The SKYCITY Entertainment Group Limited (ASX: SKC) share price lost ground today after the company revised the details around a $115 million bond offer made last month.

SkyCity shares were trading down 0.31% at $3.26 at the market close after the company revised upwards the margin range on its six-year bond offers.

The casino and hotel operator is still recovering from a huge share price fall early last year, so let’s find out how today’s report is affecting the SkyCity share price today.

SkyCity’s bond offers

In April, SkyCity announced it was offering up to NZ$125 million (AU$116 million) in 6-year, unsecured, unsubordinated, fixed-rate bonds. The bonds will mature on 21 May 2027.

Then on 10 May 2021, SkyCity announced an indicative issue margin range of 1.6% per annum and a 3% minimum interest rate for the bonds. Today, the company has revised the indicative issue margin range to 1.7% per annum, but it’s kept the 3% minimum interest rate.

The company said it upped the rate in response to “market changes”. It’s offering the bonds to institutional investors and New Zealand retail investors. SkyCity has also left open the option to increase bond sales by a further $50 million to $175 million total if the offer is oversubscribed.

The issue margin and interest rate for the bonds will be set following a bookbuild process, which started today but won’t close until 17 May. 

The company noted the purpose of the capital raising initiative in its indicative terms sheet, published today:

The offer forms part of SkyCity Group’s ongoing capital management strategy, enhancing diversity of sources of funding and lengthening the debt maturity profile. The net proceeds of the offer will be used to reduce the drawings on SkyCity’s bank facilities.

SkyCity share price snapshot

As recently as two months ago, the SkyCity share price had been one of the stronger performing ASX gaming shares. However, its 12-month gain through 2020 to March this year has more than halved since then and it’s now 5% down against the consumer cyclical sector in the past year.

This is despite slow and solid gains since March. The SkyCity share price has gained steadily since the company announced the bond offer at the end of last month.

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Motley Fool contributor Lucas Radbourne-Pugh 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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This year has seen record-high iron prices as well as a record high for the S&P/ASX 200 Index (ASX: XJO), and one share is positively booming in the excitement.

The Champion Iron Ltd (ASX: CIA) share price has gained 45.6% since the start of 2021, making it one of the best performing ASX 200 shares of 2021 so far.

After hitting an intraday high of $7.31, the Champion Iron share price has since retreated and was trading at $7.02, up 0.29% at the market close today.

Its year-to-date performance has beaten ASX 200 iron ore peers including Rio Tinto Limited (ASX: RIO) and BHP Group Ltd (ASX: BHP). These iron ore giants have gained 8.73% and 15.12% respectively.

So, what’s been driving the Champion Iron share price to perform better than other ASX 200 iron miners?

A quick introduction

Champion Iron is an iron ore exploration and development company with a number of projects in Canada’s Québec region.

As well as gaining 45% since the start of this year, the Champion share price has lifted 220% over the last 12 months.

It has a market capitalisation of around $3.5 billion, with approximately 493 million shares outstanding.

ASX 200 Champion in more than name

The Champion share price got off to a great start for 2021 on the ASX.

In late January, it released its third-quarter results for the 2021 financial year. Within the results were record-high revenues, earnings before interest, tax, depreciation, and amortisation (EBITDA), net income, and net cash flow.

Despite the positive results, the Champion Iron share price closed the day 9% lower than the previous session.

On 22 March, Champion Iron officially entered the ASX 200.

Then, on 6 April, the Champion Iron share price gained 5% after the company announced it has completed its acquisition of the Kamistiatusset iron ore project (Kami Project).

In addition to the project, the acquisition saw the company secure another 8 million annual tonnes of port capacity in Sept-Isles, Que, where it was already sending iron concentrate from its Bloom Lake Project.  

Finally, it released its fourth-quarter activities report on 29 April. Within the update was plenty of good news, including the announcement of a new annual production record of 8,001,200 wet metric tonnes from Bloom Lake.

More reading

• Top brokers name 3 ASX dividend shares to buy today
• The ASX miners with the biggest valuation upside to record iron ore prices
• ASX 200 shares hit all-time high! How did we get here?
• All time high! Here’s how much ASX investors have made on BHP shares
• The ASX miners caught in the FOMO trade as copper smashed record highs

Motley Fool contributor Brooke Cooper 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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With savings accounts and term deposits still offering very low interest rates, the share market arguably remains the best place to earn a passive income.

However, with so many dividend shares to choose from, it can be hard to decide which ones to buy. To help narrow things down, I’ve picked out two that are highly rated right now:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to consider is the Charter Hall Social Infrastructure REIT. It is a real estate investment trust that has a focus on social infrastructure properties.

Demand for its properties has been very strong, leading to the company recently reporting a sky high occupancy rate of 99.7%. Positively, these tenants won’t be leaving any time soon. Charter Hall Social Infrastructure REIT’s weighted average lease expiry (WALE) stood at a sizeable 14 years at the end of the first half. Another positive is that the number of leases on fixed rent reviews has increased to 63.3%, which bodes well for its future rental income growth.

In light of its strong form in FY 2021, the company intends to pay a 15.7 cents per unit distribution. Based on the current Charter Hall Social Infrastructure share price, this represents a 4.8% yield.

One broker that is a fan is Goldman Sachs. This morning the broker retained its conviction buy rating and lifted its price target to $3.60. It commented: “We believe the current pricing provides an attractive investment opportunity. CQE is currently trading at an 8% premium to its NTA versus its historical average premium of 13% (since 2014). Moreover, it is trading at a 37% discount to its peer ARF versus its historical spread of a 12% discount.”

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share to look at is Super Retail. It is the retail conglomerate behind the BCF, Macpac, Rebel, and Super Cheap Auto brands. Like the Charter Hall Social Infrastructure REIT, it has been a positive performer in FY 2021.

During the first half of FY 2021, it reported a 23% increase in half year sales to $1.78 billion and a 139% increase in underlying net profit after tax to $177.1 million. It then followed this up with a trading update which recently revealed like-for-like sales growth of 28% for the first 44 weeks of FY 2021.

Goldman Sachs is also a fan of Super Retail. It currently has a buy rating and $15.00 price target on its shares. Goldman is forecasting an 84 cents per share fully franked dividend in FY 2021. Based on the current Super Retail share price of $11.97, this represents a 7% yield.

More reading

• 2 quality ASX dividend shares for income investors next week
• 2 buy-rated ASX dividend shares for income investors
• Top broker tips Super Retail (ASX:SUL) share price to smash the market
• ASX 200 rises, Flight Centre drops, Super Retail grows
• ASX 200 up 0.2%: SEEK hits record high, Flight Centre tumbles

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail 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 S&P/ASX 200 Index (ASX: XJO) rose by 0.45% today to 7,014 points. 

Here are some of the highlights from the ASX:

AVITA Medical Inc (ASX: AVH)

The AVITA share price went around 3% today after the healthcare business gave its quarterly update.

For the three months to 31 March 2021, the business saw reported RECELL revenue of $8.8 million, a 126% increase over the same quarter last year.

Procedural volumes in the third quarter of 2021 was 492, up from 408 in the same period last year and 487 in the quarter ended 31 December 2020.

AVITA added six new burn centre accounts in the third quarter of 2021, for a total of 99 accounts. This brings its penetration rate to 73% of the 136 US burn centres.

Of the approximately 300 total US burn surgeons, 244 (81%) have been trained and certified with RECELL and 147 (almost 50%) used RECELL in the third quarter.

AVITA Medical CEO Dr Mike Perry said:

We made steady progress over the last quarter as we continued to drive RECELL usage in our established hospital burn centre base with an increasing focus on smaller burns, and we continued to expand our physician training and outreach programs. As pandemic headwinds abate, we plan to leverage our highly experienced burns sales force and strong relationships built to date with the burn practitioner community to increase hospital access and to penetrate deeper in our existing accounts, resulting in additional procedures and engaging more burn practitioners.

Our three pivotal clinical trials in vitiligo, trauma and pediatric burns are continuing on schedule and we expect to see expanded indications for RECELL coming online, allowing us to serve an ever-growing population of patients.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine was one of the best performers in the ASX 200 today. It went up more than 6%.

It has continued to rise after revealing its long-term financial and sustainability goals.

The winemaker said that it wants to deliver sustainable revenue growth and high-single digit average earnings growth over the long-term. Some of that will be down to increasing its investment in technology to improve efficiencies and lower costs. It also wants to increase its percentage of premium sales. There are divisional targets based on the operating profile and long-term strategic objectives of each brand.

TWE also said that it’s targeting a cash conversion rate of more than 90%. The company is targeting stable dividends with a dividend payout ratio of between 55% to 70% of net profit.

The winemaker also wants to take action on its part relating to climate change. It said it wants 100% of its product packaging to be made of 50% recycled content by 2025, with all the packaging to be recyclable, reusable or compostable by 2022.

Xero Limited (ASX: XRO)

The Xero share price fell more than 4% today, adding onto yesterday’s declines in reaction to its FY21 result.

As a reminder, the ASX 200 share reported that its operating revenue grew by 18% to NZ$848.8 million and total subscribers increased by 20% to 2.74 million.

Xero’s FY21 earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 39% to $137.7 million as it ramped up its advertising and other operating expenses in the second half of the year as COVID-19 concerns lessened.

The free cashflow generated went up 110% to almost NZ$60 million.

More reading

• What drove the Commonwealth Bank (ASX:CBA) share price this week?
• Why is the Magellan (ASX:MFG) share price up 4% today?
• Why De Grey, GrainCorp, Pilbara Minerals, & Xero shares are dropping
• Has COVID-19 killed the ASX WAAAX shares?
• The Commonwealth Bank (ASX:CBA) share price hits new record high

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited and Xero. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia has recommended Avita Medical 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 2021-22 Federal Budget features $1.2 billion in government spending over six years to drive Australia’s digital economy. Morgan Stanley believes these initiatives support its bullish view of the media sector. Here are some ASX 200 media shares the broker thinks could see upside. 

ASX 200 media shares on broker’s radar

Nine Entertainment Co Holdings Ltd (ASX: NEC)

Morgan Stanley observes a relatively small benefit to commercial free-to-air broadcasters from reduced funding for public broadcasters ABC and SBS. The broker reiterated its overweight rating for Nine shares with a target price of $3.50.

The Nine share price has been surging into record territory in 2021 following bullish earnings and a greater commitment to its digital platforms. These include video subscription platform Stan, a majority investment in Domain Holdings Australia Ltd (ASX: DHG) and digital advertising. Nine shares closed at $2.82 on Friday. 

News Corporation (ASX: NWS)

News Corp was another company expected to benefit from changes in the Budget. Morgan Stanley says the extra funding allocated to the industry regulator, Australia Communications and Media Authority (ACMA), signals that the government is confident about the outcome of its digital licencing payments with Google and Facebook. 

The broker rates News Corp shares as overweight but its target price was not assessed. The News Corp share price closed the week trading at $31.80.

REA Group Ltd (ASX: REA) 

The budget includes some additional funding for first-home buyers and superannuation incentives to encourage those aged over 60 to downsize their home, potentially freeing up more housing stock for younger families. 

According to Morgan Stanley, this could add further churn to residential housing transaction volumes, which could, in turn, benefit REA Group.  

The broker retained its overweight rating and $175 target price. REA shares have cooled off in recent days following broader weakness in the tech sector. Its shares closed at $147.70 on Friday. 

Seek Limited (ASX: SEK) 

Morgan Stanley highlights the government’s range of policy measures to drive the jobs market. These include new apprenticeships and training places, infrastructure investment and record funding for schools, hospitals and aged care. The broker suggests that the extra churn in jobs volume is expected to be helpful for Seek, alongside a new push for job seekers to undertake more online searching.

The broker is overweight on Seek shares with a current consensus price across big brokers being $29.87. It’s been a volatile start to 2021 for Seek shares, which have delivered flat year-to-date returns. The company’s shares are, however, up by almost 70% over the past 12 months. The Seek share price was fetching $28.92 by Friday’s close. 

More reading

• Has COVID-19 killed the ASX WAAAX shares?
• Brokers name 3 ASX shares to buy now
• 2 buy-rated ASX 200 blue chip shares
• Why the Aerometrex (ASX:AMX) share price is soaring 18% today
• Why a2 Milk, Afterpay, Nearmap, & REA Group shares are sinking

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Facebook. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Facebook, REA Group Limited, and SEEK 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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ASX 200 gold shares have struggled to outperform the market this year after an astonishing run in 2020.

Gold staged a rally into record territory between May 2019 and August 2020, where prices surged from US$1,300 to above US$2,050. 

More recently, it’s been a frustrating time to be bullish on gold with spot prices grinding back and forth below US$1,900. While ASX200 gold shares might be making production and operational headway, gold prices have kept valuations at bay. 

Morgans has undergone a review of ASX gold stocks under coverage, with a number of plays emerging as a buy. 

Regis Resources Limited (ASX: RRL)

Regis holds a dominant position in the Duketon Greenstone Belt in the North Eastern Goldfields of Western Australia, with a number of open pits and underground projects in the area. 

The company is also progressing its McPhillamys Gold Project in the Central Western region of New South Wales, a robust large-scale open-pit gold mine within a highly prospective land package. 

More recently, the company signed a conditional binding agreement with IGO Ltd (ASX: IGO) to acquire its 30% interest in the Tropicana Gold Project for A$903 million. Tropicana represents a low cost, high margin and top five producing Australian open-pit and underground gold mine opportunity to build on Regis’ existing production base. 

Morgans believes it may take time to realise the value of Tropicana but likes the company’s long-term outlook. The broker retains an add rating with an ambitious $4.08 target price. 

Like most ASX gold shares, the Regis share price has been pushed lower thanks to weak gold prices. Its shares are currently down 30% year-to-date to $2.56.

Ramelius Resources Limited (ASX: RMS)

Ramelius is a mid-tier gold producer, currently operating the Mt Magnet, Vivien, Edna May and Marda gold mines around Western Australia. The company has a strong track record of growing gold production with an average year-on-year increase of 21.5% since FY15. 

Morgans highlights a number of positive catalysts for the company, including near-term mine life extensions for its Edna May and Eridanus projects. An add rating was retained with a $2.24 target price. 

The production and cost management of Ramelius has helped its shares stay relatively buoyant compared to most ASX gold shares. Its shares edged only 3% lower year-to-date, current trading at $1.73. 

Red 5 Limited (ASX: RED) 

In 2017, Red 5 acquired the Darlot and King of the Hills gold projects in Western Australia. This marked the beginning of the company’s growth chapter, with production across the two operations ramping up to more than 100,000 ounces per annum. 

Morgans flags the company’s recent disappointing production out of Darlot but points to the King of the Hills project as a key value driver for the company. 

The broker believes there could be more challenges with near-term production but reiterates the long-term potential of the small-cap gold miner. An add rating was retained with a 31 cent target price. 

The production miss combined with weak gold prices has pushed the Red 5 share price to a one-year low of 19 cents.

More reading

• Why the Regis Resources (ASX:RRL) share price is in focus
• Struggling ASX gold shares just got upgraded by a top broker
• Top brokers name 3 ASX shares to sell next week
• Why Coles, Nickel Mines, Nitro, & Regis Resources are storming higher
• Why ASX gold miner Regis Resources (ASX:RRL) share price is moving higher

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

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At the small end of the Australian share market, there are a number of companies with the potential to grow materially in the future.

Three that investors might want to keep a close eye on are listed below. Here’s what you need to know about them:

IntelliHR Ltd (ASX: IHR)

The first small cap ASX share to watch is IntelliHR. It is a cloud-based human resources and people management platform provider. Last month IntelliHR released a trading update which revealed that its expansion into the United Kingdom was going exceptionally well. Thanks partly to this, at the end of April the company’s annual recurring revenue (ARR) had reached $3.55 million. This was double what it reported a year earlier. Positively, the company looks well-placed to continue its solid growth in the coming years thanks to the shift to the cloud and the quality of its software.

PlaySide Studios Limited (ASX: PLY)

Another small cap ASX share to watch is PlaySide Studios. It is a growing independent video game developer with an expanding portfolio of games. These include games based on its own original intellectual property and those through licensing deals with Hollywood studios such as Disney. During the first half of FY 2021, PlaySide reported record first half sales revenue of $5 million. This was up 63% on the prior corresponding period. Pleasingly, this is just a very small slice of its global market opportunity. Management estimates that it has a US$159 billion global addressable market, which gives it a very long runway for growth.

SILK Laser Australia Limited (ASX: SLA)

A final small cap ASX share to watch is SILK Laser. It is a laser, skin care, and cosmetic injections company that has been performing very strongly in FY 2021. In February, SILK Laser released its half year results and revealed a 62% increase in network sales to $44.9 million. Things were even better on the bottom line, with net profit growing 305% to $4.7 million. Positively, this strong form is expected to continue in the second half. Looking further ahead, management sees plenty of opportunities to expand its network to drive growth. At present, SILK has a total of 56 clinics in operation, but management intends to grow its network by 6 to 10 new clinics per annum up to a total of approximately 150 clinics.

More reading

• Little ASX software share to explode once everyone wakes up: fundie
• Why the IntelliHR (ASX:IHR) share price is soaring 16% today
• 3 under the radar ASX small cap shares to watch closely
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Motley Fool contributor James Mickleboro 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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Aldoro Resources Ltd (ASX: ARN) shares were booming today after the company announced it has commenced drilling at its Narndee project. By the market’s close, the Aldoro share price was trading 8.2% higher at 33 cents.  

Let’s take a closer look at the gold and nickel miner’s latest news. 

Drilling kicks off

The Aldoro share price had a bumper day after the company announced frontline drilling at its 100%-owned project site has begun. Aldoro advised that the drilling was being undertaken in areas where it’s already found “high confidence” anomalies, with fixed loop electromagnetic surveys. It’s also secured a diamond drilling contractor, which it expects to be on-site in June.

Aldoro is targeting a 5,000-metre program at Narndee, near Cooladar Hill in Western Australia, with the ability to increase its program size if it receives promising results. The current drilling is focused on three confirmed target sites within that zone.

The company says its initial drilling holes will also act as “dual-purpose inspection holes” to gauge the suitability of those targets for further down-hole transient electromagnetic surveys.

The Narndee project is situated on clay bedrock, which has the possibility to produce misleading results. 

These surveys improve the accuracy of any future drilling locations, reducing the risk of expensive drilling in redundant targets. The original surveys were conducted by independent geologists from Southern Geoscience Consultants.

Aldoro is also in the process of finalising a gradient array (GAIP) survey. GAIP is an electrical geophysical technique that has the ability to identify disseminated sulphide mineralisation, a type of ore that often contains copper and zinc deposits.

Background

Aldoro shares listed on the ASX in September 2018. The company conducts mineral exploration and development and has a collection of gold and nickel-focused advanced exploration projects all located in Western Australia.

The Narndee Igneous Complex, which comprises the project Aldoro has just begun drilling, is its flagship drilling region. The company has previously found it to be “highly prospective” for nickel, copper and platinum group (platinum, palladium, rhodium) mineralisation.

The company’s other projects include the Cathedrals Belt Nickel Project near Mount Alexander in WA and four separate gold tenements, which are currently under company review.

Aldoro share price snapshot

The Aldoro share price appears to be finding steady ground over the past two weeks after doubling between early March and mid-April. On 19 April, the company’s shares hit an intraday high of 45.5 cents before gradually retreating to their current levels. Aldoro shares have also gained more than 100% so far in 2021. 

More reading

• What drove the Commonwealth Bank (ASX:CBA) share price this week?
• Here’s why the Moelis (ASX:MOE) share price has lifted today
• Why this broker thinks the Westpac (ASX:WBC) share price is great value
• Centuria Capital (ASX:CNI) share price rises as merger edges closer
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Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Commonwealth Bank of Australia (ASX: CBA) share price is up 0.7% in late afternoon trading.

While it retraced some from mid-day all-time highs, CBA looks set to finish the day at a new record closing high, surpassing the $96.17 per share it hit back in March 2015.

CBA’s shares gained 2.5% for the week, chalking up 4 days of positive momentum. Tuesday, 11 May, was the only day that the Commonwealth Bank share price reversed, falling 0.6%.

CBA handily outperformed the S&P/ASX 200 Index (ASX: XJO) this week. The ASX 200 finished the week down 1.6%. That’s despite the index rebounding today from a 3-day losing streak triggered by investors’ inflation fears.

Commonwealth Bank investors didn’t share that wider fear. Rising inflation could signal the beginning of the end to rock bottom interest rates, which have negatively impacted the returns of all the big banks.

Partnerships, Q3 results drive Commonwealth Bank share price

The week started well for Commonwealth Bank as it breached its 52-week highs on Monday.

That came on the back of a partnership announcement with US-listed e-commerce operator Bigcommerce Holdings Inc (NASDAQ: BIGC). CBA said the new partnership will help grow its online presence, with plans to use Bigcommerce Holdings’ platform to advance its business banking sector.

Wednesday was another strong day for Commonwealth Bank shareholders following the release of the company’s third quarter update. Among the highlights, CBA’s cash net profit after tax increased 24% from the quarterly average over the first half of the 2021 financial year, reaching $2.4 billion.

Commonwealth Bank shares gained 1.05% on Wednesday.

Commonwealth Bank snapshot

With today’s gains factored in, the Commonwealth Bank share price is now up 62% over the past 12 months. CBA has continued to outperform in 2021, with shares up more than 15% year-to-date.

At the current price of $96.64 per share, Commonwealth Bank pays an annual dividend yield of 2.6%, fully franked. CBA has a market cap of $170.3 billion.

More reading

• Why is the Magellan (ASX:MFG) share price up 4% today?
• The Commonwealth Bank (ASX:CBA) share price hits new record high
• What resurgent inflation really means for your ASX shares
• ASX 200 up 0.8%: Xero continues to slide, big four banks rise
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Bernd Struben 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 Moelis Australia Ltd (ASX: MOE) share price spent a day in the green today after the company released an investor presentation and operational update.

Moelis shares are trading up 3.9% at $5.58 as the market close draws near.

Let’s take a look at what’s behind the Moelis share price increase today.

Moelis operational update

In today’s release, the financial services company reported strong net fund inflows and a significant increase in assets.

Recapping the results from its first four months of trading in FY21, Moelis reported strong net fund inflows of $340 million, up $115 million on the prior corresponding period.

It grew its portfolio of assets under management by 7% to $5.8 billion and settled on four new hotels worth a combined $135 million, that were exchanged in FY20.

The company has been granted a retail Australian Finance Licence (AFSL2) and launched its first two retail credit funds. Moelis also hired 5 new executives in its corporate advisory branch, including 2 new managing directors.

Looking ahead

Moelis is forecasting bright results for the company’s future, given it currently has more than $300 million of new real assets under due diligence for new and existing funds. 

The company’s management reiterated its expectation that FY21 underlying earnings per share (EPS) will increase between 10% and 20% on FY20, with the prediction that it will closer to the 20% mark. 

Overall, it’s been a sharp rise for the Australian company, which started operating in Australia in 2009 and was achieving revenue of $60 million by its seventh year of operation. Its corporate advisory network now spans 18 countries..

The group is proposing to change its name to MA Financial this year. The Moelis board believe a brand transition as necessary given its expanding financial services profile.

Moelis share price snapshot

The Moelis share price is moving closer to doubling its $2.99 value of 12 months ago, rising 81% in this period. It’s also added 18% since 2021 began.

The company’s turnaround has been significant, given that as recently as February this year its 12 monthly performance was in the red after being hammered during the COVID-19 pandemic.

More reading

• Why Humm, Moelis, Orica, & Treasury Wine shares are storming higher

Motley Fool contributor Lucas Radbourne-Pugh 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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