It’s been a rollercoaster week so far for the Block Inc CDI (ASX: SQ2) – formerly named Square – share price, and today is no different.

After gaining around 9.2% on Monday, the payment services provider’s stock tumbled 5.1% on Tuesday.

It turned its slip around on Wednesday to gain another 7.49%. Unfortunately, it’s handing back much of that today.

At the time of writing, the Block share price is $183.19, 2.61% lower than its previous close.

However, at its intraday low of $179.29, the Block share price was recording a 4.68% drop.

So, what’s weighing the company’s stock down today? Let’s take a look.

Why is the Block share price in the red on Thursday?

Block’s stock is suffering alongside many of its S&P/ASX 200 Index (ASX: XJO) peers.

The S&P/ASX Information Technology Index (ASX: XIJ) is the worst-performing ASX 200 sector today, having slipped 1.03%. Meanwhile, the S&P/ASX All Technology Index (ASX: XTX) is down 0.96%.

And while the sector struggles, Block is proving to be one of its biggest weights.

Its dip is only surpassed by the share prices of Life360 Inc (ASX: 360) and Megaport Ltd (ASX: MP1). They’ve fallen 2.74% and 2.61% at the time of writing.

On the opposite end of the spectrum, the EML Payments Ltd (ASX: EML) share price is the sector’s best performer, having gained 3.07%. Meanwhile, that of TechnologyOne Ltd (ASX: TNE) is up 0.48%.

Computershare Limited (ASX: CPU) stock is also in the green, having gained 0.08%.

And for comparison’s sake, given Block is the owner of former market-darling Afterpay, the Zip Co Ltd (ASX: Z1P) share price is suffering today.

It has fallen 6.08% at the time of writing despite no news released by the buy now, pay later company.

The Block share price’s slide comes after its New York listing tumbled 4.5% overnight.

The NASDAQ Index also suffered in yesterday’s session, slipping 1.32%.

The post Back to square one? Block (ASX:SQ2) share price gives back half of yesterday’s gains appeared first on The Motley Fool Australia.

More reading

• 3 beaten-down technology ASX shares to buy right now: expert
• Why is the Block (ASX:SQ2) share price going gangbusters today?
• Why Block, Calix, Carnarvon, and Imugene shares are racing higher
• Leading the pack! ASX tech shares storm higher on Wednesday
• ASX 200 (ASX:XJO) midday update: Block and Zip jump, Fisher & Paykel Healthcare sinks

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. owns and has recommended Block, Inc., EML Payments, Life360, Inc., MEGAPORT FPO, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Block, Inc. and EML Payments. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in Suncorp Group Ltd (ASX: SUN) are edging lower on Thursday to now trade at $11.18 apiece in afternoon trade.

ASX financials have strengthened in 2022 and Suncorp is no exception. It has risen around 1% in that time, having surfed its way through a wavy run in that time.

Still, Suncorp is lagging the broader sector, with the The S&P/ASX 200 Financials index (XFJ) spiking harder than both names this year to date.

What are brokers saying about Suncorp?

Analysts at JP Morgan are neutral on the stock and value Suncorp at $13.30 per share in a note last week.

The firm refers to a recent update from Suncorp advising its assessment of the East Cost floods that occurred in the rollover fro February–March.

“Whilst [Suncorp] say perils and reinsurance allowances may increase for FY23, they [Suncorp] say there is upside expected on interest rates vs original expectations that offsets this,” the broker said.

“Uncertainty remains still on scope creep from the government’s cyclone pool that could affect how flood risks are dealt with in the future”.

Even though the broker says Suncorp appears to be in a “consolidation phase”, where margins are likely to benefit in FY22, it is still cautious due to headwinds in the bank’s personal lines business.

“We note, however, thatthe Australian personal lines business still faces challenges around achieving unit and price growth,” its analysts remarked.

“We think the bank is also operating in a challenging and competitive environment that will place pressure on its NIM [net interest margin] over the short and medium term,” it added.

“We are still of the view that SUN’s medium-term insurance margin and bank cost-to-income targets remain ambitious”.

Meanwhile, analysts at Citi reckon that Suncorp’s underlying business should improve, especially if interest rates rise to offset insurance-related costs.

Even though it trimmed FY22 EPS forecasts by roughly 2% in a recent note, it still remained firm on FY23 projections and retained its buy rating with a $13.60 price target.

Macquarie values the bank at $15 per share, whereas Morgan Stanley agreed with Citi, in that it likes the bank’s underlying business growth.

It too values Suncorp at $13.14 per share, slightly off consensus of $13.32 according to Bloomberg data.

Will the price performance change? Well, according to these brokers, it could do. But 25% of analysts covering the stock still have it as a hold right now, whilst 75% remain bullish, according to Bloomberg.

In the last 12 months, Suncorp shares have walked 12% higher and are now 1% in the green this year to date. Over the past month however, shares have slipped and are now 4% in the red.

The post The Suncorp (ASX:SUN) share price has struggled in 2022. Could this be set to change? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Magellan jumps on buyback news, travel shares take off
• Suncorp (ASX:SUN) share price dips amid rising flood claims
• ‘$2 billion cost’: How are the floods impacting ASX 200 insurance shares this week?
• Why Betmakers, Fortescue, Suncorp, and Tyro shares are falling
• Here’s why the Suncorp (ASX:SUN) share price is slipping today

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

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Are you interested in making some long term investments in ASX growth shares? If you are, you may want to look at the two listed below that have recently been named as buys.

Here’s what you need to know about these ASX growth shares:

Adore Beauty Group Limited (ASX: ABY)

The first ASX growth share to look at is Adore Beauty. It is an integrated content, marketing and e-commerce retail platform that partners with a broad and diverse portfolio of approximately 270 brands and 11,700 products.

Adore Beauty has been growing at a strong rate over the last decade and continued during the first half of FY 2022. The company reported a 18% increase in revenue to $113.1 million and a 13% lift in active customers to 876,000. It also reported a 5% improvement in annual revenue per active customer to $224, which equates to an annual run rate of $196.2 million.

This is still only a very small slice of the Australian beauty and personal care (BPC) market, which is currently estimated to be worth $11.2 billion. So, as more sales shift online, Adore Beauty appears well-placed for growth in this niche but lucrative market.

The team at Shaw and Partners is very positive on Adore Beauty’s future. The broker currently has a buy rating and $3.50 price target on its shares.

Webjet Limited (ASX: WEB)

Another growth share for investors to look at is online travel agent, Webjet.

For obvious reasons, it has been hit incredibly hard by the pandemic. But it is worth remembering that so were its competitors, with many not faring anywhere near as well as Webjet.

Goldman Sachs is very positive on the company’s future. It believes Webjet will come out stronger on the other side of the pandemic with growth potential both in the B2B and B2C spaces. And while the pandemic isn’t over just yet, Goldman highlights that Webjet has the balance sheet capacity to ride out the storm until late 2023 on zero activity.

Not that it expects this to be necessary. Goldman is forecasting a return to profit in FY 2023, with dividends even recommencing with its final dividend of that financial year.

In light of this, the broker believes investors should be buying its shares now with a long term view. Goldman currently has a buy rating and $6.90 price target on Webjet’s shares.

The post Analysts name 2 excellent ASX growth shares to buy and hold appeared first on The Motley Fool Australia.

More reading

• Why has March been such a lousy month for the Webjet (ASX:WEB) share price?
• Why has the Webjet (ASX:WEB) share price surged 9% in two weeks?
• 2 retailer ASX shares ready to make you rich: experts
• These are the 10 most shorted ASX shares
• Goldman Sachs tips Webjet (ASX:WEB) share price to rise over 20%

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 recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited and Webjet 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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It is another painful day for the Zip Co Ltd (ASX: Z1P) share price. It is down by another 7%, meaning it’s close to the price last seen in the March 2020 ASX share market crash when it went under $1.30.

Long-term Zip shareholders may not want to read the following two sentences. Over the last six months, the Zip share price has fallen almost 80%. In the 2022 year to date, Zip shares are down 64%.

What’s happening to the Zip share price?

The buy now, pay later (BNPL) business has seen a significant sell-off as investors reassess the growth and profit potential of the company.

Rampant inflation in the US is causing the US Federal Reserve to reassess how much it needs to increase the interest rate in 2022.

The boss of the Federal Reserve, Jerome Powell, recently spoke of how the Fed could raise rates by more than 25 basis points next month:

The labor market is very strong, and inflation is much too high.

We will take the necessary steps to ensure a return to price stability. In particular, if we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting, or meetings, we will do so. And if we determine that we need to tighten beyond common measures of neutral and into a more restrictive stance, we will do that as well.

Zip is planning to buy BNPL competitor Sezzle Inc (ASX: SZL). Sezzle has seen its share price drop 78% over the past six months.

The broker UBS thinks that it is going to take even longer for Zip to reach cash flow breakeven and that the business will be less profitable than previously expected. UBS has a Zip share price target of just $1.

Warning of lower cash profitability

Zip told investors in its FY22 half-year result that its unit economics were suffering.

During the six months to December 2021, Zip said that the cash transaction margin declined to 2.1%, down from 3.7%. The lower margin was due to rising bad debt costs with the current credit headwinds as well as an increased weighting towards the rest of the world.

How is Zip tackling this? It is addressing its risk decisioning policies and collections and recoveries processes to manage the credit performance immediately. Management also said that it’s well funded with available financing to support its global growth plans.

Zip share price snapshot

In the past year, the Zip share price has fallen 81%. According to the ASX, its market capitalisation has almost fallen below $1 billion.

The post The Zip share price is down 7%, close to March 2020 lows appeared first on The Motley Fool Australia.

More reading

• Why Aurelia Metals, Janus Henderson, ResMed, and Zip shares are dropping
• ASX 200 (ASX:XJO) midday update: Brickworks impresses, Uniti confirms takeover approach
• Why is the Zip share price getting smashed so much more than other BNPL stocks in 2022?
• Leading the pack! ASX tech shares storm higher on Wednesday
• ASX 200 (ASX:XJO) midday update: Block and Zip jump, Fisher & Paykel Healthcare sinks

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 ZIPCOLTD 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 Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is having another positive, if bouncy, day of trading on the markets today. At the time of writing, the ASX 200 is up by a tentative 0.13% at just under 7,400 points.

But let’s dive deeper into these market moves and take a glance at the companies that are currently at the top of the ASX 200’s share trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Thursday

Nickel Mines Ltd (ASX: NIC)

Nickel Mines is our first ASX 200 share up this Thursday. This nickel miner has had a substantial 15.75 million of its shares trade on the share market thus far. There’s not much to report on out of the company itself. however, Nickel Mines shares have suffered some volatility today and are currently down by a noticeable 2.21% at $1.31 a share at the present time. It’s probably these two factors that are responsible for this elevated trading volume that we are seeing. 

Whitehaven Coal Ltd (ASX: WHC)

Coal miner Whitehaven is next up today. This ASX 200 resources company has had a notable 16.25 million shares change owners so far this Thursday. Not only has Whitehaven been buying back its own shares of late, which would boost trading volumes in itself. But the company is also having a stellar day of performance today. Whitehaven shares are currently up an impressive 5.18% at $4.136 a share, just a whisker off of the new 52-week high of $4.41 that we saw earlier today. It’s this combination that is almost certainly responsible for this high trading volume. 

AVZ Minerals Ltd (ASX: AVZ)

Our final and most traded ASX 200 share for today thus far goes to lithium hopeful AVZ Minerals. An eye-catching 34.66 million AVZ shares have found their way around the markets at the current time. Like Whitehaven, AVZ has had both a pleasing share price gain today, as well as a new 52-week high. AVZ shares are presently up a whopping 7.3% at $1.10 a share after hitting a new high watermark of $1.14 a share earlier this afternoon. Again, it’s probably this combination that has resulted in AVZ Minerals topping the ASX 200’s volume charts as it currently stands. 

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

More reading

• 5 ASX mining shares smashing 52-week highs today
• The AVZ Minerals (ASX:AVZ) share price has boomed a whopping 36% in a week. What’s the deal?
• Top broker tips Nickel Mines (ASX:NIC) share price to rise 40%
• Is the Appen (ASX:APX) share price on the comeback trail?
• ASX 200 (ASX:XJO) midday update: Brickworks impresses, Uniti confirms takeover approach

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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If you own Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares, you own part of the first Australian bank to launch – and transact with – its own cryptocurrency.

The stablecoin created by ANZ is called A$DC and is pegged to the Aussie dollar. That means it won’t be subject to the wild volatility experienced by most cryptos, including Bitcoin (CRYPTO: BTC), the world’s first.

What are stablecoins?

Not all ANZ shareholders will be familiar with stablecoins.

In a nutshell, they’re a type of crypto that, if they behave as intended, closely mirror the value of a fiat currency they’re linked with. Or potentially a basket of fiat currencies.

Stablecoins are valued not for their potential to make crypto investors outsized gains, but rather for their stability. Crypto investors might use them to invest in Bitcoin, Ethereum (CRYPTO: ETH), or any of the wide range of altcoins in virtual circulation, as well as non-fungible tokens (NFTs).

Stablecoins, as we’ll see with ANZ’s maiden transaction below, can also be used to send large amounts of money internationally quickly, and at very low costs.

The third biggest crypto by market cap is in fact a stablecoin. Tether (CRYPTO: USDT) is closely aligned to the US dollar and has a total market valuation of US$80.9 billion.

There’s also rival stablecoin USD Coin (CRYPTO: USD), which ranks as the fifth-largest crypto in virtual existence with a market valuation of US$52.6 billion.

Own ANZ shares? Here’s why the bank launched its own crypto

Commenting on ANZ’s decision to launch its own crypto, Nigel Dobson, banking services portfolio lead at ANZ, said (quoted by The Australian Financial Review): “We anticipate the digital asset economy will accelerate and a foundational element will be a digital Aussie dollar.”

According to Dobson:

Our customers want to buy digital assets and seeing a digital Australian dollar minted by a large ADI like ANZ will make them confident they can transact with us, and use the coin domestically. This means they don’t have to flip in and out of US dollar coins, taking exchange risk in an elongated process.

As the AFR reported, ANZ’s maiden crypto transaction with A$DC enabled investment company Victor Smorgon Group to send $30 million to Zerocap, a crypto asset platform.

The advantage of using ANZ’s new crypto?

The transaction that would have taken a number of days using traditional financial systems was completed in 10 minutes.

It also saved currency conversion costs, negating the need to convert Aussie dollars into greenbacks, as Zerocap makes use of USD Coin to transact in cryptos like Bitcoin and Ethereum.

And if that’s not enough for you, A$DC is also programmable.

Dobson explained:

We see our digital coin will be programmable for our customers’ needs. Where our coin needs to speak to, or understand, communications from other smart contracts, we have an ability to design that code, to communicate with a tokenised physical asset.

While ANZ’s institutional customers will be the first to have access to A$DC, the bank said the token will eventually be listed on a crypto exchange for wider use.

What the experts are saying on the ANZ crypto launch

Global exchange Kraken’s managing director for Australia, Jonathon Miller, said: “It’s commendable, and rational, for ANZ to use the most utilised public blockchain, Ethereum.”

Miller continued:

It proves that these open source protocols are alternate financial services networks which offer many advantages over traditional closed source rails. In particular transparency, composability/programmability and ultimately greater utility for individuals and businesses.

Miller said the Reserve Bank of Australia would do well “to replicate similar openness” in its proposal for a retail central bank digital currency (CDBC).

Ian Lowe, CEO of crypto wealth management platform Dacxi, said: “It was only a matter of time before we saw banks in Australia follow other Western markets with this kind of stablecoin offering, and we definitely welcome the move as it will continue to drive mainstream adoption of cryptocurrency.”

Lowe added:

We believe that continued adoption of blockchain technology by mainstream institutions indicates that tokenisation, where assets such as gold and silver are made available as digital investments on a blockchain, is also headed for more widespread adoption, vindicating our ongoing investment in the space.

Daniel Sekers, managing director of crypto trading platform YourPortfolio, was also enthusiastic about ANZ’s crypto launch.

“It’s fantastic to see a big four ADI adopting web3.0 technology. There is no doubt that stablecoins are going to play a big part in our future and we will likely see multiple AUD-backed stablecoins as the future of our nation’s currency,” he said.

Sekers continued:

I have no doubt that off the back of ANZ’s announcement we will likely see a flurry of new stablecoins announced. This will be the beginning of multiple transactional on-and-off ramps that will change the payments space for the better.

The key questions consumers should be asking themselves before they dive into any stablecoin is who is behind it? Is it truly asset backed? And what is its utility to me as a consumer?

How have ANZ shares been tracking?

ANZ shares are down 0.6% today, as the S&P/ASX 200 Index (ASX: XJO) struggles back to a 0.1% gain itself.

So far in 2022, the ANZ share price is down 1.0%, compared to a loss of 2.7% posted by the ASX 200.

The post Own ANZ shares? The ASX 200 bank just became the first to launch its own crypto appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 bank shares underperforming on Thursday?
• Own ANZ shares? Here’s why today was a big day for the bank
• NAB, ANZ and CBA shares in focus as top broker tips extra $5b share buyback
• The ANZ share price has gained under 4% in 3 years. Have the dividends been worth the wait?
• Fundie tells why two-thirds of all dividends come from just 7 ASX shares. Guess which ones?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. 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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On Wednesday, we looked at three ASX shares that brokers have given buy ratings to this week. Unfortunately, not all shares are in favour with brokers right now.

Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why they are bearish on them:

ASX Ltd (ASX: ASX)

According to a note out of Morgan Stanley, its analysts have retained their underweight rating but lifted their price target on this stock exchange operator’s shares to $74.00. While the broker sees a few small reasons to be positive and has increased its valuation accordingly, it isn’t enough for a change of rating. Morgan Stanley continues to believe that the company’s shares are expensive at the current level. The ASX share price is trading at $80.70 on Thursday afternoon.

Commonwealth Bank of Australia (ASX: CBA)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $92.00 price target on this banking giant’s shares. The note reveals that the broker believes the proposed sale of a 10% stake in Bank of Hangzhou could support another ~A$2bn share buyback. However, while this would be a positive, it isn’t in a rush to change its rating. It continues to believe CBA’s shares are overvalued. The CBA share price is fetching $106.95 today.

Vicinity Centres (ASX: VCX)

Analysts at Morgan Stanley have also retained their underweight rating and $1.82 price target on this shopping centre operator’s shares. This follows a review of the real estate sector ahead of interest rate rises. Outside this, the broker remains bearish on Vicinity partly on valuation ground and also on concerns over the retail side of the real estate sector. The Vicinity Centres share price is trading at $1.85 on Thursday.

The post Top brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 bank shares underperforming on Thursday?
• Why did the CBA share price just close at a new 2022 high?
• NAB, ANZ and CBA shares in focus as top broker tips extra $5b share buyback
• Leading brokers name 3 ASX shares to sell today
• Broker names 2 quality ASX dividend shares to buy

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 Bruce Jackson.

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The Rio Tinto Limited (ASX: RIO) share price has been marching upwards in recent times.

At the time of writing, shares in the world’s second largest miner are up 2.22% to $116.20.

This means that Rio Tinto shares have now gained 8.69% over the past week.

What’s driving Rio Tinto shares higher?

There are a few factors as to why the Rio Tinto share price is trading in positive territory since last Thursday.

Firstly, the accent of iron ore prices is providing a strong support base for the company’s margins thus far in FY22. Regarded as a key commodity in Rio Tinto’s portfolio, this is particularly important given a majority of its revenues come from the steelmaking ingredient.

In the financial year ending 31 December 2021, iron ore accounted for 62% of the total group sales revenue.

In addition, the S&P/ASX 200 Resources Index (ASX: XJR) has also pushed ahead, gaining almost 8% since last week. The sector represents 48 of the largest companies in the S&P/ASX 200 Index (ASX: XJO) that are members in the energy, metals and mining industry.

A positive shift in investor sentiment toward the index has propelled Rio Tinto shares forward.

Lastly, analysts at Macquarie updated their outlook on Rio Tinto shares last Monday. The broker raised the 12-month price target by 8% to $140 apiece.

It appears that the broker believes that Rio Tinto shares are currently undervalued, with the latest assessment representing around a 20% upside.

Rio Tinto share price summary

Adding to today’s gain, the Rio Tinto share price has surged 16% in 2022.

However, when looking across the past year, the mining outfit’s shares are up 6%.

After reaching an all-time high of $137.33 in August 2021, investors heavily sold off the company’s shares.

Rio Tinto hit a 52-week low of $87.28 in November before quickly rebounding higher.

The company has a price-to-earnings (P/E) ratio of 14.82 and commands a market capitalisation of roughly $41.14 billion.

The post The Rio Tinto (ASX:RIO) share price is up 9% in a week. Here’s why appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• How does Australia’s ban on alumina exports to Russia impact Rio Tinto (ASX:RIO)?
• Is it too late to jump on surging ASX 200 mining shares in 2022?
• ‘Highly improbable’: Why Rio Tinto (ASX:RIO) shares are in focus again
• Are 2021’s monster dividends from ASX 200 mining shares sustainable in 2022?

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 Bruce Jackson.

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The Crown Resorts Ltd (ASX: CWN) share price is in the green today despite the Perth Casino Royal Commission finding the company unfit to run Western Australia’s only casino.

But the commission is giving Crown two years to clean up its act, which is likely why the share price is not falling off a cliff today.

At the time of writing, the Crown share price is trading 0.64% higher at $12.55.

The Perth Casino Royal Commission report, released today, concluded that Crown entities were not suitable “to be concerned in or associated with the organisation and conduct of gaming operations of a licensed casino”.

Further, the report said that Crown should not continue to hold the gaming licence for Perth Casino.

It contains a number of recommendations for remediation, which will be independently supervised.

Crown released a statement in response today saying it would review the report and “work cooperatively and constructively” with the Western Australian Government in relation to its findings and recommendations.

Crown found ‘facilitating money laundering’

According to the report, Crown’s failures at Perth Casino include:

• facilitating money laundering through the Riverbank accounts
• failing to have an effective anti-money laundering program
• permitting junkets with links to criminals to operate at Perth Casino
• failing to minimise casino gambling-related harm in many ways.

The report contains 59 recommendations for Crown to address to get its house in order at Perth Casino.

The report acknowledged that Crown has already undertaken some steps following similar inquiries in New South Wales and Victoria.

Those inquiries also found Crown unsuitable to hold a casino licence in each state.

What did Crown management say?

Crown managing director and CEO Steve McCann said:

Significant progress has been made with Crown’s transformation program, the implementation of company-wide reforms, and establishing the highest standards of governance. This includes investment in people, systems,
processes, culture and a sharp focus on responsible gaming and the prevention of financial crime.

Crown remains committed to continuous improvement across all facets of the business and is prioritising the delivery of safe and responsible gaming across all of our resorts, including Crown Perth.

Crown share price snapshot

The Crown share price began its spectacular decline in May 2021 during the Crown Melbourne inquiry.

Crown shares cratered by 33% over June and July 2021 to a new 52-week low of $8.47. The shares have gradually recovered to a level similar to where they were before all this drama started.

Last month, Crown accepted an $8.9 billion takeover offer from US private equity behemoth Blackstone Group.

The post Why is the Crown (ASX:CWN) share price winning today? appeared first on The Motley Fool Australia.

More reading

• Why my 2 biggest ASX shares are about to disappear: fund manager
• Here’s why all eyes will be on the size of Crown’s (ASX:CWN) potential AUSTRAC fine
• ASX 200 (ASX:XJO) midday update: Zip shares tumble, AUSTRAC takes aim at Crown
• Crown (ASX:CWN) share price falls on AUSTRAC court proceedings news

Motley Fool contributor Bronwyn Allen 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 APA Group (ASX: APA) has arguably long been regarded as one of the S&P/ASX 200 Index (ASX: XJO)’s ‘slow and steady’ companies. APA owns the largest network of gas pipelines in the country. As such, investors have been attracted to the rent-like dividends that would be expected of an infrastructure company like APA. Thus, APA is often described as a ‘bond proxy’ share on the ASX, in line with other shares like Transurban Group (ASX: TCL).

But looking at the APA share price, we see something interesting. Back in April 2015, this was a company asking roughly $9.30 a share. Today, APA shares are going for $10.22 at the time of writing. That equates to a $1 return over the past seven years, which works out to be worth just under a 10% gain.

Now, capital gains like that might not seem too impressive for many investors. After all, the ASX 200 has returned more than 25% over a similar period.

So say an investor bought $10,000 worth of APA shares back in April 2015 at a share price of $9.30. That would have netted said investor 1,075 shares, with some change left over. Today, those 1,075 shares would be worth $10,986.50. Solid, but nothing to set the world on fire, one could say.

How much have dividends added to the APA share price’s returns?

As we touched on before, many investors like to buy APA shares for the steady dividends. On current pricing, APA is offering a solid dividend yield of 4.3%. So has the dividend that investors have enjoyed from this company over the past seven years or so made up for APA’s rather dull share price performance?

Well, let’s dig in.

Since April 2015, APA has paid out a total of $3.235 in dividends per share. Notably, APA has raised its dividend every single year over this period. That means our investor would have received a total of $3,477.63 in dividend income as well. Add that to our principal and capital return and we get a total of $14,464.13. That works out to be a total return of 44.64%.

That’s looking a whole lot more productive and gets us to an annual compounded average growth rate of 5.41%. APA’s dividends usually come either partially franked at around 30%, or unfranked, so we can’t add too much to those returns with franking thrown in.

That return might not impress many investors looking for maximum growth. But for investors seeking only strong, reliable income, APA’s returns might be more than adequate.

At the current APA share price, this ASX 200 share has a market capitalisation of $11.93 billion.

The post The APA (ASX:APA) share price is up $1 in 7 years. Have the dividends been worth it? appeared first on The Motley Fool Australia.

More reading

• Are analyst upgrades on the way for APA (ASX:APA) shares?
• Here’s why the APA (ASX:APA) share price could be a top dividend share

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 owns and has recommended APA Group. 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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