altium share price is currently down by 5%.

I think this business has a lot of long-term potential as it services businesses and engineers that need electronic printed circuit board design software and electrical parts. It’s expecting double-digit revenue growth in FY23 and rising profit margins in the coming years.

With a strong balance sheet, excellent cash flow, and a growing dividend, there’s a lot to like about this business when it’s noticeably cheaper than yesterday. I’m excited by its expansion into enabling manufacturing for clients as well.

Xero Limited (ASX: XRO)

Xero is another large ASX tech share that is getting hit hard today. The Xero share price is currently down 5.87%. Ouch. Since the start of 2022, it’s down by 40%.

I think that Xero is a really strong business and a good example of a local business growing well internationally. Its subscriber base gets bigger every year, the average revenue per user (ARPU) is increasing, and its retention rate remains extremely high.

The company still sees plenty of growth ahead, which is why it’s re-investing so much of its revenue each year.

Bailador Technology Investments Ltd (ASX: BTI)

Bailador is a technology investment fund that searches for compelling private businesses.

The Bailador share price has fallen by 1.08% at the time of writing, trading at its intraday high of $1.38. It’s invested in a number of different sectors including healthcare technology, e-commerce, and hotel management.

After selling some of its investments in 2021, and raising a lot of cash, the ASX share is well positioned to ride this volatility and find new investments, in my opinion.

This will likely be one of my immediate investments when Fool’s trading rules allow me to buy shares after mentioning it in this article.

Goodman Group (ASX: GMG)

Finally, Goodman is a large property business that owns, manages, and develops industrial properties around the world.

The Goodman share price is down 6% at the time of writing. I think there is good demand for e-commerce and logistics properties, which is what Goodman specialises in.

With Goodman shares down 30% since the beginning of the year, I think this definitely makes up for the headwind of higher interest rates. I think the ASX share’s growing property portfolio can deliver attractive rental profits in the coming years.

The post Why I’m seriously considering buying these ASX shares following today’s market crash appeared first on The Motley Fool Australia.

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More reading

• Xero share price tumbles 6% amid market selloff: Buy the dip?
• Why are ASX 200 tech shares being hit the hardest on Wednesday?
• Here’s why the Altium share price is crashing 7% lower today
• Steady compounders: 3 ASX 200 shares that have delivered over a decade
• Experts name 2 blue chip ASX shares to buy that Warren Buffett would love

Motley Fool contributor Tristan Harrison has positions in Altium and Bailador Technology Investments Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Bailador Technology Investments Limited, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Bailador Technology Investments 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 Australian Pacific Coal Ltd (ASX: AQC) share price has separated itself from the pack on Wednesday.

Whilst the bolus of the ASX is trading in the red today, Australian Pacific shares are up 28% following a company announcement.

What did Australian Pacific Coal announce?

The company provided an update on its fully underwritten 5.83 for 1 renounceable entitlement offer announced earlier this month.

It actually provided the entitlement offer booklet containing all of the issue’s details for investor perusal as well.

There’s a bit of background to the company’s route to seed capital. First, it proposed to sell its Dartbrook coal mine in the Hunter Valley, NSW to Trepang Services Pty Ltd earlier this year.

This was made on the grounds that certain liabilities owed to Trepang would be repaid or dealt with.

However, Trepang pulled its deal as Australian Pacific purportedly couldn’t get shareholder approval, or at least in time for Trepang’s deadline.

Whilst doing its due diligence for the Trepang deal, however, the company’s board noted there was no fallback plan in the event Trepang did pull out.

This created a dilemma for Australia Pacific, seeing as it still owes Trepang the debt, except had no means to service the liability.

Hence it announced the entitlement offer in order to raise $100 million to fully repay its debt to Trepang and also for additional working capital.

Clarity on Dartbrook

Investors appear to have bought in on clarity around the Dartbrook mine as well. Referring to progress here, Australia Pacific said:

In conjunction with the launch of the Entitlement Offer, the Company has entered into a non-binding agreement with M Resources Pty Ltd, an entity associated with Matthew Latimore, with respect to a proposed 50:50 joint venture for the operation of the Dartbrook mine and for potential future mine management services at the Dartbrook mine.

It did lay down a bed of caution, however:

Given the proposed arrangements with M Resources are currently non-binding and subject to ongoing due diligence, there is no guarantee that the partnership with M Resources will eventuate, and shareholders are cautioned against placing significant emphasis on any transaction with M Resources when subscribing for shares under the entitlement offer.

Meanwhile, the Australian Pacific Coal share price has surged more than 283% into the green this year to date.

The post Australian Pacific Coal share price surges 28% on takeover news appeared first on The Motley Fool Australia.

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More reading

• Why has this ASX energy share surged 196% since the start of the week
• Guess which little-known ASX coal share just rocketed 100%

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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The Whitehaven Coal Ltd (ASX: WHC) share price is coming out relatively unscathed today.

This comes as Wall Street recorded heavy losses overnight as it suffered its worst day since June 2020.

The Dow Jones tanked 3.94% along with the tech-heavy Nasdaq down 5.54% and the S&P 500 lost 4.32%.

The market moves followed the release of the hotly anticipated consumer price index report for August.

The data showed inflation rose by 0.1% on a monthly basis.

Consequently, this has impacted the Aussie stock market in which the S&P/ASX 200 Index (ASX: XJO) is tumbling by 2.61%.

On the other hand, Whitehaven shares are down marginally by 0.12% to $8.45 following Macquarie’s latest positive assessment.

Let’s take a look at what the broker updated the market with.

Macquarie remains bullish on Whitehaven

Despite short-term fluctuations in the price of coal since June, the team at Macquarie believe the mid-term outlook is rosy.

As reported by The Australian, the broker is forecasting prices for coking (metallurgical) coal to accelerate in the next year.

This is being backed by the understanding that there is a “supply underinvestment” in the market along with India’s strong demand for coal imports.

The country is becoming heavily reliant on coking coal as it seeks to double its steel production to 300 mt (million tonne) annually by 2030.

Macquarie slashed its fourth-quarter 2022 projections by 10% to US$310 per tonne due to the current crisis in China.

The Asian superpower is trying to come to grips with a slowing economy and deteriorating property market.

In turn, this is impacting steel demand for the time being.

However, even with the current climate, the broker anticipates a sharp recovery in the following year.

For FY23, Macquarie lifted its price forecast by 17% to US$350 per tonne for coking coal.

In addition, it also raised Whitehaven’s price target by 9% to $10 per share.

Based on the current price, this implies an upside of almost 20% for investors.

Whitehaven share price summary

Since the start of 2022, Whitehaven shares have rocketed 220% on the back of favourable coal prices.

In comparison, the S&P/ASX 200 Energy Index (ASX: XEJ) is up 34% over the same time period.

Whitehaven shares reached an all-time high of $8.84 earlier this week before retreating both yesterday and today.

Whitehaven presides a market capitalisation of approximately $8.09 billion.

The post Why did Macquarie just upgrade its target for Whitehaven shares by 9%? appeared first on The Motley Fool Australia.

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More reading

• Why Grange, Link, Ramsay, and Whitehaven Coal shares are dropping
• Why is the Whitehaven share price lagging behind the ASX 200 on Tuesday?
• Why is the Whitehaven share price lagging the ASX 200 on Monday?
• Here’s why ASX 200 energy shares are diving lower today
• Why Karoon Energy, Pilbara Minerals, PointsBet, and Whitehaven Coal are rising

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 Core Lithium Ltd (ASX: CXO) share price is suffering on Wednesday as the broader market takes a major hit.

The S&P/ASX 200 Index (ASX: XJO) has dumped 2.6% at the time of writing following Wall Street’s worst session in more than two years.

The Core Lithium share price is trading at $1.615 right now, 3% lower than its previous close.

The tumble follows a mostly-winning streak that has seen the lithium developer’s stock surge 19% between the end of August and yesterday’s close.

Let’s take a closer look at what’s going on with Core Lithium’s stock on Wednesday.

Core Lithium share price plunges amid market downturn

The Core Lithium share price is sinking in a sea of red today.

It’s tumbling alongside the broader ASX following a disastrous night for Wall Street in which the Dow Jones Industrial Average Index (DJX: .DJI) fell 3.94%, the S&P 500 Index (SP: .INX) slumped 4.32%, and the Nasdaq Composite Index (NASDAQ: .IXIC) plummeted 5.16%.

The sell-off came amid the release of the United States’ latest inflation data, finding the nation’s consumer price index (CPI) lifted 0.1% in August. It’s now 8.3% higher than it was this time last year.

Core Lithium’s home sector – the S&P/ASX 200 Materials Index (ASX: XMJ) – is also falling in line with the broader market right now, tumbling 1.95%.

The company’s lithium-focused peer Lake Resources NL (ASX: LKE) is its worst performer.

Its share price is down 12.2% right now after the company updated the market on a dispute with Lilac Solutions. Lake is partnering with Lilac Solutions on the Kachi Pilot plant in Argentina.

The fall in the Core Lithium share price sees it trading in the middle of the ASX 200 materials pack. None of its peers is recording a gain at the time of writing.

The post Why is the Core Lithium share price tumbling 3% today? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why did the Core Lithium share price leap another 6% on Tuesday?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Are Yamaha and Toyota about to upend the ASX lithium share party?
• ASX lithium stocks are ‘the buy now, pay later of 2022’: expert

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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August inflation data in the United States turned out to be catastrophic for markets, including the Macquarie Group Ltd (ASX: MQG) share price today.

As we head into the afternoon, shares in the investment bank are feeling the pinch. Initially, Macquarie shares opened at $176.57 apiece. However, the fear of sticky inflation has suffocated the $70 billion bank share — now trading 3.6% lower to $175.55.

Let’s take a closer look at the landscape today.

What is draining the Macquarie share price?

The market is suffering a widespread sell-off on Wednesday, with estimates of around $65 billion in market capitalisation erased. This follows a shocker of a session on US markets last night, which saw more than US$500 billion of value evaporate.

It appears the Macquarie share price is following in tow today. The current decline in the investment bank’s share price makes it the worst of all the bank shares in the S&P/ASX 200 Index (ASX: XJO). For context, the performance of its peers includes:

• Commonwealth Bank of Australia (ASX: CBA) down 3.4%
• National Bank of Australia Ltd (ASX: NAB) down 3.56%
• Westpac Banking Corp (ASX: WBC) down 2.4%
• Australia and New Zealand Banking Group Ltd (ASX: ANZ) down 2.5%

The considerable falls are likely spurred on by the higher-than-expected consumer price index (CPI) data from last night. The US recorded inflation of 8.3% compared to a year ago, versus an expected 8.1% reading.

It is hard to say exactly why the Macquarie share price is feeling the most pain today. Possibly, the bank’s heightened exposure to investment-related income. Whereas, the other major banks are more focused on the mortgage lending market.

Finally, the Macquarie share price is now in the red over the past 12 months. Yet, Morgans recently gave the investment bank an add rating and a $215 price target.

The post Macquarie shares bear the brunt of bank sell-off amid inflation bomb appeared first on The Motley Fool Australia.

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More reading

• Down 16% in a year, can the Westpac share price become a successful turnaround story?
• Expert predicts stock market will crash 20% lower in the next four weeks as US inflation rages out of control
• Why are ASX 200 shares tumbling like dominos on Wednesday?
• Why this fund manager is not banking on CBA shares right now
• Why is NAB investing in this Aussie payments start-up?

Motley Fool contributor Mitchell Lawler has positions in Commonwealth Bank of Australia and Macquarie Group Limited. 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 Macquarie Group Limited and Westpac Banking Corporation. 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 Liontown Resources Limited (ASX: LTR) share price is in the red on Wednesday’s trading session.

At the time of writing, shares in the lithium explorer and developer are down 4.51% at $1.695 apiece.

What’s up with the Liontown share price?

Whilst there’s been nothing price sensitive out of Liontown’s camp today, noteworthy is the higher than expected U.S inflation data overnight and the impulse it has fed into the ASX.

All sectors are in the red today with minute pockets of green to be found scattered throughout the indices.

Liontown is no different and has incurred selling pressure straight from the opening bell, with trading volume now already 33% of the 4-week trading average.

Chief to the downside is the specific U.S inflation numbers themselves.

The consumer price index (CPI) spiked 10 basis points month-on-month (MoM) in August, whereas core CPI rose 0.6% MoM and 6.3% year-on-year.

Both were ahead of an expected decline for the period.

Fittingly, U.S exchanges reacted violently, and witnessed their worst session in around 2 years yesterday, sending a wave of risk-off sentiment throughout equity markets.

Meanwhile, yields on 2-year Treasury bonds surged to a 15-year high of 3.8% on Friday, increasing the inversion of the Treasury yield curve.

An inversion of the Treasury yield curve has statistically been shown to be a warning sign of/present before each economic recession since the 1970s.

Point is, that this latest inflation data from the world’s largest economy by gross domestic product (GDP) gives central banks more ammunition to continue raising policy interest rates.

And that typically spells bad news for equity markets, especially at the smaller end of town, where both corporate and investment value is heavily tied to movement in these rates.

The Liontown Resources share price has certainly felt the pinch today and continues its descent into chaos alongside the bolus of ASX shares. It remains up 30% in the past 12 months.

The post Why is the Liontown Resources share price down 5% today? appeared first on The Motley Fool Australia.

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More reading

• When will the Liontown share price start roaring?
• Liontown share price falls despite ‘milestone’
• Brokers name 3 ASX lithium shares to buy
• Why is the Global Lithium Resources share price rocketing 27% this week?
• 5 ASX 200 lithium shares with the lowest levels of debt

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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The Xero Limited (ASX: XRO) share price has been caught up in the market selloff on Wednesday.

In afternoon trade, the cloud accounting platform provider’s shares are down 6% to $85.60.

This means the Xero share price is now down 41% since the start of the year.

Why is the Xero share price sinking today?

Xero and the rest of the market are being sold off today after US inflation came in hotter than anticipated. This has many now believing that the US Federal Reserve will have to be more aggressive with its rate hikes, which has the potential to put the US economy into a recession.

In addition, rising rates are a problem for tech valuations. The higher that rates go, the less investors are willing to pay to own stocks. After all, if you could get a 4% return from a risk-free savings account, you’d need a much more attractive potential return from shares to put your funds at risk.

Is this a buying opportunity for investors?

The team at Citi appear to see today’s Xero share price weakness as a buying opportunity for investors.

This morning its analysts released a broker note which revealed that they have retained their buy rating with a $106.80 price target.

Based on the current Xero share price, this implies potential upside of almost 25% for investors over the next 12 months.

Bell Potter has been looking at Xero’s research and development (R&D) activities. And while it has mixed thoughts, it has seen enough to remain positive. It commented:

We see potential that Xero’s current code base and architecture as well as the Future of Xero program which is focused on re-writing the code base are reasons for Xero’s elevated R&D spend and could also be impacting its speed to market with new products/functionality. On a positive note, we see potential for leverage to come through once the program is completed successfully and also see potential for it to speed up product development especially in terms of localisation.

The post Xero share price tumbles 6% amid market selloff: Buy the dip? appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 tech shares being hit the hardest on Wednesday?
• Why the Xero share price is racing higher and could keep climbing
• Why are ASX 200 tech shares having such a top run on Thursday?
• 5 things to watch on the ASX 200 on Thursday
• Financial powerhouse: Why I think these stats make Xero shares irresistible

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 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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The S&P/ASX 200 Index (ASX: XJO) is reeling today after a hot US inflation report caught Wall Street off guard overnight.

This saw the Dow Jones tumble 3.9% for its worst day since June 2020 while the tech-heavy Nasdaq Composite cratered 5.2%.

At the time of writing, the ASX 200 has shed 2.8% to sit at 6,817 points.

Unsurprisingly, the S&P/ASX All Technology Index (ASX: XTX) is having an even harder slog, sliding by 3.9%.

Why are ASX 200 shares bleeding today?

The ASX 200 often takes a lead from what happens to US markets overnight. And last night’s session wasn’t pretty.

The Bureau of Labor Statistics came out with its latest inflation report for August. The report showed that the consumer price index (CPI), which measures inflation, unexpectedly rose in August.

Headline inflation increased 0.1% month over month. Meanwhile, core inflation, which strips out more volatile food and energy costs, rose 0.6% month over month. 

Overall, inflation was 8.3% year-on-year. In other words, prices have climbed 8.3% compared to August last year.

Economists surveyed by Dow Jones were reportedly expecting a 0.1% decline in headline inflation and a 0.3% rise in core inflation.

So, inflation came in higher than expected in the US, dashing hopes that pricing pressures were beginning to ease.

Crucially, this means that the Federal Reserve will likely act more aggressively to combat rising prices. 

Economists now believe the Fed is all but certain to raise interest rates by 0.75% next week.

What does this mean for ASX 200 shares?

As interest rates rise, share prices typically fall. Aside from the ripple effects throughout the economy, this can be explained by the way the market values shares.

The most common method in a discounted cash flow (DCF) model, which estimates the present value of a company’s future cash flows.

Interest rates are typically a key input in this model. All else being equal, the higher the rate, the lower the valuation.

Why are ASX 200 tech shares being rattled the most?

ASX tech shares are particularly sensitive to changes in interest rates because their valuations are primarily based on future growth prospects.

With more of their cash flows further into the future, they’re hit harder when discounting the cash flows back to today’s value.

So, it’s a sea of red on the ASX 200 today, but ASX tech shares are bearing the brunt of the sell-off.

At the time of writing, shares in Xero Limited (ASX: XRO), Altium Limited (ASX: ALU), and Block Inc CDI (ASX: SQ2) are all printing a steep 5% fall.

The BrainChip Holdings Ltd (ASX: BRN) share price is faring worse, down 6.3% at the time of writing to 94.2 cents.

Meanwhile, Megaport Ltd (ASX: MP1) shares are among the ASX 200’s biggest laggards, sliding 9.3% to $7.88.

With today’s sell-off, the ASX All Technology Index has now crumbled roughly 30% so far this year. Unsurprisingly, it’s underperformed the ASX 200, which has suffered a 10% fall.

The post Why are ASX 200 tech shares being hit the hardest on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• Xero share price tumbles 6% amid market selloff: Buy the dip?
• Why is the BrainChip share price sinking 8% on Wednesday?
• Here’s why the Altium share price is crashing 7% lower today
• Why are ASX 200 shares tumbling like dominos on Wednesday?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Cathryn Goh has positions in Altium, Block, Inc., and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Block, Inc., MEGAPORT FPO, and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc. and Xero. The Motley Fool Australia has recommended MEGAPORT FPO. 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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Ever since IGO Ltd (ASX: IGO) reported its FY22 full-year earnings last month, the company’s shares have trended higher. The ASX 200 diversified miner dropped its earnings back on 30 August, and the shares haven’t looked back (well, until today).

Even after the nasty 2.01% fall to $14.65 a share that we’ve seen today so far, the IGO share price is still up almost 10% since those earnings were released.

Perhaps it was the 34% increase in revenues to $903 million that got investors excited. Or the 51% rise in underlying earnings to $717 million. But IGO also announced a fully franked final dividend of five cents per share. That’s what we’ll be discussing today.

This dividend was a significant drop from the company’s final dividend of 10 cents per share for FY21. It matches the company’s interim dividend of five cents per share that was paid out back in March.

IGO dividend is inbound, here’s what you need to do

So what do investors need to do to secure this dividend payout? Well, they will need to act fast. That’s because IGO shares are scheduled to trade ex-dividend for this payment tomorrow, 15 September.

When a company’s shares trade ex-dividend, it effectively cuts off any new investors from receiving the dividend payment in question. So from tomorrow, all new IGO investors won’t be eligible for this final dividend.

As such, we usually see a corresponding drop in the value of a company’s shares when this happens. This reflects that the value of this dividend is now lost to new investors, thus the shares are inherently worth less. So expect a fall in the IGO share price tomorrow, reflecting this.

So after this ex-dividend date tomorrow, investors will have to wait until the last day of the month, 30 September, to receive the payment.

When this payment is doled out, it will give IGO shares a dividend yield of 0.7% based on the current IGO share price.

At the current share price, this ASX 200 mining share has a market capitalisation of around $11.04 billion.

The post Hoping to dig into the next IGO dividend? Here’s what to do appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• IGO share price slips on JV ‘significant lithium potential’
• How do IGO shares compare to Mineral Resources following earnings season?
• Why A2 Milk, Deep Yellow, Healius, and IGO shares are racing higher
• IGO share price moves higher on record earnings

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 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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