The Suncorp Group Ltd (ASX: SUN) share price has been in the red all day after the banking and insurance company announced the launch of its buy-now, pay-later product today.

At the time of writing, Suncorp shares are trading 1.06% lower to $10.69 apiece. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.18% at 7,266 points.

What did Suncorp announce?

According to its release, Suncorp has entered the BNPL market, launching its newest product to customers.

The BNPL solution, called PayLater comprises both a physical and digital Visa debit card. This can be used in-store and online at more than 70 million merchant locations worldwide.

Suncorp said eligible customers would receive a quick approval when applying online or through the Suncorp app. However, this will be primarily based on a credit check to assess the customer’s propensity to pay.

Once approved and when purchases are made, the payment plan will be split over four separate and equal interest-free instalments.

The card will have a limit of $1,000 per customer and can be used for purchases of $50 or more.

This comes just in time for the Christmas holiday season, with consumers traditionally spending over the period. The company’s research revealed TV’s, Christmas presents and clothes were considered the top three purchase categories in the BNPL space.

Management commentary

Suncorp CEO Clive van Horen touched on the bank’s newest product offering, saying:

Suncorp Bank PayLater comes with no extra costs to customers making payments, nor to businesses taking payments. This is a win for Australian businesses who are currently paying millions of dollars in traditional BNPL fees, on top of other cost pressures.

Eligible customers now have the option to head in-store with their physical PayLater Visa debit card or to use it online via their digital wallet.

Suncorp share price summary

Over the past 12 months, the Suncorp share price has gained almost 5%, with year-to-date up around 10%. The company’s share price reached a 52-week high of $13.26 in September, before treading lower in the following months.

Suncorp presides a market capitalisation of roughly $13.48 billion, making it currently the 38th largest company on the ASX.

The post Suncorp (ASX:SUN) share price slips despite launch of BNPL offering appeared first on The Motley Fool Australia.

More reading

• 2 high quality ASX 200 blue chip shares with major upside potential
• Broker sees 14% upside for the Suncorp (ASX:SUN) share price
• ASX 200 (ASX:XJO) midday update: NAB hits 52-week high, CSL upgraded
• Suncorp (ASX:SUN) share price higher on banking update
• Brokers name 3 ASX shares to buy 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. 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.

from The Motley Fool Australia https://ift.tt/3riOO5J

The Telstra Corporation Ltd (ASX: TLS) share price has been a surprise ASX 200 blue chip performer in recent times. Telstra shares have delivered a very pleasing year to date performance in 2021 so far, as well as a pleasing 12 month performance. This telco’s share price is up 33.4% and 30.8% over those periods respectively, despite today’s nasty share price slump. So far this Monday, Telstra is down 0.86% at $4.02 a share.

It was only last Tuesday that Telstra was hitting a new 52-week high of $4.09 a share though, its highest level since late 2017. So where to from here? Well, since we are approaching the end of the year, it might be a good time to ask how Telstra shares typically perform in the lead up to Christmas. Is there a pattern to watch out for here?

Well, let’s dig in.

Will the Telstra share price be naughty or nice?

So let’s first look at last year. Telstra began December 2020 at a share price of $3.07 (those were the days). By Christmas Eve, this ASX 200 telco had closed at $3.01 a share. That’s a Scrooge-like slide of 1.95%.

Before you execute a pre-December sell out of your Telstra position, let’s see if this pattern holds true for other years as well.

2019 had Telstra start the twelfth month at $3.86 a share, only to end up at $3.65 by Christmas Eve – a slide of 5.44%. Ok, not a great start. Let’s go back to 2018.

Telstra began December 2018 at a share price of $2.93. By 24 December, it had fallen to $2.78. The pattern continues.

2017?

Telstra kicked off December 2017 asking $3.39 a share. By Christmas Eve that year, it was up at $3.66 a share, a rise of almost 8%.

So what does this tell us? Not much in all likelihood. Yes, Telstra has had 3 bad runups to Christmas in a row. But sometimes if you flip a coin 3 times, it comes up with 3 heads in a row. No one knows how this Christmas period will go for the Telstra share price. But it’s probably not a good idea to try and make an investment decision on something so arbitrary anyway.

At the current Telstra share price, this ASX 200 telco has a market capitalisation of $47.75 billion, with a dividend yield of 3.98%.

The post How does the Telstra (ASX:TLS) share price usually perform leading up to Christmas? appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts on Friday
• The Telstra (ASX:TLS) share price is having a good month. Here’s why these top brokers are expecting more of the same
• These 3 ASX 200 shares are topping the volume charts this Thursday
• Here are the 3 heaviest traded ASX 200 shares this Tuesday so far
• Is the Telstra (ASX:TLS) dividend heading up for the first time in almost 10 years?

Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation 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 owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3HZ0kcx

The Adairs Ltd (ASX: ADH) share price has started the week in a positive fashion despite the market volatility.

In afternoon trade, the homewares retailer’s shares are up 1.5% to $3.70.

Why is the Adairs share price rising?

Today’s gain by the Adairs share price appears to have been driven by a bullish broker note out of Morgans in response to the company’s plan to make a new acquisition.

In case you missed it, last week Adairs announced an agreement to acquire Focus on Furniture for $80 million. Focus currently operates 23 stores across Australia and generated revenue greater than $150 million during FY 2021.

Management expects the deal to be immediately earnings per share accretive. In fact, it is forecasting pro forma double-digit earnings per share accretion during the first full year of ownership in FY 2023.

What did Morgans say?

According to the note, the team at Morgans is positive on the deal. It believes it will complement its core business and provide network expansion opportunities.

In response, the broker has retained its add rating and lifted its price target on the company’s shares to $4.80.

Based on the current Adairs share price, this implies potential upside of 30% for its shares. And with Morgans forecasting a 23 cents per share fully franked dividend in FY 2022, the total potential return stretches to a very attractive 36%.

Overall, the broker sees Adairs as a great option for investors and feels its shares are cheap at the current level, particularly given its attractive growth and dividend profile.

The Adairs share price is up 8% since the start of the year. This is broadly in line with the performance of the S&P/ASX 200 Index (ASX: XJO) over the same period.

The post Is the Adairs (ASX:ADH) share price a buy following the company’s latest acquisition? appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• Top brokers name 3 ASX shares to buy next week
• 2 ASX dividend shares expected to pay BIG income
• Could ASX 200 retail shares deliver some dividend surprises in 2022?
• Why Adairs, EML, Fisher & Paykel Healthcare, and NRW are storming higher

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

from The Motley Fool Australia https://ift.tt/3D2OFpe

The market is bidding the American Pacific Borates Ltd (ASX: ABR) share price lower on Monday after the company pushed back its US listing.

The company released an update on its plan to list on the Nasdaq index this morning.

In October, American Pacific Borates told the market it might achieve dual listing by late December. However, it’s now certain it won’t be floating on the Nasdaq index until early 2022.

At the time of writing, the American Pacific Borates share price is $2.23, 6.3% lower than its previous close.

Let’s take a closer look at today’s news from the borates and lithium explorer.

American Pacific Borates share price’s struggles

The American Pacific Borates share price is in the red after the company earlier gave a market update on its plan to move its primary listing from the ASX to the Nasdaq.

As part of the move, American Pacific Borates will be renamed 5E Advanced Materials.

To make the switch, all American Pacific Borates stock will be transferred to the newly established 5E Advanced Materials. 5E will then issue shares and CHESS Depositary Interests (CDIs) to American Pacific Borates shareholders.

American Pacific Borates shareholders can choose to receive 1 5E share for every 10 they hold in American Pacific Borates, or 1 5E CDIs for every American Pacific Borates share they own.

According to the company, the US market is a more appropriate home for American Pacific Borates, as all its assets are in the nation.

Additionally, it expects to be valued higher in the US due to the nation’s large pool of investors. The company also believes it will be able to access lower-cost debt by being a US-listed entity.

Shareholders will vote on the scheme in late December or early 2022.

Previously, the company stated its stock will trade on Nasdaq under the ticker FEAM. It will adopt the ticker 5EA on the ASX.

Today’s news from American Pacific Borates follows last week’s announcement of a successful placement. The placement raised $37 million for American Pacific Borates by issuing new shares at $2.10 apiece to 4 institutional investors.

The American Pacific Borates share price fell 5% on the back of last week’s announcement.

At that point in time, the company still believed its Nasdaq listing could occur in December.

The post Why is the American Pacific Borates (ASX:ABR) share price sliding 6% today? appeared first on The Motley Fool Australia.

More reading

• Here’s why the American Pacific Borates (ASX:ABR) share price has soared 33% in a week

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

from The Motley Fool Australia https://ift.tt/3FTnXkX

The Macquarie Group Ltd (ASX: MQG) share price hasn’t been able to escape the market pain on Monday. Although, the investment bank’s woes go further than the concerns of the latest COVID-19 variant — Omicron.

At the time of writing, shares in the investment bank are swapping hands for $193.81, down 0.75%. This places the company’s shares 6.9% below its 52-week high, which was set only a couple of weeks ago.

Australia’s biggest investment bank is now caught in the middle of a bombshell tax investigation involving the exploitation of a German tax loophole. The scandal is believed to have cheated the German government out of $80 billion in taxes.

Unwanted attention on ASX-listed Macquarie

News of Macquarie’s involvement in the overseas tax scandal hit the headlines last week. The findings were published following a joint investigation between the ABC and journalists at German-based Correctiv.

The blowback on Macquarie shares could be seen by the end of Friday’s session. One of the biggest names on the ASX fell by 3.2% amid the reports surfaced by ABC News. While the weekend provided shareholders with the chance to digest the controversial actions, it also came with a 40-minute long story broadcasted by the ABC on Sunday.

During the segment, ABC reporter Mario Christodoulou discussed the scandal with criminologist and senior lecturer at Macquarie University, Alex Simpson. Regarding the legality of Macquarie Group’s alleged actions, Simpson said:

There is a deliberate strategy about trying to kind of confuse the tax authorities using this trick to make shares disappear and then reappear either side of this moment in time when the record is set.

In essence, Simpson’s assertion is that while the black and white of the legal system might not define ASX-listed Macquarie’s lending to the cum-ex trading scheme as illegal, it is exploitive of the German taxpayer.

Perhaps the most peculiar information that has been shared is Macquarie’s own internal deliberation on the facilitation of the practice. While the investment bank suggests they were of the belief that their actions were legal, there were doubts.

According to reports, one senior executive at Macquarie cast unease on what was occurring in 2010, writing:

It is a bit strange that we are financing trades that we cannot get comfortable with to do ourselves

Shares in ASX-listed Macquarie have been under pressure since these revelations. However, the Macquarie share price remains 38% above where it was at the beginning of the year.

The post Here’s why Macquarie (ASX:MQG) is making news for all the wrong reasons appeared first on The Motley Fool Australia.

More reading

• This sector could be a $50 trillion investment opportunity: expert
• Macquarie (ASX:MQG) share price dips amid leaked emails surrounding German tax scandal
• Own ANZ (ASX:ANZ) shares? Here’s how the bank just got booted out of the big four
• Macquarie (ASX:MQG) is now a big four bank
• Macquarie shares are very well placed for the long term: fund manager

Motley Fool contributor Mitchell Lawler owns shares of 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.

from The Motley Fool Australia https://ift.tt/3lCrv3x

The S&P/ASX 200 Index (ASX: XJO) is off its lows but still in the red this afternoon. At the time of writing, the benchmark index is down 0.35% to 7,253.1 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

EML Payments Ltd (ASX: EML)

The EML share price is down 4% to $3.49. This appears to have been driven by profit taking from some investors following a very strong gain last week. The payments company’s shares rose 24% last week following the release of an update on its dealings with the Central Bank of Ireland.

Pact Group Holdings Ltd (ASX: PGH)

The Pact share price has sunk 13% to $2.55. This follows the release of the packaging company’s annual general meeting update. At the event, the company revealed that its contract manufacturing segment has been impacted by lower demand. As a result, the segment is only expected to break even during the first half of the year.

Senex Energy Ltd (ASX: SXY)

The Senex Energy share price has fallen 3% to $4.26. This morning the energy producer revealed that it has granted POSCO with a two-week extension to its exclusivity period. This is to provide additional time for the receipt of necessary internal and board approvals. Investors may be concerned that the deal could fall through given these delays. Though, it is worth noting that POSCO has reiterated that it sees the acquisition as a compelling opportunity.

Webjet Limited (ASX: WEB)

The Webjet share price is down 2.5% to $5.22. Investors have been selling this online travel agent’s shares following the emergence of the Omicron variant of COVID-19. There are concerns that this variant could derail the travel market recovery at a time when things were starting to look positive.

The post Why EML Payments, Pact, Senex, and Webjet shares are dropping appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Omicron hits Flight Centre, Domino’s jumps
• Flight Centre (ASX:FLT) share price crashes 11% amid omicron fears
• These are the 10 most shorted ASX shares
• When could Webjet (ASX:WEB) earnings return to pre-COVID levels?
• These were the best performing ASX 200 shares last week

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 shares of and has recommended EML Payments. The Motley Fool Australia owns shares of and has recommended EML Payments. The Motley Fool Australia has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3E63GZ4

It wasn’t that long ago that the National Australia Bank Ltd (ASX: NAB) share price was delighting its investors with a series of new 52-week highs. It was only last Wednesday that NAB shares broke the $30 mark for the first time since September 2019. And back then, it was a fleeting affair.

The last time NAB consistently traded above $30 a share was back in 2017. Yet on 10 November, we saw NAB hit a new 52-week high of $30.30 a share. Year to date until that point, NAB was then up a very pleasing 30.5%. But the past 3 weeks or so have brought NAB shares back to earth. This ASX bank is today trading at $27.34 a share, down a nasty 1.14% so far today.

That means that the NAB share price has given up close to 10% since hitting this new high just this month. It also means that, as of today, NAB’s year to date gains in 2021 so far have fallen to ‘just’ 19.5%. So with this tumble… correction… or whatever else you want to call this short-but-sharp fall, could NAB shares be in the buy zone today?

Top ASX broker puts NAB shares in the buy zone

Well, one ASX broker thinks so. Investment bank and broker Goldman Sachs currently rates the NAB share price as a buy with a 12-month share price target of $31.15. That implies a potential future upside of almost 14% on current pricing, not including any dividend returns.

So Goldman rates NAB as its preferred ASX bank right now. It cites NAB’s “cost management initiatives, which seem further progressed relative to peers”, as well as NAB’s “position as the largest business bank”. This, Goldman posits, will allow NAB to enjoy relatively higher successes from the continuing economic recovery.

Goldman also rates NAB’s current balance sheet as strong and enjoying momentum from “growth across all divisions”. It’s also expecting modest annual dividend rises over the next few years, going from $1.27 in dividends per share in FY21 to $1.48 in dividends per share by FY2024.

No doubt investors will be hoping that these predictions play out.

At the current NAB share price of $27.34, this ASX bank has a market capitalisation of around $89 billion, with a price-to-earnings (P/E) ratio of 14.57 and a dividend yield of 4.64%.

The post Do recent sell-offs make the NAB share price a buy? appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares brokers rate as buys right now
• What is the NAB (ASX:NAB) fully franked dividend worth in November?
• Top broker gives its verdict on the NAB (ASX:NAB) share price
• 5 things to watch on the ASX 200 on Friday
• Green light: NAB (ASX:NAB) share price slips as ACCC gives nod to Citi deal

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank 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.

from The Motley Fool Australia https://ift.tt/32GII57

Shares in Bendigo and Adelaide Bank Ltd (ASX: BEN) are inching higher today after a period of turbulence just after market open.

Bendigo Bank shares traded as low as $8.43 before settling at an intraday high of $8.60 at the time of writing.

Amid a horrendous performance these past 6 months, where shares have gyrated southwards to trade at 52-week lows today, any gain is welcomed by Bendigo Bank shareholders.

Yet, despite the downward pressure, the team at leading investment firm Jefferies just upgraded Bendigo Bank to a buy in a note to clients on Friday.

What does Jefferies see in the Bendigo Bank share price that other brokers may be missing? Let’s take a closer look.

Is Bendigo Bank a buy?

It depends who you ask for this one. In its analysis, Jefferies makes note of a presentation Bendigo made on its “digital transformation roadmap” last Friday.

There, investors were treated to digital initiatives that the bank has already completed in FY20/21, as well as what it has planned for FY22/23.

For instance, the company has already partnered with Tyro Payments, reducing merchant systems from 7 to 1, and now accepts digital uploading of documents.

Moving forward, it hopes to enable Bendigo Home Loan propositions for brokers and bring the first products to market on its new product and pricing engine. In FY24, Bendigo wants its Rural Bank and Adelaide Bank integration completed.

In the note released to clients, Jefferies acknowledges that Bendigo Bank’s digital transformation initiatives are impressive, and align with a modern offering of banking services.

It likes the bank’s move and reflected this sentiment in its commentary on Friday. However, the broker also notes that returns from the bank’s efforts may be a few years in the waiting.

The broker cautioned investors that Bendigo “does not seem to have a pathway to earn its cost of capital” and “may lack the scale to value accretively and fund its ambitions”, but is bullish on the bank’s share price nonetheless.

As a result of its analysis, Jefferies raised Bendigo to a buy from hold, increasing its price target to $10 a share whilst doing so.

But if you ask other experts…

Not all experts familiar with Bendigo Bank’s share price agree with this sentiment, however. Analysts Citi and JP Morgan both agree that the bank is a hold right now, even with its digital transformation.

Citi notes that investors might be feeling disappointed that Bendigo didn’t outline a more extensive rationale for its digital transformation investment.

The broker reckons that Bendigo must outline its plans in further detail to highlight cost efficiencies, plus exhibit how it intends to source a return on the investment.

JP Morgan agreed with this tone and added that Bendigo’s presentation lacked substance on financials, instead focused on bold targets.

The investment bank stated that it is “sceptical on the extent of cost savings and revenue growth required to reach this goal, and we forecast only slight improvements in cost to income to 59.5% in FY24”.

JP Morgan is also neutral on the direction of Bendigo Bank’s share price. Each of Citi and JP Morgan has slashed their price targets on Friday by 4% and 12% to $9.60 and $9.25 respectively.

Picking the direction of Bendigo Bank has turned out to be a difficult task as well, as the track record of analysts covering the bank shows mixed results.

For instance, analysis from Bloomberg Intelligence highlights that investors “who followed [Jefferies] recommendation [on Bendigo] received a negative 15% return in the past year, compared with a negative 1.2% return on the shares”.

It notes Jefferies has rated Bendigo Bank twice as a hold and an underperform once. With these ratings, shares “fell an average 5.9% in the periods rated hold and rose 71% in the periods rated underperform”.

Bendigo Bank share price snapshot

In the past 12 months, the Bendigo Bank share price has slipped over 6% in the red, after posting a loss of 8.5% this year to date.

In the last month alone, Bendigo Bank shares are down almost 10% and are behind a further 3% in the last week of trading.

The post It’s a Buy: Why did Jefferies just upgrade the Bendigo Bank (ASX:BEN) share price? appeared first on The Motley Fool Australia.

More reading

• Why is the Bendigo Bank (ASX:BEN) share price having such a tough time of late?

The author Zach Bristow has no positions 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 shares of and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3cXmEFm

The Flight Centre Travel Group Ltd (ASX: FLT) share price is continuing its downward spiral today. This is despite the company’s CEO, Graham ‘Skroo’ Turner, calling for Australians to remain calm as more details of the Omicron variant emerge.

However, it’s doing better now than it was earlier this morning. Shortly after the ASX opened, the Flight Centre share price crashed to $15.21, representing an 11.2% drop.

Right now, the company’s stock is trading at $16.96, 1.05% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is down 0.22% right now.

Let’s take a look at what’s weighing on the Flight Centre share price.

Flight Centre share price dips amid COVID-19 variant

The Flight Centre share price is suffering despite Turner’s appearance on Nine’s Today show.

There he reportedly said new COVID-19 variants are something we must get used to and are no reason to panic. The Australian quoted Turner as saying:

[Variants are] going to happen every few months, every 6 months, every year, so we just have to learn to live with it and move on and keep the plans open.

I think that’s a really important thing that we just don’t get carried away. We look at the science, on the facts, and not act on emotion.

Turner reportedly noted he particularly hopes Queensland won’t push back its planned reopening date due to the new variant. The state is currently expected to welcome visitors from 17 December.

The Omicron variant was identified late last week. It likely spurred the Flight Centre share price’s 7.4% plunge on Friday.

Then, United Kingdom officials warned they weren’t sure if existing COVID-19 vaccines or treatments will be effective against Omicron.

However, infectious disease expert Dr Nick Coatsworth, who also appeared on the Today show this morning, isn’t worried yet.

He said the variant is so far proving to induce mild symptoms when compared to those of the Delta variant. Though, the major concern surrounding the variant is due to how fast it appears to be spreading.

Yesterday, New South Wales Health confirmed 2 people who tested positive for COVID-19 upon arriving at Sydney Airport on Saturday are infected with the new variant.

The post Flight Centre (ASX:FLT) share price partially recovers as boss calls for calm appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Omicron hits Flight Centre, Domino’s jumps
• Flight Centre (ASX:FLT) share price crashes 11% amid omicron fears
• These are the 10 most shorted ASX shares
• These were the worst performing ASX 200 shares last week
• What is going so wrong for the Flight Centre (ASX:FLT) share price today?

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

from The Motley Fool Australia https://ift.tt/3xwFOLu

The Nuix Ltd (ASX: NXL) share price is edging higher this afternoon despite today’s announcement of a second class action claim against the company.

At the time of writing, the investigative analytics and intelligence software provider’s shares are trading 0.59% higher at $2.56. In contrast, the All Ordinaries Index (ASX: XAO) is currently down 0.17% at 7,587 points.

What’s happening with Nuix?

In its release today, the Nuix board advised it had become aware of another class action by a number of disgruntled shareholders.

While the company has yet to be served, it understands that the claim has been filed in the Supreme Court of Victoria.

Nuix stated the company had not been contacted by the plaintiff or lawyers involved. However, it advised that specialist litigation law firm, Phi Finney McDonald, was launching a suit on behalf of Daniel Joseph Batchelor and shareholders who bought Nuix shares during its initial public offering (IPO) between 4 December 2020 and 29 June 2021.

The plaintiff alleges that misleading information had been provided in its prospectus based on FY21 revenue forecasts. As such, the accuser believes Nuix did not act honestly and breached its disclosure obligations under the Corporations Act and the Australian Securities and Investments Commission Act.

This is not the only case Nuix has to answer, with Shine Lawyers taking its case to the court. The legal firm also is seeking to hold Nuix accountable, however, the claim did not identify the size of damages sought.

Nuix said that it disputed both claims and would vigorously defend its position.

About the Nuix share price

The Nuix share price has fallen almost 70% in value over the past 12 months. The sharpest decline came towards the end of February 2021 when it lost 44% in a matter of days, and its shares have continued to slide ever since.

Based on today’s price, Nuix has a market capitalisation of around $807.57 million and has approximately 317.41 million shares outstanding.

The post Nuix (ASX:NXL) share price climbs despite second class action appeared first on The Motley Fool Australia.

More reading

• Nuix (ASX:NXL)’s own shareholders are suing it
• ASX 200 tech shares in focus as Nasdaq plunges 1.7%
• Are these 2 beaten-up ASX tech shares now bargain buys?
• Why are ASX 200 tech shares having such a lousy day?
• These were the best performing ASX tech shares in October

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 recommended Nuix 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.

from The Motley Fool Australia https://ift.tt/3cZJThK