At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decline. The benchmark index is currently down 0.3% to 7,215 points.

Here’s what is happening on the ASX 200 today

Magellan shares smashed

The Magellan Financial Group Ltd (ASX: MFG) share price has crashed to a multi-year low on Monday. Investors have been selling this fund manager’s shares for a couple of reasons. The first is the release of an update which revealed another sizeable decline in funds under management. The other is news that S&P Dow Jones Indices has dumped Magellan from the illustrious ASX 100 index.

Appen continues to slide

The Appen Ltd (ASX: APX) share price has taken a tumble on Monday. Investors have been selling the artificial intelligence data services company’s shares amid weakness in the tech sector and news that it will be kicked out of the ASX 200 index at the next rebalance. PolyNovo Ltd (ASX: PNV), which is also exiting the ASX 200 index, is falling on the news as well.

Lithium updates

Allkem Ltd (ASX: AKE) and Liontown Resources Limited (ASX: LTR) shares are dropping on Monday despite the release of updates. Liontown has announced a binding offtake agreement with Tesla for almost a third of its planned lithium production. Whereas Allkem has revealed stronger than expected pricing for its lithium carbonate during the current quarter but weaker spodumene production guidance.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the Tabcorp Holdings Limited (ASX: TAH) share price with a 3.5% gain. This morning the gambling company revealed that it has reached a conditional settlement of litigation with Racing Queensland. Going the other way, the Magellan share price is the worst performer with a 13% decline.

The post ASX 200 midday update: Magellan smashed, Liontown signs Tesla deal appeared first on The Motley Fool Australia.

More reading

• Could the Core Lithium share price be set to take off again in June?
• Why is the Magellan share price tumbling 10% on Monday?
• Appen and PolyNovo tumble after being kicked out of the ASX 200 along with these shares
• Liontown share price drops despite Tesla deal
• Allkem share price falls on mixed lithium update

Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen Ltd and POLYNOVO FPO. 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 may be on the back foot this morning but there are hopes that this month will be a good one for the ASX miner.

The signs are looking a little more promising after the recent big fall in the company’s shares. Not only have some experts come out to reassure the market on the outlook of the sector, but the Core Lithium share price has just been added to the S&P/ASX 200 Index (ASX: XJO).

The news isn’t helping the Core Lithium share price this morning though. At the time of writing, it’s slipped 2.88% to $1.18.

Core Lithium share price could find near-term support

History has shown that ASX shares added to a major index tend to outperform in the months following their inclusion.

Meanwhile, reassurances from experts about lithium demand and prices have helped the Core Lithium share price rebound around 7% this month, although it’s still down 27% from its 4 April 2022 peak of $1.60.

Demand and prices moving in favour of Core Lithium’s share price

Sentiment towards the sector appears to have improved. A number of analysts and industry insiders have rebuffed last week’s warning from Goldman Sachs that lithium prices have peaked for now and will decline sharply.

The incoming chief executive of Pilbara Minerals Ltd (ASX: PLS), Dale Henderson, said Goldman is wrong. He pointed to strong ongoing demand from customers and high prices achieved at recent auctions for the metal to refute the bearish outlook.

While that’s probably what you might expect the CEO of a lithium miner to say, other brokers are decidedly more upbeat on the commodity.

Big upside for ASX lithium shares

For instance, the analysts at Macquarie Group Ltd (ASX: MQG) are supporters of the sector. They don’t cover Core Lithium, but they rate all other ASX lithium-exposed miners in their coverage universe as “outperform”.

The broker even went as far as to say it sees “material valuation upside” for the ASX lithium shares it covers.

Supply response could be slower than you’d think

One reason for the broker’s upbeat outlook relates to its view on the risks of increased supply of the commodity. As the saying goes for commodities – nothing cures high prices like high prices.

The surge in lithium prices should see more producers entering the market, but Macquarie thinks this is easier said than done.

For instance, Chinese lepidolite suppliers could struggle to add much new supply. Lepidolite is more complex to process and new extraction technologies are controlled by four major producers.

Meanwhile, added supply from Africa could take longer to bring online than the market is anticipating, added Macquarie.

Despite today’s dip, the Core Lithium share price has gained around 350% in the past year.

The post Could the Core Lithium share price be set to take off again in June? appeared first on The Motley Fool Australia.

More reading

• Appen and PolyNovo tumble after being kicked out of the ASX 200 along with these shares
• Brainchip shares could get a massive boost this month: here’s how
• 2 ASX shares just had a shocker but are awesome long-term buys: fund
• 5 things to watch on the ASX 200 on Monday
• These were the worst performing ASX 200 shares last week

Motley Fool contributor Brendon Lau has positions in 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. 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.

When investors think of stocks Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) owns, they probably think of value-focused investing. For the most part, they’d be right. Berkshire’s top holdings are Apple (39%, a value play in 2016 when he first bought the stock), Bank of America (11%), Chevron (8%), and American Express (7%). However, there’s at least one stock in the Berkshire that doesn’t fall under this umbrella and it excites me the most.

Snowflake (NYSE: SNOW) is a fast-growing tech company that Berkshire Hathaway purchased as pre-IPO shares. Even though the investment only makes up 0.2% of Berkshire’s portfolio, Berkshire still has a nearly 2% stake in the company. Why would Buffett take a position in Snowflake when it doesn’t fit his investing style? Just like me, Buffett sees vast potential in Snowflake.

Snowflake’s product is beloved by its customers

Snowflake is a data cloud company that allows its customers to harness the power of the data that businesses generate. It offers solutions to store the data, process it, and utilize the information to drive modeling and other applications.

Because Snowflake is platform agnostic, customers can utilize any major cloud computing providers (Amazon‘s AWS, Alphabet‘s Google Cloud, Microsoft’s Azure, and others), allowing them to spread data over multiple platforms. This diversification prevents clients from being locked into unreasonable contracts and allows customers to utilize each cloud platform’s strong points.

Another attractive feature of Snowflake is its pay-as-you-go pricing. Customers can turn off Snowflake’s computational power at will and pay for the exact amount of data storage they need. Of course, this model has its risks, as an economic downturn may cause clients to reduce their spending. However, with how engrained Snowflake’s platform is in harvesting and processing data, many users are locked into using Snowflake in good times and bad.

Furthermore, customers love Snowflake. It reported a 100% Dresner customer satisfaction score for the fifth-straight year and sported a net promoter score (NPS) of 68 (for reference, Apple’s is 54). The NPS measures how much a company is promoted by its customers by surveying 100 customers on a 0 to 10 scale. On the scale are three categories of people: promoters (score 9-10, +1 to NPS), passives (score 7-8, 0 to NPS), and detractors (score 0-6, -1 NPS). The scores are added to find the final NPS. Anything over 50 is excellent, and 80 is world-class.

With Snowflake’s score of 68, it’s clear its customers are active promoters. But while the company provides a fantastic and necessary product, how are the financials?

Strong growth but weak profitability

Snowflake’s growth is nothing short of impressive. For the first quarter of the fiscal year 2023 (ended April 30, 2022), quarterly revenue was up 84% year over year to $394 million with a gross margin of 72%. Because of its usage-based model, Snowflake’s retention rate was an incredible 174%, which means customers spent $1.74 for every $1 spent in last year’s quarter.  

Another exciting development for Snowflake is its large customers (those that spend more than $1 million annually with Snowflake). These rose 98% year over year to 206. Snowflake’s total customers also grew 40% year over year to 6,322. However, it still has a large market to penetrate, as only 506 of the Forbes Global 2000 are Snowflake customers.

Snowflake has one thorn in its side: unprofitability. Snowflake’s operating margin was an abysmal negative 45%. If stock-based compensation is backed out, Snowflake is barely profitable.

Investors shouldn’t overlook Snowflake’s heavy stock-based compensation bill because the share count rose nearly 8% year over year. This rise dilutes shareholders in a similar manner that inflation affects consumers. However, stock-based compensation is a non-cash expense, meaning the business is free cash flow (FCF) positive.

Sporting an impressive 41% FCF margin means Snowflake turned 41% of revenue into cash on the balance sheet during the quarter. This transformation is vital when heading into a potential recession, as Snowflake can survive without external funding.

Like other tech stocks, Snowflake’s stock valuation has come tumbling down over the past few months. Once north of 100 times sales (it’s hard to justify a valuation that high for any company), it now trades for around 27 times sales. While this isn’t cheap, it’s not a terrible price for a rapidly growing FCF-positive company.

Despite the stock’s near 70% price tumble from its all-time high, Buffett is still invested in this revolutionary tech company. While he hasn’t added to his position, it wouldn’t surprise me if Berkshire makes a small addition sometime soon. If Snowflake can control its stock-based compensation and work toward profitability, this stock could provide outstanding performance in a portfolio over the next decade.

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

The post My top Warren Buffett stock to buy 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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. American Express is an advertising partner of The Ascent, a Motley Fool company. Keithen Drury has positions in Alphabet (C shares) and Snowflake Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Apple, Berkshire Hathaway (B shares), Microsoft, and Snowflake Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Apple, and Berkshire Hathaway (B shares). 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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The Santos Ltd (ASX: STO) share price is humming along nicely on the first day of trading this week.

Australia’s second-largest ASX-listed energy company by market capitalisation is swapping hands for $8.55, up 1.8%. Meanwhile, the broader S&P/ASX 200 Index (ASX: XJO) is down 0.36% as tech shares drag it lower.

Investors are still warming up for the day as we pass an hour after the ringing of the opening bell. Notably, the energy sector contains some of the best performers on the market so far today.

What’s firing up the Santos share price?

Persistent upwards pressure on energy commodities such as oil and gas is bad news for consumers. However, energy giants — such as Santos — are basking in the prospects of beefier profits.

Overnight, the price of crude oil strengthened by 1.7% to reach US$118.87 per barrel. Simultaneously, natural gas prices are holding at a near 14-year high of US$8.83 per metric million British thermal unit (MMBtu).

Though, the company must walk a fine line between taking advantage of high prices and doing what it can to avoid price caps. Australian energy retailers have already suffered the fate of increased regulatory intervention as prices soar beyond the bounds of affordability.

Fortunately for the Santos share price, the company announced yesterday that it would work on increasing the domestic gas supply. In a joint effort alongside Beach Energy Ltd (ASX: BPT), Santos will fork out $300 million to hopefully bring an additional 15 terajoules per day of gas to the market by the end of the year.

Santos CEO Kevin Gallagher commented on the move:

This investment will deliver more gas to the domestic market, which is desperately needed. Recent domestic gas supply and price pressures have been caused by a spike in gas-fired power generation to back up renewables and to replace the 30% or more of coal-fired power generation that has been offline or not operating since early May.

The Santos share price has substantially outperformed the ASX index since the beginning of the year. Shares in the oil and gas giant are 29.6% better off than at the end of last year.

The post Why is the Santos share price off to a cracking start to the week? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week
• 3 ASX 200 energy shares smashing multi-year highs on Friday
• 2 more of this broker’s best ASX share ideas for June
• Own Santos shares? Here’s the company’s response to the energy crisis

Motley Fool contributor Mitchell Lawler 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 has plummeted to its lowest point since 2018 this morning, hitting an intraday low of 74.5 cents.

That marks a 5.7% tumble on Friday’s close. Its new multiyear low also represents a near 95% fall on the buy now, pay later (BNPL) share’s all-time high of $14.53, reached in February 2021.

At the time of writing, the Zip share price has ever-so-slightly recovered. The stock is currently swapping hands for 75.5 cents a piece, 4.4% less than it was at its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is also down 0.4% on Monday.

Let’s take a closer look at what’s dragged the Zip share price to its lowest point of the last four years.

Zip share price plunges to 75 cents on Monday

The Zip share price is being bludgeoned on Monday, as is the S&P/ASX 200 Information Technology Index (ASX: XIJ).

While Zip technically doesn’t call the tech sector home — it’s housed on the S&P/ASX 200 Financials Index (ASX: XFJ) — it tends to trade in line with its technology-focused peers.

The tech sector is currently down 1.84% following a tough Friday session on Wall Street.

The tech-heavy Nasdaq Composite plunged 2.47% on Friday, while the S&P 500 slipped 1.63% and the Dow Jones Industrial Average fell 1.05%.

Block Inc (ASX: SQ2) – home of BNPL giant Afterpay – is among the tech sector’s biggest weights today. Its share price is currently down 4.1%.

Meanwhile, shares in payments provider Tyro Payments Ltd (ASX: TYR) have slumped 4.2%.

And today’s struggles have only added to the tech sector’s recent woes. It’s tumbled nearly 34% since the start of 2022 amid rising inflation and resulting interest rate hikes.

At the same time, the financials sector is outperforming the ASX 200. It has fallen nearly 2.4% in 2022 while the ASX 200 has slumped 5.2%.

At today’s intraday low, the Zip share price was down approximately 83% year to date. It was also 89% lower than it was this time last year.

The post Zip share price dips to yet another 4-year low on Monday appeared first on The Motley Fool Australia.

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• The carnage continues: Why the Zip share price has hit 7 multi-year lows in a month
• Why Nanosonics, REA, Sayona Mining, and Zip shares are dropping
• Why is the Zip share price sinking yet again on Thursday?
• Is this a ‘fundamental flaw’ with ASX BNPL shares like Zip
• Why Allkem, Origin, PointsBet, and Zip shares are sinking today

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 positions in and has recommended Block, Inc., Tyro Payments, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Tyro Payments. 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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Woodside Energy Group Ltd (ASX: WDS) shares or Whitehaven Coal Ltd (ASX: WHC) shares, which is the best value opportunity?

We’ll get to that in a tick.

First, a spot of recent history.

Both of the S&P/ASX 200 Index (ASX: XJO) energy companies have been making hay over the past 18 months, as energy prices have rocketed from their post pandemic lows.

Here’s what we mean.

In October 2020, Brent crude oil was trading right around US$40 per barrel. As the world began to reopen over the following months, growing demand met with sticky supply following years of shortcomings in new exploration and project development.

Add in energy-rich Russia’s invasion of Ukraine, and today that same barrel of Brent crude is trading for just over US$121, while coal prices are fetching near all-time highs.

How have Whitehaven and Woodside shares performed?

Since 2 October 2020, the ASX 200 has gained a very healthy 25%.

In line with rocketing energy prices, the S&P/ASX 200 Energy Index (ASX: XEJ) has almost tripled that return, up 73%.

Woodside shares have outpaced the energy index benchmark, gaining 89% over that same period. At the current price, Woodside shares pay a 5.9% trailing dividend yield, fully franked. The energy giant now has market cap of $60.4 billion following its recent successful merger with the oil and gas assets of BHP Group Ltd (ASX: BHP).

The Whitehaven share price has stormed ahead even faster, up a whopping 415% since 2 October 2020. At the current price, Whitehaven has a market cap of $5.5 billion and pays a 1.5% trailing dividend yield, unfranked.

Following that strong run, which is the best value opportunity?

Getting back to our headline question, after a tremendous 18 months, do Woodside shares or Whitehaven shares present the better value play?

For some insight into that question, we defer to Philipp Hofflin, portfolio manager at Lazard Asset Management.

Hofflin saw that opportunity in the beaten down ASX energy shares in October 2020 and began adding them to Lazard’s holdings.

Speaking to Livewire, Hofflin explained, “What attracted us to the sector 18 months ago was a combination of the very low prices and the fact that there was just no CAPEX around the world in energy.”

Modern renewables “are only at 6% of global supply, and they aren’t able to fill the hole that is left by the much larger declines on the fossil fuel side at the moment,” he said.

The natural depletion rate for oil and gas is around 5% to 7%. “So, if you don’t invest, then you don’t have replacement projects for the ones that run off and your supply actually starts to fall.”

With that thesis in mind, Hofflin was comfortable buying Whitehaven and Woodside shares 18 months ago when many investors wouldn’t touch them.

The case for Whitehaven Coal

Explaining why Whitehaven Coal still remains an attractive play, although Lazard has sold off a large part of its holdings, Hofflin said:

In the case of Whitehaven, the current ex-Newcastle high CV thermal coal price is over $400 US. At those sorts of prices, Whitehaven has a free cash flow that is about equivalent to its market cap, over 12 months. So, free cash flow is at a level of 100%.

Looking ahead, however, he cautions, “At the same time, we know that these extraordinary prices are not going to last… The risk-return profile for something like Whitehaven isn’t as good as it was” 18 months ago.

“On one hand, we have the fact that commodity prices will fall, and on the other hand, there will be enormous cash flows.”

Woodside shares come out on top with fortress balance sheet

For the best value play Woodside shares come out on top.

“The numbers aren’t perhaps quite as dramatic,” Hofflin said. “But Woodside too is on a 33% spot free cash flow yield today.”

Hofflin continued:

The astonishing thing about Woodside is that you can buy it today at 20% less than it was pre-COVID. Yet it has done a deal with BHP Petroleum, that is currently delivering phenomenal earnings. The Asian gas price is off at $30 for a million British thermal units – it’s an extraordinary price. The cash flow is enormous. They have a fortress balance sheet because they did this deal entirely with equity.

Comparing Woodside shares today with Whitehaven’s, Hofflin said, “Whitehaven is a risky stock… On the other hand, Woodside, which has a sort of breakeven cost of production of just a bit over $10 a barrel, in a world where the oil price is $110, it’s a pretty safe value opportunity.”

Happy investing!

The post Woodside shares or Whitehaven? What’s the best ASX 200 value play? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 3 ASX 200 energy shares smashing multi-year highs on Friday
• Woodside share price edges lower following NYSE debut
• 5 things to watch on the ASX 200 on Friday
• Why Bubs, IGO, Strike Energy, and Woodside shares are pushing higher

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 National Australia Bank Ltd (ASX: NAB) share price is lower on Monday following an announcement from the banking giant.

At the time of writing, NAB shares are down 1% to $30.97.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is also down 0.44% to 7,207 points.

What did NAB update the ASX with?

According to its announcement, NAB has launched its capital notes 6 offer to syndicate brokers and institutional investors. A capital note is a way for banks to raise money from investors.

The company has allocated around $1 billion, with an expected margin in the range of 3.15% to 3.35% per annum. However, the total amount to be raised will depend on the amount and value of applications received.

The face value is set at $100 per capital note 6, with a minimum investment of $5,000.

Furthermore, the distribution rate [(bank bill rate + margin) x (tax rate)] will be calculated on a quarterly basis.

Unless exchanged earlier, the notes will convert into a variable number of NAB ordinary shares on 17 September 2032.

The capital notes 6 are being issued as part of NAB’s ongoing funding and capital management strategy. Proceeds are expected to be allocated towards general corporate and funding purposes.

The closing date for the capital 6 notes is on 30 June 2022. Settlement is due to take place on 7 July with the notes trading the following day.

About the NAB share price

Over the last 12 months, NAB shares have gained 12% despite short-term volatility swings on the ASX.

The company’s share price is up more than 7% year-to-date.

When looking at valuation terms, NAB commands a market capitalisation of roughly $100 billion with 3.2 billion shares on issue.

The post NAB share price backtracks amid $1 billion capital raise appeared first on The Motley Fool Australia.

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• What’s the outlook for the NAB share price in June?
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• ASX 200 midday update: NAB completes acquisition, lithium miners sink, Origin tumbles

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 Block Inc (ASX: SQ2) share price has started the week deep in the red.

In morning trade, the payments giant’s shares are down 5.5% to $113.21.

Why is the Block share price tumbling?

The main catalyst for the weakness in the Block share price today has been a poor night of trade for its NYSE listed shares on Friday.

Given how Block’s Australian shares are inextricably tied to its NYSE shares and move in tow with them, a poor night on Wall Street will almost always lead to an equally poor day on the ASX boards.

So, with the US tech sector and Block taking a tumble on Friday night after the bear market rally ran out of steam, today’s decline was inevitable.

Not helping matters is news that the payments giant’s shares will soon be kicked out of the exclusive ASX 50 index.

On Friday, S&P Dow Jones Indices announced that Block would be removed on 20 June when the index rebalances. It will be replaced in the ASX 50 club by mining and mining services company Mineral Resources Limited (ASX: MIN) from that date.

Where next for the company’s shares?

While the market may not be too enamoured with the Block share price right now, one leading broker sees plenty of upside.

A recent note out of Macquarie reveals that its analysts have an outperform rating and $180.00 price target on the company’s shares.

Though, as mentioned above, whether the Block share price reaches that level will depend entirely on where its NYSE listed shares go over the next 12 months.

Shareholders will no doubt be hoping that investors on Wall Street become as bullish as those at Macquarie in the near future.

The post Why is the Block share price tanking 5% on Monday? appeared first on The Motley Fool Australia.

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• These are the 10 most shorted ASX shares
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• Why are ASX 200 tech shares having such a cracking Friday?
• Why is the Block share price tumbling 4% on Thursday?
• Here are the top 10 ASX shares 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 positions in and has recommended Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Macquarie 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 Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has fallen almost 10% since the end of April 2022.

ANZ shares started falling since the release of the FY22 first half result on May 4.

In that report, the company revealed that statutory net profit after tax (NPAT) rose by 10% to $3.53 billion.

However, profit before credit impairments and tax fell 7% to $4.16 billion. Profit before credit impairments, tax and notable items dropped 10%. In other words, the underlying performance of the business went backwards.

But, could things be about to turn around for the business?

Broker ratings on the ANZ share price

ANZ is rated as a buy by the broker Citi, with a price target of $30.75. That implies a possible 20% rise over the next year for the ANZ share price.

One of the reasons for the positivity is that a higher proportion of mortgages are variable loans, which should help the net interest margin (NIM).

On Citi’s numbers, the ANZ share price is valued at 12 times FY22’s estimated earnings and 11 times FY23’s estimated earnings.

Ord Minnett is another broker which rates it as a buy. The price target is $28.30, which implies a possible rise of 13%.

While the brokers have given price targets for the next 12-months, it’s impossible to know where a share price will go over the next week or month, let alone a year. Analysts are just giving a rating and a guess of where the ANZ share price will be sitting.

ANZ dividend yield

Some investors may be tempted by the dividend yield on offer from ANZ. It can play an important part in the total returns of the business. The franking credits may also be a welcome bonus for some investors focused on income.

But how large is the dividend going to be in the coming periods?

Citi has a dividend estimate which, at the current ANZ share price, equates to a grossed-up dividend yield of 8.4% in FY22 and 9.7% in FY23.

Ord Minnett also has a dividend estimate for ANZ. The FY22 grossed-up dividend yield is expected to be 8% and the FY23 grossed-up dividend yield is expected to be 8.7%.

ANZ share price snapshot

Since the beginning of 2022, the ANZ share price has fallen by just over 10%. It’s also down 13% over the past year and 9.7% over the last five years.

The post What’s the outlook for the ANZ share price in June? appeared first on The Motley Fool Australia.

More reading

• Experts name the ASX 200 dividend shares to buy with big fully franked yields
• What’s dragging on ASX 200 bank shares like NAB on Thursday?
• May wasn’t kind to the ANZ share price. Here’s what happened
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You may be curious as to why the WAM Capital Limited (ASX: WAM) share price is heading south today.

During early morning trade, the investment company’s shares are down 4.79% to $1.99.

Shareholders lock in the WAM interim dividend

While the S&P/ASX 200 Index (ASX: XJO) is also treading lower today, the WAM share price is trading ex-dividend.

This follows the release of the company’s half-year result in February, reporting growth across key financial metrics.

Despite registering a robust scorecard, the board opted to maintain its upcoming interim dividend over the prior corresponding period.

Typically, one business day before the record date, the ex-dividend date, is when investors must have purchased shares. If the investor buys WAM shares after this date, the dividend will go to the seller.

When can shareholders expect to be paid?

For those eligible for WAM’s interim dividend, shareholders will receive a payment of 7.75 cents per share on 17 June. The dividend is fully franked at a corporate tax rate of 30%, which means investors will receive tax credits.

In addition, investors can elect for the dividend reinvestment plan (DRP) which will add a portion of shares to their portfolio instead, based on a 10-day volume-weighted average price.

There is a 2.5% DRP discount rate and the last election date for shareholders to opt in is 9 June.

WAM share price summary

Since the beginning of 2022, WAM shares have lost 10% on the back of weakened investor sentiment.

For context, the ASX 200 benchmark index is down around 3% over the same timeframe.

It’s worth noting that the company’s shares reached a 52-week low of $1.98 today.

Based on today’s price, WAM commands a market capitalisation of roughly $2.26 billion and has a trailing dividend yield of 7.67%.

The post Why is the WAM Capital share price sliding today? 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 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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