The BHP Group Ltd (ASX: BHP) share price was on form again on Monday.

At one stage, the mining giant’s shares charged as much as 3% higher to a new multi-year high of $42.78.  

When the BHP share price reached that level, it was up a sizeable 19% since this time last month.

Why is the BHP share price at a multi-year high?

Investors have been buying BHP’s shares over the last few weeks thanks to a rise in commodity prices.

This appears to have positioned the Big Australian to deliver another bumper profit result in FY 2021.

What has been happening?

The first commodity of note is oil. Last week oil prices climbed higher again, which led to WTI and Brent prices recording their fifth consecutive week of gains. This bodes well for its petroleum operations.

Also rising was copper. The base metal extended its year to date gain to over 24% last week, taking the price of the industrial metal to a seven-year high.

But the commodity that is getting investors the most excited is iron ore. Given how much the steel-making ingredient contributes to BHP’s overall earnings, favourable iron ore prices are always good news for the mining giant.

According to CommSec, on Friday the spot iron ore price jumped a further 5.4% to US$145.30 a tonne. This was driven by news that Vale has downgraded its production guidance, leading to concerns that supply could be constrained at a time when demand is robust.

As a comparison, BHP has provided cost guidance of US$13 to US$14 a tonne for its iron ore operations. This means it will be generating significant free cash flow right now, which could lead to generous dividend payments next year.

Is the BHP share price in the buy zone?

It was largely because of this that this morning Macquarie retained its outperform rating and lifted its price target on BHP’s shares to $46.00.

The broker has pencilled in a ~$2.78 per share fully franked dividend in FY 2021. Based on the current BHP share price, this equates to a 6.5% dividend yield.

More reading

• ASX 200 up 0.7%: Metcash impresses, BHP & Fortescue storm higher, Xero given buy rating
• Why ASX iron ore stocks are set to rally today
• Are ASX stocks about to get an earnings upgrade boost in the new year?
• What do big brokers think about soaring commodity prices and ASX mining shares?
• Is Rio Tinto (ASX:RIO) share price a better buy than BHP (ASX:BHP) share price?

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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Looking at the AGL Energy Limited (ASX: AGL) share price today, a few things stand out. First up, the share price itself. AGL shares are trading at $13.46 at the time of writing. That gives this company a market capitalisation of $8.4 billion and a price-to-earnings (P/E) ratio of 8.51.

That is a very low share price for AGL, historically speaking. The last time AGL shares were this low was back in early 2015. On these prices, AGL shares have lost more than 50% of their value since they hit $27.61 per share in 2017.

And here’s another sobering statistic: you could have bought AGL shares for the same price as you can today, way back in 2006.

But secondly, AGL’s trailing dividend appears to be offering a whopping 7.27% yield on today’s prices. That’s more than triple the trailing yield of 2.39% that market-wide S&P/ASX 200 Index (ASX: XJO) fund, iShares Core S&P/ASX 200 ETF (ASX: IOZ), is offering. And it’s over 13 times more yield than a Commonwealth Bank of Australia (ASX: CBA) term deposit is offering right now at 0.55% per annum.

So is this yield too good to be true?

The AGL monster dividend

Well, let’s look at AGL’s latest shareholder payouts. Unlike some ASX dividend shares, AGL has paid two dividends in 2020. The first was an interim dividend of 47 cents per share (80% franked) that was paid in March. The second was a final dividend of 51 cents per share (also 80% franked), paid out in September. That’s 98 cents per share in dividends for 2020, giving AGL shares a trailing yield of 7.27%. So it does check out! Including the value of those franking credits, this trailing yield rises to 9.76% grossed-up.

It is worth noting that AGL has given some rare guidance into its plans for this dividend over the next few years. The company currently has a ‘payout ratio’ policy, which instructs that 75% of its profits should be paid out as dividends every year. Back in August, AGL told investors that its profits for the 2020 financial year were $816 million, which was down 22% from the prior year. But it also told the market it expects this profit to dip further in FY2021 to just $560 million. That’s not enough to keep 2020’s dividend levels steady next year under this ‘75% payout ratio’ rule.

However, AGL also told investors it would be bringing in a new rule for dividend payments for FY2021 and FY2022. This involves paying an additional 25% of profits as ‘special dividends’ on top of the normal 75%. In effect, this means AGL has committed to paying out 100% of its profits as dividends for the next two years. However, dividends won’t be coming with any franking credits at all over this period. This is being done so that AGL can “utilise historic tax losses”.

So yes, it would appear that AGL is really offering a dividend yield of nearly 7.3% today, if the company’s guidance is anything to go by.

More reading

• Could these ASX renewable energy shares benefit from the Biden win?
• Aussie companies blast ‘knee-jerk’ COVID-19 border closures
• AGL Energy (ASX:AGL) ventures into broadband business

Motley Fool contributor Sebastian Bowen 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 Telix Pharmaceuticals Ltd (ASX: TLX) share price is slipping today, down 2.5% in afternoon trading.

This comes despite the company reporting it had received priority review status from Australia’s Therapeutic Goods Administration (TGA) for its prostate cancer imaging product, TLX591-CDx.

The priority review provides Telix with a fast-tracked timeframe of 150 working days for its product dossier review and approval.

It’s possible this news was already factored into the share price. Telix shares soared 121% higher in the month of November, and the share price is up 152% year-to-date. By comparison, the S&P/ASX 200 Index (ASX: XJO) is flat since 2 January.

What does Telix Pharmaceuticals do?

Telix Pharmaceuticals is a biopharmaceutical company focused on developing diagnostic and therapeutic products via molecularly targeted radiation (MTR). Based in Melbourne, Telix has international operations in Belgium, Japan and the United States.

The company is currently developing a range of clinical-stage oncology products to address unmet medical needs involving prostate, kidney and brain cancers.

What does the priority review status mean for Telix shares?

Addressing the priority review status, Telix CEO Chris Behrenbruch said:

As an Australian headquartered company, we are especially delighted that the TGA has granted Priority Review for TLX591-CDx, bringing us one step closer to providing a commercially available prostate imaging agent to patients in our own backyard.

This is an important development for urologic oncology in Australia as a properly validated and commercially available product will ensure far greater patient access and confidence in the technology, currently only available on a limited basis under “special access” use from a relatively small number of academic nuclear medicine departments around the country.

The company reported that its Medical Services Advisory Committee (MSAC) application is already in progress. In a forward-looking statement, it revealed that it expects that MSAC approval and commercial availability of TLX591-CDx around May or June of 2021, provided it receives the TGA approval.

With prostate cancer killing 3,000 Aussie men each year (the second most common cause of cancer death), there are good reasons to hope Telix’s imaging product is successful beyond any share price gains.

More reading

• Why Flight Centre, Fortescue, Kogan, & Telix shares are racing higher
• Why has the Telix (ASX:TXL) share price shot up 5% today?
• Why Laybuy, Mesoblast, Sandfire, & Telix shares are charging higher
• Why the Telix (ASX:TLX) share price is up 9% to a new record high today
• Why Afterpay, Bega Cheese, Humm, & Telix shares are storming higher

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 Regional Express Holdings Ltd (ASX: REX) continued on its vertical ascend today with the stock hitting a 13-year high.

The REX share price surged another 27.3% to $2.47 during lunch time trade when the S&P/ASX 200 Index (Index:^AXJO) inched up 0.3%.

In contrast, the Qantas Airways Limited (ASX: QAN) share price jumped 3.1% to $5.44 and Alliance Aviation Services Ltd (ASX: AQZ) share price fell 2.1% to $3.82 at the time of writing.  

Regional Express share price gets speeding ticket

A number of positive tailwinds have pushed the Regional Express share price higher recently, including hopes of a COVID‐19 vaccine.

But today’s big rise seems to have also baffled the airline after it was issued with a speeding ticket by ASX Ltd (ASX:ASX).

Management offered a number of possible reasons for REX’s soaring share price.

Rising confidence in REX share price

The successful airfare promotion of $69 for a one-way trip between Melbourne and Sydney is one explanation. This could have lifted REX’s profile among the public and investors.

Confidence in REX’s ability to transition to flying jets from propeller aircraft and launch a domestic service between major cities is touted as another potential driver for its share price.

“The recognition by investors of Rex’s attractive lower cost structure relative to its competitors, including because, as reported recently in the press, Virgin has been unsuccessful in lowering its wage structure after negotiations with unions,” said REX.

“The more positive general sentiment in the aviation sector due to the re-opening of domestic borders which has increased demand for passenger services with all airlines.”

Finally, management acknowledged that day traders may also be contributing to the heightened volatility in the stock.

How the REX share price is performing to the sector

Regardless, REX’s shareholders are unlikely to be complaining as the Regional Express share price nearly doubled since the start of 2020.

Not even the popular Qantas share price could keep up as the flying kangaroo crashed by more than 20% over the same period. The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is also down by a similar amount.

The AQZ share price is doing better, but even than its 51% rise this year can’t keep pace with the REX share price.

But Regional Express isn’t the only stock that looks well placed for 2021. The experts at the Motley Fool are bullish on the outlook of these other ASX stocks.

Follow the link below to find out more.

More reading

• Leading brokers name 3 ASX shares to buy today
• Watch out! ASX IPO boom may sink the ASX bull market in 2021
• After record breaking ASX share price rallies, what next in 2021?
• ASX 200 up 0.7%: Metcash impresses, BHP & Fortescue storm higher, Xero given buy rating
• Why ASX iron ore stocks are set to rally today

Motley Fool contributor Brendon Lau 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 CSL Limited (ASX: CSL) share price is edging higher today, up 0.2% in afternoon trading.

That’s broadly in line with the wider S&P/ASX 200 Index (ASX: XJO), up 0.4% at time of writing.

With a history of generally delivering fairly steady share price growth, 2020 has been unusually volatile for CSL shareholders. While there are various reasons for this, traders jumping in and out of shares based on the latest COVID-19 vaccine news have certainly helped stir this year’s share price volatility.

CSL and the University of Queensland (UQ) have been working collaboratively on a coronavirus vaccine since the outset of the pandemic.

The sprint to the finish line looks to have been won by the mRNA vaccines developed by Moderna Inc (NASDAQ: MRNA), along with the partnered efforts of Pfizer Inc. (NYSE: PFE) and BioNTech SE (NASDAQ: BNTX).

But the experts at CSL and the UQ believe their own efforts may prove more valuable in the long run.

More on that below. But first…

What does CSL do?

CSL is a global biotechnology company that develops and delivers innovative biotherapies and influenza vaccines.

CSL’s operational business segments include CSL Behring and Seqirus. The company operates predominantly in Australia, the United States, Germany, the United Kingdom and Switzerland.

CSL shares first began trading on the ASX in 1994 and today it ranks among the largest companies on the ASX 200. At the current share price, CSL pays a 1% dividend yield, unfranked. The company paid out both dividends for 2020.

Why could CSL’s COVID vaccine prove to be better?

Professor Paul Young is the head of the UQ program developing a COVID vaccine together with CSL.

Addressing their vaccine, Young said (as quoted by the Australian Financial Review):

It is a more traditional vaccine. I think it will be a far more robust vaccine . . . and a better option for the long term. So I still think it’s an important vaccine even though we’re a little bit behind the mRNA vaccines.

Data from the group’s phase 1 trial is expected soon, with phase 2 and 3 trials scheduled to commence in December. Young said if the trials are successful, their vaccine could be ready for wider use in Australia by mid-2021.

Young also highlighted the historic shortage of medicinal manufacturing capabilities in Australia:

Our sovereign capacity is not perhaps what it could have been. Our technology has led into CSL’s technology just beautifully. That was an excellent marriage. But, many of the other vaccine types that could have been developed in Australia haven’t been able to progress because there hasn’t been the infrastructure to take them into the next stage of development.

Although CSL is working on other projects and has numerous successes under its belt, the pending success or failure of its COVID vaccine is likely to have a significant impact on its share price.

More reading

• Brokers name 3 ASX shares to buy right now
• Why Pfizer and BioNTech stocks popped Wednesday
• CBA (ASX:CBA) and the ASX banks just had an amazing month
• Why healthcare, tech and consumer staples shares underperformed the ASX 200 in November
• Fund managers are snapping up these ASX stocks at a record pace

Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of 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.

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The Tilt Renewables Ltd (ASX: TLT) share price is rocketing today, up 17.43% at the time of writing to $4.34 a share.

Tilt shares closed at $3.74 on Friday afternoon last week, but opened at $4.25 this morning, before climbing all the way to $4.44 just after open (a new all-time high).

At the current share price, Tilt shares are now up more than 33% year to date, and up more than 137% since the company’s ASX debut back in February 2018. They are also up 73.6% off Tilt’s 52-week low that we saw back in mid-March during the coronavirus-induced market crash.

So what is Tilt Renewables? And why is the Tilt share price rocketing up today?

Tilting towards clean energy

Tilt Renewables is a renewable energy company (shocker) with a focus on the Australian and New Zealand energy markets. The company tells us its vision is “to be a leading developer and owner of renewable electricity generation in Australia and New Zealand. We tilt for a positive and sustainable future.”

Even though it describes itself as a ‘renewable energy company’, Tilt is in the business of wind power at the present time. It currently owns and operates 8 wind farms across Australia and New Zealand.

These include the Tararua Wind Farm in Manawatu, NZ; the Snowtown Windfarm in South Australia, the Crookwell Wind Farm in Goulburn, New South Wales, and the Salt Creek Wind Farm near Woorndoo, Victoria. The company also has another 22 new farms or upgrades in the pipeline, including the Dundonnell Wind Farm near Mortlake, Vic, and the Liverpool Range Windfarm just outside of Sydney.

However, Tilt is also planning to expand into solar power as well. It currently has 2 solar farm projects in development – the Dysart Solar Farm near Mackay, Queensland, and the Illabo Solar Farm near Wagga Wagga, NSW.

Tilt has had a good year so far, if the numbers are anything to go by. Back in October, Tilt reported that the 6 months ending 30 September 2020 saw profits after tax up 125% to compared to the prior corresponding period to $26.8 million. The company also saw basic earnings per share surge by 151% to 6.32 cents.

Interestingly, more than half of this company’s outstanding shares are owned by 2 large corporate shareholders, Infratil Ltd (ASX: IFT) and Mercury NZ Ltd (ASX: MCY). And that takes us to why the share price is rocketing today.

Why the Tilt Renewables share price is on fire today

The Tilt share price performance today is almost certainly due to a release the company made to the markets this morning before open. In this release, Tilt informed the market that Infratil (Tilt’s largest shareholder with a 65.5% stake) has “commenced a strategic review of its shareholding” of Tilt.

The company stated the following on this situation:

TLT [Tilt Renewables] understands the IFT [Infratil] strategic review process may result in an offer from a third party for all outstanding shares in TLT and therefore the directors of TLT will begin preparations to be able to respond to such an offer. At this stage, the directors recommend TLT shareholders take no action.

Infratil elaborated on this announcement by stating:

Infratil has recently received a number of enquiries in relation to its Tilt shareholding. Given strong demand for high quality renewables platforms globally, Infratil considers it is prudent to assess alternatives for its Tilt shareholding, including divestment of its position.

It’s likely that it’s for this reason that Tilt shares are rocketing today.

More reading

• Could these ASX renewable energy shares benefit from the Biden win?

Motley Fool contributor Sebastian Bowen 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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One area of the market which has performed very strongly in recent years, and has been tipped to continue doing so in the future, is the tech sector.

In light of this, it is no surprise that tech shares are among the most popular shares on the local share market.

With that in mind, I have picked out two shares in the sector that come highly rated right now. They are as follows:

Altium Limited (ASX: ALU)

Altium is a leading printed circuit board (PCB) design software provider. It is best known for its industry-leading Altium Designer and cloud-based Altium 365 platforms but also has a number of other growing businesses. These include the Octopart search engine for electronic parts and the Nexus team-based PCB workflow solution.

Due to the proliferation of electronic devices because of the rapidly growing Internet of Things and artificial intelligence markets, management is aiming to more than double its revenue between now and 2025/26. It is also believes that when it gets to 100,000 subscribers, double its current subscriber base, it will be in a position to dominate the industry.

These plans appear to have gone down well with analysts at Morgan Stanley. They have an overweight rating and $40.00 price target on the company’s shares.

Xero Limited (ASX: XRO)

Xero is one of the world’s leading cloud-based business and accounting software platform providers. Over the last few years the company has evolved from being a place to do your accounts, to a full-service small business solution.

This has helped underpin significant subscriber and recurring revenue growth. For example, during the first half of FY 2021, Xero finished the period with 2.45 million subscribers. This led to it reporting a 21% increase in operating revenue to NZ$409.8 million and a 15% lift in annualised monthly recurring revenue (AMRR) to NZ$877.6 million.

One broker that is confident there will be more of the same in the future is Goldman Sachs. This morning it initiated coverage on the company with a buy rating and $157.00 price target. Goldman believes Xero can achieve a 2030 subscriber footprint of 7.4 million and generate NZ$3.4 billion in annual revenue.

More reading

• ASX 200 up 0.7%: Metcash impresses, BHP & Fortescue storm higher, Xero given buy rating
• Why Fortescue, Metcash, Nuix, & Xero shares are storming higher
• Leading broker puts buy rating on Xero (ASX:XRO) share price
• 5 things to watch on the ASX 200 on Monday
• 2 stellar ASX tech shares to buy next week

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 recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. 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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Kogan.com Ltd (ASX: KGN) has been ordered to pay a $350,000 fine for making false or misleading representations about a sale.

The Federal Court found the company’s subsidiary, Kogan Australia Pty Ltd, misled customers by jacking up the prices of 621 products immediately before a ‘tax time’ sale.

The online retailer then ran a sales promotion offering customers the code ‘TAXTIME’ to use at checkout for a 10% discount.

“Consumers who used the promotional code to purchase these products paid the same as, or more than, they would have paid before or after the promotion,” said Australian Competition and Consumer Commission chair, Rod Sims.

“Consumers were not receiving a genuine 10% discount as promised, and this affected high-value products such as Apple MacBooks, cameras and Samsung Galaxy mobile handsets.”

To rub further salt into the wound of customers who thought they had a bargain, Kogan then put the standard prices back down after the promotion.

Despite the absence of genuine discounts, the retailer used phrases like “48 hours left!” and “Ends midnight tonight!” in emails to customers to create a sense of urgency.

Kogan’s deceptions were “serious”

Justice Jennifer Davies said Kogan’s misbehaviour “must be viewed as serious”.

“Misrepresentations about discounts offered on products not only harm purchasers acquiring such products on the basis that they are getting a genuine discount but also may impact on consumer confidence in discount promotions when legitimately made – that is, when products are being offered for sale with a genuine discount on price.”

The Kogan share price was up 3.62% at 3:21pm AEDT, to hit $18.01. This was largely due to its acquisition of New Zealand e-tailer, Mighty Ape.

In a statement to the ASX, Kogan dismissed the significance of the court findings.

“The profit derived by the company from the promotion was immaterial,” the company stated.

“Kogan.com has a compliance program in place, which comprises protocols for the internal and external review of promotional statements and associated collateral.”

Kogan’s offences occurred in June 2018, with the ACCC starting legal action May last year. The court found the case in the watchdog’s favour July this year, with the resulting penalty handed down this month.

The court also ordered Kogan to pay ACCC’s costs.

Sims said the penalty was a “strong signal” to all internet retailers.

“They must not entice consumers to purchase products with a promise of discounts that are not genuine.”

More reading

• 3 great ASX tech shares to buy
• 3 of the best ASX shares to buy in December
• Got cash to invest? Here’s 3 ASX shares to buy
• 3 reasons why Kogan.com (ASX:KGN) shares could be a buy
• Brokers name 3 ASX shares to buy right now

Tony Yoo 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 Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Apple and Kogan.com 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 Austal Limited (ASX: ASB) share price is falling today despite the company announcing delivery of a new littoral combat ship to the United States Navy. During morning trade, the Austal share price reached $3.00, but has since retreated. At the time of writing, its shares are trading lower at $2.90, down 0.3%.

Let’s take a look at Austal’s market update today.

New ship delivery

Austal advised that it has delivered an independence-class littoral combat ship to the US Navy.

The warship is the 13th of its kind to be built at Austal’s US shipyard. In a symbolic move, the vessel was named USS Mobile after the city of Mobile in Alabama where the shipyard is based.

The new combat ship is a high-speed, shallow-draft surface combatant with an aluminium trimaran hull that provides class leading, multi-mission capability. The ship is designed to defeat growing littoral threats and provide access and dominance along coastal waters. In addition, the vessel has operational flexibility to execute surface warfare, mine warfare and anti-submarine warfare missions.

Currently, Austal’s US shipyard has four other littoral combat ships at various stages of construction. Under the program, USS Savannah and USS Canberra are being assembled. USS Santa Barbara and USS Augusta are under construction in the module manufacturing facility.

In addition, construction of USS Kingsville and USS Pierre has yet to start but both have been signed off by the US Navy. Another 14 expeditionary fast transport vessels are also under contract, with 12 vessels already delivered. The remaining two ships include one that is being built and the other scheduled for future construction.

What did management say?

Austal CEO David Singleton welcomed the achievement, saying:

What better way to end this challenging year than with the delivery of the future USS Mobile in its namesake city. This ship is a fantastic tribute to the spirit and determination of the people of Austal USA and the City of Mobile.

Our warmest congratulations to the US Navy on the delivery of their latest independence-class littoral combat ship; another great symbol of the success of the United States defence industrial base and a highly capable addition to the fleet.

About the Austal share price

The Austal share price is heading towards recovery from a rolling 6 months. After reaching highs of $3.68 in June, the company’s shares are trading almost 22% lower today.

Austal has a market capitalisation of $1.04 billion and a price-to-earnings (P/E) ratio of 11.7.

More reading

• Why the Austal (ASX:ASB) share price is edging higher today

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 Austal 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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It has been a disappointing start to the week for the Openpay Group Ltd (ASX: OPY) share price.

In afternoon trade, the buy now pay later provider’s shares are down 3.5% to $2.46.

Why is the Openpay share price dropping lower?

The Openpay share price has been on a very poor run of late and is now down 23% since this time in October. This is despite the company’s performance remaining strong during this period.

For example, in the middle of last month Openpay released a trading update for October and November to date.

That update revealed that active plans were up 233% in October compared to the prior corresponding period and active customers were up 143%. This underpinned a 101% increase in total transaction value (TTV) to $25.8 million for the month.

This positive form continued in November with Openpay achieving its strongest ever daily TTV of $915,000. This was thanks to Australian online sales initiatives including Click Frenzy and was an 11% increase on the company’s previous TTV record.

Management believes this bodes well ahead of the peak sales season of Black Friday, Cyber Monday, and Christmas.

That update also revealed that the company had signed major partnerships with US SaaS eCommerce group BigCommerce Holdings and online retailer Kogan.com Ltd (ASX: KGN).

Since then, the company has held its annual general meeting and spoke positively about current trading and its future prospects.

At the meeting, management commented: “To conclude, we have been extremely happy with our strategic delivery and strong operational performance, both in FY20 and in FY21 year to date. We have made significant progress in creating a great business and company, very much in line with our vision ‘to change the way people pay, for the better’ and with the pillars of our growth strategy.”

Is this a buying opportunity?

One broker that sees the recent Openpay share price weakness as a buying opportunity is Shaw & Partners.

Last month its analysts responded to its trading update by reaffirming their (high risk) buy rating and $5.00 price target.

They believe the company is well-placed for growth and note that its shares trade at a significant discount to the likes of Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P).

More reading

• Why the Afterpay (ASX:APT) share price continues to dominate
• Top broker thinks the Openpay (ASX:OPY) share price is dirt cheap
• Is buy now, pay later (BNPL) giving Aussies a headache?
• Why the Openpay (ASX:OPY) share price is up and down today
• Afterpay (ASX:APT) share price underperforming after ASIC finds more BNPL customers falling behind

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 Kogan.com ltd and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Kogan.com 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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