The S&P/ASX 200 Index (ASX: XJO) delivered robust gains recently but there’s one ASX sector that’s being left behind – although the tide could be turning.

This group of ASX shares are industrial equipment rental companies and their shares haven’t been invited to the party.

The ASX sector that’s the underdog in this bull market

For instance, the Seven Group Holdings Ltd (ASX: SVW) share price has fallen 7.4% over the past year.

The Emeco Holdings Limited (ASX: EHL) share price and NRW Holdings Limited (ASX: NWH) share price have also fallen behind with an 11% drop and 2% gain, respectively, over the year.

In contrast, the ASX 200 index jumped 9% over the period, thanks in large part to surging commodity prices.

Turnaround could be in the wings

But there might be too much pessimism in this ASX sector. The latest report from UBS on a “fireside chat” with the chief executive of Orange Hire, Greg Parfitt, highlights the sector’s strong outlook.

Orange Hire is an Australian private company operating in the infrastructure and equipment hire markets. It owns a fleet valued at around $110 million across the east coast of the country.

Best conditions in 30 years

There were four key takeaways that UBS got from the interview. The first is the accelerating utilisation rate for Orange Hire’s equipment which now stands in the low 70% from mid 50% in the December half. The improvement comes despite adverse weather disruptions.

There is also a rebound in tendering activity for equipment hire. Demand is strong across key construction sectors, like infrastructure, housing, mining and renewables.

“Greg noted these are the most favourable conditions he has seen in over 30yrs in the equipment hire industry,” said UBS.

Pricing power meets bullish outlook

The surge in demand comes at the right time for the sector too, which like the rest of the economy, is facing rising costs.

“The strong demand backdrop is supporting a favourable pricing environment with Orange Hire having successfully pushed through two c.3% price increases in FY22, with another planned within the next 3mths,” added the broker.

Just as importantly, the outlook for the sector is positive for FY23. Parfitt is expecting equipment hire sales growth to hit at least double digits. The growth is driven by the strong civil construction tendering environment, as well as price increases.

The ASX share that is best placed to benefit from this thematic is Seven Group, according to UBS. The group owns Coats Hire, Australia’s largest equipment rental firm, and WestTrac, which is a Caterpillar equipment dealer.

The post This lagging ASX sector could be next to outperform appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau owns Emeco Holdings Limited and Seven Group Holdings 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 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 Bruce Jackson.

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Shares in Kogan.com Ltd (ASX: KGN) are tracking lower today and now trade 3.45% in the red at $5.60.

Trading has been thin for Kogan shares today and the order book is stacked towards sell orders, per Bloomberg trade data. The company’s share price slumped from the open and has been bottom heavy since.

What’s up with Kogan shares?

Kogan had shown signs of life these past few weeks with a short-lived rally to roll into the new month. Gains extended after the federal budget, but have since pared and quietened down again.

However, most of the upside is underscored by strengths in the wider tech sector. The S&P/ASX All Technology Index (ASX: XTX) has climbed 7% this past month after coming off a hot period.

It is still yet to overcome a 16% loss incurred so far in 2022, despite the revival.

The tech sector is down today as the market re-evaluates a number of macroeconomic crosscurrents that are feeding into investment returns.

Nevertheless, tech shares have softened and there’s been a wind-down of exposure to frothy sectors like commodities and healthcare in the last week or so.

Today, tech is the worst-performing sector on the ASX by far with the XTX sliding more than 2% in the red, whilst all other sectors have capped losses at less than 1%.

In the last 12 months Kogan shares have collapsed more than 57% into the red and are down 36% this year to date.

The post What’s the go with the Kogan share price today? appeared first on The Motley Fool Australia.

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• These are the 10 most shorted ASX shares
• Discounted bargain? The Kogan (ASX:KGN) share price is down 3%
• Kogan (ASX:KGN) shares spike another 6% post federal budget
• Up 8% in a month, are Kogan (ASX:KGN) shares staging a comeback rally?
• Sell rating: JB Hi-Fi (ASX:JHB) share price tipped to sink 28%

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. owns and has recommended Kogan.com ltd. The Motley Fool Australia owns and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Crypto investors have come to realise that digital assets aren’t immune from the impacts of rising inflation and the subsequent hikes in interest rates.

Tracking similarly to risk assets like high growth tech shares, most cryptos, including Bitcoin (CRYPTO: BTC), sold off during the first 6 weeks of 2022.

Inflation looks to be enduring rather than transitory

And inflation doesn’t appear to be nearly as transitory as we were told to expect last year. Not even in Australia.

In his media comments yesterday, Reserve Bank of Australia (RBA) governor Philip Lowe said, “Inflation has picked up and a further increase is expected.”

Noting that Australia’s inflation levels remain lower than some nations, Lowe said:

Inflation has increased sharply in many parts of the world. Ongoing supply-side problems, Russia’s invasion of Ukraine and strong demand as economies recover from the pandemic are all contributing to the upward pressure on prices.

With rising prices and interest rates in mind, The Motley Fool reached out to Josh Gilbert, crypto analyst at multi-asset investment platform eToro, and Daniel Sekers, managing director of crypto trading platform YourPortfolio, to find out which crypto they believe will hold up best in an era of higher inflation.

Why this crypto is the most resilient to inflation

“In my view, it has to be Bitcoin,” Gilbert told us.

“The altcoins outside of Bitcoin tend to be more susceptible to rising interest rates, due to lower liquidity within the assets and their higher risk nature.”

Gilbert pointed to Bitcoin’s outperformance over most cryptos this year:

Over the past three months, Bitcoin has demonstrated immense resilience against a number of headwinds, such as rising rates, geopolitical tensions, and recession discussions. A large percentage of the top 30 cryptoassets by market cap is still down by 10-30% year-to-date (YTD), yet Bitcoin is in positive territory climbing above USD$48,000.

With Bitcoin sliding today, it’s now down some 4% year-to-date, but still outperforming most of the top 30 cryptos Gilbert alluded to.

Sekers also tipped his hat to Bitcoin as the crypto currently best positioned to weather rising inflation.

“Not all cryptos are built equally,” he said. “The flavour of the month is Bitcoin with many businesses treating it similar to a gold standard. This is due to a number of factors, but mainly driven by the anti-inflationary aspects of the digital currency.”

Sekers explained:

These include that the supply is controlled (and not by a government) with current mining adding only 1.8% per year to the overall supply. This is further negated by a ‘halving’ event that occurs every 4 years which halves the amount that miners are able to mine.

Lastly there is a cap of 21 million Bitcoin that can ever be mined, which means eventually supply is limited. With these features, Bitcoin seems to be well placed to stand up to rising inflation and interest rates.

Investing in crypto and worried about inflation?

If Sekers and Gilbert have this right, Bitcoin looks well placed to hold up better than the rest.

The post Why this crypto is the most resilient to inflation: experts appeared first on The Motley Fool Australia.

More reading

• Can the Bitcoin price really top US$500,000?
• What’s the outlook for the Bitcoin price in April?
• Why cryptos like Bitcoin are ‘no longer in the fringes’
• Another crypto is buying $13 billion of Bitcoin. Here’s why
• Here’s what moved the Bitcoin price 20% higher in March

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX shares may have to deal with interest rates that go higher than expected. The JPMorgan Chase & Co (NYSE: JPM) CEO Jamie Dimon has warned that interest rates could climb “significantly”.

Jamie Dimon has been in charge of JPMorgan Chase for almost two decades. He steered the bank through the GFC and then COVID-19.

Dimon just released his annual letter and his comments about interest rates may be of interest to investors.

A shift in the economic landscape with interest rates

The JPMorgan Chase CEO wrote that persistent inflation will require rising interest rates and a massive, but necessary, shift from quantitative easing to quantitative tightening.

In the wake of the impacts of COVID-19, the western world, including the US Federal Reserve, took “bold dramatic actions” to combat the impacts of the pandemic. Dimon said that this worked, but the stimulus and quantitative easing may have been too much for too long.

In what could be a warning for the (ASX) share market, Dimon then said:

I do not envy the Fed for what it must do next: The stronger the recovery, the higher the rates that follow (I believe that this could be significantly higher than the markets expect) and the stronger the quantitative tightening (QT).

If the Fed gets it just right, we can have years of growth, and inflation will eventually start to recede. In any event, this process will cause lots of consternation and very volatile markets. The Fed should not worry about volatile markets unless they affect the actual economy. A strong economy trumps market volatility.

So, according to Dimon, share markets could become “very volatile”.

He went on to say:

The shift from QE to QT will cause a massive change in the flow of funds in and out of Treasury bonds and, therefore, all securities. Our situation today is completely unlike the monetary policy adjustments following the great financial crisis of 2008.

Many ASX shares have already fallen

The prospect of higher interest rates to combat fast inflation has been making headlines for a few months now.

Many Australian companies have already seen sizeable double-digit declines in their share prices in 2022.

The Xero Limited (ASX: XRO) share price is down by 28%, the Aristocrat Leisure Limited (ASX: ALL) share price is down 25%, the REA Group Limited (ASX: REA) share price is down 23%, the SEEK Limited (ASX: SEK) share price is down 15%, the Carsales.Com Ltd (ASX: CAR) share price is down 19%, and the Zip Co Ltd (ASX: Z1P) share price has dropped 66%.

There are plenty of other ASX shares that have also seen a noticeable decline.

Why do interest rates matter?

Legendary investor Warren Buffett once said about interest rates at the 1994 Berkshire Hathaway annual general meeting:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature … its intrinsic valuation is 100% sensitive to interest rates.

The post Bank CEO: Interest rates are headed higher than markets are expecting. How could this affect ASX shares? appeared first on The Motley Fool Australia.

More reading

• What’s the go with the Kogan share price today?
• Why this crypto is the most resilient to inflation: experts
• Can the Bitcoin price really top US$500,000?
• These 3 ASX 200 shares are topping the volume charts on Wednesday
• Heard of this ASX battery metals share? It’s skyrocketed 413% this year

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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. owns and has recommended Xero and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Xero. The Motley Fool Australia has recommended REA Group Limited, SEEK Limited, and carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Bitcoin (CRYPTO: BTC) price is down 3% since this time yesterday, currently trading for US$45,378 (AU$59,865).

That gives the world’s original crypto a market cap of US$862 billion.

Despite a strong run in March, which saw the Bitcoin price surge 20% over the month, the token remains down 34% from its 10 November record high of US$68,790.

But those highs may not only be retested but they could also be left in the dust.

That’s according to Anthony Scaramucci, founder of Skybridge Capital and likely best known for his brief stint as the communications director for former United States President Donald Trump.

Can the Bitcoin price really top US$500,000?

Scaramucci, aka the Mooch, addressed the Australian Financial Review Cryptocurrency Summit earlier today.

He had previously forecast that the Bitcoin price would leap to US$100,000, which he admitted hasn’t panned out. At least, not yet. The Mooch said that the global pandemic, Russia’s invasion of Ukraine and US regulators’ failure to approve a cash Bitcoin exchange traded fund (ETF) had been a drag on the crypto world.

However, he said he still believes in the “elasticity of this situation and the likelihood of [Bitcoin] prices heading to a half a million dollars”.

That’s about AU$658,000. It’s also some 1003% higher than the current Bitcoin price.

So why is the Mooch so bullish on the outlook for the world’s biggest crypto?

It comes down to his belief that cryptos are the future of money.

“You want to get in here ahead of the curve. If you’re not long crypto, you’re effectively short it,” he said.

Scarce supply and soaring demand

Scaramucci also pointed out the relative scarcity as likely to support the Bitcoin price. The total number able to be mined is capped at 21 million. 19 million have already been virtually created, with several million lost and likely gone for good.

“We don’t even have enough coins for each millionaire in the world to own one full coin,” he said.

That scarcity comes as demand for cryptos is soaring.

As the AFR noted, 18 months ago there were roughly 80 million digital wallets holding Bitcoin. That number has since ballooned to 247 million.

According to the Mooch, we can expect to see 1 billion digital wallets holding Bitcoin within 2 years.

“Ladies and gentlemen, we’ve reached escape velocity,” he said. “We are just getting started in the world of crypto – imagine where we’ll be in five years.”

If Scaramucci has this one right, in five years we may be in a world where the Bitcoin price has hit US$500,000.

The post Can the Bitcoin price really top US$500,000? appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for the Bitcoin price in April?
• Why cryptos like Bitcoin are ‘no longer in the fringes’
• Another crypto is buying $13 billion of Bitcoin. Here’s why
• Here’s what moved the Bitcoin price 20% higher in March
• Here’s what ESG investors should know about cryptos like Bitcoin

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is slipping from its robust week last week in a day of losses so far. At the time of writing, the ASX 200 has lost 0.47% and is trading at just under 7,500 points. 

But rather than dwelling on that, let’s instead check out the shares topping the ASX 200’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Wednesday

Nickel Mines Ltd (ASX: NIC)

Nickel Mines is our first ASX 200 share to check out today. This nickel miner has had a sizeable 16.6 million shares swap owners on the markets today so far. There’s been no major news out of the company today to speak of. Thus, we can only conclude that this elevated volume is the direct result of the nasty share price fall the company has endured over today’s trading session. Nickel Mines shares are presently down by 5.55% at $1.242 a share.

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Minerals is next up today. The ASX 200 lithium producer is also flying around the markets today, with a notable 23.53 million shares bought and sold thus far. Again, we seem to have a big swing in the share price to thank. And again, it’s a disappointing loss for investors. Pilbara shares are currently down a depressing 5.21% at $3.365 each. No wonder this company is experiencing such high trading volume.

AVZ Minerals Ltd (ASX: AVZ)

Another ASX 200 lithium stock in AVZ is our final and most traded share of the day today. An impressive 41.16 million AVZ shares have changed hands as it currently stands. AVZ released its presentation from a battery minerals conference this morning. But that doesn’t seem to have saved its shares from yet another savage selloff today. This company is staring at a 6.94% loss at $1.14 a share right now. This, possibly in combination with its ASX release this morning, is the probable cause of this elevated share trading volume.

The post These 3 ASX 200 shares are topping the volume charts on Wednesday appeared first on The Motley Fool Australia.

More reading

• A toast! The Endeavour share price just hit an all-time high
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• Is Newcrest Mining considered a defensive ASX share?
• ASX 200 (ASX:XJO) midday update: Block and Zip sink, Paladin Energy raises $200m
• Hoping to pocket the ARB Corporation dividend? Read this

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 Bruce Jackson.

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Shares in the perhaps lesser-known minerals explorer Belararox Ltd (ASX: BRX) are surging 44.37% higher today and now trade at $1.025.

The gains extend a busy period for the company, where its share price has spiked 47% in the past month.

Belararox is a mineral explorer focused on securing and developing resources to meet the surge in demand from the technology, battery and renewable energy markets, according to its website.

The company first listed back in January and since then its share price has skyrocketed from 21 cents to its current levels, securing large gains for early investors.

Its projects currently span to include the potential for zinc, copper, gold, silver, nickel and lead resources, per the company.

It trades on a fully-diluted market cap of $29.04 million at the time of writing and doesn’t pay a dividend.

What’s behind Belararox shares lately?

Investors piled into Belararox after it announced potentially new mapped targets at its Belara project last month.

The project is set to be an asset producing copper, lead, zinc, silver and gold for the company if and when all drilling and testing outcomes are finalised.

Additional findings support the potential for additional sulphide mineralisation at further sections along the project’s belly.

Following the announcement, there was an all out war between the bulls and the bears. After spiking hard to a high of $1.45, shares soon cooled off and returned to rest within the longer-term uptrend.

Investors weren’t as galvanised when the company followed up with another announcement on 30 March noting that a gravity survey had confirmed the results above.

In fact, in the days following, there’s been a correction in the Belararox share price. Nevertheless, the company is back in favour today and has printed a 44% gain.

Since listing earlier this year, the Belararox share price has soared 413% into the green, much to the delight of initial shareholders.

The post Heard of this ASX battery metals share? It’s skyrocketed 413% this year appeared first on The Motley Fool Australia.

More reading

• This ASX battery metals share has been taking investors on a wild ride of supercharged gains and falls. Here’s why

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 Bruce Jackson.

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The Washington H Soul Pattinson & Co Ltd (ASX: SOL) share price has surged in the past three weeks.

Since 16 March, shares in the investment house have gained around 13%, making it one of the best performers across the sector.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has increased by 5.2% across the same time frame.

At the time of writing, Soul Patts shares are swapping hands for $28.56, down 0.17%.

What’s driving the Soul Patts share price higher?

After hitting a 52-week low of $24.76 in mid-March, the Soul Patts share price has continued to climb.

It seems investors believed the company’s shares were trading at bargain prices back then.

As such, from 17 March to 29 March, Soul Patts shares registered nine consecutive trading days of gains.

To put that into perspective, its shares rose from $25.15 (at close of trade on 16 March) to $28.60 (at close of trade on 29 March).

Supporting the share price ascent, the company released its half-year results for the 2022 financial year on 24 March.

In summary, Soul Patts reported strong numbers despite its statutory net profit after tax (NPAT) recording a loss of $643 million.

The biggest win for shareholders came from the board’s decision to increase the interim dividend by 11% to 29 cents. This reflected one of the highest first-half dividends in the history of Soul Patts.

On the day the results were released, Soul Patts shares lifted 2.19% to $27.59, and 3.12% to $28.45 on the following day.

In addition, management hinted at a rosy outlook for the company regardless of the COVID-19 pandemic and the war in Ukraine.

The group noted it has ample firepower on its balance sheet to purchase attractive investments during market downturns.

The post Why has the Washington H. Soul Pattinson share price leapt 13% in 3 weeks? appeared first on The Motley Fool Australia.

More reading

• These are 2 of the most diversified ASX 200 shares
• Here’s why Motley Fool analyst Ed Vesely loves this old-school ASX dividend share
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• Are these 2 ASX dividend shares top buys for income in April?
• Why APM, Firefinch, Rio Tinto, and Soul Patts shares are charging higher today

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. owns and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) isn’t having the best day today. At the time of writing, the ASX 200 is down by 0.59% at just under 7,500 points.

That has naturally resulted in many ASX 200 shares also posting losses so far today. But no one seems to have told the Endeavour Group Ltd (ASX: EDV) share price.

Endeavour shares are currently up a healthy 1.33% at $7.59 each. What’s more, this company hit a new all-time high of $7.61 share soon after lunchtime.

Now an all-time high, in this case, isn’t as impressive as it might be for some other ASX shares. That’s because Endeavour has only been on the ASX since June of last year, following its spin-off out of Woolworths Group Ltd (ASX: WOW). But still, it’s a happy day for shareholders, to be sure.

Today’s gains put the Endeavour share price up 11.8% in 2022 and by 26% over the past 12 months. Since its first day of ASX trading, the company has given investors a return of just over 24%.

Why have Endeavour shares just hit a new record high?

So why are Endeavour shares powering ahead today? Well, it’s not entirely clear. There hasn’t been any recent news or announcements that easily explain this new record high.

However, investors may be flocking to this drinks company following some recent love from ASX brokers.

As my Fool colleague James covered last week, broker Goldman Sachs named Endeavour as a winner out of the recent federal budget. It even included the company on its conviction buy list, with a 12-month share price target of $8. That implies a further upside of almost 6% over the next 12 months.

Goldman is bullish on Endeavour over the company’s “consumer assets and depth of [customer] loyalty, as well as more advanced digital transformation”. It also reckons that Endeavour is a good defensive play due to its inflation-resistant business model and reliance on local supply chains.

So perhaps investors are taking Goldman at its word today.

At the current Endeavour share price, this ASX 200 consumer staples share has a market capitalisation of $13.59 billion, with a dividend yield of 3.3%.

The post A toast! The Endeavour share price just hit an all-time high appeared first on The Motley Fool Australia.

More reading

• Magellan share price sinks again, down 6%
• Is Newcrest Mining considered a defensive ASX share?
• ASX 200 (ASX:XJO) midday update: Block and Zip sink, Paladin Energy raises $200m
• Hoping to pocket the ARB Corporation dividend? Read this
• The EML share price jumped 25% in March 2022. What happened?

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 Bruce Jackson.

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The Magellan Financial Group Ltd (ASX: MFG) share price is currently down by 6.5%.

What’s happening to the Magellan share price?

The fund’s management business hasn’t released any announcements today. Looking at the ASX share market, the S&P/ASX 200 Index (ASX: XJO) is down by 0.51% at the time of writing.

As a funds management business, two of the leading influencers on the company’s funds under management (FUM) are market movements and fund flows.

Overnight, there was a decline in the global tech share names, including some of the biggest positions in the Magellan global equity portfolios.

For example, the Microsoft Corporation (NASDAQ: MSFT) share price fell 1.3%. The Alphabet Inc Class A (NASDAQ: GOOGL) share price dropped 1.7%.

In the last few months, the Magellan share price has also suffered as FUM inflows turned into outflows.

FUM declines

The latest fall of FUM that investors have seen was the update on 14 March 2022. The company said that as of 11 March 2022, it had FUM of approximately $69.1 billion. That compares to $93.5 billion on 31 January 2022.

Magellan explained that the decline in FUM comprised market movements (including foreign exchange and reflecting market volatility), net outflows and notifications of intention to redeem since the recent update on 25 February 2022.

Since 25 February 2022, Magellan has experienced net outflows of approximately $5 billion. That comprises $4.7 billion of net institutional outflows and retail net outflows of $300 million. Since 25 February 2022, Magellan has received notifications of intention to redeem $1 billion, which has been reflected in the above FUM figures.

Is the Magellan share price going to turn around?

Morgans, one of the brokers most optimistic about the fund manager, has a hold rating with a price target of $16.73. Despite increasing its profit expectations a little for the near term, the broker thinks Magellan will continue to see sizeable FUM exit the business.

One of the most negative brokers is Morgan Stanley, which has a price target of $12 on the business. It warns that more FUM loss will result in reduced profitability of the company because of the lost operating leverage.

The post Magellan share price sinks again, down 6% appeared first on The Motley Fool Australia.

More reading

• A toast! The Endeavour share price just hit an all-time high
• Is Newcrest Mining considered a defensive ASX share?
• ASX 200 (ASX:XJO) midday update: Block and Zip sink, Paladin Energy raises $200m
• Hoping to pocket the ARB Corporation dividend? Read this
• The EML share price jumped 25% in March 2022. What happened?

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison owns Magellan Financial Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alphabet (A shares) and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares). The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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