Yesterday we looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

Magellan Financial Group Ltd (ASX: MFG)

According to a note out of UBS, its analysts have retained their sell rating and cut their price target on this fund manager’s shares to $15.40. This follows the release of another update which revealed a further reduction in its funds under management and news that a ratings agency has downgraded its flagship Global Fund. The Magellan share price is trading at $17.92 this afternoon.

Reece Ltd (ASX: REH)

A note out of Citi reveals that its analysts have retained their sell rating and cut their price target on this plumbing parts company’s shares to $16.83. While Reece delivered a solid half year result last month, it isn’t enough for a change of rating. It continues to struggle to find a way to justify the multiples (34x FY22e earnings) that the company’s shares trade on. The Reece share price is fetching $19.97 on Tuesday.

Zip Co Ltd (ASX: Z1P)

Analysts at Macquarie have retained their underperform rating and cut the price target on this buy now pay later provider’s shares by almost 50% to $1.85. This follows news that Zip is acquiring Sezzle Inc (ASX: SZL) and raising $200 million to support the growth of the two businesses. Macquarie isn’t sure about the price Zip is paying for Sezzle. It also has concerns over rising bad debts and expenses, which has led to sharp reductions its earnings forecasts. The Zip share price is trading at $2.10 on Tuesday afternoon.

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

More reading

• Why is the Sezzle (ASX:SZL) share price falling following Zip’s takeover offer?
• ASX 200 (ASX:XJO) midday update: Zip shares tumble, AUSTRAC takes aim at Crown
• Why is the Zip (ASX:Z1P) share price sinking 11% today?
• These were the worst performing ASX 200 shares in February
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Avita Medical Inc (ASX: AVH) share price is skyrocketing today after the company released its financial results for a six month “transition period” ended 31 December 2021.

The company announced in December 2021 that it wanted to change its fiscal year from June 30 to December 31. That’s why Avita is reporting for a six-month period today.

At the time of writing, the Avita share price is 23% higher at $3.16.

Avita Medical share price surges as revenue spikes 37%

Key takeouts from the company’s earnings results today:

• Revenue increased 37% to $14 million, compared to $10.2 million the same time last year
• Completed enrolment in two clinical trials with the goal of submitting premarket approval (PMA) supplements in 2022
• Received FDA approval of the PMA supplement for Recell Autologous Cell Harvesting Device
• Approved application for commercialisation of the Recell system in Japan
• $55.5 million in cash and equivalents at the end of the period
• $49.3 million in short-term and long-term marketable securities, with no debt.

What happened this period for Avita Medical?

The company recognised a 37% gain in revenue to $14 million, underscored by its Recell commercial revenues of $13.8 million. Recell is a system that allows medics to use a patient’s own skin cells to produce ‘spray-on’ skin in the treatment of acute burns.

Avita also extended the shelf life of Recell and this led to a 300 basis point increase in gross profit margin to 86% compared with 83% last year.

It also saw a 7% increase in operating expenses due to “ongoing development of a next-generation automated skin preparation device, pre-commercialisation planning for Recell launches in soft tissue reconstruction and vitiligo, as well as increased hands-on professional education and training events”.

The jump in revenue carried down vertically through Avita’s P&L. The company’s net loss decreased by $1.5 million to $14.4 million, helped by stronger margins as well.

As well, so far in 2022, the company has received approval of the PMA supplement for Recell in the US and was awarded an application for the commercialisation of Recell in Japan.

Management commentary

Speaking on the results, Avita CEO Dr Mike Perry said:

We are pleased with the terrific results that we are achieving with RECELL in US burn centres, as well as with our recent achievement of many key corporate milestones. Our success in burns will help us prepare for and is expected to increase our future adoption with respect to commercialisation in much larger markets for soft tissue reconstruction and vitiligo in the second half of 2023.

What’s next for Avita?

Avita forecasts total revenues to grow by 20% year on year in CY22. It expects approximately $30 million at the top, with an additional $300,000 in contract revenues.

The company expects US BARDA contract revenues of approximately $0.3 million in 2022. That’s down from $7.9 million last year, as several contract terms have been completed.

But the company is confident in its focus for the year ahead:

As we emerge from COVID-19, we expect further Recell adoption in US burn centers where we are focusing our commercial efforts. The adoption of Recell, and its positive patient outcomes and safety profile, positions us very well for broader commercial expansion planned for soft tissue reconstruction and vitiligo indications in the second half of 2023 following anticipated FDA approval.

Avita Medical share price snapshot

In the last 12 months, the Avita Medical share price has collapsed more than 44% and is down 9% this year to date.

However, during the past month of trading, the company’s shares have soared 16% and, on today’s results, are now more than 25% in the green this week alone.

The post Avita Medical (ASX:AVH) share price soars 23% as earnings stage a comeback appeared first on The Motley Fool Australia.

More reading

• Avita (ASX:AVH) share price jumps 6% following FDA approval

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 Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical 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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A message from our CIO, Scott Phillips:

“G’day Fools. If you’re like us, you’re dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So we’ll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine.”

————           

Volatility in the iron ore price is expected to continue as the frightening situation in Ukraine pushes onwards. This leaves investors wondering how might a prolonged conflict affect the price of the steelmaking commodity.

Since November, iron ore has swung dramatically between ~US$92 per tonne and US$150 per tonne. More recently, prices have cooled off and returned to US$136.50, where it sits now.

What does curtailed iron ore supply mean for prices?

The market for iron ore is a large one — estimates put the figure somewhere around 2.3 billion tonnes in 2021 alone. Notably, Australia is the largest producer of the commodity — with companies such as Rio Tinto Limited (ASX: RIO) and BHP Group Ltd (ASX: BHP) digging up the bulk of it.

In comparison, Ukraine and Russia’s contribution to iron ore supply is relatively small. However, in the world of supply and demand, even slight disruptions to the equation can play out in the iron ore price.

In specific terms, Ukraine usually shovels around 40 million tonnes of iron ore into the market each year. Likewise, Russia typically adds around another 25 million tonnes per year.

Running some quick numbers, the two countries currently involved in a conflict make up close to 3% of the global iron ore supply. And it appears the situation is already beginning to have an impact on the market.

For example, one of the world’s largest steel producers — Nippon Steel — is assessing alternative high-grade iron ore pellet suppliers. The reason is, Ukraine makes up 14% of imports for the more premium form of raw iron ore material. Reportedly, the steelmaker is eyeing off a new supply from Brazil and Australia.

The demand shift into a more constrained supply could give rise to a higher iron ore price. However, analysts at Macquarie Group Ltd (ASX: MQG) are mindful that nearly 158 million tonnes of ore are sitting in port inventories.

How are producers holding up?

Despite a potential tailwind in the near term, the recent trajectory from ASX-listed iron ore companies has been divided. For instance, here’s how some of the largest players performed over the past month:

• Rio Tinto — up 8.5%
• BHP Group — up 4.7%
• Fortescue Metals Group Limited (ASX: FMG) — down 8.6%
• Mineral Resources Limited (ASX: MIN) — down 21.2%

Potentially investors are taking into account Macquarie’s estimates of a US$100 iron ore price by the end of the year. Though, the unpredictable events playing out in Ukraine throws a spanner into the works of forecasts.                                           

The post How might the conflict in Ukraine impact the iron ore price? appeared first on The Motley Fool Australia.

More reading

• Tell him he’s dreamin’: Are the Fortescue (ASX:FMG) green hydrogen plans realistic?
• The latest Rio Tinto (ASX:RIO) dividend is the biggest in Australian history. What’s next for the miner?
• Why Betmakers, Fortescue, Suncorp, and Tyro shares are falling
• 5 ASX 200 shares trading ex-dividend today
• 2 high-yield ASX dividend shares for March 2022

Motley Fool contributor Mitchell Lawler owns 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 Bruce Jackson.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 1% to 7,119.9 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are storming higher:

IDP Education Ltd (ASX: IEL)

The IDP Education share price is up over 8% to $28.47. This follows news that some of the student placement and language testing company’s major shareholders have offloaded shares this morning at a small premium to the last close price. Given that ~$84 million worth of shares were able to be sold without a discount appears to indicate that someone on the buy-side saw a lot of value in them.

IGO Ltd (ASX: IGO)

The IGO share price is up 8% to $11.78. This morning the mining company provided an update on its talks with Glencore regarding the potential acquisition of the CSA Copper Mine. According to the release, the two parties have concluded their talks without coming to an agreement. It appears as though the market was not keen on the deal, especially given that a capital raising may have been required.

Sayona Mining Ltd (ASX: SYA)

The Sayona Mining share price has jumped over 13% to 12.7 cents. This follows news that the lithium explorer has upgraded the lithium resource estimates of its North American Lithium (NAL) and Authier projects. The total new lithium resource is double its previous estimates.

Yancoal Australia Ltd (ASX: YAL)

The Yancoal share price has surged 15% higher to $4.00. Investors have been buying this coal miner’s shares following the release of its full year results. Yancoal reported a 56% increase in revenue to a record of $5.40 billion and a profit after tax of $791 million. This strong form allowed Yancoal to reinstate its dividend.

The post Why IDP, IGO, Sayona Mining, and Yancoal shares are storming higher appeared first on The Motley Fool Australia.

More reading

• Yancoal (ASX:YAL) share price surges 15% as dividends merrily return
• ASX 200 (ASX:XJO) midday update: Zip shares tumble, AUSTRAC takes aim at Crown
• Why is the IGO (ASX:IGO) share price rocketing 8% today?
• Sayona (ASX:SYA) share price lights up 18% as lithium resource doubles
• Sayona Mining (ASX:SYA) share price halted ahead of lithium news

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. owns and has recommended Idp Education Pty Ltd. 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 ASX share market continues to be very volatile. But today, the volatility is actually sending prices higher. ASX tech shares in particular are seeing some rocketing gains.

It has been a difficult time to be a shareholder of many of the ASX’s most well-known tech names.

The market has been focused on what the effects of strong inflation could have on interest rates and what this might mean for asset prices.

But some ASX tech shares have come soaring back today, recovering some of that lost ground.

Xero Limited (ASX: XRO)

The Xero share price is up more than 5% today.

On 24 February 2022, the Xero share price had fallen 34% from the start of the year. But since that low, Xero shares have risen by 6%.

But, the cloud accounting software provider is still down around 32% in 2022.

In the company’s FY22 half-year result for the six months to 30 September 2021, its total subscribers increased by 23% to 3 million. The annualised monthly recurring revenue (AMRR) grew by 29% to $1.13 billion. Xero’s gross profit margin also increased by 1.4 percentage points to 87.1%.

Block Inc CDI (ASX: SQ2)

The Block share price is currently up more than 13% at the time of writing.

The ASX tech share was recently listed on the ASX. But between 20 January 2022 and 24 February 2022 it fell by 34.3%. But since that low, it has soared 51%.

Block is one of the world’s largest payment businesses. The business owns both Square and Afterpay.

Block recently announced its fourth quarter and full-year result to investors, which didn’t yet include Afterpay in the numbers. Block’s gross profit rose 62% year on year to $4.42 billion. It also made $1 billion of adjusted earnings before interest, tax, depreciation and amortisation (EBITDA). This result was released on 25 February 2022.

SEEK Limited (ASX: SEK)

The SEEK share price is up by more than 5% today.

Despite the rise today, SEEK shares are still down 17% since the start of the year.

A couple of weeks ago the business announced its half-year result. Continuing operations rose 59%, EBITDA jumped 83% and the net profit after tax (NPAT), excluding significant items, surged 147% to $124.2 million.

The post 3 ASX tech shares going gangbusters today appeared first on The Motley Fool Australia.

More reading

• Here’s why the Block (ASX:SQ2) share price is surging 13% today
• Why Adbri, Appen, Block, and Life360 shares are storming higher
• Back on the horse! ASX tech shares stage stunning comeback following sell-off
• ASX 200 (ASX:XJO) midday update: Block rockets, Blackmores sinks
• Block (ASX:SQ2) share price rockets 39% today as profits soar

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 Block, Inc. and Xero. The Motley Fool Australia owns and has recommended Block, Inc. and Xero. The Motley Fool Australia has recommended SEEK 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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“It is important to note that, at the individual level, all market participants, whether they are less knowledgeable individual investors or experienced money managers, may act irrationally.” – CFA Institute

Anyone watching the news today understands there are a number of crosscurrents feeding into global stock markets right now.

Themes of inflation, interest rates, geopolitical tensions, conflict in Europe – and who could forget our old friend COVID-19 – have rocked global equity investors in 2022.

The benchmark S&P/ASX 200 Index (ASX: XJO) has slipped 4.3% into the red so far this year, even after staging a small recovery this past week or so. Sector-specific and thematic indices are down even further, as seen on the chart below.

With these undertones driving market volatility, it’s no wonder that some investors are feeling the pressure on their portfolios. Gone are the days of ‘SWAN’ (sleep well at night) investments in the current macro-climate.

As the Chartered Financial Analyst Institute points out, everyone is susceptible to these kinds of emotions. In essence, it’s what separates us as humans from the computers and bots that also trade the markets.

But what to do in these uncertain times to protect capital, ensure liquidity, and cover the significant downside events?

Consider high-quality shares as an ‘inherent’ risk control

First of all – life comes with a deal of uncertainty. No one knows the future and those who pretend to are shown the door time and time again (especially in finance).

Whether it’s making predictions of financial markets under starlight using ‘financial astrology‘ or even complex econometric, statistical models, there is no human, computer, or company that will get it right every time.

Hence, one has to adopt a systematic approach in embracing the unknown and clearly distinguish between what is uncertainty and what is risk, according to Kauri Asset Management’s George Wong.

One particular tried and tested mantra that factors in both risk and reward is to focus on high-quality shares, Wong wrote on Livewire last week.

“Investing in high-quality companies is an inherent way to mitigate downside risk during uncertain periods, and often presents a low-risk, high-reward situation,” he said.

“The risk of irreversible loss of capital for high-quality companies with strong fundamentals is low. By nature, these companies tend to be resilient and often bounce back stronger than before.”

Risk and uncertainty are two separate things

High-quality companies have shown to be more resilient in times of market sensitivity and are less ‘jittery’ in times of volatility, Wong says.

And that’s precisely how he says to navigate the investment landscape in times of uncertainty – by focusing on the fundamentals of a business and capitalising on “rare chances to add high quality stocks to your portfolio”.

However, if one is afraid of uncertainty, these opportunities may pass, Wong says. This, he says, is why it’s so important to separate uncertainty and risk.

One way in which to achieve this is to prioritise a long-term investment horizon and focus on a systematic approach to investing – especially for those in their younger years.

This can help to cancel short-term noise and encourage investors to remain confident in their investment convictions which should be based on fundamentals anyway, Wong reckons.

“As long as we have a system with which we can prepare ourselves mentally in dealing with uncertainty, and methodically evaluate investment opportunities, then uncertainty will afford us more opportunities to become successful investors,” the financial advisor remarked.

“Keep in mind, if businesses like banks and insurers can establish highly profitable operations on the very premise of accepting uncertainty, we also have the same opportunity.”

The post Fretting over ASX share market losses? Expert explains how to ’embrace uncertainty’ appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Zip shares tumble, AUSTRAC takes aim at Crown
• These were the best performing ASX 200 shares in February
• These were the worst performing ASX 200 shares in February
• Will ASX REITs get smashed by rising interest rates?
• 5 things to watch on the ASX 200 on Tuesday

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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ASX gold shares certainly shone brightly in February.

In fact, you’ve got to go back to April 2020 to see ASX gold shares deliver stronger monthly gains.

And that, as you’ll recall, was the month when most all stocks came roaring back following the previous month’s pandemic-fuelled panic selling.

How well did ASX gold shares perform in February?

The best answer to that question lies in the S&P/ASX All Ordinaries Gold Index (ASX: XGD).

From the closing bell on 31 January through to the closing bell on 28 February, the ASX gold index gained a whopping 18.2%.

To put that into some context, the All Ordinaries Index (ASX: XAO) was only up 0.8% in that same period.

What drove the outperformance?

Investors began snapping up ASX gold shares over the course of the month as the price of the bullion they explore for and mine from the earth surged.

The yellow metal kicked off February trading at US$1,801 (AU$2,467) per troy ounce. Gold finished the month at US$1,914 per ounce, up 6.3%, according to data from Bloomberg.

Gold prices had already been trending upwards for most of 2022, as inflation fears began to tick up around the globe. Gold is classically seen as a hedge in times of fast rising costs.

But February saw gold prices really lift as Russian forces began to mass around Ukraine. When Russia invaded its neighbour towards the end of the month, investors seeking haven assets sent the price of gold higher.

Some leading ASX gold shares

Here’s how some leading Aussie gold producers performed in February.

S&P/ASX 200 Index (ASX: XJO) mining giant Newcrest Mining Ltd (ASX: NCM) saw its shares surge 19.1%.

Fellow ASX 200 gold miner, Evolution Mining Ltd (ASX:EVN), also boomed. The Evolution share price gained 22% for the month.

Sticking with the big players, the Northern Star Resources Ltd (ASX: NST) share price rocketed an impressive 24.4% in February.

Moving to the smaller end of the mining spectrum, with a market cap of $228 million, Dacian Gold Ltd (ASX: DCN) shares lifted 16.7%.

And topping the best returns for ASX gold shares in February is Alkane Resources Limited (ASX: ALK). The gold miner saw its share price leap 26.8% last month.

The post Here’s why ASX gold shares just had their best month in 2 years appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Is Bitcoin or gold a better buy for these uncertain times?
• 5 ASX 200 shares trading ex-dividend today
• Newcrest (ASX:NCM) shares rise following Pretivm takeover update
• 5 things to watch on the ASX 200 on Monday

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 S&P/ASX 200 Index (ASX: XJO) is having a very pleasant day of trading so far today. The ASX 200 is currently up a healthy 1.03%. But that’s nothing compared to the Block Inc CDI (ASX: SQ2) share price.

Block shares are up an extremely pleasing 13.03% at $175.54 a share. That puts the US-based payments company formerly known as Square at close to a 35% gain over just the past 5 days alone. So what’s behind this extraordinary rise this Tuesday?

Well, it’s not entirely clear. Block did report its full-year financial results last week, which seems to have given the company a bit of a turbocharge. As my Fool colleague Bernd covered at the time, Block recorded a 62% year-on-year rise in gross profits to $4.42 billion. That came in addition to a 104% increase in adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $1.01 billion.

These results saw the Block share price rise a whopping 39% at one point on the day they were released. This enthusiasm has continued to hold ever since.

Block shares square up

But we do have some more recent news that could be affecting today’s big rise too. According to NABtrade, Block’s US shares have received some positive attention from some brokers across the Pacific. The site reports that BMO Capital Markets has upgraded Block Inc (NYSE: SQ) shares to ‘outperform’.

The broker likes Block’s acquisition of Afterpay as well as the strength of its flagship Cash App service: “We look forward to guidance regarding synergies expected from SQ’s recently-completed acquisition of Afterpay, and the benefits of connecting SQ’s merchant-facing Square business to its consumer-facing Cash App business.”

BMO has given Block’s US shares a price target of US$159, which is well above the company’s last price of US$127.50.

So this optimism for Block might be responsible for the goodwill flowing into block’s ASX listing that we are seeing today. Either way, it is certainly a dramatic turnaround for a company that, until just a few days ago, was down close to 35% in 2022 alone. Its year-to-date losses now stand at just 0.6%

At the current Block share price, this payments company has a market capitalisation of US$73.96 billion.

The post Here’s why the Block (ASX:SQ2) share price is surging 13% today appeared first on The Motley Fool Australia.

More reading

• 3 ASX tech shares going gangbusters today
• Why Adbri, Appen, Block, and Life360 shares are storming higher
• Back on the horse! ASX tech shares stage stunning comeback following sell-off
• ASX 200 (ASX:XJO) midday update: Block rockets, Blackmores sinks
• Block (ASX:SQ2) share price rockets 39% today as profits soar

Motley Fool contributor Sebastian Bowen owns Block, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc. The Motley Fool Australia owns and has recommended Block, Inc. 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 Starpharma Holdings Ltd (ASX: SPL) are cruising higher today and now trade 4% in the green at 92 cents apiece.

Investors are responding positively to a company announcement regarding its lead drug candidate Viraleze in the fight against the Omicron COVID-19 variant.

What did Starpharma announce?

Starpharma advised that the antiviral agent in its Viraleze antiviral nasal spray label, “SPL7013”, was shown to achieve “the maximal possible reduction of virus infectivity against the Omicron variant of COVID-19, in laboratory testing.”

Viraleze is Starpharma’s broad-spectrum antiviral nasal spray. SPL7013, being the active ingredient, has in fact been shown to have “potent antiviral and virucidal activity in multiple respiratory viruses”. It can now add COVID-19 to its list.

For reference, a ‘virucidal’ agent is able to deactivate and/or destroy inactive viruses in human tissues.

The studies Starpharma mention today showed that SPL7013 was effective in reducing impacts of the Omicron variant in greater effect versus other agents used in competing antiviral nasal sprays, including rival compounds iota-carrageenan and heparin.

“SPL7013 was approximately 30 times more potent than iota-carrageenan against the Omicron variant, which is currently in multiple marketed nasal sprays, and 70 times more potent than heparin, which is currently being contemplated as a nasal spray”, the company said.

In another plus, the formulation was shown to be effective in reducing viral activity of the other COVID-19 variants – the so called ‘variants of concern’, the release notes.

What’s more, due to its mechanism of action, the SPL7013 formula might even be immune itself to mutations of the virus’ ‘spike protein’ – the keystone feature that allows COVID-19 to infiltrate our cells.

In contrast, the mRNA version of COVID-19 vaccines utilises a synthetic version of the spike protein to induce an immune response in humans.

Speaking on the results, Dr Jackie Fairley, CEO of Starpharma, mentioned:

Starpharma is pleased to see that SPL7013 is virucidal and achieved >99.5% reduction of infectious virus in the Omicron variant. SPL7013 has now demonstrated impressive performance against all five ‘Variants of Concern’ tested, including Delta, Alpha, Beta, Gamma, and now also Omicron. The high level of activity against Omicron is entirely consistent with previous data for SPL7013, which has shown antiviral and virucidal activity in multiple viruses. This new data further illustrates SPL7013’s breadth of activity and the potential real-world
benefits of Viraleze.

Starpharma share price

In the last 12 months, the Starpharma share price has collapsed over 57% and is down 31% this year to date. During the past month of trading, shares have collapsed by another 15%. As such, Starpharma is trailing the broad healthcare index in 2022, as shown below.

The post Starpharma (ASX:SPL) share price lifts on Omicron study results appeared first on The Motley Fool Australia.

More reading

• Not enough: Starpharma (ASX:SPH) share price plunges despite 200% revenue growth

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 Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings 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 Domino’s Pizza Enterprises Ltd (ASX: DMP) share price is edging higher on Tuesday afternoon.

At the time of writing, the pizza chain operator’s shares are up 0.88% to $79.645, having hit $81.19 earlier in the day.

Despite treading higher today, it’s worth noting the company’s shares are down 23% in a month.

What’s the deal with Domino’s shares?

With the company’s half-year results delivered, investors are eyeing Domino’s shares as they go ex-dividend today.

Typically, one business day before the record date, the ex-dividend date is when investors must have purchased shares. If the investor does not buy Domino’s shares before this date, the dividend will go to the seller.

Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend. However, this has not been the case for the Domino’s share price today.

A catalyst for this could be the strong surge across the benchmark S&P/ASX 200 Index (ASX: XJO), which is currently up 1.13% to 7,128.7 points.

What does this mean for Domino’s shareholders?

For those eligible for Domino’s dividend, shareholders will receive a payment of 88.4 cents per share on 17 March 2022. The dividend is 70% franked, which means investors will receive some tax credits from this.

The total dividend amount to be paid from Domino’s is around $76.5 million.

Are Domino’s shares a buy now?

Following the company’s financial scorecard last month, a number of brokers reassessed their outlook on the Domino’s share price.

Analysts at UBS slashed their price target by 8.3% to $110.00 apiece. Based on the current share price, this implies a potential upside of 38%.

Furthermore, Morgans upgraded its view on Domino’s to “add” from “hold”, also reducing its price target by 15% to $115.00.

Lastly, Macquarie cut its rating on Domino’s by a sizeable 33% to $88.70 per share. It appears the broker believes the pizza chain operator’s shares are almost fully valued.

Domino’s share price summary

Since the beginning of 2022, the Domino’s share price has fallen by more than 30%. Its current price of $79.645 is in sharp contrast to when it touched an all-time high of $167.15 in September 2021.

On valuation grounds, Domino’s commands a market capitalisation of roughly $6.96 billion, with approximately 86.55 million shares outstanding.

The post What’s going on with the Domino’s (ASX:DMP) share price 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 recommended Dominos Pizza Enterprises Limited and Macquarie Group 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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