If you’re looking for growth shares to buy, then you may want to check out the two listed below.

Both these ASX growth shares have just been named as buys by analysts. Here’s what they are saying:

Jumbo Interactive Ltd (ASX: JIN)

The first ASX growth share that has been tipped as a buy is online lottery ticket seller Jumbo.

The team at Morgans was impressed with its performance in FY 2022 and highlights that its software as a service (SaaS) business is now a key earnings contributor. This is good news given its significant global market opportunity.

Morgans has put an add rating and $17.50 price target on the company’s shares. It commented:

FY22 was a year of solid growth in revenue and earnings for JIN. The business continued to diversify its earnings base, with SaaS now making up nearly half of group EBITDA. There were few surprises in the numbers, given JIN pre-announced headline earnings in July. We have made no material changes to our earnings estimates.

Our NPAT estimates are effectively unchanged in both FY23 and FY24, although we raise our EPS forecasts by 1% in each year as a result of the proposed $25m buyback. We reiterate our ADD rating. We expect JIN to continue to achieve steady growth in the years ahead through a combination of organic contract wins, M&A and diversification.

Nitro Software Ltd (ASX: NTO)

Another ASX growth share that has just been named as a buy is this document productivity software provider.

Goldman Sachs was pleased with Nitro’s performance during the first half and believes it is making good progress with its cost cutting plan. And while its growth is no longer expected to be as quick as first thought, the broker sees plenty of value in its shares at the current level.

In fact, it feels Nitro’s shares are materially undervalued based on its global growth opportunity. As a result, the broker has retained its buy rating and $2.05 price target on the company’s shares. It commented:

NTO’s growth outlook has been re-based post the 2Q22 update (from 30-40% to 20-30%) and we see the company as on a credible path to cash flow breakeven; however, consecutive quarters of strong ARR performance are likely necessary to ease concerns over execution challenges. We are comfortable with NTO’s full-year ARR guidance based on typical seasonality (2H weighted) and Connective cross-sell, with an update expected at the 3Q22 result in October.

We continue to see NTO as an undervalued global growth opportunity (>20% FY22-25E ARR CAGR) with high gross margins (~90%), a sound balance sheet (US$35mn net cash) and very little priced into the current valuation at 2x FY23 EV/ARR (an all-time low). Our 12-mth TP of A$2.05/share is unchanged and we reiterate Buy.

The post Analysts name 2 top ASX growth shares to buy now appeared first on The Motley Fool Australia.

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More reading

• Why is the Nitro Software share price halted today?
• 6 ASX shares Morgans would buy right now
• Nitro Software share price plunges 7% amid $25 million loss
• Why Bega Cheese, Jumbo, Pilbara Minerals, and Qantas shares are rising
• Jumbo share price climbs following ‘strong growth achieved in FY2022’

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 Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive Limited and Nitro Software 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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It’s been a bumper month for the S&P/ASX 200 Index (ASX: XJO) as an overwhelming majority of ASX 200 shares have handed in earnings results.

With these results often come dividends. And with dividends comes an important cut-off date to determine which investors are eligible for the payment. This is also known as the ex-dividend date.

As we turn the page and start a new month, three big-name ASX 200 shares will be going ex-dividend tomorrow.

In other words, today will be the final day to bag these upcoming dividend payments.

Don’t be surprised to see these ASX 200 shares in the red tomorrow as the market responds to them going ex-dividend.

BHP Group Ltd (ASX: BHP)

Today is the final day to snap up the bumper final dividend from the Big Australian.

When the market opens tomorrow, BHP shares will no longer be trading with a fully franked final dividend of US$1.75. 

The payment date for this final dividend has been pencilled in for 22 September.

The ASX 200 mining giant recently reported the second-biggest profit in the company’s history. This helped it to hike up total FY22 dividends by 8%.

BHP shares are currently printing a trailing dividend yield of 11.3%. The FY22 final dividend alone spins up a yield of 6.1%. So, the BHP share price will likely be rattled tomorrow when this final dividend is off the table.

Looking ahead, broker Goldman Sachs is forecasting BHP to cut its fully franked dividends in half in FY23, landing at US$1.62.

Even still, this would represent a prospective forward dividend yield of 5.6%, which would gross up to 8.0% with the benefit of franking credits.

AGL Energy Limited (ASX: AGL)

The AGL Energy share price will also be on watch tomorrow as shares in the ASX 200 energy company turn ex-dividend.

Investors who own AGL shares by the time the market closes today will be entitled to the company’s upcoming unfranked dividend payment of 10 cents. This payment should come through on 27 September.

AGL released its FY22 results last week, slashing its final dividend by 70% after underlying profit tumbled by 58%. 

Across the year, AGL declared total FY22 dividends of 26 cents, unfranked. This puts AGL shares on a trailing dividend yield of 3.4%.

Broker Morgans is tipping AGL to pay out total dividends of 30 cents in FY23. This represents a prospective forward dividend yield of 3.9%.

Whitehaven Coal Ltd (ASX: WHC)

Coal producer Whitehaven is another popular ASX 200 share going ex-dividend tomorrow.

Whitehaven recently reported a bumper set of FY22 results, headlined by 216% revenue growth and a big reversal on the bottom line. 

The company went from a $544 million net loss in FY21 to a mighty $1.95 billion net profit after tax (NPAT) in FY22 as coal prices surged to record levels.

This helped the ASX 200 coal miner to declare a fully franked final dividend of 40 cents. The payment date is locked in for 16 September.

The company’s total FY22 dividends come in at 48 cents, putting Whitehaven shares on a trailing dividend yield of 6.0%. With the benefit of franking credits, this yield cranks up to 8.5%.

Looking ahead, Morgans is forecasting dividends of 100 cents per share in FY23. At current levels, this represents a prospective forward dividend yield of 12.4%.

The post 3 popular ASX 200 shares going ex-dividend tomorrow appeared first on The Motley Fool Australia.

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More reading

• ASX dividend windfall continues but it’s not just Woodside and ASX 200 energy stocks splashing the big cash
• 3 ASX 200 energy shares smashing multi-year highs on Tuesday
• Woodside dividend tripled: Here’s everything you need to know
• Woodside share price lifts on 400% profit surge
• Here are the top 10 ASX 200 shares today

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 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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Are you looking for dividend options for your income portfolio? If you are, then take a look at the two ASX dividend shares listed below that have been tipped as buys.

Here’s why experts are positive on them:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share to consider buying is Dexus Industria. It is an industrial and office property company.

The team at Morgans is positive on the company. It currently has an add rating and $3.25 price target on the company’s shares. The broker commented:

DXI’s key industrial markets remain robust with the outlook for solid rental growth backed by strong tenant demand. The development pipeline also provides near and medium term upside potential. A key focus will be the leasing up of the business park assets and a potential divestment could be a positive catalyst. While the portfolio remains well positioned we acknowledge there will be near-term uncertainty around interest rates.

As for dividends, the broker is forecasting dividends per share of 16.4 cents in FY 2023 and 16.9 cents in FY 2024. Based on the current Dexus Industria share price of $2.77, this will mean yields of 5.9% and 6.1%, respectively.

Elders Ltd (ASX: ELD)

Another ASX dividend share to look at is Elders. It is an agribusiness company that provides a range of services to rural and regional customers across the ANZ region.

Analysts at Goldman Sachs are very positive on the company. They recently reiterated their conviction buy rating with a lofty $21.00 price target on its shares. The broker commented:

We view ELD as well-positioned to achieve continued organic growth through market rationalisation and margin expansion as the company executes on the backward integration strategy, which it is c.50% of the way through. Organic growth looks set to be complemented by further bolt-on acquisitions, with c.620 independents in the Australian market with a steady stream of founders now looking at succession or exit opportunities. We forecast a further +7% EBIT growth in FY23 vs. Bloomberg consensus of -13%.

In respect to dividends, the broker is forecasting dividends per share of 50 cents in FY 2022 and 53 cents in FY 2023. Based on the current Elders share price of $11.82, this would mean yields of 4.2% and 4.5%, respectively.

The post Experts say these ASX dividend shares are buys now appeared first on The Motley Fool Australia.

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More reading

• Analysts say these ASX dividend shares are buys now
• Analysts say these top ASX dividend shares are buys
• Here are the top 10 ASX 200 shares today
• Brokers name 2 ASX dividend shares to buy with 4%+ yields
• Brokers name 3 ASX shares to buy today

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 recommended Elders 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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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) bounced back from Monday’s selloff with a decent gain. The benchmark index rose 0.5% to 6,998.3 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to give back yesterday’s gains on Wednesday following a poor night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 63 points or 0.9% lower this morning. On Wall Street, the Dow Jones fell 0.95%, the S&P 500 dropped 1.1%, and the Nasdaq tumbled 1.1%. Rate hike concerns continue to weigh on sentiment.

Oil prices sink

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a tough day after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 5% to US$92.17 a barrel and the Brent crude oil price has fallen 5.4% to US$99.44 a barrel. Traders were selling oil amid concerns that rising inflation could impact fuel demand.

Harvey Norman results

The Harvey Norman Holdings Limited (ASX: HVN) share price will be on watch on Wednesday when the retail giant releases its full year results. According to a note out of Citi, its analysts are expecting the company to report a profit after tax of $614 million. This is broadly in line with the market consensus estimate of $614.6 million.

Gold price lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a poor day after the gold price traded lower overnight. According to CNBC, the spot gold price is down 0.8% to US$1,735.7 an ounce. This was driven by markets betting on the US Federal Reserve being aggressive with its rate hikes.

Shares going ex-dividend

A large number of ASX 200 shares are due to trade ex-dividend this morning and could drop into the red. This includes Bega Cheese Ltd (ASX: BGA), Blackmores Ltd (ASX: BKL), Iress Ltd (ASX: IRE), OZ Minerals Limited (ASX: OZL), Tabcorp Holdings Limited (ASX: TAH), Wesfarmers Ltd (ASX: WES), and Woolworths Group Ltd (ASX: WOW). The latter will pay eligible shareholders its fully franked 53 cents per share final dividend on 27 September.

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

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More reading

• Here are the top 10 ASX 200 shares today
• Keen to pocket the Woolworths dividend? You’d better be quick!
• ASX dividend windfall continues but it’s not just Woodside and ASX 200 energy stocks splashing the big cash
• Hoping to bag the next Wesfarmers dividend? Here’s what you need to do
• Why is the Beach Energy share price lagging its sector on Tuesday?

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 Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. and Wesfarmers Limited. The Motley Fool Australia has recommended Blackmores 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 Fortescue Metals Group Limited (ASX: FMG) share price could be seriously overvalued.

That’s the view of analysts at Goldman Sachs following the release of the mining giant’s full year results for FY 2022.

What is Goldman saying about the Fortescue share price?

According to a note out of the investment bank, its analysts have responded to Fortescue’s results by reiterating their sell rating and $12.10 price target on the company’s shares.

Based on the current Fortescue share price of $18.95, this implies potential downside of 36% over the next 12 months.

What did the broker say?

Goldman notes that Fortescue delivered a full year result in line with expectations. It commented:

FMG reported FY22 underlying EBITDA/NPAT of US$10.6bn/US$6.2bn, in-line/+1% vs. GSe and VA consensus. The final dividend of A121cps (78% payout), was above our A109cps (70% payout). There was no change to iron ore guidance for FY23.

However, once again, the broker highlights that overshadowing this was Fortescue’s decarbonisation plans. Goldman continues to believe it will come at a significant cost. It explained:

Regarding decarbonisation of iron ore, FMG continues to target first battery driven electric truck in 2025 with the fleet decarb to be supported by the proposed 5.4GW wind and solar Uaroo project. We think decarbonising the Pilbara could cost FMG over US$7bn (spend not in our numbers) and requires +US$80/bbl oil or an iron ore green premia to be NPV positive.

The broker also warned that the company’s dividends could come under pressure from these plans.

We continue to think FMG is at an inflection point on capital allocation, and to fund the ambitious new strategy, we assume the dividend payout ratio falls from the current ~75% in FY22 and then to ~50% from FY24 onwards.

Why are its shares overvalued?

Overall, Goldman Sachs believes the Fortescue share price is overvalued based on the undeserved premium it trades at compared to BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO). It explained:

The stock is trading at a premium to BHP & RIO; c. 1.7x NAV vs. RIO & BHP at c. 0.8x & 1.1x NAV, c. 6x EBITDA (vs. BHP on 6x & RIO on c. 3.5x), and c. 4% FCF vs. BHP on c. 4% & RIO on c. 10%.

The post Goldman Sachs warns that the Fortescue share price could crash 36% lower appeared first on The Motley Fool Australia.

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More reading

• Can Twiggy really build Fortescue into a ‘green global energy and metals machine’?
• 5 things to watch on the ASX 200 on Tuesday
• Why is the Rio Tinto share price having such a lousy start to the week?
• How does the BHP dividend stack up against the latest Fortescue payment?
• Everything you need to know about the trimmed-down Fortescue dividend

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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The De Grey Mining Limited (ASX: DEG) share price is having a tough year.

Since the start of 2022, the gold developer’s shares have lost 27% of their value.

While clearly there have been a lot of sellers of its shares, recently there has been a notable buyer of them.

Who is buying De Grey shares?

This week it was confirmed that ASX 200 gold miner Gold Road Resources Ltd (ASX: GOR) has been topping up its holding in De Grey Mining.

According to the release, Gold Road, via its wholly owned subsidiary Renaissance Resources, acquired an additional stake in De Grey Mining earlier this week under an equity collar agreement with Credit Suisse. The company agreed to pay approximately $1.00 per share for the parcel of 65,938,098 shares.

This ~$66 million deal increased its interest in De Grey Mining to 19.99%.

Is a takeover looming?

While you could never rule out a takeover being made, that’s not the intention at this point. The company explained:

This intended acquisition of further shares in DEG is consistent with Gold Road’s stated strategy to grow and diversify its growth pipeline. At this stage, this shareholding is seen as a long-term investment and Gold Road does not intend to make a takeover bid or other offer for DEG, but Gold Road reserves its right to do so and to make further investments in DEG at any time.

Gold Road certainly is no stranger to takeovers. Earlier this month the company completed the acquisition of DGO Gold via an all-scrip deal valuing the transaction at approximately $250 million.

It was also chasing Apollo Consolidated last year before being outbid by fellow gold miner Ramelius Resources Limited (ASX: RMS).

The post Guess which ASX 200 company bought over $65 million of De Grey shares in August appeared first on The Motley Fool Australia.

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• Gold Road share price lifts as half-year profit doubles
• These are the 10 most shorted ASX shares
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Why has the De Grey share price leapt 36% in a month?

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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National Australia Bank Ltd (ASX: NAB) shares are in focus as the big four ASX bank share looks to try to win over some new customers.

According to reporting by news.com.au, NAB has decided to reduce its variable home loan rate by 30 basis points. That means it’s a decrease of 0.30%.

However, that decrease isn’t for all customers. It’s reportedly just for new customers only. Existing customers are seeing their mortgage rates soar as the big four ASX bank shares pass on the Reserve Bank of Australia’s (RBA) interest rate rises.

Is this a good thing or a bad thing?

The media outlet news.com.au reported comments by Rate City research director Sally Tindall who implied that NAB (and others) may essentially be charging customers a loyalty tax for sticking with the bank.

Tindall said:

Log on to your banking app and check what rate you’re paying. While you’re there, work out the exact name of your loan.

Then look at your bank’s website to see what rate it’s offering new customers.

With refinancing at record highs and billions of dollars’ worth of fixed loans coming to an end, lenders are cutting variable rates to attract new borrowers.

If you think as a loyal, long-serving customer your bank is doing right by you, double check that’s actually the case. The results could surprise you.

But, for new customers, it could be a positive.

Is NAB losing market share?

According to research from Macquarie Research and APRA, NAB is the only big bank that gained housing market share over the 12 months to July 2022. Its housing market share increased by just under 20 basis points, while CBA’s housing market share dropped more than 10 basis points. At the same time, Westpac’s housing market share fell almost 100 basis points and ANZ’s market share has fallen more than 100 basis points.

The CEO of Liberty Financial Group Ltd (ASX: LFG), James Boyle, suggested that smaller lenders might be able to gain ground on the big banks. This comes as falling house prices could mean some customers are deemed too risky for major banks as they focus on the safest type of borrowers, according to reporting by the Australian Financial Review.

Boyle noted that there is “vigorous competition for mainstream customers with low loan to value ratios, strong earnings and who are a great credit”. He also suggested there could be even stronger competition for that type of borrower.

Is the NAB share price a buy?

Brokers are a bit mixed on the big four ASX banks at the moment. There is a general view that higher interest rates will help bank profitability, translating into better net interest margins (NIMs). However, there is also a concern that higher interest rates could lead to higher bad debts over time.

Morgan Stanley currently has an ‘equal-weight’ rating on NAB, with a price target of $27.20. That implies a drop of almost 10%.

But Ord Minnett has an ‘accumulate’ rating on NAB. The price target is $32.70 which implies a rise of around 9%. It thinks that NAB’s revenue can keep growing well in the short term.

The post Will this build value for NAB shareholders or alienate the bank’s customers? appeared first on The Motley Fool Australia.

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• Are ANZ shares really offering the highest dividend yield of the big four?
• NAB is the ASX 200 bank share I’d buy today
• The NAB share price is trading on a 4.6% dividend yield right now. How does this compare to other banks?
• The NAB share price has gained 5% since last week’s update. What’s next?
• These top ASX dividend shares have been tipped as buys by analysts

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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Investors might wonder why the next Insurance Australia Group Ltd (ASX: IAG) dividend is not fully franked.

The 5 cents per share that is due to be paid to shareholders on 22 September will only be franked by 70%.

One possible reason why the IAG dividend is not fully franked is due to the ups and downs the general insurance company has gone through over the last couple of financial years.

In FY21, the business reported a $427 million loss. Earnings bounced back sharply in FY22, though, with net profit after tax (NPAT) reaching $347 million.

The company could therefore be in the process of returning value back to investors gradually as it recovers from the economic tremors of COVID-19.

Something to keep in mind, too, is that the interim dividend of 6 cents per share — giving a full-year dividend of 11 cents per share — paid out in March was unfranked.

In FY21, or the same year IAG recorded a huge loss, its full-year dividend of 20 cents was also unfranked.

In FY20, just after the peak of the pandemic, the company didn’t pay out a final dividend to investors at all, and paid a 10 cent interim dividend, 70% franked.

It should be noted that, until recently, it was unusual for IAG’s dividend to be partially franked, as its interim and final dividends have been fully franked from March 2001 up until August 2018.

The 5 cents per share dividend is also the lowest level since March 2012, with dividends normally fluctuating in the 15 cents to 20 cents range or higher from September 2013 to October 2018.

So FY22’s franking of 70% could be seen as a significant improvement over the last couple of years, at least from a franking perspective. And as life moves on from the new normal, investors may look forward to higher and fully franked dividends in the future.

IAG share price snapshot

The IAG share price closed 2.18% higher today at $4.69. That takes its gains in 2022 so far to more than 5%.

Meanwhile, the broader market is struggling, with the S&P/ASX 200 Index (ASX: XJO) down almost 8% over the same period.

IAG has a market capitalisation is $11.31 billion.

The post Why is the next IAG dividend not fully franked? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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• Here’s why the IAG share price is slumping today
• Looking to buy IAG shares but worried about where the growth will come from? Read this
• Leading brokers name 3 ASX shares to buy today

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 positions in and has recommended Insurance Australia Group 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 Hastings Technology Metals Ltd (ASX: HAS) share price has soared in the past week.

Shares in the rare earth explorer have jumped almost 24% from $4.39 at market close on 23 August to $5.44 at today’s close.

Let’s take a look at why Hastings Technology shares have leapt this past week.

Rare earths deal

Hastings Technology is a rare earths company exploring the Yangibana and Brockman projects in Western Australia.

Investors bought up Hastings Technology shares amid acquisition news and a $150 million investment from Wyloo Metals. Wyloo Metals is part of Andrew ‘Twiggy’ Forrest’s investment holding company Tatterang.

Hastings Technology is proposing to acquire a 22.1% share of Neo Performance Materials Inc (TSX: NEO). Neo is a rare earths processing company and permanent magnets producer listed on the Toronto Stock Exchange. Hastings has entered into a binding share purchase agreement to acquire 8,974,127 shares in Neo.

To fund this acquisition, Wyloo Metals has committed to invest $150 million in Hastings via exchangeable notes. These can be converted to Hastings shares for $5.50 each. Wyloo will also be able to nominate a director to the Hastings board as part of the deal.

Commenting on the news, Hastings executive chairman Charles Lew said:

The acquisition of the Neo stake represents an important strategic milestone for Hastings…

We are also thrilled to welcome the support of and strategic investment by Wyloo Metals.

Meanwhile, Datt Capital chief investment officer Emanuel Datt has recently named Hastings among five ASX shares that could rise if China restricts rare earths supply to countries it disagrees with in the future. China currently supplies 80% of the world’s rare earths.

Share price snapshot

The Hastings Technology share price has surged 36% in the past year, while it has climbed nearly 5% year to date.

In the past month, Hastings shares have lifted 33%.

Hastings has a market capitalisation of about $552 million based on the current share price.

The post The Hastings Technology share price has rocketed 24% in a week. What’s going on? appeared first on The Motley Fool Australia.

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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 AMP Ltd (ASX: AMP) share price finished higher on Tuesday, up 1.82% to $1.12.

The share price move follows rumours that AMP has put in a final offer to buy the wealth management arm of Westpac Banking Corp (ASX: WBC).

According to reporting by The Australian, AMP may have pipped Colonial First State for the prize. Final bids were due on 22 August.

According to the article, “AMP could be in the box seat to buy Westpac’s wealth management unit with sources suggesting that the Australian listed financial group put in a final offer for the company”.

The article said:

Sources say that Colonial First State lobbed a bid that may have been as low as $600m, while others say that AMP put forward a proposal believed to be at a higher price.

In the first round, CFS was thought to have been the only group to have put forward a conforming bid.

Earlier, it was expected that the unit would sell for at least $700m, but prices were adjusted downwards amid a period of market volatility.

Why is Westpac selling its wealth management division?

In May, Westpac sold the wealth management division’s superannuation operations to Mercer Australia.

According to the article, banks have been retreating from non-core business activities to focus on home loans and business banking.

That’s certainly the case at Westpac, with specialist businesses CEO Jason Yetton recently describing the sale of the superannuation business as a “further step in the simplification of Westpac”.  

In August 2021, Westpac also sold its life insurance division to TAL for $900 million.

Morgan Stanley is advising Westpac on the sale of its wealth management division, which includes its Panorama platform.

AMP share price snapshot

The AMP share price is up 12% in the year to date.

This compares to an 8% dip in both the S&P/ASX 200 Index (ASX: XJO) and the S&P/ASX 200 Financials Index (ASX: XFJ).

The post AMP share price lifts amid Westpac deal rumours appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in Westpac Banking Corporation. 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 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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