The Insurance Australia Group Ltd (ASX: IAG) share price has lagged the major benchmarks over last few days.

Whereas the S&P/ASX 200 Index (ASX: XJO) has slipped 1.65% into the red over the last week, IAG shares have fallen 5% in the previous 7 days to trade at $5.165 each.

Let’s take a closer look at why IAG’s share price has fallen behind this past week.

What’s up with the IAG share price lately?

It seems a major selling pressure was triggered when IAG advised that CMC Hospitality Pty Ltd recently filed applications to the Federal Court to start a “representative proceeding” against the company.

As it stands, IAG “has not been served with the application” and, therefore, does not have extensive details on its nature – just yet.

But it does know the application “appears to relate to insurers who hold policies with CGU and business interruption losses related to COVID-19“, as per the company’s announcement.

For reference, CGU is an intermediary-based insurance company that is backed by its parent, none other than IAG.

In view of the spate of lockdowns in NSW and Victoria, it makes sense businesses would claim their insurance options to meet their financial obligations in a bid to remain solvent.

Indirectly acknowledging this point, IAG stated it is “one of a number of insurers” participating in an “industry test case” in the Federal Court. The hearing for this test case began on 6 September.

IAG believes the test case “is the most efficient process to obtain clarity and to resolve issues for customers with business interruption claims”.

As such, it “intends to follow the final rulings” made by the courts. It will also “assess any business interruption claims as quickly as possible” following the “final resolution of the issues in court”.

On the flip side

Zooming out and taking a long term view, it’s clear the IAG share price has lagged the major Australian indices since 2019.

Yet, despite this underperformance, it appears that money managers with a contrarian flavour to their investing style see an attractive buying opportunity in IAG shares right now.

Aberdeen Standard Investments’ Michelle Lopez was recently quoted as saying the “premium rate cycle momentum is expected to persist”, which could allow insurers to “restore margins”.

In addition, The Motley Fool’s Tony Yoo reported last month that the Firetrail Australian High Conviction Fund is overweight on IAG shares.

This is backed by bullish sentiment from analysts, with 7 out of 11 analysts recommending a “strong buy” on IAG shares.

Also, let’s not forget that IAG doubled its final dividend in its last earnings report.

So even though the IAG share price has been a major underperformer over the last few years, some experts in the field appear to hold the opposite view for its future.

IAG share price snapshot

While some experts hold a bullish view on the IAG share price into the future, when looking backwards, it’s been a choppy year on the chart.

IAG shares have gained 10% since January 1, extending the return over the last 12 months to 11%.

Both of these returns have lagged the broad index’s return of around 25% over the past year.

The post Why the IAG (ASX:IAG) share price is down 5% in 7 days appeared first on The Motley Fool Australia.

More reading

• Why experts have high hopes for the IAG (ASX:IAG) share price
• Is the IAG (ASX:IAG) share price bouncing back in September?
• Why the IAG (ASX:IAG) share price has underperformed the ASX 200 in the last year
• How have ASX financial shares performed during the August 2021 earnings season?
• Here’s why the IAG (ASX:IAG) share price is slumping today

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 Insurance Australia 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 Webjet Limited (ASX: WEB) share price is taking off this month amid anticipation Australians might soon be doing the same.

Over the last 4 weeks, Webjet has only released 1 piece of news to the market. However, it was an exciting announcement.

Additionally, Australia is inching closer to vaccine targets that the federal government expects will see the country opening to both domestic and international travel once more.

Right now, the Webjet share price is $5.96, 1.3% lower than its previous close but 24.2% higher than it was 4 weeks ago.

Let’s take a closer look at what the ASX 200 travel company has been up to over the last 4 weeks.

What’s driving the Webjet share price lately?

The Webjet share price is having a great few weeks’ trade on the ASX.

The single announcement the company released to the market in the last 4 weeks was overwhelmingly positive. It noted that the company’s WebBeds business finally returned to profitability.

A reopening of travel in North America and Europe has sparked WebBeds’ return to profitability. The company suggests WebBeds will bounce back quickly when international travel resumes.

Additionally, the company’s Australian online travel agency was profitable from April 2021 to June 2021. That was before the current lockdowns began in New South Wales and, later, Victoria and the Australian Capital Territory.

The positive news and hopeful outlook saw the Webjet share price gain 3.45% on the day of the release.

However, it is outside influences that seem to have spurred on most of Webjet’s gains.

Potentially, Qantas Airways Limited (ASX: QAN) could have helped Webjet’s stock. The airline announced its plan back to international travel on 26 August, perhaps inspiring confidence in the sector.

Additionally, the Webjet share price might be rallying alongside Australia’s COVID-19 vaccine rollout.

Under the federal government’s plan, lockdowns will become sporadic and international arrival caps will be raised when 70% of Australians are fully vaccinated. The government expects international travel to restart when 80% of Australians are fully vaccinated.

As of yesterday, 68.5% of Australians have had their first COVID-19 jab.

The post Why the Webjet (ASX:WEB) share price has soared 24% in 4 weeks appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• The Webjet (ASX:WEB) share price is nearing its 52-week high. Is now the time to buy?
• Here’s why the Webjet (ASX:WEB) share price is up 50% this last year
• How have ASX travel shares performed during the August 2021 earnings season?
• When was the best ever day on the Webjet (ASX:WEB) share price chart?

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 owns shares of and 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.

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The S&P/ASX 200 Index (ASX: XJO) is having a rather depressed day of trading on the markets this Wednesday so far. The ASX 200 is presently down 0.16% to 7,425 points.

With that out of the way, let’s instead dive a little deeper into the ASX 200 shares that are topping the charts today (at the time of writing) in terms of trading volume, according to investing.com. 

The 3 most traded ASX 200 shares so far this Wednesday

South32 Ltd (ASX: S32)

Diversified ASX 200 mining company South32 is our first ASX share to check out today. At the time of writing, a hefty 13.75 million S32 shares have traded so far today.

With no news or announcements out of the miner, we can probably put this volume down to what is happening with the South32 share price. The company is currently down a nasty 1.91% today so far to $3.34 a share. We are likely seeing a spike in trading volume because of this fall.

Scentre Group (ASX: SCG)

ASX 200 Real Estate Investment Trust (REIT) Scentre Group is our next share to check out today. This Wednesday has seen a sizeable 26.87 million Scentre units swap hands so far.

Again, we don’t have much in the way of news out of this REIT, so we can probably put this volume down to this company’s unit price performance. Unlike South32 though, Scentre is up today, by a healthy 1.55% to $2.96 a unit. This might be prompting this large trading volume we are seeing thus far.

Pilbara Minerals Ltd (ASX: PLS)

What a day Pilbara has had. This ASX 200 lithium producer has seen a whopping 41.7 million of its shares bought and sold at the time of writing.

This is almost certainly the byproduct of Pilbara hitting a new all-time high today after a positive announcement this morning. The lithium producer is presently trading at $2.46 a share, up 8.85% so far today. But it hit a high of $2.53 earlier this morning, which was a gain of roughly 10% at the time. This is clearly a factor behind the massive trading volumes we are seeing with Pilbara Minerals this Wednesday.

The post There are the 3 most traded ASX 200 shares so far today appeared first on The Motley Fool Australia.

More reading

• Why Accent, Calix, Pilbara Minerals, & Starpharma shares are racing higher
• Which ASX 300 shares are on the move mid-week?
• ASX 200 midday update: Pilbara Minerals jumps, bank shares fall
• Pilbara Minerals (ASX:PLS) share price rockets 10% to all-time high. Here’s why
• ASX lithium shares are rallying across the board today. Here’s why.

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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is off its lows but still in the red. At the time of writing, the benchmark index is down 0.2% to 7,422.7 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are racing higher:

Accent Group Ltd (ASX: AX1)

The Accent share price has jumped 11.5% to $2.29. Investors have been buying the footwear retailer’s shares after Morgan Stanley upgraded them to an overweight rating with a $2.60 price target. The broker made the move partly on the belief that the company will open more stores than forecast in FY 2022. It also sees opportunities for its store network to expand internationally in the future.

Calix Ltd (ASX: CXL)

The Calix share price has rocketed 37% higher to $5.26. Investors have been buying the new materials company’s shares after Carbon Direct invested US$15 million into one of its subsidiaries. As part of the deal, Calix has entered into a licence agreement that will earn it royalties from the deployment of its technology.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is up 8.5% to $2.45. Investors have been buying the lithium miner’s shares after it released the results of its second lithium spodumene concentrate digital auction. According to the update, Pilbara Minerals received a bid of US$2,240/dmt for 8,000 dmt of its spodumene concentrate. This was almost double what it received at its inaugural auction last month.

Starpharma Holdings Limited (ASX: SPL)

The Starpharma share price is up 5% to $1.38. This morning the dendrimer products developer announced that it has been granted a new US patent in relation to DEP cabazitaxel. The release notes that the composition of matter patent builds on Starpharma’s suite of existing international DEP patents for the product. It specifically covers a DEP dendrimer conjugated to multiple cabazitaxel drug molecules via a particular releasable linker.

The post Why Accent, Calix, Pilbara Minerals, & Starpharma shares are racing higher appeared first on The Motley Fool Australia.

More reading

• Which ASX 300 shares are on the move mid-week?
• Why the Accent (ASX:AX1) share price is surging 12% today
• ASX 200 midday update: Pilbara Minerals jumps, bank shares fall
• Why the Calix (ASX:CXL) share price is surging 20% to a new all-time high
• Pilbara Minerals (ASX:PLS) share price rockets 10% to all-time high. Here’s why

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 Starpharma Holdings Limited. The Motley Fool Australia has recommended Accent Group and Starpharma Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The BHP Group Ltd (ASX: BHP) share price is trending downwards. That’s despite the company providing an update to the market on its potash mine in Western Canada.

At the time of writing, shares in the mining giant are trading for $40.43 – down 3.12%. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.46% lower.

While it should be noted that today’s announcement isn’t market sensitive, it could still very well be playing into the thinking of some investors.

Let’s take a closer look.

What is potash?

According to BHP, potash is a “vital link” in the global food supply chain. It is a potassium-rich compound used mainly as fertiliser in agricultural production. As well, potash can be used for glass manufacturing, oil and gas drilling, aluminium recycling, water softening, fireworks, and other uses.

Today’s announcement relates to the company’s Jansen mine, which is located 140km east of Saskatoon – the largest city in the Canadian province of Saskatchewan. BHP owns 100% of the mine that is expected to produce 4.5 mega tonnes per year of the product.

The BHP share price is falling despite latest presentation

In a release to the ASX, BHP says Jansen “fits our strategy” and describes the project as “modern, long-life” and “expandable”. The company says potash is an “attractive” future facing commodity with exposure to global megatrends and has “attractive fundamentals.”

BHP says there are 3 benefits to its portfolio from investing in potash. They are:

• Greater immunity from economic cycles and growing demand as customers look for more environmentally friendly materials.
• A globally diverse customer base that differs from BHP’s existing commodity exposures.
• An increased operating footprint, as potash is primarily found in areas BHP does not have a strong presence in, such as Canada. In fact, BHP describes Canada as a “leading, stable mining jurisdiction”.

Despite these promised benefits, the BHP share price is falling.

Outlook

BHP also outlined what it expects from the Jansen project – both financially and in a broader sense.

Operationally speaking, the mining giant expects an EBITDA margin from the site of about 70%. It expects the mine to be paid back in 7 years’ time once operations begin and it is estimating operating costs to be at US $100 per tonne. It also expects carbon emissions to be low compared to other fertiliser projects. For example, 80% of underground mining and other support vehicles will be battery operated with hopes to have 100% of vehicles be electric.

The mine should begin operations at the beginning of 2027, according to today’s presentation at least. Let’s see what it means for BHP, and the BHP share price, when we reach that time.

BHP share price snapshot

Over the past 12 months, the BHP share price has increased 7.84%. Year-to-date, however, it is down 6.11%.

Its 52-week high is $54.55 per share and its 52-week low is $33.73 per share.

BHP Group has a market capitalisation of about $205 billion.

The post BHP (ASX:BHP) share price slips despite potash update appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Pilbara Minerals jumps, bank shares fall
• The latest ASX 200 mining shares to get hit by broker downgrade
• How have these ASX 200 iron ore shares performed since reporting results?
• BHP (ASX:BHP) share price lifts following climate action plan release
• 5 things to watch on the ASX 200 on Tuesday

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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It has been a disappointing few weeks for the Zip Co Ltd (ASX: Z1P) share price.

The buy now pay later (BNPL) provider’s shares are down 0.5% to $6.80 this afternoon.

This means the Zip share price is now down 20% since this time last month.

Why is the Zip share price falling?

Investors have been selling down the Zip share price since the release of its full year results.

Although the company delivered stellar sales growth, its spiralling costs appear to have spooked the market.

Not even an update at its Retail Investor Day event this week has been able to lift its shares. That update revealed plans to expand into savings accounts and cryptocurrency trading and transacting.

Is this a buying opportunity for investors?

According to a note out of Jefferies, its analysts believe the Zip share price is good value at the current level.

This morning the broker retained its buy rating and $8.28 price target on the company’s shares. Based on the current Zip share price, this implies potential upside of almost 22% over the next 12 months.

The note reveals that Jefferies believes that Zip’s shares are trading at too large a discount to rivals Afterpay Ltd (ASX: APT) and Affirm.

The broker estimates that Zip’s shares trade at 9x FY 2022 sales, whereas Afterpay and Affirm trade on 24x and 25x multiples, respectively.

And while the broker acknowledges that their leadership positions in an increasingly competitive industry warrant higher multiples, it doesn’t believe the difference should be as great as it is.

Particularly given Zip’s differentiated strategy, which it notes now includes cryptocurrencies and physical payment cards. The broker feels this strategy is the right way to go and also feels that its increased costs to support its global expansion are justified.

All in all, it is positive on the company’s growth outlook and continues to rate Zip’s shares as a buy.

The post Top broker says Zip (ASX:Z1P) share price can rise 22% appeared first on The Motley Fool Australia.

More reading

• ASX 200 rises, Zip falls, Brambles sinks
• Why Australian Ethical, Brambles, Novonix, & Zip shares are tumbling lower
• Leading brokers name 3 ASX shares to sell today
• ASX 200 (ASX:XJO) midday update: Westpac asset sale blocked, Zip crypto update
• Zip (ASX:Z1P) share price lower despite savings and crypto products update

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 ZIPCOLTD FPO. 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 Ramsay Health Care Limited (ASX: RHC) share price is having a pretty decent start to this Wednesday’s trading. At the time of writing, Ramsay shares are up a healthy 0.31% to $68.38 a share.

However, zooming out, and the picture isn’t quite so bright. Ramsay shares are now down around 5.1% since Friday 3 September. That’s a pretty nasty drop for a 12-day span.

The company is faring… ok in 2021 so far, up close to 9% year to date. It’s up a rather paltry 2.7% over the past 12 months. Compared to the S&P/ASX 200 Index (ASX: XJO), this is arguably quite poor, seeing as the ASX 200 is up close to 11% in 2021 so far, and almost 26% over the past year.

So what’s been happening with Ramsay that might have sparked this recent bout of volatility?

Earnings and dividends…

Well, the short answer is… not much. Ramsay has announced no major news or developments since the announcement of its FY21 earnings report last month. Just to recap, the company reported a healthy lift in earnings by 29.1% to $1.13 billion, and a 58.1% jump in statutory profit to $449 million.

Of course, those numbers are coming off a low base, since FY20 was a pretty tough year for this healthcare company. But even so, investors seem to have given their approval, seeing as the Ramsay share price remains above it’s pre-earnings pricing by around 0.7% as of today.

But perhaps the single biggest reason why Ramsay has had a rough couple of weeks is the company’s dividend. Last month, in addition to the metrics above, Ramsay announced a final dividend for FY21 of $1.03 a share, bringing its full-year dividend to $1.515 per share.

Ramsay traded ex-dividend for this final payout on 6 September. This caused the usual share price dip, reflecting that new shareholders will not be eligible for the payout.

This dip (which is one of the best reasons to have a share drop in value) is the primary reason why Ramsay shares have gone backwards by around 5% since 3 September. Eligible shareholders will receive this dividend on 30 September.

So could Ramsay shares be a buy at these current levels?

Could the Ramsay Health Care share price a buy today?

Well, one fund manager who thinks so is Tribeca Investment Partners fund manager Jun Bei Liu. My Fool colleague Tony interviewed Ms Liu this week, and it turns out she is very bullish on Ramsay shares right now. Here’s some of what she told the Motley Fool:

Ramsay, obviously private hospitals, and elective surgery at the moment is being suspended — it’s having an earnings impact. However, remember, this is infrastructure-like, private hospital assets. It used to trade at such a big premium to the market, at a premium to the other healthcare businesses.

Now it trades just over 20 times [forward P/E ratio]. The rest of the healthcare sector trades at over 40. And this is a business, structurally, things are looking better, not looking at the pandemic.

At the current Ramsay Health Care share price, this company has a market capitalisation of $15.57 billion and a dividend yield of 2.22%.

The post The Ramsay Health Care (ASX:RHC) share price is down 5% in 8 days. Could it be a buy? appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares that won’t stay cheap: fund manager
• Why analysts rate these ASX healthcare shares highly
• 5 things to watch on the ASX 200 on Friday
• Ramsay (ASX:RHC) share price on watch after strong FY 2021 profit growth but cautious outlook
• The Ramsay (ASX:RHC) share price lifted 8% last time the company reported

Motley Fool contributor Sebastian Bowen owns shares of Ramsay Health Care 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 Ramsay Health Care 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 National Australia Bank Ltd. (ASX: NAB) share price is down 0.32% in afternoon trading, to $28.14 per share.

The S&P/ASX 200 Index (ASX: XJO) is slipping as well, down 0.3%.

Some 4 months has passed since the big four bank released its half-year results for the 6 months ending 31 March (H1FY21). We take a look at how the NAB share price has been tracking since.

But first, a quick recap of the key results.

What did the ASX 200 bank report for H1FY21?

The NAB share price was in the spotlight on 6 May, when the bank released its results before market open.

Some of the key metrics the bank reported included a 1% lift in revenue compared to the prior corresponding half year. It also reported a 94.8% leap in cash earnings to $3.34 billion.

On another positive front, NAB reported its writeback of credit impairment charges fell to $128 million, down from $1.16 billion in H1FY20.

ASX income investors would have been pleased with the dividend payout, though that didn’t prevent NAB’s share price sliding on the day. The bank declared a fully-franked interim dividend of 60 cents per share, up from 30 cents per share in the prior corresponding period.

Ross McEwan, NAB’s CEO, said in the results announcement that, “There is growing momentum across our bank, reflecting our investment in key strategic priority areas. While there is still much to do, we are progressing on our ambition to deliver better outcomes for customers and colleagues. Focus and execution remain key.”

The bank is scheduled to release its full 2021 financial year results on 9 November.

How has the NAB share price performed since reporting results?

On the day of reporting the comany’s half-year results the NAB share price dropped 3%, closing at $26.56 per share.

Since the opening bell on 6 May, NAB’s shares are up 2.5%. That compares to a gain of 4.3% posted by the ASX 200 over that same period.

The post How has the NAB share price performed since reporting results appeared first on The Motley Fool Australia.

More reading

• How these 4 ASX 200 bank shares have performed since reporting results
• ASX 200 midday update: Pilbara Minerals jumps, bank shares fall
• The CBA (ASX:CBA) share price is underperforming its big four peers today
• Why Afterpay, Chorus, NAB, & Omni Bridgeway shares are dropping
• National Australia Bank (ASX:NAB) share price dragged lower by downgrade

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

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The S&P/ASX 300 Index (ASX: XKO) is in reverse today, wiping out most of this week’s gains.

At the time of writing, the ASX 300 is hovering around 7,423 points, down 0.24%. Since hitting a record high of 7,625 points on 13 August, the index has gradually been treading lower.

Let’s take a look at which shares are among the top movers on the ASX 300.

Accent Group Ltd (ASX: AX1)

The Accent share price is up an astonishing 14.63% to $2.35 despite no news from the retail group.

However, a broker note out of Morgan Stanley raised its price target on Accent shares by 8.3% to $2.60. The leading investment house also upgraded its recommendation to an overweight rating.

This has led investors to agree with Morgan Stanley’s assessment, snapping up the shares following Accent’s recent share price weaknesses.

Pilbara Minerals Ltd (ASX: PLS)

Another significant mover today is the Pilbara Minerals share price, up 9.73% to a record high of $2.48.

The lithium miner released the results from its second lithium spodumene concentrate digital auction yesterday.

Pilbara Minerals advised it intends to accept the highest bid received of US$2,240/dmt for 8,000 dmt of spodumene concentrate.

It is expected that a sales contract will be entered into within the coming days.

Paladin Energy Ltd (ASX: PDN)

Following suit, the Paladin Energy share price is up 7.63% to a multi-year high of $1.0225.

The uranium producer hasn’t provided any new releases since its full-year results late last month. That said, the spot price for uranium has soared in recent weeks on the back of positive sentiment among fund managers.

And the leading ASX shares heading south?

AGL Energy Ltd (ASX: AGL)

Continuing to fall wayside is the AGL share price, down 6.8% to $5.89.

The energy company entered into a new Otway Basin Gas Sales Agreement with Cooper Energy Ltd (ASX: COE) on Monday. This is for all developed and uncontracted volumes from the Casino, Henry and Netherby fields in the Otway Basin.

The new arrangements aren’t expected to take effect until 1 January 2022.

The sales volumes from Cooper are guided between 3.7 million Boe (barrels of equivalent) to 4.1 million Boe. Previously, the company had estimated sales in the range of 3.7 million Boe to 4.3 million Boe.

Cimic Group Ltd (ASX: CIM)

Also in decline is the Cimic share price, down 4.3% to $20.25.

The global engineering company is trading ex-dividend, hence the reason for its shares falling.

The board declared a partially-franked dividend of 42 cents apiece to be paid on 7 October 2021.

The post Which ASX 300 shares are on the move mid-week? appeared first on The Motley Fool Australia.

More reading

• Why the Accent (ASX:AX1) share price is surging 12% today
• ASX 200 midday update: Pilbara Minerals jumps, bank shares fall
• Pilbara Minerals (ASX:PLS) share price rockets 10% to all-time high. Here’s why
• ASX lithium shares are rallying across the board today. Here’s why.
• Pilbara Minerals (ASX:PLS) share price on watch as lithium prices boom

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

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The Best & Less Group Holdings Ltd (ASX: BST) share price has had a cracking past week on the market.

In the space of 5 trading days, shares in the clothing retailer have marched 18.9% ahead. This continues the successful trend that Best & Less has experienced since its ASX-listing in July. The company’s share price has surged more than 38% in its 51 days of publicly listed life.

Right now, the Best & Less share price is swapping hands for $3.32 apiece, up 2.47%.

Let’s inspect the company and gain an understanding of what has propelled its shares higher recently.

Is no news good news?

Despite the Best & Less share price ascending to new all-time highs, the last week has entailed not much at all. This could be a positive for investors. It appears the business is focusing on the task at hand and executing accordingly.

The period of uneventfulness has ensued following the company’s release of its full-year results for FY21. Impressively, Best & Less exceeded its prospectus forecasts on all key metrics. This included increasing revenue by 6.1% to $663.2 million year-over-year.

Perhaps, even more, astonishing, the company’s net profit after tax skyrocketed 191.9% to $47 million. This milestone accomplishment surpassed its prospectus forecast by ~18%. This demonstrated that Best & Less is a formidable ASX-listed retailer that is able to turn a hefty profit.

It is possible that more investors are now paying attention and take a closer look at the retailer. If so, it could be warranted considering the fundamentals on display.

For example, at its current market capitalisation of $406.2 million, Best & Less is trading on a price-to-earnings (P/E) ratio of 8.6 times. In comparison, ASX-listed company’s that Best & Less considers competitors are fetching much richer earnings multiples, as shown below:

• Baby Bunting Group Ltd (ASX: BBN) with a $675 million market capitalisation trades on a 40 times 12-month trailing P/E ratio
• Reject Shop Ltd (ASX: TRS) with a $233 million market capitalisation trades on a 28.4 times 12-month trailing P/E ratio
• H & M Hennes & Mauritz AB (STO: HM-B) with a $40.5 billion market capitalisation trades on a 48.2 times 12-month trailing P/E ratio

It would seem that the broader market is pricing in low to no growth in the near term for Best & Less by comparison. Although, the company has already committed to 4 net new stores in FY22 to date.

Best & Less share price unfazed by lockdown impact

It also appears investors are willing to look beyond the immediate COVID-19 impacts on retail shares. In July, the Australian Bureau of Statistics reported a 2.7% month-on-month fall in retail sales.

Today, National Australia Bank Ltd. (ASX: NAB) has shared its forecast for retail sales in August. Unfortunately, it’s not looking pretty. In its note, NAB stated it expects an additional 2.7% month-on-month reduction in retail sales for August due to lockdowns.

These difficult conditions were also reflected in an FY22 trading update released by Best & Less today. According to the release, for the first 8 weeks of the new financial year, total sales were down 25.7%. Similarly, like-for-like sales were down 11.7% compared to FY21.

Despite this, the Best & Less share price is climbing higher today.

The post Why the Best & Less (ASX:BST) share price has surged 19% in a week appeared first on The Motley Fool Australia.

More reading

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• Best & Less (ASX:BST) share price slides despite record profit

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Baby Bunting. 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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