The S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. In afternoon trade, the benchmark index is down 0.5% to 7,062.2 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:

Adore Beauty Group Ltd (ASX: ABY)

The Adore Beauty share price is down 15.5% to $3.86 following the release of a trading update. The online beauty retailer’s update revealed that it expects to report revenue growth of 43% to 47% in FY 2021. While this is strong growth, it is lower than the market was expecting.

Appen Ltd (ASX: APX)

The Appen share price has crashed 18.5% to $12.00. This follows the release of a presentation this morning which provided colour on current trading conditions. While management spoke positively about its position in the industry, it also revealed that its customers are changing the ways in which they develop projects. This has resulted in changing data volumes on a handful of large projects, impacting Appen’s revenue.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price has continued its slide and is down a further 6% to $14.34. Investors have been selling the travel agent’s shares since the release of a trading update earlier this week. That update revealed that Flight Centre expects to record a second half loss in line with the one it reported in the first half (~$250 million). This was materially greater than many analysts were expecting.

Nearmap Ltd (ASX: NEA)

The Nearmap share price has crashed 24% lower to $1.80. Investors have been heading to the exits after Nearmap was hit with legal proceedings. The company advised that rival Eagle View alleges patent infringement in relation to its roof estimation technology. Nearmap’s CEO and Managing Director, Dr Rob Newman, said: “Nearmap has always taken the subject of intellectual property rights and patent protections seriously and believes the allegations are without merit. We will vigorously defend against the complaint. The business remains unaffected by the complaint.”

More reading

• Top brokers name 3 ASX shares to sell today
• ASX 200 down 0.35%; NAB half year results, Nearmap crashes on legal threat
• Nearmap (ASX:NEA) share price dives 16% on legal proceedings
• Why the Appen (ASX:APX) share price is down 6% to a multi-year low
• Adore Beauty (ASX:ABY) share price plunges 10% on quarterly update

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 Appen Ltd and Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Adore Beauty Group Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Nearmap 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 Rhythm Biosciences Ltd (ASX: RHY) share price is a strong mover today following the release of its ColoSTAT results.

Rhythm’s ColoSTAT is an experimental test-kit that is being trialled as a low-cost, easy-to-use blood test to detect colorectal cancer.

At the time of writing, the medical device company’s shares are trading for 96 cents, up 10.9%.

What’s driving the Rhythm share price higher?

Investors are fighting to get a hold of Rhythm shares after digesting the company’s encouraging announcement.

In a statement to the ASX, Rhythm advised that ongoing enhancements to its ColoSTAT technology have yielded further potential improvements. The company explained that when adding in known lifestyle related factors (LRF), the device increases in accuracy for cancer detection.

A number of LRF have been linked to colorectal cancer such as diet, weight, exercise, smoking and type 2 diabetes.

Previously, Rhythm achieved positive results from its Study 6 findings in mid-March. It stated that ColoSTAT prototype test-kit demonstrated an accuracy of 84% sensitivity at 95% specificity. This showed that the company’s proprietary device surpassed the current market standard faecal tests.

However, with the latest performance improvements by adding a patient’s LRF, colorectal cancer detection has increased sensitivity levels to 88%. The specificity remains the same at 95%.

Rhythm noted it will seek to continue to develop and test on a larger number of samples in the near future.

Rhythm CEO, Glenn Gilbert welcomed the result by reaffirming the company’s ColoSTAT reputation, saying:

We have shown that ColoSTAT is already superior in detecting colorectal cancer when compared to the current market standard faecal test.

The capability to broaden the effectiveness of our core cancer detection technology, via a simple addition of commonly measured data, is extremely exciting in the context of our objective to reduce the social and economic burden of colorectal cancer globally.

The Rhythm share price has accelerated over the past year to more than 1,100%. However, year-to-date performance is sitting close to just above 10%.

More reading

• Why Adore Beauty, Appen, Flight Centre, & Nearmap shares are sinking
• Is the Redbubble (ASX:RBL) share price an obvious buy?
• Top brokers name 3 ASX shares to sell today
• Mach7 (ASX:M7T) share price edges higher after positive update
• Laybuy (ASX:LBY) share price slides despite ‘record Mania sales’

Motley Fool contributor Aaron Teboneras 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 Redbubble Ltd (ASX: RBL) share price has fallen another 5% today.

Redbubble shares have actually dropped by 43% over the last three months. It has actually seen a bit more of a drop if you go back further – it’s down 46% since 25 January 2021.

Redbubble is a business that owns two websites, Redbubble and TeePublic, where artists can sell designs that are then printed onto blank products by third parties. Some of those products include apparel, stationery, housewares, bags, wall art and so on.

What caused the Redbubble share price selloff?

Redbubble recently gave its trading update for the third quarter of FY21.

The numbers that Redbubble revealed showed a lot of growth. Marketplace revenue – which is total revenue less money paid to artists – increased by 54% to $103.4 million. Gross profit grew slightly quicker, by 55% to $39.8 million. That saw the gross profit margin improve from 38.3% to 38.4%.

Operating expenses only went up 3%. This helped earnings before interest, tax, depreciation and amortisation (EBITDA) increase by $8.5 million, going from a loss of $6.3 million to a profit of $2.2 million. Earnings before interest and tax (EBIT) grew 91% to a loss of $0.9 million.

Redbubble is a seasonal business, so it helped investors get a clearer picture of performance by including its performance for the nine months to March 2021. Marketplace revenue was up 85% to $456 million. Gross profit was up 100% to $184 million. EBIT wen up $53 million to $41 million. Operating cashflow was up $48 million to $54 million.

It was the new strategy that caught investor attention negatively.

The new strategy

Management are confident about the long-term future of Redbubble, with a boast that no other platform in the world combines the breadth of artist-generated designs with their availability on a wide range of made-on-demand consumer products.

Redbubble also pointed to a huge addressable consumer good market. E-commerce spending for the current range of products sold on Redbubble Group marketplaces was estimated at over $300 billion in its core geographies and $700 billion globally. This is predicted to grow to more than $1 trillion by 2024. Within these markets, 35% to 40% of customers are already seeking a product that is unique and meaningful.

Management said it’s uniquely positioned with this growing market segment.

Redbubble sees a tremendous opportunity to grow and scale the business.

It has decided to drive revenue growth first and foremost. Its medium-term goal is to reach gross transaction value of more than $1.5 billion, with revenue paid to artists of $250 million, leading to marketplace revenue of $1.25 billion per annum.

That will mean that the EBITDA margin is expected to be in the mid single digits during this growth phase. Despite all of the growth investing, it’s going to maintain positive EBITDA.

Once it reaches $1.25 billion of marketplace revenue, around 2024, Redbubble believes that it will have a gross profit margin of between 40% to 42% and an EBITDA margin of between 10% to 15%.

Is the Redbubble share price a buy?

Broker Morgans recently downgraded its rating on Redbubble from buy to hold, with a price target of $4.88. That was because of the short-term profitability hit. However, the broker is still attractive to the long-term growth prospects.

Redbubble is now facing a hard time to generate strong growth from last year when there was strong online sales as well as a lot of mask sales. The broker thinks the ASX share can improve customer repeat buying.

The broker also noted that Redbubble is suggesting higher revenue growth over the next few years than what Morgans was expecting.

More reading

• ASX 200 tech shares under pressure after Nasdaq selloff
• What to do with Redbubble (ASX:RBL) shares: fundie
• Why the Redbubble (ASX:RBL) share price sank 18% lower in April
• Is there still upside to the JB Hi-Fi (ASX:JBH) share price?
• Could the Resmed (ASX:RMD) share price face a similar selloff to Kogan?

Motley Fool contributor Tristan Harrison 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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On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

Flight Centre Travel Group Ltd (ASX: FLT)

According to a note out of Morgan Stanley, its analysts have retained their underweight rating and cut the price target on this travel agent’s shares to $16.00. This follows the release of a trading update earlier this week. The broker was disappointed with the update and management’s admission that it will be making a second half loss in the region of $250 million. This is significantly more than the broker was expecting. The Flight Centre share price has fallen heavily since the release and is now trading below this price target at $14.33.

Magellan Financial Group Ltd (ASX: MFG)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating but lifted their price target on this fund manager’s shares to $47.97. According to the note, Goldman was pleased with Magellan’s stronger than expected performance during March and April. This means its funds are tracking ahead of its estimates, leading to an upgrade to earnings forecasts. However, it feels its shares are fully valued at the current level. It also has concerns over further risks to revenues in the near term. The Magellan share price is trading at $47.84 today.

Ramsay Health Care Limited (ASX: RHC)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating but lifted their price target on this private hospital operator’s shares to $62.00. According to the note, Ramsay underperformed the broker’s expectations during the third quarter. In light of this and significant uncertainty in the industry, its analysts aren’t in a rush to change their recommendation and have held firm with the underweight rating. The Ramsay share price is fetching $63.40 this afternoon.

More reading

• ASX 200 rises, ANZ drops, Nearmap jumps
• ASX healthcare shares could be next to be hit by the digital disruption
• Why Afterpay, ANZ, Domino’s, & Flight Centre shares are tumbling lower
• ASX 200 jumps 0.7%: ANZ half year results, Nearmap jumps
• Is the Flight Centre (ASX:FLT) share price a buy after its Q3 update?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Mach7 Technologies Ltd (ASX: M7T) share price is starting to rise today after announcing a contract win.

During the early afternoon trade, the enterprise imaging platform provider’s shares are up 0.43% to $1.16 apiece.

Another win for Mach7

Investors seem to be warming on Mach7 shares after the company’s latest positive update to the ASX.

According to its release, Mach7 advised it has signed a statement of work with the University of Vermont Medical Centre (UVM).

Based in the northern New York region, UVM is a not-for-profit academic teaching hospital providing tertiary-level inpatient and outpatient services. The medical centre caters to over 1 million people over 144 patient care sites across Vermont and New York locations.

The Software-as-a-Service (SaaS) deal will see Mach7 licence its eUnity diagnostic viewing technology to UVM for a 5-year subscription period.

Previously, UVM purchased the licence to the Mach7 Enterprise Imaging Platform (EIP) in 2017. Since that time, the EIP has become a central part of UVM’s imaging ecosystem.

The EIP allows images to be securely shared across private and public healthcare providers. This relates to the receiving, transfer, storage, and viewing from authorised users.

Mach7 highlighted that it was selected because of its existing relationship with UVM, as well as meeting its requirements.

The subscription purchase to eUnity over the life of the contract is valued at $730,000. A potential upside is on the table should minimum annual imaging procedure volumes be exceeded.

Notably, this brings Mach7’s total year-to-date sales up to $25 million, which is 92% above FY20’s performance. Only 12% of its 130 customers are using both its data management platform and eUnity viewing solution. This gives the company an opportunity to hone in on multi-solution customers with crossing-sales incentives.

Management commentary

Mach7 CEO and managing director, Mike Lampron hailed the expanded relationship, saying:

The potent combination of Mach7’s enterprise data management solution and eUnity will suit UVM’s data management, workflow and enterprise diagnostic viewing needs now and adapt as their needs evolve.

This is another great example of how the Mach7 enterprise data management solution and the eUnity enterprise diagnostic viewer (recently acquired from Client Outlook) can provide large healthcare providers with a fully integrated, end-to-end, enterprise image management solution.

Mach7 share price review

In the past year, investors have ridden Mach7 shares on an upward trajectory to post a gain of around 110%. During February 2021, the March 7 share price reached a multi-year high of $1.59, before profit-taking swooped in.

Based on today’s price, Mach7 has a market capitalisation of roughly $268 million, with approximately 235 million shares on issue.

More reading

• 2 exciting small cap ASX shares tipped for big things
• Big brokers think these 5 ASX shares can outperform the market
• The Mach7 (ASX:M7T) share price jumps 11% on record quarterly update
• Why Anteotech, Credit Clear, Galaxy, & Mach7 shares are storming higher

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 recommends MACH7 FPO. The Motley Fool Australia has recommended MACH7 FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in Laybuy Holdings Ltd (ASX: LBY) gained today before falling flat after the company announced record sales from its ‘Laybuy Mania’ event. At the time of writing, the Laybuy share price is trading 1.16% lower at 85 cents.

In earlier trade, however, the company’s shares reached as high as 89 cents apiece before retreating.

Let’s take a closer look at the buy now, pay later (BNPL) company’s latest news.

Laybuy Mania

The Laybuy share price is failing to ignite despite the company reporting a bumper Mania event in the last week of April. Laybuy reported that the event delivered record sales for the platform across the United Kingdom, New Zealand, and Australia.

The sales event is run twice a year, with merchants offering discounts for 24 hours in Australia and New Zealand, and 48 hours in the United Kingdom.

April’s was the first Mania event of 2021. It resulted in Laybuy processing a total of NZ$4.8 million worth of sales.

Shoppers in the United Kingdom spent NZ$2.9 million over 48 hours – 70% more than during the April 2020 Mania event and 32% more than the November 2020 event.

In Australia and New Zealand, shoppers spent NZ$1.9 million during the one-day event, an increase of 3% and 11% on the April and November events, respectively.

The event also saw Laybuy’s second-largest sales day in terms of gross merchandise value. Merchants including Cotton On, JD Sports, and Boohoo reported their biggest trading day on the platform to date.

The platform’s traffic was also up 35% compared to the same event held in November 2020, with 207% more traffic than an average Thursday. Unfortunately, the upbeat news has not been sufficient to boost the Laybuy share price so far today.

Management commentary

Laybuy managing director Gary Rohloff commented that events like Laybuy Mania have been important to the company’s strategy since 2018. Rohloff said:

Mania helps improve our appeal to merchants by helping them increase their sales. Of real value is our collaborative marketing approach, which sees the active promotion of discounts through both the merchant and Laybuy’s marketing channels.

Laybuy Mania has contributed to another month of growth for Laybuy, with GMV up 52% on April 2020.

Laybuy share price snapshot

Laybuy shares have not been having the best time on the ASX lately. Unfortunately, the company’s shares seem to have been caught up in the recent US-driven tech sell-off and haven’t been able to recover.

Currently, the Laybuy share price is down 35% year to date. It’s also down by around 59% over the last 12 months.

The company has a market capitalisation of around $150 million, with approximately 174 million shares outstanding.

More reading

• Why the Afterpay (ASX:APT) share price is sliding 5%
• ASX 200 falls, BHP rises, Afterpay sinks
• Why retailers are stepping up as top performing ASX shares this week
• Laybuy (ASX:LBY) share price slides on Q4 trading update
• The Afterpay (ASX:APT) share price is up almost 20% this month

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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The Afterpay Ltd (ASX: APT) share price continues to slide, down 5.82% at the time of writing to $100.73. Its shares have lost almost 15% in value in this week alone and are back to December 2020 levels. 

Why is the Afterpay share price getting hammered? 

Afterpay has not made any significant market sensitive announcements since its third-quarter trading update on 20 April. But upon closer inspection, it’s only been downhill for the Afterpay share price since its quarterly update.

Its shares managed to stage a 25% rally. Furthermore, bringing shares from the $100 level in late March to a high of $128. This price was obtained on the day of the third-quarter announcement. Since then, shares have gone full circle, losing 20% in value in just 13 trading sessions. This has sent the Afterpay share price right back to $100. 

Afterpay’s results could be something to blame. However, the broader buy now pay later (BNPL) sector has come under heavy selling pressure recently. 

Large cap BNPL shares such as Afterpay, Zip Co Ltd (ASX: Z1P) and Sezzle Inc (ASX: SZL) have been able to hold up relatively well year-to-date. While smaller players such as Laybuy Group Holdings Ltd (ASX: LBY) and Openpay Group Ltd (ASX: OPY) have more than halved in value in the last 6–12 months.

Broker comments

Macquarie might be saying “I told you so” after its report in March which highlighted a bleak outlook for the BNPL industry. The report anticipates a “pain before gain” scenario saying that: 

The BNPL industry has seen explosive growth in the past few years and quickly gained popularity as a payment alternative, but as with many other such trends experienced in the past (China Commodities in 2015, China Autos in 2018), we think an excessive number of participants has entered the industry in the near term resulting in industry overcapacity.

We expect this to be followed by a few years of industry consolidation (i.e. pain for all players) before industry normalisation at a healthier supply/demand equilibrium.

To add further insult to injury, US-listed BNPL giant, Affirm Holdings Inc (NASDAQ: AFRM) took a 7.35% dive overnight. This brought the company to an all-time record low of $57.60. Its shares were fetching around $70 for most of April and hit a peak of $146.90 on 10 February.

More reading

• ASX 200 down 0.35%; NAB half year results, Nearmap crashes on legal threat
• Broker sees upside for these ASX 200 mining shares
• ANZ Bank (ASX:ANZ) share price hit by broker downgrade post results
• One MASSIVE thing about Tesla and Afterpay that people forget
• Afterpay (ASX:APT) share price tumbles despite investor presentation

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 ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Sezzle Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in Rent.com.au Ltd (ASX: RNT) were flying out the door this morning after the company announced the launch of its RentPay platform. In early trade, the Rent.com.au share price jumped 13.64% to 25 cents before giving back all those gains.

At the time of writing, the company’s shares are trading at 22 cents apiece, flat for the day so far. 

Rent.com.au states that RentPay gives tenants easy access to their payment history, flexible payment solutions and can help to build a positive credit score.

Let’s take a close look at the rental property website’s newest addition.

What is RentPay?

The Rent.com.au share price received a temporary boost this morning after the company officially launched its RentPay platform to the public. RentPay enables renters to pay their landlords using the app.

Users deposit their rent into the app, which will store it in an Australia and New Zealand Banking Group (ASX: ANZ) account. RentPay will then transfer the funds to a landlord or rental agency.

The platform is customer-led, which means landlords or agents don’t need to have the app installed in order for their tenants to pay through it. RentPay is compatible with BPAY, Visa, Mastercard, direct debit and more. 

According to the company, RentPay provides Rent.com.au with an entry point into the market beyond the signing of a rental agreement, extending customer relationships into the tenancy period. The company’s aim is that this will expand its revenue from one-off payments to recurring payments.

Rent.com.au also states that its newly released platform allows for tenants to have more flexible payment schedules. Tenants can put their rental payments into the app whenever it suits them – such as on the day they’re paid. They can then set the app to transfer the funds at a designated time in the future.

Tenants can also deposit more than the cost of their rent into the app, using it as a savings account for future rental payments. Rent.com.au says it plans to provide an investment return on money held in the app in the future.

The platform is now available as an app via both Apple and Google Play. 

To use RentPay, tenants will be charged a one-off $3 fee, then $2 each month thereafter.

Additional features

In today’s release, Rent.com.au highlighted the additional features offered by RentPay beyond rent payments.

The platform has a feature called ScoreBuilder that, if activated, will allow Rent.com.au to send a tenant’s rental history to Equifax, one of Australia’s largest credit reporting agencies. The company says, over time, this could have a positive impact on a tenant’s credit score. RentPay charges $3 to set up a tenant’s account with ScoreBuilder, then an ongoing $1 monthly fee.

Further, RentPay has a SafteyNet feature, which works like a buy now, pay later service for rent. Using credit from SkyCredit, RentPay will provide tenants with a short-term loan if they are unable to meet their rental payments. Tenants who use the feature will pay their rent back in 4 equal fortnightly payments, each incurring a $4 fee.

Rent.com.au share price snapshot

Today’s gains add to the fantastic performance of Rent.com.au shares on the ASX of late.

Currently, the Rent.com.au share price is up 340% year to date. It’s also up 450% over the last 12 months.

The company has a market capitalisation of around $87 million, with approximately 397 million shares outstanding.

More reading

• How much is the NAB dividend worth now?
• Global Lithium (ASX:GLA) share price rockets 50% following IPO
• Why is the Tyro Payments (ASX:TYR) share price dropping today?
• Austal (ASX:ASB) share price edges higher amid acquisition rumours
• Why the Emeco (ASX:EHL) share price is soaring 6% higher today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Apple, Mastercard, and Visa and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Apple, and Mastercard. 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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National Australia Bank Ltd. (ASX: NAB) is the latest of the ASX banks to report its half-year earnings. NAB did just that this morning, which we covered earlier today. Although the third-largest ASX bank reported a 94.8% surge in cash earnings to $3.34 billion for the 6 months ending 31 March 2021, the market is not reacting well today. The NAB share price is, at the time of writing, down a hefty 3.14% to $26.51, well below its new 52-week high that we saw earlier in the week. That makes it by far the worst performing ASX bank today, although the other 3 have all given up some value on the markets as well. But NAB’s report also came with a dividend announcement. And since many (if not most) ASX investors hold the banks for dividend income, this will be of keen interest.

So NAB shares currently offer a trailing dividend yield of 2.26% on current pricing. That’s built off of NAB’s past two dividend payments for 2020. Unlike Westpac Banking Corp (ASX: WBC), NAB managed to fund two dividend payments last year. However, those dividends were not what investors would be used to from NAB. The bank paid an interim dividend of 30 cents per share, fully franked, in July last year. This was supplemented by a final dividend, also 30 cents fully franked, in December.

Just for some context, in 2019 NAB paid out 2 dividends of 83 cents a share. In 2018, it was 2 lots of 99 cents per share.

NAB’s got a brand new dividend

So NAB’s newly announced interim dividend for 2021 will be 60 cents per share, fully franked. It will be paid out on 2 July, with an ex-date of 14 May. 60 cents isn’t quite back up to NAB’s pre-pandemic dividend levels. But it’s also a substantial improvement on what was on offer last year.

But how much is this dividend worth to investors? Well, if we combine this new 60 cents per share payout with NAB’s previous dividend, we get an annual payment of 90 cents per share. That would equate to a trailing dividend yield of 3.4%, or 4.85% grossed-up with full franking. If we take the new payment of 60 cents per share and annualise it, NAB would offer a forward yield of 4.53% today, or 6.47% grossed-up.

That amount isn’t quite as high as what Australia and New Zealand Banking GrpLtd‘s (ASX: ANZ) newly-announced dividend is worth. But it does pip Westpac’s new payout.

On the current NAB share price, the ASX bank has a market capitalisation of $87.35 billion and a price-to-earnings (P/E) ratio of 24.4.

More reading

• ASX 200 down 0.35%; NAB half year results, Nearmap crashes on legal threat
• ANZ Bank (ASX:ANZ) share price hit by broker downgrade post results
• NAB (ASX:NAB) share price on watch after reporting $3.34bn cash profit
• 5 things to watch on the ASX 200 on Thursday
• How did the NAB (ASX:NAB) share price move today after landmark loan?

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. 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 Global Lithium Resources (ASX: GL1) share price has hit the ASX board running following the successful completion of its IPO today.

At the time of writing, the lithium developer’s shares are changing hands for 30 cents. This is 50% higher than its IPO listing price of 20 cents.

The Global Lithium Resources IPO

Global Lithium has landed on the Australian share market on Thursday after raising $10 million via a heavily oversubscribed IPO.

The Pilbara-focused lithium explorer raised the funds via the issue of 50 million shares at a price of 20 cents per share.

Combined with the remaining 81.4 million shares on issue, this gave the company a market capitalisation of $26.4 million at listing.

Following today’s strong rise in the Global Lithium share price, this has now lifted to approximately $40 million.

What is Global Lithium?

Global Lithium was established in 2018 and is aiming to become a leading Australian lithium company via the development of the Marble Bar Lithium Project (MBLP) in Western Australia’s Pilbara region.

The MBLP is an emerging lithium discovery approximately 180km southeast of Port Hedland near the town of Marble Bar.

Global Lithium has achieved significant exploration success to date through the discovery of the Archer lithium deposit. It declared a maiden JORC Inferred Mineral Resource of 10.5Mt @ 1.0% Li2O, following three successful RC drilling programs.

Its primary focus following today’s listing is to explore the MBLP and seek to grow the Archer deposit.

The release explains that management is confident that further exploration will result in an increase in the size of the Archer deposit and that the remaining MBLP project area is also highly prospective for additional discoveries.

Global Lithium’s Chair, Warrick Hazeldine, said: “It is a proud and exciting day as we list as a publicly traded Australian company and we look forward to creating shareholder value through the successful exploration of our Marble Bar Lithium Project located in the globally renowned Pilbara region of Western Australia.”

“After two years of successful exploration activities, this is a great time to bring this investment opportunity to the market. It’s a great time to be in the lithium industry and Global Lithium is one of only a handful of opportunities for investors to gain exposure to lithium via the ASX,” he added.

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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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