If you’re looking for a few new additions to your portfolio in October, then look no further.

Analysts at Morgans have picked out a number of ASX shares that they class as their best ideas for the month. Below are two that the broker rates highly right now:

ResMed Inc. (ASX: RMD)

Morgans is a fan of this sleep treatment focused medical device company. Its analysts currently have an add rating and $41.34 price target on its shares. The broker notes that ResMed is well-placed for growth over the long term thanks to its world class offering in a growing market.

The broker commented: “While we believe the next few quarters will likely be volatile, as COVID-related demand for ventilators continues to slow and core sleep apnoea volumes gradually lift, nothing changes our medium/longer term view that the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.”

Woodside Petroleum Limited (ASX: WPL)

The team at Morgans are very positive on this energy producer and have added it to their list this month. This is largely down to its merger with the petroleum assets of mining behemoth BHP Group Ltd (ASX: BHP). It sees some major positives from the “transformative” deal. As a result, the broker has an add rating and $29.00 price target on its shares.

It explained: “We believe WPL has benefited from being in the right place, at the right time. With: 1) BHP/WPL having an existing relationship, 2) BHP eager to boost its ESG profile, and 3) WPL being a quality operator (safe hands which is important for BHP). From an economic standpoint we think WPL is clearly getting the better of the deal, with synergies not baked into deal metrics and BHP willing to accept a discount. The deal is transformative, lifting WPL into being a top 10 global E&P with +2 billion barrels of 2P reserves, with EBITDA of US$4.7bnpa and growth options.”

The post Top broker names 2 of the best ASX shares to buy in October appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO) midday update: A2 Milk class action, tech shares rebound
• What’s driving oil prices higher and which ASX shares are benefitting?
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• Here’s why the Woodside (ASX:WPL) share price is climbing 3% today
• These were the 5 best performing ASX 200 resources in September

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed 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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The Aerometrex Ltd (ASX: AMX) share price is taking off after the company announced its 3D model of San Francisco will be used to create a metaverse.

Terrestrial Software Development has bought a $250,000 software licence from the Australian geospatial tech company that will see it using the high-resolution model to create Lunaverse.

Lunaverse is a digital metaverse, a created parallel universe traversed using virtual reality.

At the time of writing, the Aerometrex share price is 67 cents, 6.35% higher than its previous closing price.

Let’s take a closer look at today’s news from Aerometrex.

Aerometrex’s model to feature in a new world

The Aerometrex share price is climbing on news its 3D model of San Francisco will form part of a metaverse.

The company hopes Terrestrial Software’s $250,000 contract bodes well for the future.

It hopes to continue to expand its 3D modelling service internationally and the United States has been cemented as its first target.

Previously, the company filled an order from Alphabet Inc‘s Google (NASDAQ: GOOGL) for its 3D model of San Francisco.

Aerometrex says 3D modelling is useful to those working in real estate, property development, engineering, transport, and virtual reality. The models can also replace ground-surveyed measurements by engineers and town planners.

Commentary from management

Aerometrex’s managing director Mark Deuter commented on the news:

We are delighted that our 3D work is being appreciated and valued by companies working at the cutting edge of computer graphics, gaming, and computer vision. We are now working hard to expand our city coverages to enable a wider offer of city environments to this new market.

Aerometrex share price snapshot

Today’s rise hasn’t been enough to pull the Aerometrex share price out of its slump.

Right now, the company’s shares have fallen 46% since the start of 2021. Its share price is also 44% lower than it was this time last year.

The post Aerometrex (ASX:AMX) share price soars 6% on news of metaverse deal appeared first on The Motley Fool Australia.

More reading

• Why the Aerometrex (ASX:AMX) share price has rocketed 20% in a month

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

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

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The Afterpay Ltd (ASX: APT) share price has reversed most of yesterday’s losses following a strong rebound on Wall Street overnight.

At the time of writing, Afterpay shares are up 4.08% to $118.24, tracking well ahead of its ASX-listed rivals Zip Co Ltd (ASX: Z1P) and Sezzle Inc (ASX: SZL), both of which are up about 2%.

What’s driving the Afterpay share price?

Wall Street paved the way for today’s gains, with all major indices bouncing about 1%.

The S&P 500 Index (SP: .INX) added 45 points, or 1.05%. The Dow Jones Industrial Average Index (DJX: .DJI) was up 312 points, or 0.92%.

And perhaps more relevant to the Afterpay share price, the tech-heavy Nasdaq Composite (NASDAQ: .IXIC) recouped 178 points or 1.25%.

Technology shares shrugged off concerns about rising yields, even as benchmark US Treasury yields continued to climb.

Overnight, 10-year US Treasury yields hit session highs of 1.54% and are currently fetching 1.55%, the highest since mid-June.

Rising yields have driven concerns that higher inflation is here to stay, despite the US Federal Reserve’s previous assessment that it was only “transitory”.

Richly-valued technology shares are the most sensitive to higher yields, which affect how investors value the company’s all-important future profits.

Nonetheless, bargain hunters were quick to step up in last night’s session, driving broad-based gains across all sectors except real estate and utilities.

Communication services, financials and tech were among the best performing sectors in the US.

Afterpay’s US-listed rival Affirm Holdings Inc (NASDAQ: AFRM) closed 3.27% higher after plunging 8.42% on Tuesday. While Afterpay’s soon-to-be parent company Square Inc (NASDAQ: SQ) rallied 4.3% to US$235.98.

Based on Square’s closing price, its takeover exchange ratio of 0.375 shares and current exchange rates, this implies a theoretical value of $121.52 a share for Afterpay.

The Afterpay share price has closely tracked the performance of Square since its takeover offer 2 months ago.

The post Why the Afterpay Ltd (ASX:APT) share price is bouncing back on Wednesday appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: A2 Milk class action, tech shares rebound
• Why is the Afterpay (ASX:APT) share price plunging 5% today?
• Why Afterpay, Atomo, Opthea, & Sealink shares are falling today
• ASX 200 (ASX:XJO) midday update: Afterpay & Zip sink, energy shares rise
• Why the Zip (ASX:Z1P) share price is down 4% today

Motley Fool contributor Kerry Sun 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 AFTERPAY T FPO, Affirm Holdings, Inc., and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Metalstech Ltd (ASX: MTC) share price is deep in negative territory on Wednesday. This comes after the gold explorer provided a market sensitive release yesterday afternoon.

At the time of writing, Metalstech shares are down 8.70% to 63 cents a pop. However, today’s fall is most likely attributed to some heavy profit-taking by investors. The company’s shares are up almost 20% for the week and 130% in a month.

What did Metalstech announce?

According to its release, Metalstech advised its wholly-owned subsidiary Winsome Resources, has signed a binding agreement with China Jushi.

Founded in 1998, China Jushi is the largest fibreglass manufacturer in China. The company specifically produces glass fibres, advanced composite materials and other products.

International operations extend out to North Carolina in the United States, with sales across a number of countries worldwide.

Under the agreement, China Jushi will subscribe for up to 9.9% of all shares issued in the proposed Winsome float. This equates to around $2.7 million in value, bringing the total float amount to $5.7 million. The remaining $3 million is being committed by North America’s Lithium Royalty Corp.

The issue price per share is listed at 20 cents each for China Jushi, acquiring roughly 13.5 million shares.

Metalstech shareholders are expected to receive about $9 million worth of shares in Winsome by a way of distribution. This translates to 45 million Winsome shares (1 free share held for every 3.68 Metalstech shares held).

Metalstech chair Russell Moran, touched on the strategic commitment, saying:

The Winsome team have done a fantastic job courting leading industry participants to support their lithium business vision. Metalstech shareholders eligible at the record date will capitalise on what is shaping up to be a fiercely sought-after battery metals focussed share offering through proposed in-species distribution.

About the Metalstech share price

It has been an astounding year for Metalstech shares, accelerating close to 300% in a year. When looking at 2021, its shares are up 200% and reached a record high of 80 cents on Monday.

Metalstech has a market capitalisation of roughly $101.82 million, and approximately 165.56 million shares on its books.

The post Why is the Metalstech (ASX:MTC) share price sliding 8% on Wednesday? 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 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 Lumos Diagnostics Holdings Ltd (ASX: LDX) share price is jumping 9% into the green today, tipping 95 cents a share before settling back to around 91 cents apiece.

Lumos shares are on the move after the company announced positive readouts from a study concerning its FebriDx diagnostic test.

Here’s what we know.

What did Lumos Diagnostics announce today?

The Australian producer of point-of-care diagnostic technologies revealed that its FebriDx diagnostic test was advocated in a prestigious health journal.

The FebriDx is a revolutionary blood test that helps distinguish between viral and bacterial sources of infection. This ultimately helps improve decision making when prescribing antibiotics.

The Journal of Health Economics and Outcomes Research (JHEOR) published a study that concluded using FebriDx “to guide antibiotic treatment for patients presenting with acute respiratory infections (ARIs)” could potentially lead to an annual saving of up to $2.5 billion for the US healthcare system.

Considering the US spent more than US$11,500 per person on healthcare in 2019, according to the US Centre for Medicare and Medicaid Services (CMS), this comes in at a saving of $7.60 per person, or 0.07%.

The authors of the article, Avalon Health Economics, compared 2 scenarios that looked at antibiotic prescription and adverse reactions.

One scenario involved the inclusion of FebriDx compared to a “control” scenario without FebriDx’s diagnostic tool.

This is what led researchers to believe an annual $2.5 billion in costs savings could be achieved.

Curiously, estimates suggest “around half of the antibiotics prescribed for ARI’s in outpatient settings are medically unnecessary”, according to the company’s announcement.

Plus, costs associated with these reactions are estimated to be between US$1,156/visit and US$14,678/event for ED visits and hospitalisations respectively.

Lumos intends to make a dent in these numbers with its FebriDx test and, now with additional literature supporting its case, it is one step closer to making it happen.

Lumos Diagnostics share price snapshot

The Lumos Diagnostics share price is swimming in a sea of red and has been since listing back in July. It’s given shareholders a loss of 24% since this time, extending its slide in the past week 1.5%

These results have lagged the benchmark S&P/ASX 200 Index (ASX: XJO) over this time.

The post Lumos Diagnostics (ASX:LDX) share price up 9% on evaluation update appeared first on The Motley Fool Australia.

More reading

• Why the Afterpay Ltd (ASX:APT) share price is bouncing back on Wednesday
• Why is the Metalstech (ASX:MTC) share price sliding 8% on Wednesday?
• ASX 200 (ASX:XJO) midday update: A2 Milk class action, tech shares rebound
• Medibank (ASX:MPL) share price lifts as staff vaccine mandate hits headlines
• Own ASX ETFs? Why the ATO might be focusing on you

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 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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At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and dropped into the red. The benchmark index is currently down 0.15% to 7,237.3 points.

Here’s what is happening on the ASX 200 today:

A2 Milk share price falls on class action news

The A2 Milk Company Ltd (ASX: A2M) share price is tumbling lower today after being hit with a class action by Slater & Gordon Limited (ASX: SGH). The law firm alleges that a2 Milk Company was or ought to have been aware that its FY 2021 guidance and subsequent representations did not adequately take account of a number of factors which would impact its financial performance. The embattled infant formula company advised that it “will vigorously defend the proceedings.”

Tech shares rebound

It has been a much better day for tech shares such as Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) on Wednesday. They are rebounding from yesterday’s selloff thanks to a strong night of trade on the Nasdaq index. The tech-focused index climbed 1.25% during overnight trade.

ASX 200 energy shares rise on oil price surge

One area of the market that is performing particularly positively today is the energy sector. A number of energy shares, such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL), are rising and doing their best to support the ASX 200. This follows another positive night for oil prices. According to CNBC, on Tuesday night the Brent crude oil price settled 1.6% higher at US$82.56 per barrel and the WTI oil price settled 1.7% higher at US$78.93 per barrel. The latter was its highest level since 2014.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the Eagers Automotive Ltd (ASX: APE) share price with a 5% gain. This follows its appearance at the Morgans conference. The worst performer has been the Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price with a 5% decline on no news.

The post ASX 200 (ASX:XJO) midday update: A2 Milk class action, tech shares rebound appeared first on The Motley Fool Australia.

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• Why the Afterpay Ltd (ASX:APT) share price is bouncing back on Wednesday
• Santos (ASX:STO) share price up 3% as oil surge continues
• The Pilbara Minerals (ASX:PLS) share price surges on resource upgrade
• Why this broker just upgraded the Baby Bunting (ASX:BBN) share price to buy
• ASX futures point to rebound today after US stock market lifts

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 AFTERPAY T FPO and Xero. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, Washington H. Soul Pattinson and Company Limited, and Xero. 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 Medibank Private Ltd (ASX: MPL) share price is in the green today amid news the company will soon require nearly all its staff to be vaccinated against COVID-19.

Previously, only Medibank’s front-line employees had to be vaccinated against COVID-19.

Medibank released the potentially divisive announcement yesterday and many media outlets reported on the changes after the ASX closed.

At the time of writing, the Medibank share price is $3.55, 0.85% higher than its previous close.

That’s relatively in line with the broader market’s performance this morning. Right now, the S&P/ASX 200 Index (ASX: XJO) has gained 0.2%. Meanwhile, the All Ordinaries Index (ASX: XAO) is up 0.3%.

Let’s take a closer look at the latest news from Medibank.

Medibank extends employee vaccine mandate

The Medibank share price is gaining today amid headlines most of its staff are facing vaccination deadlines.

It follows fellow ASX-listed companies Crown Resorts Ltd (ASX: CWN) and Qantas Airways Limited‘s (ASX: QAN) decisions to do the same. Qantas declared all its staff must have a COVID-19 vaccination in August, while Crown mandated vaccination for employees last month.

Employees working in Medibank’s retail or offices will soon need to be at least partially inoculated against COVID-19 to attend their workplaces or work events.

Those working in Medibank’s retail segment must have had 2 doses of a COVID-19 vaccine by 15 December. All other employees face a deadline of 31 January 2022.  

Additionally, its executive leadership team and board of directors will be fully inoculated against COVID-19 by mid-October.

Employees who work completely from home are exempt from the mandate, as are those who can’t get vaccinated for medical reasons.

Previously, Medibank required its frontline health workers to have at least one jab by 1 November, while those working in residential aged care had to have had their first dose by mid-September.

Commentary from management

Medibank’s CEO David Koczka commented on the company’s new vaccine mandate, saying:

As a company with more than 1,400 health professionals and a broader team focused on health and wellbeing each day, there is widespread understanding of the benefits of COVID vaccination across our business…

We’ve made this decision to help keep our people and customers safe and to support the immense effort of the nation’s healthcare workers.

Medibank share price snapshot

The Medibank share price has been performing well on the ASX lately.

It has gained 16.6% since the start of 2021. It is also 36.8% higher than it was this time last year.

The post Medibank (ASX:MPL) share price lifts as staff vaccine mandate hits headlines appeared first on The Motley Fool Australia.

More reading

• The most important catalyst for outperforming ASX shares: fund manager
• 3 ASX shares that everyone’s underestimating right now
• Here’s why the Medibank (ASX:MPL) share price is up 12% in the last 3 months
• NIB (ASX:NHF) share price lower despite ACCC authorisation
• Medibank (ASX:MPL) share price slips as customers hit 3.7 million

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 Australian Taxation Office (ATO) has indicated that it’s going to be paying closer attention to investors with ASX ETFs (exchange-traded funds).

There is a concern by the ATO that investors are not correctly reporting their income correctly.

Aussies own billions of dollars of ETFs like Vanguard Australian Shares Index ETF (ASX: VAS), iShares S&P 500 ETF (ASX: IVV) and Vanguard MSCI Index International Shares ETF (ASX: VGS).

Why is the ATO worried about ASX ETF investors?

According to reporting by the Australian Financial Review, investors (particularly ones new to ETFs) may not be aware of what they should be reporting on their annual tax return and therefore could be incorrectly misreporting what their income is. They may also not be keeping good enough financial records.

The ATO believes that over 46,000 taxpayers may have incorrectly reported their capital gains tax liability, so it asked the taxpayer to review the return. In this modern world, the ATO is collecting more information from several locations such as registries, stockbrokers and managed funds, which reports data to the ATO.

The AFR quoted the ATO assistant commissioner, Tim Loh, who said:

ETFs generally do not pay their own tax. This is the responsibility of each investor. Due to the way taxpayers report income from ETFs, we cannot differentiate which capital gains, income or dividend amounts were realised from ETF investments by looking at a tax return.

What should investors know?

There are several different elements that investors may need to report on their tax return. Even if they don’t sell the ASX ETF, each ETF can distribute different forms of income which all need to be reported on the tax return in different boxes such as dividends, franking credits, interest, foreign income and capital gains.

To help investors, ETFs do provide a distribution statement each year that should show taxpayers which labels to report the different income amounts in. Some of those different labels include foreign income and Australian income, net capital gains and non-taxable amounts.

The AFR reported that when an investor disposes of ASX ETFs, the standard distribution statement (SDS) will show the capital gains or losses made from the sale of the shares which also need to be included in a tax return.

It was also pointed out that distributions that were re-invested should also be reported as income.

Mr Loh said:

Generally speaking, taxpayers will typically need to declare distributions despite not withdrawing any money from their account.

Most people recognise that they must pay tax on any money earned from selling shares. But many don’t realise that tax also applies to dividends and distributions, even if they are automatically reinvested into a reinvestment plan.

The ATO also points out that investors need to correctly calculate their capital losses or gains and record them in the tax return. Capital losses only happen when a sale actually happens, not when an investment falls but the investor still owns the share.

Capital losses can be used to offset capital gains, but not other income.

ASX ETF tax records to keep

The AFR included a handy list from the ATO of records that investors should keep to correctly report income on their tax return:

• The date of purchase/reinvestment.
• The purchase amount/value.
• Details of any non-assessable payments that could affect the amount of any capital gain, or loss, when the fund is sold.
• The date and amount of any call options (if shares were partly paid).
• The date of sale and sale price (if they are sold).
• Any brokerage costs or commissions paid to brokers.
• Details of events such as share splits, share consolidations, returns of capital, takeovers, mergers, demergers and bonus share issues.
• Details of capital losses made in previous years – investors may be able to offset these losses against future capital gains.
• Dividend or managed investment distribution statements (standard distribution statements).

The post Own ASX ETFs? Why the ATO might be focusing on you appeared first on The Motley Fool Australia.

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• Own the Vanguard Australian Shares Index ETF (ASX:VAS)? Here’s what you’re invested in
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• 2 excellent international ETFs for ASX investors

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 shares of and has recommended Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF and iShares Trust – iShares Core S&P 500 ETF. 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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Despite the National Australia Bank Ltd (ASX: NAB) share price succumbing to the “September effect”, the big four banking constituent experienced a relatively strong quarter.

Kicking off the new financial year, the first quarter saw the bank’s share price climb 6.14%.

Meanwhile, the other big four contenders struggled to keep up with the NAB share price during that time. For comparison, Commonwealth Bank of Australia (ASX: CBA), Australia and New Zealand Banking Grp Ltd (ASX: ANZ), and Westpac Banking Corp (ASX: WBC) added 4.47%, 0.4%, and 0.74% respectively.

Following the strong quarterly performance, NAB shares are now back above their November to February pre-pandemic levels.

Let’s take a look at what had investors so optimistic during the last quarter.

What’s going on with the NAB share price?

NAB’s first quarter of the new financial year (July to September) swung into action with its hefty $2.5 billion share buyback. This capital return was announced at the end of July as part of its effort to stay in its Common Equity Tier 1 (CET1) target range of 10.75% to 11.25%.

Commenting on the buyback at the time, NAB group chief executive officer Ross McEwan said:

Our support for customers and colleagues continues through ongoing lockdowns and as the COVID-19 situation evolves. At the same time, NAB’s strong financial performance, combined with the divestment of MLC Wealth, has created an opportunity for NAB to reduce our surplus capital while retaining a strong balance sheet during these uncertain times.

Thereafter, the NAB share price rose an impressive 11.3% from 30 July before reaching its peak on 6 September. However, the bank made another notable announcement in between these two points in time.

On 9 August, the third-largest Aussie bank revealed an agreement to acquire Citigroup’s Australian consumer business. This entails NAB paying a $250 million premium to the business’s net assets to acquire the Aussie segment of the American investment bank. NAB plans to use the acquired business to deliver on its strategic growth ambition for its personal banking business.

Quarterly update

Another catalyst during the period involved the release of NAB’s quarterly update. The update highlighted an unaudited statutory net profit of $1.65 billion. Meanwhile, cash earnings growth was up 10.3% compared to the prior corresponding period. These positive results were driven by better credit conditions, reducing the level of impairments.

Evidently, investors were pleased with this update as the NAB share price climbed higher for weeks following its release.

Unfortunately, with the weight of the September effect, shares in the bank dragged lower in the last month. Although, shares have rebounded to some extent so far in October. As a result, the NAB share price is fetching $27.70 apiece at the time of writing.

Based on the current price, NAB commands a market capitalisation of $91 billion.

The post What happened for the NAB (ASX:NAB) share price in the FY22 first quarter? appeared first on The Motley Fool Australia.

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• How did the NAB (ASX:NAB) share price perform in September?

Motley Fool contributor Mitchell Lawler owns shares of Commonwealth Bank of Australia. 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 Xref Ltd (ASX: XF1) share price is on the move during Wednesday morning. This comes after the human resources technology company provided investors with a quarterly trading update.

At the time of writing, Xref shares are up 5.77% to 55 cents apiece.

How did Xref perform for Q1 FY22?

According to its release, Xref advised of a robust first quarter into the new financial year, underpinned by new sales opportunities.

Sales jumped 126% to $5.4 million against the prior corresponding period. The company stated that what is traditionally the lowest sales period of the year, new client acquisitions grew 78%. This accounted for 19% of Xref sales and the average deal size increased by 45% when compared against Q1 FY21.

New notable clients introduced during the quarter included The Arnotts Group, Fortescue Future Industries and Ozcare in Australia. International additions consisted of Kiwibank in New Zealand, Maybourne Hotels and H&M Group in the United Kingdom, and more.

Revenue ticked up 77% to $3.9 million, predominately driven by Xref’s credit usage which doubled in the quarter. The company has more than 30 live integrations with channel partners.

Cash flow surplus came to $1.2 million for the period, with cash in the bank totalling $9.4 million at 30 September.

Management commentary

Xref executive director and CEO, Lee-Martin Seymour said:

Companies are starting to witness the effects of what has been coined ‘The Great Resignation’. Millions of workers around the globe calling time on their employers. Sector, Geographical and Role changes are contributing to what is sure to be one of the biggest migrations of talent ever seen.

We are witnessing this through record lead flow, which is, in turn, feeding growth in new client acquisition. We are soon to launch our new platform, which will be 100% self-service and subscription-based. It is expected to increase our addressable market tenfold, positioning us well for growth. The whole Xref team are super excited about the opportunities that lie ahead.

About the Xref share price

Over the last 12 months, Xref shares have accelerated by almost 250%, with year-to-date up around 60%.

Based on today’s price, Xref presides a market capitalisation of roughly $104.82 million and has about 182 million shares outstanding.

The post Xref (ASX:XF1) share price surges 5% on achieving 126% sales growth 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. owns shares of and has recommended Xref Limited. The Motley Fool Australia has recommended Xref 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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