The Transurban Group Ltd (ASX: TCL) share price has spent all day in the red on Thursday.

Shares in the ASX toll road operator are slipping as offers are set to land for the remaining stakes in the WestConnex motorway project today. At the time of writing, the Transurban share price is down 2.9%, trading at $14.08.

Let’s investigate further.

What led us to this point?

Investors have been watching the Transurban share price closely this week as the company attempts to capture the remaining stake in the WestConnex project.

There are two stakes up for grabs in upcoming auctions for the project – both 24.5% each. The first bids are due today, with Transurban seeking to participate in both.

According to reports from yesterday’s Australian Financial Review (AFR), it appears the NSW state is “likely to take a week or so reviewing the bids”, before running “a quick auction for the second stake”.

Transurban is participating in the auction through its consortium, Sydney Transport Partners (STP) which already owns the remaining 51% stake of WestConnex.

Earlier this week, reports surfaced that rival bidders IFM investors may have pulled out of the running race for the bid, leaving Transurban in a prime position to nab the remaining stakes.

Macquarie Bank has weighed in on the debate and foresees Transurban raising around $4 billion in capital to fund the transactions. The total investment could reach up to $10 billion if STP wins both bids, according to the AFR.

What does this mean for the Transurban share price?

The Transurban share price has had a difficult year to date, posting a gain of only 3.4% since January 1.

Transurban shares are also only up by around 3% over the past 12 months, due to pressures on its business from the spate of COVID-related lockdowns in Australia and overseas.

In comparison, the S&P/ASX 200 index (ASX: XJO) has climbed around 25% over this same time.

However, Transurban’s entry into this race, as a bidder with a successful track record in these types of auctions, means “investors may finally have a reason to get excited about the Transurban share price”, as my Fool colleague Brendon eloquently put it on Tuesday.

Given the likely need for a capital raise to finance the bids, the company may seek an institutional placement with its “nearest and dearest” or play it through a rights issue, according to the company.

It’s likely that the outcome of Transurban’s bid in the WestConnex project will weigh in on its share price in some fashion.

The post Transurban (ASX:TCL) share price slides as WestConnex bid day arrives appeared first on The Motley Fool Australia.

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• Top broker says Transurban (ASX:TCL) share price is a buy
• Transurban (ASX:TCL) share price wobbles as CEO calls for road-user reforms
• 2 top ASX dividend shares rated as buys this month

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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The Senex Energy Ltd (ASX: SXY) share price is on the rise, despite most ASX shares spending the day in the red.

This follows the energy producer’s positive announcement during early morning before market open.

At the time of writing, Senex shares are up 2.33% to $3.295, while the All Ordinaries Index (ASX: XAO) is down 1.67% to 7,677 points.

What did Senex announce?

Investors are sending the Senex share price higher regardless of the overall negative market sentiment today.

According to its release, Senex advised that it has entered into a new gas sales agreement with New Century Resources Ltd (ASX: NCZ).

Established in 2010, New Century Resources is an Australian base metal producer operating the Century Mine in Queensland. The company mines and produces coal, zinc, and other minerals, whilst providing mining services such as plant operations, drilling, dewatering, and project management.

Senex will provide around 7 petajoules of natural gas to New Century at the Diamantina Power Station in Mount Isa. This will be used to generate enough power required to operate the Century Mine. One petajoule is equivalent to powering 19,000 homes for an entire year, or almost 100,000 dwellings with 5.1 petajoules.

The Diamantina Power Station is owned and operated by APA Group (ASX: APA).

Under the terms of the contract, the gas supply will be at a fixed price, in line with current market levels.

Senex will also supply another 1 petajoule of natural gas by mid-2022 in support of material increases in production levels.

The agreement is for a 3-year term and is scheduled to commence on 1 January 2022.

Senex managing director and CEO, Ian Davies noted the proud achievement of supplying gas to its regional Queensland customer, saying:

Century Mine generates significant state royalties and export earnings and is a critical project in the Queensland Government’s Strategic Blueprint for the North West Minerals Province.

Senex looks forward to building another strong, long-term and mutually beneficial relationship that supports jobs, the economy and helps meet Australia’s energy demand as it transitions to a lower carbon future.

About the Senex share price

The Senex share price has been gradually trekking higher over the past 12 months, up almost 40%. The company’s shares hit a multi-year high of $3.64 cents in June before some profit-taking swooped in.

Based on today’s price, Senex commands a market capitalisation of around $606 million and has 184 million shares outstanding.

The post Why the Senex (ASX:SXY) share price is pushing higher today appeared first on The Motley Fool Australia.

More reading

• Why Novonix, ResMed, Senex, & Weebit Nano shares are charging higher
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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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ASX retail shares recovered strongly from the COVID-19 market downturn as sales accelerated over 2020.

Major retailers such as JB Hi-Fi Limited (ASX: JBH) and Wesfarmers Ltd (ASX: WES) have reported significant increases in sales in FY21.

Online retailers such as Kogan.com Ltd (ASX: KGN) and Temple & Webster Group Ltd (ASX: TPW) have benefited from the shift to online shopping occurring as a result of the pandemic. This was reflected in FY21 results, but investors are now looking to the future.

The August reporting season revealed not only FY21 performance but gave some insight into how retail shares will perform as we cycle out of pandemic restrictions. 

How have ASX retail shares performed against the market?

After a strong recovery from the 2020 coronavirus-driven downturn, ASX retail shares have had a mixed performance over 2021.

The Wesfarmers share price is up 12% year to date, marginally underperforming the All Ordinaries Index (ASX: XAO), which is 12.5% higher. Shares in Temple & Webster have gained 11.3% in 2021. However, the JB Hi-Fi share price is down 8%, while the Kogan share price has fallen a massive 45.7% in 2021. 

Who are the retail winners this earnings season? 

JB Hi-Fi delivered a winning 67.4% increase in profits, which reached $506 million. The electronics retailer reported sales of $8.9 billion for FY21, a 12.6% increase on FY20.

The company reported strong sales momentum through the year, with heightened customer demand for electronics and home appliances. It has continued to invest in its online and digital offerings, which have paid off — online sales were up 78.1% to $1.1 billion in FY21.

JB Hi Fi’s earnings grew 53.8% to $743.1 million, with earnings per share (EPS) up 67.5% to 440.8 cents per share. A final dividend of 107 cents per share was declared, bringing total FY21 dividends to 287 cents per share, a 51.9% increase on FY20. 

Online furniture and homewares retailer Temple & Webster also reported record revenue, profit, and customers in FY21.

Full-year revenue increased 85% on the previous year to $326.3 million. Profit grew 165% to $14 million. Active customer numbers were up 62% year on year to 778k, with the pandemic accelerating the shift from offline to online that was already in progress.

Temple & Webster is focused on expanding its digital capabilities, including data personalisation and the use of artificial intelligence. The company is pursuing a high growth strategy in the short to mid-term, while the plan longer term is to leverage scale and grow profits in the longer term. 

Retail sector behemoth Wesfarmers also performed strongly in FY21, with profits up 16.2% to $2,421 million. Bunnings, Kmart, and Officeworks delivered strong sales and increased earnings, leading to an 18.8% increase in Wesfarmers’ earnings before interest and tax (EBIT).

The company said COVID-19 continued to impact operations, but government stimulus measures have had a positive impact on sales during the year. Wesfarmers declared a final dividend of 90 cents per share, fully franked, bringing full-year dividends to 178 cents a share. This is 17.1% above last year’s dividends of 152 cents. 

Wesfarmers warned that Bunnings, Officeworks, and Catch experienced moderating sales growth from mid-March as they began to cycle the strong demand experienced in the prior year.

The retailer said volatility in customer traffic resulting from lockdowns was also impacting sales growth. Disruptions and capacity constraints in global supply chains led to some inventory delays and higher freight costs.

Wesfarmers will adjust inventory management practices to mitigate the impact of supply chain disruptions on stock availability. Nonetheless, the board has also recommended a return of capital of 200 cents per share, subject to shareholder approval. If approved, distributions of approximately $2,268 million will be paid in December. 

And the losers? 

Kogan surpassed $1 billion in sales for the first time in FY21, but investors sent the Kogan share price tumbling when results were released.

The Kogan share price fell more than 15% in a day, even as the online retailer reported 52.7% growth in sales. Total sales were $1.179 billion, providing a compound annual growth rate of 46.2% since FY19. But this was not translated into profits, with net profit after tax (NPAT) of $3.5 million, well down from $26.8 million in FY20.

Profits were impacted by a write-down of PPE held by Kogan and additional logistics costs incurred due to warehousing and supply chain disruptions. The board has hit a pause on dividends to conserve cash for business investment and growth opportunities but says it has a strong balance sheet that supports planned growth initiatives. 

What is the outlook for ASX retail shares?

Consistent with previous years, Kogan has refrained from providing earnings guidance for FY22 but committed to providing regular updates throughout the year.

July 2021 sales were 5.1% above July 2020 sales based on unaudited management accounts. Kogan’s earnings for the month were $2.1 million, reflecting high operating costs that the company says are progressively reducing. 

Wesfarmers has noted earnings in its retail divisions during the first half of FY22 may be below the prior corresponding period due to the impact of continued trading restrictions. It anticipates that ongoing disruptions to supply chains and global supply constraints will create additional costs and impact stock availability in some categories.

JB Hi-Fi has also experienced some disruption and variability to sales due to shifting COVID restrictions. Australian sales for 1 July 2021 to 15 August 2021 were down on the equivalent period in FY21, although up on FY20. The retailer has declined to provide sales and earnings guidance in light of the ongoing uncertainty arising from COVID-19. 

Temple & Webster has reported a strong start to FY22, with sales up 49% on last year. The company says it is continuing to experience strong tailwinds, including the ongoing shift to online shopping and increased discretionary income due to travel restrictions.

Temple & Webster plans to continue to invest in growth areas of the business with the ultimate goal of becoming the largest retailer (online or offline) for furniture and homewares in its home market. 

The post How have ASX retail shares performed during the August 2021 earnings season? appeared first on The Motley Fool Australia.

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• Own Wesfarmers (ASX:WES) shares? Then you’re invested in lithium
• Woolworths (ASX:WOW) share price on watch after its big green promise
• How does the Wesfarmers (ASX:WES) dividend compare to its sector?
• 2 buy and hold ASX shares that could help grow your wealth

Motley Fool contributor Katherine O’Brien 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 Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd and Wesfarmers Limited. The Motley Fool Australia has recommended Temple & Webster Group 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 Endeavour Group Ltd (ASX: EDV) share price is slipping following the release of the company’s earnings for financial year 2021 (FY21).

Right now, the Endeavour share price is $6.61, 1.34% lower than its previous close.

Endeavour share price slumps despite seemingly strong FY21

Here’s the liquor retailer and hotel operator’s key performance metrics for FY21:

• $11.6 billion of revenue, up 9.3% on that of FY20
• After tax profit of $445 million
• $899 million of earnings before interest and tax (EBIT) up 22% on that of the prior financial year
• 7 cent final dividend, representing a 71% payout ratio

The company’s retail EBIT increased 17.6% to $669 million. While its hotels business’ EBIT reached $261 million, a 49.1% increase on that of FY20. Of course, FY20 saw a relatively long period of COVID-19 closures.

Over the course of FY21, 8.4% of the group’s retail sales came from its online store.

Endeavour also reinvested more than $300 million into its business, opening 33 new Dan Murphy’s and BWS stores and upgrading 64 stores. It also acquired 5 hotels, renewed 26, and upgraded more than 500 electronic gaming machines across its network.

As of 28 June 2021, Endeavour has $1.7 billion in borrowings from Woolworths Group Ltd (ASX: WOW), net debt of $1.3 billion, $625 million of undrawn debt facilities, and $437 million of cash.

What happened in FY21 for Endeavour?

It has been a big year for Endeavour and its share price.

Perhaps the biggest news from the company was its demerger from Woolworths.

Endevaour demerged from Woolworths in June 2021 with a market capitalisation of $10.8 billion.

The company also achieved 35% growth from online sales and released around 530 new Pinnacle Drinks products in FY21.

The number of active monthly users of BWS and Dan Murphy’s apps also increased 86%.

The company saw its hotels closed for 169 days during FY21. Additionally, 83 of its stores were closed as COVID-19 exposure sites.

What did management say?

Endeavour’s managing director Steve Donohue, and chair and CEO Peter R. Hearl, issued a joint statement commenting on the financial year that’s been for Endeavour and its share price. They said:

The 2021 financial year has been an eventful year for the Group characterised by both a demerger and navigating the significant impacts of COVID-19…

While the demerger has not altered the fact that Endeavour is the leading retail drinks and hotels business in Australia, it has enabled us to refocus on where we want to head in the future.

What’s next for Endeavour?

Those interested in the Endeavour share price might want to keep an eye out for these happenings:

According to Endeavour, it will be chasing a “significant number” of value-investing opportunities in FY22.

These could include growing its digital engagement, new retail stores, acquiring and upgrading hotels, and focusing on its costs and capital management.

However, due to the ongoing COVID-19 outbreaks in Victoria and New South Wales, the company has declined to forecast how it will perform over FY22.

Endeavour share price snapshot

The Endeavour share price has performed well during its short time on the ASX.

Since it listed, it has gained 9.8%.

At its current share price, the company has a market capitalisation of around $11.8 billion.

The post Endeavour (ASX:EDV) share price slips despite $445 million profit appeared first on The Motley Fool Australia.

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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. 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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Fortunately, in this low interest rate environment, there are countless dividend shares for investors to choose from on the Australian share market.

But with so many to choose from, it can be hard to decide which ones to buy. To narrow things down, I have picked out three ASX dividend shares brokers think investors should buy:

APA Group (ASX: APA)

According to a note out of Ord Minnett, its analysts have upgraded this utilities company’s shares to a buy rating with a $10.75 price target. The broker is positive on the company for a number of reasons. This includes its attractive valuation, strong free cash flow generation, and growth opportunities. It also expects generous dividend yields in the coming years. Ord Minnett has pencilled in dividends per share of 53 cents in FY 2022 and then 54 cents in FY 2023. Based on the current APA share price of $9.30, this will mean yields of 5.7% and 5.8%, respectively.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Macquarie reveals that its analysts have retained their outperform rating but trimmed their price target on this mining giant’s shares to $25.00. Although Macquarie acknowledges that iron ore prices are falling, the broker believes Fortescue can still maintain a double digit free cash flow yield. This is due to its reducing capex offsetting iron ore price declines. The broker expects this strong free cash flow to support further big dividend payments in the near term. Macquarie is forecasting dividends per share of $2.45 in FY 2022 and $1.63 in FY 2023. Based on the current Fortescue share price of $17.92, this represents massive fully franked yields of 13.7% and 9.1%, respectively.

Sonic Healthcare Limited (ASX: SHL)

Analysts at Credit Suisse have retained their outperform rating and lifted the price target on this healthcare company’s shares to $46.50. According to the note, the broker expects Sonic to benefit from higher than expected COVID-19 testing volumes for a little while to come. It also believes that reimbursement rates for testing are unlikely to be cut given how there is an election due next year. All in all, the broker expects this to underpin strong earnings and dividends. Credit Suisse has forecast partially franked dividends per share of 97.4 cents in FY 2022 and 102 cents in FY 2023. Based on the current Sonic share price of $41.75, this will mean yields of 2.3% and 2.5%, respectively.

The post Top brokers name 3 ASX dividend shares to buy today appeared first on The Motley Fool Australia.

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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 owns shares of and has recommended APA Group. The Motley Fool Australia has recommended Sonic Healthcare 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 Peninsula Energy Ltd (ASX: PEN) share price has surged 70% since late August, briefly hitting a 2-year high of 23 cents on Monday.

Shares in the uranium explorer are currently changing hands for 21 cents.

Peninsula Energy operates the Lance Uranium project in Wyoming, United States. The company aims to fast-track the Lance project into production. It is currently focused on transitioning the project from alkaline to low pH extraction methods.

Peninsula Energy share price booms on uranium highs

Over the last week, uranium prices have shot up to 6-year highs of about US$35/lb, according to Cameco.

A major catalyst behind the sudden jump in uranium prices is the Sprott Physical Uranium Trust, the world’s largest actively managed uranium fund that invests in physical uranium.

According to Sprott’s Twitter, the fund has been aggressively buying uranium off the spot market, adding 3.45 million pounds of physical uranium in September alone.

Analysts at Kitco have pointed to the Sprott Uranium Trust as a “critical factor behind the recent push in the energy metal’s price”.

The uplift in uranium prices has helped bring life back to the Peninsula Energy share price and the broad uranium sector.

How does this impact Peninsula?

Peninsula Energy is in a unique position given its current uranium holdings and sales contract book.

Back in May, the company successfully completed a $15 million capital raise to fund the purchase of 300,000 pounds of uranium at a price of US$31.35 per pound.

The board believed that “holding uranium during a period when there is a focused and continued drive by the United States Government to support and revitalise the domestic uranium industry, is a low-risk strategy that has the potential to deliver considerable upside value for shareholders”.

It looks like management was on the money, given the recent jump in uranium spot prices.

In addition, Peninsula Energy has a number of long-term sales contracts in place, extending to 2030.

This includes contracts in place for up to 5.5 million pounds at US$51-53/lb with major utilities in both the United States and Europe.

Peninsula Energy share price snapshot

It’s been a good year for Peninsula Energy shares, which are up around 72% in 2021 so far. They have also gained more than 190% over the past 12 months.

The post Peninsula Energy (ASX:PEN) share price jumps to 2-year highs appeared first on The Motley Fool Australia.

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• Guess which sector last week’s top performing ASX shares come from
• ASX uranium shares are booming this week. Here’s why.

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. 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 Novonix Ltd (ASX: NVX) share price is continuing its upward trajectory this week, despite no news from the company.

While Novonix itself has been quiet, it did pass an exciting milestone last week when it entered the S&P/ASX 300 Index (ASX: XKO).

Additionally, the rising price of lithium could also be sending the lithium-ion battery company’s shares skyward.

Right now, the Novonix share price is $5.53, up 1.8% today and 11% higher than it was at the start of this week.

However, earlier today the company’s shares were trading for a whopping $6.10. That represents a 12.3% gain on yesterday’s close and a new record high.

Let’s take a look at what’s boosting Novonix higher on the ASX.

What’s driving Novonix?

Novonix is having a great week despite the company’s silence.

The market handed a new crown to Novonix last Friday. The S&P Dow Jones Indices’ quarterly rebalance saw Novonix boosted into the S&P/ASX 300 Index.

Novonix was one of 13 new faces on the index, as struggling former favourites such as Bubs Australia Ltd (ASX: BUB) and Humm Group Ltd (ASX: HUM) were shown the door.

Although the news was likely exciting for shareholders, the Novonix share price didn’t take off until yesterday.

The other factor that might be driving Novonix’s recent gains is the increasing price of lithium.

S&P Global Platts reported lithium carbonate reached its highest price ever yesterday, supported by the demand to use the product as feedstock, alongside spodumene.  

Additionally, the price of lithium hydroxide is also increasing, potentially pulling the Novonix share price up with it.

Novonix share price snapshot

This week’s gains included, Novonix has been performing exceptionally well, lately. Its shares are up 346% year to date. It has also gained 197% over the past 12 months.

The post Novonix (ASX:NVX) share price surges again to record high, up 11% this week appeared first on The Motley Fool Australia.

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• Why Novonix, ResMed, Senex, & Weebit Nano shares are charging higher
• Which ASX shares are making a move on the ASX 300?
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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 recommended BUBS AUST FPO and Humm 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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If you don’t have sufficient funds to build a diverse portfolio, then exchange traded funds (ETFs) could be a quick fix.

The reason for this is that ETFs give investors access to a large number of different shares through a solitary investment. This allows you to spread your funds far wider than you would if you were buying individual shares.

With that in mind, I have picked out three ETFs that trade on the ASX that could be good options. Here’s what you need to know about them:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

If you’re interested in the US tech sector, then the BetaShares NASDAQ 100 ETF could be one to consider. This ETF provides exposure to the 100 largest non-financial shares on the NASDAQ index. Among the 100 shares included in the fund are household names such as Amazon, Apple, Facebook, Microsoft, Netflix, and Tesla.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

Another ETF for investors to look at is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors access to companies involved in the growing video gaming market. Among the shares included in the fund are hardware giant Nvidia and game developers Take-Two and Electronic Arts. VanEck notes that these companies are in a position to benefit from the increasing popularity of video games and eSports.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF to look at is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to a massive 1,505 of the world’s largest listed companies from major developed countries. This arguably makes it as diverse as it gets for investors. Among the companies you’ll be buying a slice of are Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa. Vanguard notes that this allows investors to participate in the long-term growth potential of international economies outside Australia. It also offers a modest dividend yield of ~1.6%.

The post 3 top quality ETFs for ASX investors appeared first on The Motley Fool Australia.

More reading

• 2 excellent ETFs for ASX investors this week
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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 BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF and Vanguard MSCI Index International Shares 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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The Dicker Data Ltd (ASX: DDR) share price is again in negative territory today following two weeks of significant losses. 

The dramatic fall in the company’s shares follows the IT distributor’s announcement of director transactions.

At the time of writing, Dicker Data shares adding to its woes, are down a further 2.09% to $13.10. This means that since 26 August, the company’s share price has fallen 21%.

Why is Dicker Data shares coming under pressure?

Investors are continuing to head for the hills, selling Dicker Data shares after a worrying market update on 27 August.

According to its release, the company revealed that its chair and CEO, David Dicker sold a portion of his shares.

The news didn’t go down well with investors, sending the Dicker Data share price down 9% on the day.

Mr Dicker offloaded a total of 2.74 million shares in an on-market trade at a price of $15.40 per share. The company advised that the sale was in relation to meet “personal projects” by the chair and CEO.

The transaction represented roughly 1.6% of Dicker Data’s share registry and reduced Mr Dicker’s entire holding to about 33.6%.

To appease shareholders, the company said that Mr Dicker entered into a lock-up arrangement on his remaining shares until the end of 2021.

However, taking advantage of the share price weakness, a number of directors took the opportunity to top up their holdings. While it was nowhere near the amount transacted by Mr Dicker, the company’s share rose 5% on the update.

Unfortunately, since the 2 September buying, Dicker Data shares have given back those gains.

Dicker Data share price summary

Over the past 12 months, Dicker Data shares have accelerated by almost 80%, with year-to-date above 25%. The company’s share price reached an all-time high of $16.60 following the release of its interim results for FY21.

Based on today’s price, Dicker Data commands a market capitalisation of around $2.27 billion, with 172.8 million shares on issue.

The post Dicker Data (ASX:DDR) share price continues to slide, down 21% since late August appeared first on The Motley Fool Australia.

More reading

• Which ASX shares are set to finish the week as the top movers on the ASX 300?
• Here are the top 10 ASX 200 shares on Thursday
• Why Altium, Catapult, Dicker Data, & PolyNovo shares are charging higher
• Dicker Data (ASX:DDR) share price surges 5% as directors buy the dip
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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 Dicker Data Limited. The Motley Fool Australia owns shares of and has recommended Dicker Data 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 IOUpay Ltd (ASX: IOU) share price is climbing higher after the ASX fintech company emerged from yesterday’s trading halt.

After initially rocketing 22%, the IOUpay share price has given back some of those gains and is currently up 3.23% to 32 cents per share.

Below we look at the company’s acquisition announcement that looks to be driving investor interest.

What acquisition announcement did the company make?

The IOUpay share price is gaining today after the company reported it is acquiring a 42% stake in I.Destinasi Sdn Bhd (IDSB).

IDSB provides long-term installment-based consumer credit services in Malaysia.

IOUpay said IDSB is a complementary business “with prospective collaboration opportunities for cross-selling” between its short-term buy now, pay later offerings (which run up to 6 months) and IDSB’s longer-term consumer loan products, which run up to 10 years.

According to the release, IDSB “holds a unique and highly valuable AG Code2 licence”. This provides it with a significant competitive advantage in Malaysia consumer credit market. There are only 2 companies holding an AG Code2 licence in the country.

IOUpay will pay RM126 million (AU$41.3 million) for its 42% stake in 2 tranches over a 6-month period. It said that price won’t be increased “if IDSB outperforms an audited profit before tax” for the 2021 financial year.

On the other hand, the purchase price could be decreased if the profit before tax is less than RM30 million (AU$9.8 million) for FY21.

IOUpay will fund the acquisition with a 50% upfront cash consideration from its current cash holdings. The remaining 50% is scheduled to be paid in 6 months. The company said it will assess the appropriate payment method closer to that time.

IOUpay share price snapshot

Over the past 12 months, the IOUpay share price has rocketed 550%. This far outpaces the 27% gains posted by the All Ordinaries Index (ASX: XAO) over that same time.

IOUpay’s shares are up 30% over the last month.

The post Why the IOUpay (ASX:IOU) share price is leaping higher appeared first on The Motley Fool Australia.

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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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