The Red Dirt Metals Ltd (ASX: RDT) share price is taking off on Wednesday despite no news having been released by the company.

At the time of writing, the Red Dirt Metals share price is 78 cents. That’s 19.08% higher than it was at yesterday’s close.

Though, it is slightly lower than Red Dirt shares’ intraday high of 82.5 cents – that represented a gain of 25.9%.

That’s a far better performance than that of the broader market. Right now, the All Ordinaries Index (ASX: XAO) has slipped 0.5% today.

Let’s take a closer look at Red Dirt Metals’ brilliant day of trade on the ASX.

A quick refresher

For those who don’t recognise Red Dirt Metals, you might remember its previous persona.

Until mid-September, the company was named TNT Mines Limited and traded on the ASX under the ticker TNT.

Red Dirt Metals is an explorer and developer of gold and base metals assets. Its operations are in Western Australia.

What’s spurred Red Dirt Metals’ brilliant Wednesday?

The Red Dirt Metals share price is surging today and interestingly, the reason behind the company’s stock’s gains remains a mystery.

Beyond the impressive 19% gain sported by the company’s share price, its stock is flying off the shelves today.

Right now, around 6.6 million shares in Red Dirt Metals have swapped hands today. That’s around $5 million worth of its stock.

For context, an average month sees around 4.1 million Red Dirt Metals shares traded.

Red Dirt Metals share price snapshot

Today’s gains have added to Red Dirt Metals’ strong recent performance on the ASX.

Over the last 30 days, the company’s share price has gained 271%.

It is also currently 188% higher than it was at the start of 2021 and 271% higher than it was this time last year.

The post Why is the Red Dirt Metals (ASX:RDT) share price soaring 19% today? appeared first on The Motley Fool Australia.

More reading

• Red Dirt Metals (ASX:RDT) share price launches 45% on lithium update
• The TNT Mines (ASX:TNT) share price explodes 20% on acquisition news

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.

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The Lynas Rare Earths Ltd (ASX: LYC) share price is having a month to forget.

At the time of writing, shares in the Malaysia-based rare earth elements (REE) miner are trading for $6.31 – down 2.02%. Over the course of the month, it’s been even worse for Lynas – losing 9.84% in value.

While the company hasn’t released any price-sensitive news to the market since August, something has clearly spooked investors.

Let’s take a closer look.

What’s going on with Lynas?

The first point to make is that the entire market is down. While the Lynas share price has fallen nearly 10%, the S&P/ASX 200 Index (ASX: XJO) has fallen 4.49%.

It’s the steepest monthly fall the market has seen since last year. Of course, that was due to the panic caused by the worldwide COVID-19 pandemic.

The mining sector has been hit especially hard during this time. For example, the BHP Group Ltd (ASX: BHP) share price has fallen nearly 14% and the Fortescue Metals Group Limited (ASX: FMG) share price has collapsed by more than 24%.

As The Motley Fool has previously reported, iron ore prices have taken a beating. China is set on an ambitious path to reduce its greenhouse gas emissions. This has resulted in a clampdown on domestic steel production and a shift away from iron ore in favour of low-emissions steel scrap.

According to S&P Global, “A few mill sources expected China’s steel output cuts to widen further in late-September or October, mainly as the overall cuts by mid-September have remained insufficient to keep the country’s 2021 crude steel output within 2020 levels.”

While Lynas does not mine the metal, companies within any one industry sector tend to move together on the ASX.

What could be affecting the Lynas share price specifically?

As one of my colleagues has previously brought to our readers’ attention: Lynas is a price taker. The Lynas share price tends to move with the price of REE.

Recent geopolitical tensions between the US and China appear to have spilled over to the broader ASX resources space, including the rare earths markets.

This is in addition to China placing restrictions on its domestic resource producers in 2021 to curb production rates. It is estimated that anywhere between 70% and 80% of the world’s REE deposits are in the People’s Republic.

Lynas share price snapshot

Over the past 12 months, the Lynas share price has risen an incredible 141%. Year-to-date, it is up a still impressive 50.2%. Its 52-week high is $8.05 per share and its 52-week low is $2.45 per share.

Lynas Rare Earths has a market capitalisation of approximately $5.7 billion.

The post The Lynas (ASX:LYC) share price is down 10% in a month. Here’s why appeared first on The Motley Fool Australia.

More reading

• Why is the Lynas (ASX:LYC) share price so volatile?
• These were the worst performers on the ASX 200 last week
• It’s been a terrible week for the Lynas (ASX:LYC) share price. Here’s why
• Why the Lynas (ASX:LYC)share price is sliding 12% on Monday
• Why the Lynas (ASX:LYC) share price is up 86% in 2021

Motley Fool contributor Marc Sidarous 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 Eagers Automotive Ltd (ASX: APE) share price is blazing ahead on Wednesday after the company released its latest investor presentation. This presentation has been prepared by Eagers for its appearance at the 2021 Morgans Conference.

Investors are buying up shares in the automotive retailer following the release of this slide deck, which has given additional clarity to the company’s near-term outlook.

At the time of writing, the Eagers Automotive share price is attracting $15.02 per share. This reflects an increase of 3.94% on yesterday’s closing price of $14.45.

Eagers share price climbs amid presentation

Australia’s oldest listed automotive retail group has gained the attention of investors on Wednesday. Heading into afternoon trade, more than 315,000 shares have exchanged hands today. This is approximately 56% of the company’s average monthly trade volume.

It appears its latest investor presentation has been met with enthusiasm. So, what exactly is contained in this release that is being met with a rally in the Eagers’ share price today?

Firstly, the automotive retailer highlighted its rich and successful history of operating in the Australian market. Originally founded in 1913, Eagers has reached an honourable age of 108 — with the past 64 years being publicly listed.

Since 2005, Eagers has grown its underlying profit before tax from $20 million to $209 million in 2020. This is continuing to accelerate as its first half of 2021 saw profits hit $218.6 million.

The company now boasts an extensive partner portfolio consisting of the likes of Toyota, Ford, BMW, and Porsche. In fact, Eagers considers its portfolio unrivalled, with the top 15 vehicle manufacturers by volume represented.

From the presentation, Eagers has outlined its intention to build upon its existing history by implementing a few tech-driven additions. In turn, the company is partnering with fintech companies to help it offer new innovations.

These include its plan to sell vehicles at shopping centres and airports, through what it dubs as “Automall”. Additionally, Eagers will integrate online finance applications, a sales app, online services bookings, and SMS payments.

Positive outlook

Another factor bringing the Eagers share price into focus today is the macro conditions for the industry. Despite chip shortages causing some issues for vehicle manufacturers, Aussie demand for new cars has been strong. According to the Federal Chamber of Automotive Industries, new car sales increased 21% year on year to 83,312 in September. Eagers makes a point of this in its presentation, noting that demand continues to outstrip supply.

Additionally, the company expects further cost reductions driven by its investment in tech. At the same time, the company is targeting its merger and acquisition activity to deliver further revenue growth.

Finally, Eagers mentioned near-term impacts due to COVID-19. However, these issues are isolated in nature. The company’s underlying performance remains resilient. The company is optimistic for its future once COVID-19 restrictions begin to be eased.

Looking in the rear view

Over the past year, the Eagers Automotive share price has outperformed the benchmark index. Specifically, the automotive retailer has gained 40.8% over the 12-month period. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is up roughly half as much over the same period.

As a result, Eagers is trading on a price-to-earnings (P/E) ratio of 11 times. This is slightly under the Australian specialty retail industry average of 11.4 times.

The post Why is the Eagers Automotive (ASX:APE) share price lifting today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: A2 Milk class action, tech shares rebound
• 4 ASX shares going ex-dividend today
• These 5 ASX 200 shares are going ex-dividend this week
• Which ASX shares are making a move on the ASX 300?
• 2 ASX shares to take off after excellent reporting seasons

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended BMW. The Motley Fool Australia has recommended BMW. 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 300 Index (ASX: XKO) is back again in negative territory today, further weighing on yesterday’s losses.

During mid-afternoon trade, the ASX 300 is down 0.73% to 7,193.6 points. This means the index is down 1.18% so far this week.

Let’s take a look at which ASX companies are making headlines today.

Australian Strategic Materials Ltd (ASX: ASM)

A big mover on the ASX 300 is the Australian Strategic Materials share price, up 7.58% to $10.64.

The rare earth metals company’s shares are rebounding from dropping to a monthly low of $9.25 yesterday. The company released its full statutory accounts 2 weeks ago, providing information about its progress throughout the year.

However, a strong gain in the commodities markets could be a catalyst for its recent rise. The spot price for rare earths mineral, neodymium, is fetching around 777,500 Chinese yuan per tonne, up 24.9% year-to-date.

De Grey Mining Ltd (ASX: DEG)

Adding gains to the ASX 300 is the De Grey share price, up 6.6% to $1.13.

The gold mining company provided investors with an update yesterday on its Mallina Gold Project. The results from a scoping study identified “clear opportunities” for improvement.

In addition, the board approved the progression of the project to a pre-feasibility study with results expected in H2 2022.

It appears investors are continuing to buy De Grey shares in light of the positive announcement.

Yancoal Australia Ltd (ASX: YAL)

The Yancoal share price is surging 5.72% to $3.88 in afternoon trade.

The energy producer is continuing to see its shares surge as the spot price of coal soars to record levels. The current price is a record high of US$269.50 a tonne, up almost 50% in a month.

The two world’s largest populations – China and India – have dwindling coal supplies, leading to power blackouts across Asia. This has led to demand soaring with supplies tightened in coal and liquefied natural gas markets.

And which ASX 300 companies are heading the other way?

The a2 Milk Co Ltd (ASX: A2M)

In decline today is the A2 Milk share price, down 7.06% to $6.06.

The infant formula company’s shares are under pressure following a class action lawsuit by Slater & Gordon Limited (ASX: SGH).

The law firm launched proceedings in the Supreme Court of Victoria alleging misleading or deceptive conduct by A2 Milk. This has caused investors to dump the company’s shares ahead of the court case.

A2 Milk advised it will vigorously defend the lawsuit.

Flight Centre Travel Group Ltd (ASX: FLT)

Also being weighed down by investors today is the Flight Centre share price, down 5.73% to $23.03.

The travel agent’s shares have fallen today with investors deciding to take profit off the table.

It’s worth noting Flight Centre shares reached a 52-week high of $25.28 on Tuesday. As such, short-sellers have increased their interest to about 11% of the company’s shares.

The post Which ASX shares are leading the way in the ASX 300 today? appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell today
• ASX 200 (ASX:XJO) midday update: A2 Milk class action, tech shares rebound
• A2 Milk (ASX:A2M) share price on watch after being hit with class action
• 5 things to watch on the ASX 200 on Wednesday
• Which shares are the biggest winners and losers on the ASX 300 today?

Motley Fool contributor Aaron Teboneras owns shares of A2 Milk. 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 A2 Milk and 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.

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The Hipages Group Holdings Ltd (ASX: HPG) share price is soaring higher today despite silence from the company.

In fact, Hipages hasn’t released any price-sensitive news to the market since it published its earnings for financial year 2021 in August.  Nonetheless, its stock is taking off on Wednesday.

At the time of writing, the Hipages share price has gained an impressive 6.48% to trade at $3.78.

That’s slightly lower than its intraday high of $3.94, which represented a 10.9% gain.

That’s a far better performance than the broader market. Right now, the S&P/ASX 200 Index (ASX: XJO) has fallen 0.63%. Meanwhile, the All Ordinaries Index (ASX: XAO) has dropped 0.59%.

Let’s take a closer look at the software-as-a-service (SaaS) provider’s brilliant day on the ASX.

Hipages stock surges on Wednesday

The Hipages share price has taken off today despite no news having been released by the company.

Though, Hipages isn’t alone in enjoying a day in the green.

The S&P/ASX All Technology Index (ASX: XTX) and the S&P/ASX 200 Info Tech Index (ASX: XIJ) are gaining despite the broader market’s struggles.

Right now, the All Tech index is up 0.31%, while the ASX 200 Information Technology sector has gained 0.71%.

Further, Hipages shares are flying off the shelf on Wednesday. At the time of writing, 497,227 of Hipages shares – around $2 million worth – have swapped hands today.

For context, an average month sees 210,839 Hipages shares traded.

While the cause of Hipages’ popularity today is unclear, it’s undeniable the market is enthused about the SaaS company’s stock.  

Hipages share price snapshot

Today’s boost has added to Hipages’ strong recent performance on the ASX.

Right now, it is 58.58% higher than it was at the start of 2021. It has also gained 54% since it debuted on the ASX in September 2020.  

The post Why is the Hipages (ASX:HPG) share price leaping 6% on Wednesday? appeared first on The Motley Fool Australia.

More reading

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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 shares of and has recommended Hipages Group Holdings 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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Yesterday I 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:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Credit Suisse, its analysts have retained their underperform rating and $5.50 price target on this infant formula company’s shares. The broker notes that infant formula prices stabilised in September. It also highlights that marketing activity is increasing ahead of the major Double 11 shopping event in China. However, Credit Suisse appears to believe it is too soon to get excited and holds firm with its underperform rating. The A2 Milk share price is fetching $6.11 on Wednesday.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating and cut their price target down to a lowly $11.40. The broker is particularly bearish on low grade iron ore prices and feels the miner’s shares are overvalued at the current level. This is particularly the case in comparison to some of its iron ore peers. The Fortescue share price is trading at $14.09 this afternoon.

Unibail-Rodamco-Westfield CDI (ASX: URW)

Analysts at Ord Minnett have retained their sell rating and $4.00 price target on this shopping centre operator’s shares. According to the note, the broker acknowledges that the company’s shares have pulled back meaningfully in recent months. However, it still doesn’t see enough value in its shares or proof that a rebound in trading conditions is taking place. In light of this, it holds firm with its sell rating for now. The Unibail-Rodamco-Westfield share price is trading at $4.92 today.

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

More reading

• Broker warns Fortescue (ASX:FMG) share price could sink a further 20%
• ASX 200 (ASX:XJO) midday update: A2 Milk class action, tech shares rebound
• Fortescue (ASX:FMG) share price at 16 month lows. What’s next for iron ore?
• A2 Milk (ASX:A2M) share price on watch after being hit with class action
• 5 things to watch on the ASX 200 on Wednesday

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 recommended A2 Milk. 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 yet another day in the red so far this Wednesday. At the time of writing, the ASX 200 is down by 0.83% to 7,188 points. But one ASX company isn’t joining in that malaise. That would be the Regal Investment Fund (ASX: RF1).

Regal shares last traded at a price of $4.47 a share, right where they closed yesterday’s trading session at. And, at least for now, that’s the price they will stay at.

That’s because Regal Investment is currently in a trading halt. The company released an announcement this morning, gazetting the share price freeze. A few minutes later, we found out why.

Regal Investment Fund share price frozen for capital raising

Yes, the Regal Investment Fund share price is halted today because the company has announced a capital raising program. Regal is seeking to raise up to $97.8 million through a share placement. The placement offer is available for all existing shareholders. It will entitle these shareholders to apply for an additional share for every 3 shares already owned.

This 3-for-1 offer will be available at a share price of $3.79. According to the company, this price represents a 15.2% discount to yesterday’s closing Regal Investment Fund share price of $4.47. It also happens to equal this company’s Net Asset Value (NAV), as of 1 October. This offer has been named the ‘general entitlement offer’ by Regal, with the goal of raising up to $65.8 million.

That contrasts to an additional and concurrent share placement program that will be available for “eligible wholesale and institutional investors”. This program will seek to raise an additional $31.9 million.

Regal tells us that this new money will be earmarked in the following way:

The new capital raised under the Offer will be allocated to existing Regal strategies in line with the Fund’s investment objective, with an aim of further diversifying RF1’s portfolio across private and public alternative investments

About the company

The Regal Investment Fund is an ASX-listed investment trust. According to the company, it seeks to “provide investors with exposure to a selection of alternative investment strategies with the aim of producing attractive risk-adjusted absolute returns over a period of more than five years with limited correlation to equity markets”.

It has managed to book some impressive returns since its inception in June 2019. The Regal Investment Fund has returned an average performance of 39.1% per annum since its inception date, including a return of 45.1% over the past 12 months (to 30 September).

The post Why is the Regal Investment (ASX:RF1) share price halted right now? appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell today
• CBA (ASX:CBA) share price slides as bank is awarded for rapid cloud migration
• Here’s why the Austal (ASX:ASB) share price is charging higher today
• Here’s why Square stock pulled back 10% in September
• Why Afterpay, Austal, Baby Bunting, & Nick Scali shares are storming higher

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

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The Commonwealth Bank of Australia (ASX: CBA) share price is sliding today, down 2.62% to $102.74 per share.

It’s not just the CBA share price in the red, though.

The S&P/ASX 200 Index (ASX: XJO) gave up its earlier gains around lunchtime and is currently down 0.69%.

The other big 4 banks are all losing ground today as well. The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price, as one example, is down 1.08%.

That’s today’s share movements.

Moving ahead, in news that’s unlikely to have any material impact on the CBA share price today, the bank this morning reported on the record pace of its migration to the cloud.

CommBank embraces cloud technology

CommBank reported that its rapid pace of digital transformation and adoption of cloud technology saw it take home the 2021 Digital Transformation award at the VMware Customer Excellence Awards.

The bank said it has now migrated more than 2,300 virtual machines to the public cloud. According to the release, it’s now operating the largest “VMWare cloud environment” across all of Asia–Pacific and Japan.

Commenting on the transition to cloud technology, Mark Vudrag, CommBank’s executive general manager of global technology services, said:

We know digital engagement is a key differentiator for us to remain connected and relevant for our customers. We’re always looking for ways to use the latest technology to modernise our systems and our thinking so we can truly re-imagine our products and services for our customers.

Vudrag added that, “At every step we implemented lessons learned and continued to make sure our cloud operations always remain safe, sound and secure and that we’re building a fit for purpose solution for the bank of tomorrow.”

CBA share price snapshot

Despite sliding today, the CBA share price has been a strong performer in 2021, up 22% year to date. By comparison, the ASX 200 is up 7.65% year to date.

Over the past month, CBA shares have gained a slender 0.59%, compared to a 4.45% loss for the ASX 200.

The post CBA (ASX:CBA) share price slides as bank is awarded for rapid cloud migration appeared first on The Motley Fool Australia.

More reading

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• CBA (ASX:CBA) share price in focus amid Aussie banking first
• Why the ANZ (ASX:ANZ) share price has lagged the ASX 200
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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 Austal Limited (ASX: ASB) share price has been a strong performer on Wednesday.

In afternoon trade, the shipbuilder’s shares are up over 4% to $1.95.

Why is the Austal share price charging higher?

The catalyst for the rise in the Austal share price today has been the release of an announcement.

According to the release, the company’s US business has been awarded its first steel vessel construction contract by the United States Navy.

The US Navy contract is worth a total of US$145 million (~A$198.5 million) and is for the construction of two Towing, Salvage, and Rescue ships (T-ATS 11 and 12).

The release also notes that the contract includes options for up to three additional T-ATS ships. If these options were exercised, it would bring the total cumulative value of the contract to US$385 million (~A$528.6 million).

This contract award follows the initial award of a US$3.6 million contract by the United States Navy for the functional design of the Navajo-class T-ATS vessels.

Management notes that the T-ATS contract is the first steel ship construction program awarded by the United States Navy to Austal USA. It will also be the first program to be delivered in the new steel shipbuilding facilities, which are nearing completion at the shipyard in Mobile, Alabama.

The Navajo-class T-ATS has ocean-going tug, salvage, and rescue capabilities and a multi-mission common hull platform, capable of towing heavy ships. These ships will be able to support the US Navy in a variety of missions. This includes oil spill response, humanitarian assistance, and wide area search and surveillance.

“An exciting milestone”

Austal’s Chief Executive Officer, Paddy Gregg, was very pleased with the news.

He believes the contract is an exciting milestone in the history of the company and a great demonstration of its new steel shipbuilding capabilities in the United States.

Mr Gregg added: “This is great news for Austal USA as they enter a new era of steel shipbuilding in the United States, supporting the Navy’s requirements for steel ships.”

Positively for the company, and potentially the Austal share price, this is just one of several steel shipbuilding programs Austal USA is pursuing as it diversifies its capabilities. Shareholders will no doubt be hoping the company has similar success with those submissions.

The post Here’s why the Austal (ASX:ASB) share price is charging higher today appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, Austal, Baby Bunting, & Nick Scali shares are storming higher
• Why the Austal (ASX:ASB) share price is lifting today
• Dividends galore! 10 ASX shares trading ex-dividend on Wednesday

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

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

What happened

Shares of Square (NYSE: SQ) pulled back 10.5% in September, according to data provided by S&P Global Market Intelligence. I believe the drop can be attributed to general market volatility; the S&P 500 was down almost 5% for the month. I don’t believe the drop resulted from a problem with the business because everything Square announced in September was positive. 

So what

During September, Square didn’t update financial results but it did make some product announcements. For example, the company made progress in its international expansion plans. On Sept. 16 it announced small businesses in Spain could get early access to its suite of products launching there. And on Sept. 21 it announced it had officially launched in France following success with an early access program like the one it has in Spain.

Outside of Europe, Square is hopping on consumer trends in Canada. A Square survey reports that 80% of Canadians are committed to buying from local merchants more frequently and 72% believe cashless solutions are important going forward. To help empower small local businesses to offer these cashless transactions, the company launched Square Register on Sept. 8. Register isn’t a piece of hardware only. The company’s solutions also include software to help manage these digital transactions. 

Square also made an announcement for its U.S. business in September. The company has partnered with popular social media app TikTok, allowing creators to merge their TikTok accounts with an online Square store. As a result, TikTok content creators can conveniently drive traffic from their videos to their online stores. 

September returns for Square stock compared to the S&P 500. SQ data by YCharts

Now what

Square stock has continued falling along with the entire stock market in October and now sits roughly 20% below its all-time high. Sometimes stocks fall because of poor business execution and therefore those aren’t good buying opportunities. By contrast, Square stock has fallen for no fault of its own. This kind of situation can be a good buying opportunity. 

Of course, the most important thing is not how much shares of Square have fallen. Rather, the most important thing is what Square’s business will do over the next three, five, or 10 years. Generally speaking, I believe that financial technology will only become more important over the long term, positioning a fintech stock like Square very well. If Square stock wasn’t on your radar before, I believe it should be after September’s pullback. 

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

The post Here’s why Square stock pulled back 10% in September appeared first on The Motley Fool Australia.

More reading

• Why is the Afterpay (ASX:APT) share price plunging 5% today?
• Why did the Afterpay (ASX:APT) share price have such a bad month in September?
• Square slumps 5%. How could this impact the Afterpay (ASX:APT) share price today?
• Why is the Afterpay (ASX:APT) share price trailing Zip on Thursday
• Square slides 5%. What does this mean for the Afterpay (ASX:APT) share price?

Jon Quast owns shares of Square. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Square. 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.

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

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