With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Audinate Group Ltd (ASX: AD8)

According to a note out of UBS, its analysts have retained their buy rating and lifted their price target on this audio over IP networking solution provider’s shares to $11.30. The broker was very pleased with Audinate’s strong fourth quarter update and notes that its outlook remains strong. Particularly given its record high backlog of orders from customers. In addition to this, the broker highlights that its first Dante video products have been launched and were well-received by the industry. The Audinate share price is trading at $9.99 today.

National Australia Bank Ltd (ASX: NAB)

A note out of Macquarie reveals that its analysts have upgraded this banking giant’s shares to an outperform rating with a $28.00 price target. The broker made the move on valuation grounds following a recent pullback in the NAB share price. Macquarie believes that NAB is well-placed from a balance sheet perspective to absorb any issues relating to its AUSTRAC investigation and a potential economic slowdown. The NAB share price is trading at $26.23 on Monday afternoon.

Orocobre Limited (ASX: ORE)

Another note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this lithium miner’s shares to $8.20. According to the note, Orocobre’s fourth quarter shipments were slightly lower than expected during the fourth quarter. However, this was offset by stronger prices than Macquarie was expecting. In light of this strong pricing, the broker has upgraded its earnings estimates and price target accordingly. The Orocobre share price is fetching $6.78 today.

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

More reading

• Galan Lithium (ASX:GLN) share price surges to record on positive results
• Why this sector is lifting the ASX 200 higher today
• Why Australian Pharma Industries, Audinate, NRW, & Vulcan are racing higher
• Top broker tells investors to stand ready to take profit on ASX bank shares
• NAB (ASX:NAB) share price lifts amid news of bid to acquire Citi banking

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

from The Motley Fool Australia https://ift.tt/3e83FbM

The Life360 Inc (ASX: 360) share price has started the week on a positive note.

In afternoon trade, the app maker’s shares rose 5% to a record high of $7.37.

This latest gain means Life360’s are now up 89% since the start of the year.

Why is the Life360 share price is hitting a record high?

The catalyst for the rise in the Life360 share price on Monday has been a broker note out of Morgan Stanley.

According to the note, the broker has retained its overweight rating and $8.60 price target on the company’s shares.

Based on the latest Life360 share price, this implies potential upside of 17% even after today’s rise to a record high.

What did the broker say?

Morgan Stanley believes that Life360 is well-placed to accelerate its growth. This is thanks to the high level of COVID-19 vaccinations, re-openings, and the return to normal schooling. This is expected to support demand for subscriptions for its family safety app, which provides users with solutions such as location sharing, driving safety, and messaging.

In addition to this, the broker believes its recent highly successful marketing campaign on TikTok will increase brand engagement and downloads. Morgan Stanley suspects that this success will allow the company to spend more on customer acquisition while still meeting its guidance for a loss no greater than US$15 million in FY 2021.

Is anyone else positive on Life360?

Another broker that is bullish on the Life360 share price is Credit Suisse. Its analysts currently have an outperform rating and $8.30 price target on its shares.

Credit Suisse is becoming increasingly positive on the company’s opportunity to monetise its massive user base of ~28 million users.

The post Why the Life360 (ASX:360) share price just hit a new record high appeared first on The Motley Fool Australia.

More reading

• 2 very exciting ASX tech shares you need to know
• 3 ASX tech shares for the post-COVID world
• 2 exciting ASX tech shares tipped as buys
• Here are the 5 best performing ASX tech shares from FY21
• Broker tips Life360 (ASX:360) share price to keep rising after hitting record high

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 Life360, Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3k7qd0d

The DroneShield Ltd (ASX: DRO) share price is pushing higher during afternoon trade following a business update from the company.

At the time of writing, the drone technology company’s shares are swapping hands for 17 cents, up 3.03%.

What did DroneShield announce?

In its statement to the ASX, DroneShield advised it recorded $7.4 million in customer receipts for the second quarter of 2021. It’s an all-time record for the company, despite COVID-19 continuing to impact business performance.

Over the first half of FY21, DroneShield achieved $9.1 million in customer sales, up 600% over the prior corresponding period.

The diversity in its quarterly cash receipts primarily came from Australia, the United States, and Middle Eastern customers. This consisted of payments across multiple product lines such as DroneShield’s $3.8 million contract with the Australian Department of Defence. The first payment of $1.9 million was received last month for a 2-year R&D contract in the Electronic Warfare/Signals Intelligence arena.

In addition, DroneShield is actively engaging in its US$50 million contract with a Middle Eastern customer. However, details remain sketchy as to who the deal is with and what it involves.

The company noted it has more than $200 million in its sales pipeline across the globe. This is a relatively small fraction of the $6 billion addressable market for counter-drone, electronic warfare and signals intelligence products.

Despite a substantial inventory investment of $5 million, DroneShield declared a healthy cash balance of $14.2 million, with no debt.

About the DroneShield share price

Over the last 12 months, the DroneShield share price has jumped by more than 54% but remains flat in 2021. The company’s shares reached a 52-week high of 25 cents in September last year.

At today’s price, DroneShield presides a market capitalisation of around $67 million, with close to 394 million shares outstanding.

The post DroneShield (ASX:DRO) share price lifts higher on business update appeared first on The Motley Fool Australia.

More reading

• Worst ASX 20 shares of the past year: CSL (ASX:CSL) makes the cut
• Galan Lithium (ASX:GLN) share price surges to record on positive results
• Why this sector is lifting the ASX 200 higher today
• Time is money. But wealth is the result of time…
• These 3 ASX 20 shares are up more than 60% in a year

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

from The Motley Fool Australia https://ift.tt/3e7QRCs

The Galan Lithium Ltd (ASX: GLN) share price raced to a record high after it released its proof-of-concept test results.

The results related to the precipitation of battery grade lithium carbonate at its flagship Hombre Muerto West (HMW) project.

Galan claims that it could extract lithium carbonate with 99.88% purity from brine at HMW. This is above the minimum battery grade quality of more than 99.5%.

Galan share price powers up on promising results

What’s more, the consultants hired by Galan to run the test, Ad-Infinitum, believes they can further improve the purity. This in turn will lower operating costs even more as less reagent is required.

The news sent the Galan share price surging 7.7% to $1.04 during lunch time trade when the S&P/ASX 200 Index (Index:^AXJO) added 0.6%.

Other lithium shares are also enjoying a good day, although the Galan share price is miles ahead. The Galaxy Resources Limited (ASX: GXY) share price added 3.7%, Pilbara Minerals Ltd (ASX: PLS) share price advanced 2.4% and IGO Ltd (ASX: IGO) share price gained 2% at the time of writing.

Test result details

Coming back to Galan, this is the miner’s first laboratory test on its lithium extraction process. The test feedstock was the high-quality brine concentrate obtained through the evaporation test.

The brine contained >6% lithium and the results also showed the process removed difficult to extract impurities like sulphate, calcium and magnesium.

If the good results can be replicated on a commercial scale, Galan could be the next low-cost lithium carbonate producer on the ASX.

Galan share price capturing imagination of investors

“While this is early days, we are excited to demonstrate this first step as a proof of concept of high purity lithium carbonate while we still have room for improvement >99.88% [Lithium   Carbonate Equivalent],” said Galan’s managing director, Juan Pablo Vargas de la Vega.

“Importantly, from our studies, Galan’s high grade and low impurities brine has demonstrated that we can produce high purity lithium carbonate at a low cost.”

ASX lithium shares on fire

Management couldn’t have timed the news any better. Investor interest in all things lithium has really powered up recently on expectations that electric vehicles sales will skyrocket.

Merger and acquisition (M&A) activity is also helping fuel interest in the sector. Galaxy and Orocobre Limited (ASX: ORE) are on track to complete their merger next month.

These factors explain why ASX lithium shares have left the broader market in the dust. While the  S&P/ASX 200 Index (Index:^AXJO) is sitting on a handsome gain of around 23% over the past year, that’s nothing compared to the lithium sector.

The Galan share price enjoyed a near seven-fold increase and the Pilbara Minerals share price skyrocketed by over 400%.

The Galaxy share price isn’t far behind with a t far behind with a 360% increase while the IGO share price added 73% over the period.

The post Galan Lithium (ASX:GLN) share price surges to record on positive results appeared first on The Motley Fool Australia.

More reading

• Why this sector is lifting the ASX 200 higher today
• These 3 ASX 20 shares are up more than 60% in a year
• What’s with the Nuix (ASX:NXL) share price today?
• Why the Pilbara Minerals (ASX:PLS) share price is gaining 3.5% today
• Top broker tells investors to stand ready to take profit on ASX bank shares

Motley Fool contributor Brendon Lau owns shares of IGO Ltd, Galaxy Resources Limited and Orocobre Limited. Connect with me on Twitter @brenlau.

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

from The Motley Fool Australia https://ift.tt/3e7dirr

The S&P/ASX 20 Index (ASX: XTL) comprises the 20 biggest companies on the Australian Securities Exchange. While the concentrated index performed solidly over the past year, returning 26.9% before dividends – not all of its constituents enjoyed the same performance.

In light of this, we take a moment to evaluate the three worst-performing shares in the ASX 20 over the past year.

Heading off road

Although it has inched out a positive return over the past year, Transurban Group (ASX: TCL) is still the third-worst performing share of the ASX 20. The Australian and United States toll road operator has climbed 6.3% during the past 12 months.

Looking at the 1-year chart, we can see that shareholders have endured a bumpy ride during the period. It appears the share price took a hit during November and December. Around this time the company provided a traffic update, indicating traffic had increased during October and November despite the ongoing impacts of COVID-19.

However, in February Transurban released its first-half results for FY21. These results informed investors of a 16.6% fall in revenue to $1,165 million and a 17.8% decrease in average daily traffic across its portfolio.

Volatility for this ASX 20 share

Well-known blue-chip share, CSL Limited (ASX: CSL) has stumbled during the past 12 months. Australia’s third-largest company by market capitalisation shaved off 1.3% over the past year.

COVID-19 has produced headwinds for the Australian-based biotherapeutics giant. Firstly, plasma collections have been impacted by restrictions induced by the pandemic. CSL relies on these collections for many of its leading therapies.

Secondly, the company’s growth in treatment sales has been tempered by a reduction in doctor visits.

More recently, investors may have become concerned about a leading broker’s take on CSL’s Seqirus vaccine business. According to Goldman Sachs, the rapid development of new vaccines using mRNA could disrupt the company’s seasonal flu market in the future.

Not so golden performance

Finally, the worst-performing share in the ASX 20 Index is gold mining company – Newcrest Mining Ltd (ASX: NCM). The $21 billion miner wiped nearly 23% off its share price in the past year.

In short, Newcrest is the victim of the falling gold price. The value of the precious commodity has tarnished ~7% since this time last year. However, Newcrest has managed to increase both its revenue and earnings during this time.

According to its FY21 half-year results, revenue jumped 21% to $2,172 million compared to the prior corresponding period. Additionally, statutory profit skyrocketed 134% to $553 million.

The post Worst ASX 20 shares of the past year: CSL (ASX:CSL) makes the cut appeared first on The Motley Fool Australia.

More reading

• Why this sector is lifting the ASX 200 higher today
• ASX 200 Weekly Wrap: COVID wobbles ASX as shares retreat
• 3 ASX 200 blue chip shares analysts rate highly
• 5 things to watch on the ASX 200 on Monday
• Is the CSL (ASX:CSL) vaccine business under threat?

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. owns shares of and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3wDh6qB

The S&P/ASX 200 Index (ASX: XJO) has rebounded strongly on Monday after a sharp selloff last Friday.

At the time of writing, the ASX 200 is 0.66% higher at 7,321.3.

Today’s rebound has been led by the resources sector with the S&P/ASX Materials (INDEXASX: XMJ) trading 2% higher.

By comparison, the next strongest performing sector is the S&P/ASX Financials (INDEXASX: XFJ) up 0.47%.

Resources sector driving ASX 200 gains

Iron ore majors leading the charge

ASX 200 iron ore heavyweights, BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Limited (ASX: RIO), are all rallying strongly this afternoon, up 3.01%, 2.64% and 1.63% respectively.

Elsewhere, Mineral Resources Ltd (ASX: MIN) and BlueScope Steel Ltd (ASX: BSL) are also pushing higher, up 3.04% and 3.17% respectively.

The broad rally across iron-related ASX 200 shares is likely supported by sky-high iron ore prices. The metal is currently fetching around US$215/tonne.

Lithium miners posting gains across the board

ASX lithium shares, Galaxy Resources Limited (ASX: GXY), Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE) are charging higher today, up 3.48%, 2.82% and 2.88% respectively.

Lithium prices have gone strength-to-strength in 2021, driven by a surge in demand.

According to Fastmarkets, lithium prices have remained firm in Asia, with “suppliers reportedly struggling to meet demand while consumers prioritised the security of materials”.

Europe and the United States also experienced supply tightness and firmer prices, with a supplier saying, “we are sold out on Q3 deliveries already … a lot of customers were keen to secure their volumes for the third quarter … Everything is very tight in Europe and prices are expected to increase”.

Gold shares eke out gains

ASX 200 gold mining shares have joined in on the resource rally, with heavyweights  Northern Star Resources Ltd (ASX: NST), Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Ltd (ASX: NCM) nudging 0.649%, 1.53% and 0.19% higher.

While gold miners, more broadly speaking, have underperformed the ASX 200 year-to-date, the yellow metal could be in for a rebound, according to Saxo Market’s head of commodity strategy Ole Hansen.

The post Why this sector is lifting the ASX 200 higher today appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 20 shares are up more than 60% in a year
• Why the Fortescue Metals (ASX:FMG) share price is flying high on Monday
• Why the Pilbara Minerals (ASX:PLS) share price is gaining 3.5% today
• ASX 200 midday update: Wesfarmers makes API takeover bid, BHP & Rio Tinto rising
• Why the BHP share price is charging higher on Monday

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.

from The Motley Fool Australia https://ift.tt/3xB0qBt

Man, I go away for three weeks, leaving you lot in charge, and look what happens.

Sydney is in lockdown, borders have again been slammed shut, the economy is losing around $1 billion a week, and the ASX fell 1% on Friday.

The good news? I’m back, and the ASX futures are pointing to a 1% gain this morning.

I jest, of course.

I mean, I hope it’s good news. And I hope the ASX gains, today. But I can’t claim any credit…

The lockdown is terrible news on half a dozen fronts. It will impact those looking for work and those who will be bundled out of a job. It sucks for businesses, just getting back on their feet (in particular hospitality businesses in the CBD, but others, besides). It is awful for those who are crook with COVID and their loved ones, and it’s pretty ordinary for the rest of NSW in general and Sydney in particular, whose movements and freedoms have been (rightly, in my opinion, if unfortunately) curtailed as the authorities again scramble to stop the spread.

Now, this isn’t the place to debate government health and public policy actions, necessarily, but I’ll make a slight exception to give me a stepping off point for a financial analogy. See, the NSW government, in a bid to take a ‘gently, gently’ approach, decided to wait and see.

They waited, and now we see.

The cost of delay is likely to be measured in weeks (months?) of extra lockdown, now that the case count has hit triple figures, daily. The road back from here is going to be long, and very likely much, much longer than it would have been, had the authorities implemented a short, sharp lockdown early on.

I know some people are generally anti-lockdown, and fair enough. But if we knew that some sort of lockdown was going to be the result of an explosion in cases, then it was only ever a matter of when, and for how long.

Now, unfortunately, we’re paying the piper.

I tread (carefully) into this controversial area because it touches on a couple of important points: the value of time, and the (related) phenomenon of exponential growth.

A stitch in time, said my Granny, saves nine. She knew it, but the NSW government either forgot it, or hoped that two or three stitches might have been enough.

The same applies to our investing.

You’ve seen the examples before, but here’s a simple one.

Two people: Jane and Bob.

Jane saves $1,000 each year, between 18 and 30, for a total of $12,000. At retirement, and assuming a 10% return per annum, Jane will have $800,000.

Bob starts at 30. He puts in $2,000 per year — double Jane’s contribution — for the next 37 years (three times as long as Jane). His total contribution is $74,000. At retirement, Bob has $660,000, a full $140,000 less.

Time matters.

So does exponentiality.

Here’s a parable I learned when I was 11 or 12. I can’t find the original version I read, but this is a good summary:

“Suppose you own a pond on which a water lily is growing. The lily plant doubles in size each day. If the plant were allowed to grow unchecked, it would completely cover the pond in 30 days, choking off all other forms of life in the water. For a long time the lily plant seems small, so you decide not to worry about it until it covers half the pond. On what day will that be? On the twenty-ninth day. You have just one day to act to save your pond.”

Now, I’ll leave the health implications alone here — I don’t need the grief and you don’t need the aggravation. But the idea of exponentiality is so poorly understood — or perhaps, easy to understand but hard to truly internalise — that in many parts of our lives, we just don’t take it to heart.

And never more than with our finances.

Let’s go back to the example of Jane.

Of her final $800,000, compounded over almost 50 years, how much do you think she made in the last 5 years?

$300,000.

That is, if she’d had 5 fewer years of compounding, she’d have shaved off nearly 40% of her final amount.

The last 10 years?

$491,000. Much more than half.

Now, I talk about ‘the last 10 years’, and that’s how many of us think.

But it’s not really ‘the last 10’ is it?

I mean, unless she retired early (or passed away), those last 10 years are going to happen.

It’s actually the ‘first 10 years’.

It would have been the impact of starting a decade later, like our example of Bob.

(I gave Bob some generous help, by letting him add more each year, and for longer. Without it, he would have been much, much worse off — and even further behind Jane.)

See, my day job is to do my best to help you earn superior returns by picking stocks that I think will beat the market (on average, and over the long term). And I’m pleased to say that, so far, my colleagues and I have a pretty good track record, across our services. The service I run, Motley Fool Share Advisor, is soundly ahead of the market, after almost 10 years of picking one ASX stock each and every month.

But here’s what I can’t do:

I can’t make you save more.

And I can’t make you start earlier.

Only you can do that.

Sure, you can wait. You can plan to start ‘later’. You can plan to add more, ‘later’.

And I’m not here to judge. Maybe you have very valid reasons for waiting.

All I’m saying is that you can’t cheat time. And you can’t cheat compounding.

And that waiting, no matter how justifiable, can be very costly.

Why not get started (and/or add more money, more regularly) today?

And why not tell your family and friends — particularly the younger people in your life — so they can be more like Jane?

Fool on!

The post Time is money. But wealth is the result of time… appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 20 shares are up more than 60% in a year
• What’s with the Nuix (ASX:NXL) share price today?
• Why the Fortescue Metals (ASX:FMG) share price is flying high on Monday
• Johns Lyng (ASX:JLG) share price edges higher on acquisition update
• Why Australian Pharma Industries, Audinate, NRW, & Vulcan are racing higher

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

from The Motley Fool Australia https://ift.tt/2UG9UNa

The S&P/ASX 20 Index (ASX: XTL) is certainly not talked about nearly as much as its larger cousin, the S&P/ASX 200 Index (ASX: XJO). But with the ASX 20 tracking the 20 largest companies on the ASX, it’s by no means irrelevant.

To prove it, let’s look at 3 ASX 20 shares that are up 60% or more over the past 12 months.

3 ASX 20 shares up 60% or more in the past year

Aristocrat Leisure Limited (ASX: ALL)

Gaming company Aristocrat is our first ASX 20 share that has seen gains of 60% or more over the past 12 months. In Aristocrat’s case, this was $24.48 a share 12 months ago but today the gaming company is trading at $41.92 a share.

That represents a 12-month gain of 72%. Like many hospitality-exposed shares, Aristocrat was hit hard last year by coronavirus lockdowns.

But it has also benefited materially as pubs, casinos and other gaming venues have reopened around the world. Its mid-May earnings update saw investors really step on the gas.

Aristocrat reported a 12% rise in net profits after tax, accompanied by a 6% bump in earnings before interest, taxes, depreciation, and amortisation (EBITDA).

Afterpay Ltd (ASX: APT)

Yes, Afterpay is an ASX 20 company now, a situation many might have thought impossible a few years ago. And this company did nothing to hurt its prestigious position during the past 12 months. A year ago, Afterpay was still a $71 stock.

But today, the buy now, pay later (BNPL) heavyweight is trading at $118.25 a share. That’s a gain of almost 65%. Robust growth, continuing bullishness from brokers, and a rediscovered affinity for ASX tech shares seem to be contributing factors.

It’s worth noting that Afterpay was hit especially hard in the COVID-induced crash last year, falling as low as $8 a share. As such, its recovery from those lows has proven exceptionally lucrative since.

Fortescue Metals Group Limited (ASX: FMG)

Fortescue has been another top ASX 20 performer over the past 12 months. One year ago, this iron ore miner was trading at just over $15 a share. Today, it is a $24.50 stock.

That represents a gain of 59.5% (close enough to 60%). Returns would have been well over 60% if you include the very robust 10.1% trailing dividend yield of Fortescue shares right now.

So what’s gone so right for Fortescue? Iron ore prices, that’s what.

A year ago, the iron ore price was trading around US$120 a tonne. Today, it’s at the historically high level of US$214 a tonne.

These high prices have made Fortescue a cash flow machine. The company has been paying out record dividends as a result  and have helped make this company a very profitable ASX 20 investment over the past year.

The post These 3 ASX 20 shares are up more than 60% in a year appeared first on The Motley Fool Australia.

More reading

• What’s with the Nuix (ASX:NXL) share price today?
• Why the Fortescue Metals (ASX:FMG) share price is flying high on Monday
• Top broker tells investors to stand ready to take profit on ASX bank shares
• Why the Nine Entertainment (ASX:NEC) share price is climbing on Monday
• Chalice Mining (ASX:CHN) share price flops on demerger of gold assets

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. owns shares of and has recommended AFTERPAY T 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.

from The Motley Fool Australia https://ift.tt/2TRCyv3

The Nuix Ltd (ASX: NXL) share price is having yet another poor day’s trade on the ASX, despite a quiet day on the news front for the beleaguered company.

Right now, the Nuix share price has bounced back from a tumultuous morning to trade at $2.60 – 0.76% lower than its previous close.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is up 0.73%. The S&P/ASX All Technology Index (ASX: XTX) is also up 0.36%.

Let’s take a look at what’s been going on with the ASX’s notorious software company lately.

The month that’s been for Nuix

The Nuix share price seems to be flattening out after its huge day on Thursday which saw it grow a massive 8.6%.

Prior to that, Nuix was hit by a cacophony of bad news over the course of a single month.

The most recent mud to splatter on Nuix’s reputation flew on 30 June when its former chief financial officer (CFO) Stephen Doyle faced allegations of insider trading.

The allegations came from the Australian Securities and Investments Commission (ASIC). ASIC is investigating Doyle, his brother, and his father over similar offences.

The Nuix share price fell a massive 12.9% on the first day of trading after the news broke.

Prior to that, Nuix’s Sydney offices were raided by law enforcement officers. The Australian Federal Police reportedly issued the warrant as they assisted ASIC in its criminal investigation into Nuix’s prospectus.   

Only days before the warrant was issued, Nuix (and ASIC) was named and shamed in Parliament by ALP Senator for New South Wales Deborah O’Neill.

The two events respectively shocked 1.9% and 2.5% from Nuix’s share price.

Finally, let’s not forget it’s been less than a month since Nuix’s CFO and CEO both bid farewell to the company. The Nuix share price fell 5.98% that day.

All this drama and some still say the stock market is boring…

Nuix share price snapshot

After all that, the Nuix share price has fallen a total 1.89% over the last 30 days.

It has also dropped 67% since its Initial Public Offering (IPO) in December 2020.

The company has a market capitalisation of around $825 million, with approximately 317 million shares outstanding.

The post What’s with the Nuix (ASX:NXL) share price today? appeared first on The Motley Fool Australia.

More reading

• Top broker tells investors to stand ready to take profit on ASX bank shares
• Why the Nine Entertainment (ASX:NEC) share price is climbing on Monday
• Chalice Mining (ASX:CHN) share price flops on demerger of gold assets
• Why the Commonwealth Bank (ASX:CBA) share price is beating the ASX 200
• ASX 200 Weekly Wrap: COVID wobbles ASX as shares retreat

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 recommended Nuix Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3e5S0u4

The S&P/ASX 200 Index (ASX: XJO) is having a very nice start to the trading week. At the time of writing, the ASX 200 is up a healthy 0.74% to 7,327 points. But one ASX 200 share that’s doing even better than the ASX 200 today is Fortescue Metals Group Limited (ASX: FMG). The Fortescue share price is currently up a substantial 2.47% to $24.46 in early afternoon trade.

After a rip-roaring year in 2020 which made Fortescue shares one of the best ASX blue chips to own, 2021 has certainly been more subdued for this iron ore miner. With today’s hefty gains, the Fortescue share price is up just 4.4% year to date. Though it’s seen a very nice 64.71% increase over the past 12 months.

But what’s behind the positive move in Fortescue shares today?

Fortescue having a good day

As an iron ore miner, we can point to robust commodity prices this week as a primary catalyst for the Fortescue share price outperformance today. Commodity prices continue to defy gravity, it seems.

This morning gold is back above US$1,800 an ounce, crude oil (Brent) is above US$75 a barrel, and copper is still trading at record highs, above US$9,430 a tonne. And, perhaps most importantly for Fortescue, iron ore remains at historically high levels at more than US$215 a tonne today.

Another factor that is probably benefitting the Fortescue share price is the Aussie dollar. The Aussie has been slipping in recent weeks, and is currently under 75 US cents at 74.82 at the time of writing. A month ago, it was at 77.5 US cents. A lower Aussie dollar benefits any exporting company, as it makes its exports cheaper for foreign buyers in US dollar terms. As a major iron ore miner, this benefits the Fortescue share price in particular.

We also see other ASX miners like BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) reacting in a similar way today.

So at these elevated levels, are Fortescue shares worth considering?

Are Fortescue shares a buy today?

One broker who thinks Fortescue might have run its race, at least for now, is investment bank Goldman Sachs. Goldman currently rates Fortescue shares as a ‘sell’. It has a 12-month share price target of $18.20 for the miner. That implies a potential downside of more than 25% on current pricing. Goldman reckons the Fortescue share price is currently at risk from a fall in iron ore pricing. The broker noted that, based on an iron ore price of US$80-90 per tonne, Fortescue would be at a 9x earnings multiple based on FY2023 earnings expectations. That compares with a ~5x ratio for both BHP and Rio.

At Fortescue’s current share price, the company has a market capitalisation of $75.3 billion, a price-to-earnings (P/E) ratio of 8.68 and a trailing dividend yield of 10.1%.

The post Why the Fortescue Metals (ASX:FMG) share price is flying high on Monday appeared first on The Motley Fool Australia.

More reading

• ASX 200 Weekly Wrap: COVID wobbles ASX as shares retreat
• Why the Fortescue (ASX:FMG) share price is getting left behind in 2021
• What are leading brokers saying about the Fortescue (ASX:FMG) share price in July 2021?
• Mining shares in the ASX 200 might unearth US$26b worth of dividends
• The Fortescue Metals (ASX:FMG) share price just surged 3% this morning

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.

from The Motley Fool Australia https://ift.tt/3k8QfAs