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The Goodman Group (ASX: GMG) share price is coming under fire today as the S&P/ASX 200 Index (ASX: XJO) trudges through a session to forget.

At the time of writing, the Goodman share price has retreated 5.1% to $18.68. It’s underperforming the ASX 200 index, which has slipped 2.5% to 6,834.

Why is the Goodman share price falling today?

More broadly, the ASX 200 is reeling after United States shares were sold off heavily overnight. 

A higher-than-expected inflation print has sparked fears that the Federal Reserve will dial up its interest rate hikes in a bid to stamp out soaring inflation.

With no news or announcements out of the company today, Goodman shares appear to be caught up in the wider market malaise.

Interestingly, real estate investment trusts (REITs) are often thought to provide investors with a level of protection through inflationary periods. 

The thinking goes that rental prices and property values tend to increase as prices do, supporting the dividends that these REITs pay out to shareholders.

However, this rhetoric hasn’t stopped the Goodman share price from underperforming the market today (or this year, for that matter). 

The S&P/ASX 200 A-REIT Index (ASX: XPJ) isn’t faring too well either. It’s printing a 3.9% fall at the time of writing.

Is this an opportunity to buy the dip?

Analysts at Goldman Sachs may think so. 

On the back of Goodman’s FY22 results, the broker retained its buy rating on Goodman shares, with a 12-month price target of $25.40.

Based on the current Goodman share price of $18.68, this implies potential upside of 36% over the next 12 months.

The broker believes Goodman will outperform its guidance in FY23, noting:

GMG continues to demonstrate its strong platform and positioning as evident in today’s result, supported by our expectation of a strong outlook for the Industrial sector more broadly, with a number of favourable fundamentals underpinning future long-term demand for industrial space. We expect solid rental growth as demand for high quality logistics space continues to outpace available supply.

Analysts at Citi are also bullish. The broker currently has a buy rating and a price target of $23.50 on Goodman shares. This represents potential upside of 26% from current levels.

Goodman share price snapshot

Against a backdrop of rising interest rates, Goodman shares have tumbled 30% so far this year.

The ASX 200 REIT is expecting to declare annual dividends of 30 cents per share in FY23. This puts Goodman shares on a forward dividend yield of 1.6%.

The post Goodman share price crumbles 5% amid Wall St woes appeared first on The Motley Fool Australia.

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More reading

• Why I’m seriously considering buying these ASX shares following today’s market crash
• Experts name 2 blue chip ASX shares to buy that Warren Buffett would love
• Analysts name 2 blue chip ASX 200 shares to buy now
• Why is the ASX 200 diving 2% on Tuesday?
• Experts name 2 blue chip ASX 200 shares to buy

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

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The Lynas Rare Earths Ltd (ASX: LYC) share price is suffering. It’s down around 5%, while the S&P/ASX 200 Index (ASX: XJO) has been hit by a 2.43% loss at the time of writing.

What’s causing today’s painful selloff?

The key reason is likely that the latest US CPI inflation reading was higher than people were expecting. As reported by various media, including the BBC, inflation was 8.3% over the year to August 2022. This rate was 0.1% higher than July 2022, which showed an increase of 8.2%. A decrease in the price of petrol was offset by increases in other sectors.

If inflation isn’t dropping yet, then the US Federal Reserve may need to keep going with hefty interest rate increases. An increase of 75 basis points, or 0.75%, may be the next monthly move.

It’s not just Lynas that is seeing a decline in the resources sector today. The Lake Resources N.L. (ASX: LKE) share price is down 14.57%, the Evolution Mining Ltd (ASX: EVN) share price is down 6.2%, and the Syrah Resources Ltd (ASX: SYR) share price is down 2.88%.

What has been happening with the Lynas share price recently?

Over the past month, the rare earths miner has seen a 15% decline in its share price.

Within this time period, the company has reported its FY22 result which showed it generated $920 million of revenue and $540.6 million of earnings before interest and tax (EBIT). Profitability can have an impact on investor sentiment.

The company was able to capitalise on the strong demand for its rare earth materials. It managed these numbers despite problems like shipping delays, input cost increases, water supply issues, and the COVID-19 pandemic.

The Lynas CEO and managing director Amanda Lacaze said:

This excellent full year result is a credit to our teams in Australia and Malaysia, who have focused on serving our customers and growing our business whilst addressing ongoing challenges.

I am pleased to report to our shareholders these strong results and progress made on growth initiatives. Further investment in capacity increases at each stage of production will ensure that Lynas is well positioned to continue to grow with the market as a supplier of choice to 2025 and beyond.

What next?

The company is working on a number of expansion initiatives that will support the further growth and development of outside China supply chains, including the re-establishment of a rare earths supply chain in the United States.

The objectives of the Lynas growth plan are to grow with the market, diversify the company’s industrial footprint, and increase the product range for customers. The company is now working to accelerate growth capacity at the Mt Weld site. It has announced a $500 million project to do this, which will result in an increase from the previously announced 10,500 tonnes per annum of finished product, to produce 12,000 tonnes per annum of finished product.

Lynas share price snapshot

Despite the declines, over the past year, Lynas shares have risen by 10%.

The post The Lynas share price is sinking 5% amid market mayhem appeared first on The Motley Fool Australia.

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More reading

• Why is the Lynas share price so volatile on Tuesday?
• Down 20% in 2022, is the Lynas share price too cheap to ignore?
• Why is the Lynas share price surging higher on Tuesday?
• Should investors ‘buy the dip’ in Lynas shares right now?
• Guess which ASX rare earths share is rocketing 13% on a ‘resounding success’. Hint: not Lynas

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

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The Appen Ltd (ASX: APX) share price is down today amid the sell-off in US equities markets that unfolded while the ASX slept.

Shares of the data solutions and services company are currently trading 2.11% lower at $3.71 each. Today’s loss means Appen shares have lost 21% in the past month and 67% year to date.

The S&P/ASX 200 Info Technology Index (ASX: XIJ) is one of the worst-performing ASX indices today, currently down 3.69%.

Other ASX tech shares trading lower today include Weebit Nano Ltd (ASX: WBT), down 1.19%, and Life360 Inc (ASX: 360), down 6.36%.

Let’s peel back the curtain a bit to understand what’s happening with tech stocks amid the sell-off.

Tech stocks and the sector rotation

It may pay to revisit some history to surmise where tech stocks could head in the future. Tech stocks, including Appen, went through a sector rotation near the end of 2022 and have performed poorly ever since.

Now the headwinds of inflation and rising interest rates seem to be really kicking in. The S&P 500 Information Technology Index lost the most of all US indices overnight.

Rising interest rates make a company’s debt more expensive in the form of higher interest payments. Tech stocks can carry particularly heavy debt along with negative earnings while working towards breakeven profitability.

These factors can make tech stocks riskier to invest in and, with a deteriorating outlook for the near future, less appealing than other forms of investment.

How interest rates can change a company’s valuation

Another factor is that interest rates are a key fundamental used in financial modelling to predict a company’s fair value, such as in the popular — and controversial — discounted cash flow (DCF) model.

More specifically, interest rate fluctuations change the company’s weighted average cost of capital (WACC), which is often used as the model’s discount rate. When the discount rate increases, the theoretical value of the company goes down and vice-versa.

This effect is amplified for shares that already trade at premium valuations, which for a long time accounted for big tech FAANG stocks such as Alphabet Inc. (NASDAQ: GOOGL), Apple (NASDAQ: AAPL), and the like.

Investors are likely now rushing into “risk-free” safe havens, such as bonds and treasury bills, to escape the madness of the selloff in equities markets at present.

Although, time will tell if more speculative tech shares can make a recovery in the near future.

The post Pain continues for Appen share price amid ASX tech sell-off appeared first on The Motley Fool Australia.

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More reading

• Down 65% this year, where to next for the Appen share price?
• Megaport share price soars 10% as ASX tech shares trump on Thursday
• Down 68% so far in 2022, can Appen shares ‘get through this?’
• Why did the Appen share price just hit a 5-year low?
• Which crypto is ASX 300 tech company Appen holding and why?

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Matthew Farley has positions in Alphabet (C shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Appen Ltd, and Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Newcrest Mining Ltd (ASX: NCM) share price is losing ground along with the ASX 200 on Wednesday.

At the time of writing, shares in Australia’s largest gold mining company are down 2.77% to $17.23.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is in the red by 2.49% following a strong sell-off on Wall Street overnight.

What’s going on with the Newcrest share price?

The Newcrest share price is coming under selling pressure today as the price of gold fell to US$1,700 per ounce.

Just the day before, the yellow metal was fetching as high as US$1,730 as investors were confident that inflation hit its peak.

However, the release of the consumer price index report for August showed inflation rose by 0.1% on a monthly basis.

Economists were predicting that inflation for the month would actually fall by 0.1% as fuel prices declined by 5.9%.

Nonetheless, this sparked a sell-off as investors weighed up the likely move of a more aggressive rate hike by the US Federal Reserve.

The central bank’s chair, Jeremy Powell has previously said that he is determined to cool inflation despite bringing pain to consumers.

The market was expecting the Federal Reserve to raise interest rates by 0.75 percentage points at its 21-22 September meeting.

However, economists are fearing that this could be lifted by a full percentage point instead.

Consequently, this is having a negative impact on the price of gold as investors shift to other asset classes such as government bonds.

In addition, Newcrest shares are being weighed down by the S&P/ASX All Ordinaries Gold Index (ASX: XGD).

Currently, the benchmark index for Australian gold companies is one of the worst performers across the ASX, down 3.73%.

Newcrest share price summary

Adding to today’s losses, the Newcrest share price has fallen 30% in 2022.

With Newcrest shares losing their glitter for now, they remain around 4% off their multi-year low of $16.56 earlier this month.

Based on today’s price, Newcrest commands a market capitalisation of approximately $15.83 billion.

The post Why is the Newcrest share price losing its shine on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Why is the Newcrest share price beating the ASX 200 on Friday?
• 5 things to watch on the ASX 200 on Friday
• Do ASX 200 gold shares pay regular dividends?
• Why are ASX 200 gold shares having such a hard time of it in 2022?

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

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The Piedmont Lithium Inc (ASX: PLL) share price is part of an exclusive club of positive returners today. Shareholders would be rejoicing at the sight of their holdings showing insulated characteristics from the rest of the beaten-down market.

In afternoon trade, shares in the lithium hopeful are touting a 3.9% gain to 94.5 cents. Although, anything other than negative returns is a breath of fresh air right now. Even the broad S&P/ASX 200 Index (ASX: XJO) is 2.46% worse off than yesterday.

So, why is the Piedmont Lithium share price holding up in the face of this adversity?

Playing catch-up

A number of ASX-listed lithium shares have been going gangbusters over the past month. The optimism for the battery material has been reverberating in the ears of investors recently. Consequently, shares in many lithium companies have flown higher despite a still shaky environment.

One example of the positive projections was reported by fellow Motley Fool writer, Tristan Harrison. The article detailed how Barrenjoey — a major broker — is forecasting a potential rise of 86% in the lithium price over the next two years.

Furthermore, Pilbara Minerals has experienced a tremendous surge following its incredible full-year result. Since releasing its FY22 numbers, the Pilbara Minerals share price has exploded by 42%. Whereas, the Piedmont Lithium share price has been more subdued.

As shown above, shares in Piedmont Lithium have started to reignite. However, there is still a clear delineation between the performance of Pilbara Minerals and Piedmont.

Though, it is worth mentioning, that Piedmont is yet to draw revenue from its operations. Nevertheless, investors seem to be content with ignoring the market turbulence today to bid the Piedmont Lithium share price higher.

Piedmont Lithium share price in 2022

While unprofitable ASX tech shares have been ravaged by rising inflation and interest rates, some loss-making lithium companies appear to have dodged the damage.

So far this year, the Piedmont Lithium share price has returned an impressive 22%. Considering the benchmark index is down nearly 10%, Piedmont’s performance is commendable by any stretch of the imagination.

The company currently holds a market capitalisation of $1.66 billion.

The post The Piedmont Lithium share price is actually gaining today. What’s going on? appeared first on The Motley Fool Australia.

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More reading

• Why is the Piedmont Lithium share price popping 6% on Thursday?
• Why are ASX lithium stocks having such a stellar run today?
• Where does Tesla get its lithium and do any ASX shares benefit?
• Piedmont Lithium share price falls 5% after plans to build the largest US lithium plant unveiled
• Why is the Piedmont Lithium share price plunging 10% today?

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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The Atlas Arteria Group (ASX: ALX) share price is withstanding today’s sell off for a good reason. It’s still in a trading halt.

Indeed, the stock hasn’t gone anywhere today as the company undergoes a $3.098 billion capital raise to fund its acquisition of a majority stake in the Chicago Skyway.

The S&P/ASX 200 Index (ASX: XJO) toll road operator is selling shares for $6.30 apiece under a 1 for 1.95 entitlement offer.

The Atas Arteria share price last traded on Monday, closing at $7.81.

Let’s take a closer look at what’s happening with the approximately $7.5 billion company.

Atlas Arteria share price frozen amid $3b capital raise

The Atlas Arteria share price remains in the freezer on Wednesday as the company undergoes a massive capital raise to fund its $2.9 billion acquisition.

The near-$3.1 billion capital raise will see the company issuing 491.8 million new shares – representing 51.3% of its shares on issue. Newly issued shares won’t be eligible for the company’s upcoming 20-cent dividend.

The raise will be made up of an institutional entitlement offer that will be conducted today and tomorrow.

Following that, a retail entitlement offer will open on 21 September before closing on 6 October.

New dividend guidance

The company also reaffirmed and added to its dividend guidance. The company expects to pay out 40 cents per share in 2022 and the same amount in 2023. It says that’s “a sustainable level going forward”.

It expects future dividends to be supported by periodic capital releases from Skyway, given its “considerable debt capacity”.

The company anticipates it will receive at least US$230 million in capital releases from Skyway over the next two years. That represents approximately 23 cents per share.

On top of that, there’s the potential to regear every four to five years as coverage ratios increase while maintaining headroom to investment-grade credit metrics.

Atlas Arteria expects to behold proceeds from capital releases on its balance sheet before distributing them gradually to shareholders over time to smooth dividends.

The post Atlas Arteria share price remains on ice amid $3 billion cap raise appeared first on The Motley Fool Australia.

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More reading

• Atlas Arteria share price halted amid $2.9 billion acquisition
• Why is the Atlas Arteria share price hitting the headlines on Monday?
• Atlas Arteria share price drives higher on record dividend guidance
• Here are the top 10 ASX 200 shares today

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

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The CSL Limited (ASX: CSL) share price is being dumped amid a broader market sell-off by investors.

At the time of writing, the biotherapeutics company’s shares are down 1.75% to $289.95.

For context, the S&P/ASX 200 Index (ASX: XJO) is down 2.38% today, marking its biggest drop since June 2022.

Here’s why CSL shares are in reverse today

Wall Street recorded heavy losses overnight following the release of the consumer price index report for August.

The data showed that inflation rose by 0.1% on a monthly basis when the market was expecting a 0.1% decrease.

Consequently, investors digested the negative news sending the Dow Jones 3.94% lower on the day.

This is because fears are growing that the United States Federal Reserve could lift interest rates by a full percentage point.

Previously, economists were expecting at worst that the central bank would hike the rate by 75 percentage points.

However, the market is now readjusting itself to factor in a likely aggressive move by the Fed to cool inflation.

As such, investors have hit the sell button on the CSL share price due to the broader market slump.

The S&P/ASX 200 Health Care Index (ASX: XHJ), of which CSL is a part, is currently down by 1.57%.

What do the brokers think?

Despite the gloomy turn of events, CSL shares are known for their high growth and defensive qualities.

As such, a number of brokers believe the share price is currently undervalued and lifted their price targets following the company’s full-year results.

As reported by ANZ Share Investing, Jefferies raised its price target by 0.8% to $320.50 per CSL share.

Furthermore, both Macquarie and Morgan Stanley improved their price target by 5.6% to $329.50, and 3.5% to $323 apiece.

Based on where CSL shares are now trading, this implies an upside of around 12%.

CSL share price snapshot

Since the start of 2022, the CSL share price has taken investors on a rollercoaster.

Its shares are flat when looking at the past nine months.

CSL is the third largest company on the ASX with a market capitalisation of roughly $142.3 billion.

The post The CSL share price dips as the ASX 200 dives on Wednesday appeared first on The Motley Fool Australia.

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More reading

• Can the CSL share price regain its 52-week high in 2022?
• Experts name 2 blue chip ASX shares to buy that Warren Buffett would love
• The CSL dividend just got updated. How much will you be getting?
• The CSL share price is still trading just 10% above its COVID-crash low. Is it a buy?
• Fundie reveals the 2 ASX shares he’d buy and hold for 4 years

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

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As most investors would be painfully aware by now, it’s been a dire day for ASX shares and the S&P/ASX 200 Index (ASX: XJO) this Wednesday. At the time of writing, the ASX 200 has lost a nasty 2.4% and is back to around 6,840 points. But it’s been even worse for the Block Inc (ASX: SQ2) share price.

Block, the company formerly known as Square, has been put through the wringer. Block shares are presently down by a horrible 4.46% at $104.12 each. It was even worse earlier in today’s session. This morning saw the fintech share descend as low as $101.72 a share, a drop of almost 7%.

So what’s going on here? Why have Block shares fallen by almost double the drop of the broader ASX 200?

Well, with no news out of the company today, we can probably put this sharp drop down to the inflation fears that are so dramatically spooking investors today. As we’ve looked at extensively, US inflation figures came out last night, and what they revealed was not pretty. 

American inflation is running at a hot 8.3%, a figure far higher than what most commentators expected. US shares, and now ASX shares, have been smashed on this news, as fears grow that the US Federal Reserve will be forced to keep up its frenetic interest rate hikes to tame this inflation.

So this explains why almost all ASX 200 shares are deep in the red today. But why is Block getting such an enthusiastic drubbing?

Why is the Block share price getting a 5% smashing today?

Well, as my Fool colleague Catherine skilfully explained earlier today, ASX tech shares are some of the most sensitive to interest rates. Many of them are valued on what their future earnings may be, rather than what they are bringing in today.

Under some valuation models, higher rates make the value of future earnings less attractive. Thus, these are the companies that tend to get a more severe ‘re-rating’ when interest rate expectations change.

That would explain why we are seeing an oversized fall in Block shares today. This company is arguably very much valued for its future growth, given its current price-to-earnings (P/E) ratio of 312.5.

But it’s not just Block feeling the pain. Many other ASX tech shares, including Xero Limited (ASX: XRO), Brainchip Holdings Ltd (ASX: BRN), and Altium Limited (ASX: ALU) are also seeing drops of far more than the broader market.

No doubt investors will be hoping for a better time over the rest of the week.

At the current Block share price, this ASX 200 tech share has a market capitalisation of $60.87 billion.

The post Smashed! Why is the Block share price down 4% today? appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 tech shares being hit the hardest on Wednesday?
• Why are ASX 200 shares tumbling like dominos on Wednesday?
• Here are the top 10 ASX 200 shares today
• Why are ASX 200 tech shares having such a cracking start to the week?
• Here are the 10 most shorted ASX shares

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Block, Inc., and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc. and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX All Ordinaries Index (ASX: XAO) is deep in the red today after a hot US inflation report sent Wall Street into a tailspin overnight.

At the time of writing, the All Ords index has slipped 2.6% to 7,065 points. The S&P/ASX 200 Index (ASX: XJO) is mirroring this fall, also sliding 2.6% to 6,825 points.

But amongst the sea of red, some ASX All Ords shares are shining brightly. Let’s take a look.

Peter Warren Automotive Holdings Ltd (ASX: PWR)

The Peter Warren share price is racing higher today after the car dealership company revealed it has a new major shareholder.

At the time of writing, Peter Warren shares have zoomed 13.9% higher to $2.87.

According to an initial substantial holder notice, SMA Motors splashed $50 million yesterday to pick up a 9% stake in PWR.

In a separate notice, the seller is revealed to be Quadrant Private Equity, offloading 15.7 million PWR shares off-market to SMA at an average price of roughly $3.19 per share. 

This represents a sizeable 26% premium to PWR’s closing price yesterday of $2.52.

As my Fool colleague James reported this morning, SMA Motors is the name behind Suttons Motors, one of Sydney’s largest car dealership groups.

Clover Corporation Limited (ASX: CLV)

Food technology business Clover is also defying the market sell-off today, surging 11.1% at the time of writing to $1.10.

The ASX All Ords share handed in its FY22 results this morning, reporting double-digit sales and profit growth.

Clover delivered net revenue of $70.7 million, up 17% from the prior year and at the top end of guidance.

In the second half of the year, sales rebounded across all of Clover’s regions as key infant formula manufacturer order volumes lifted and international borders opened.

However, Clover hasn’t been spared from rising inflation. It experienced pressure on milk proteins, freight costs, and other ingredients throughout the year, which impacted margins.

On the bottom line, the company reported a net profit after tax (NPAT) of $7.1 million, growing 19% from FY21.

Clover also doubled its final dividend to 1 cent per share, fully franked. This puts Clover shares on a trailing dividend yield of 1.4%.

Avita Medical Inc (ASX: AVH) 

Last but not least, regenerative medicine company Avita is staging a comeback today. 

The Avita share price was crunched when the company released its FY22 results in mid-August.

But its fortunes have turned today as Avita shares are currently printing a 3.9% gain to sit at $2.

The ASX All Ords share hasn’t come out with any news today. But yesterday, it announced positive topline trial results.

These results relate to a pivotal, randomised, controlled trial evaluating the safety and effectiveness of Avita’s Recell System for the repigmentation of stable vitiligo lesions.

Results showed that 56% of Recell treatments led to repigmentation of more than 50% of the treated area. The control group managed only 12% using the typical first-line treatment for vitiligo.

Meanwhile, 36% of Recell treatments resulted in repigmentation of at least 80% of the treated area compared to 0% for the control treatment.

The post 3 ASX All Ordinaries shares defying today’s rout to surge higher appeared first on The Motley Fool Australia.

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More reading

• In a sea of red, guess which ASX All Ords share is booming 12% today
• 5 ASX All Ords shares trading ex-dividend on Thursday
• 6 ASX shares Morgans would buy right now
• 3 ASX All Ords shares that saw major price action on FY22 results

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Avita Medical Limited and Clover Corporation 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 Scott Phillips.

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The AMP Ltd (ASX: AMP) share price is down 76% over the past five years and a staggering 91% since the company’s shares first traded in January 1999.

By comparison, the S&P/ASX 200 Financials Index (ASX: XFJ) has dropped 4.84% over the past five years, with AMP’s financial sector peers pulling well ahead of it.

No doubt, it’s been a hard road for the financial services provider but now an expert has pointed out some major flaws in AMP’s fundamentals.

What did the expert say?

Shaw and Partners’ senior investment advisor Jed Richards has slapped AMP with a sell rating.

Richards is pessimistic about the company’s long-term growth prospects, saying:

The company has been a poor performer for many years. In our view, its first-half 2022 results showed weak earnings growth in its bank and wealth divisions. While recent asset sales may provide a payout boost to shareholders in the short term, they remove a key growth component from the company’s business strategy. We believe AMP will require significant re-investment to regain lost scale.

In AMP’s most recent half-year results, group profits dived to $117 million, down 24.5% from the prior corresponding period.

Let’s check what else has been impacting the company recently.

What else happened?

At the beginning of September, AMP announced it would buy back 32 million of its own shares for a total value of $350 million. This is part of a planned $1.1 billion capital redistribution to shareholders, announced to the market in August.

Also this month, AMP missed out on a huge payday from losing control of its AMP Capital Retail Trust (ACRT).

The fund manages $2.7 billion of assets. It means the total potential earn-out from the sale of Collimate Capital’s real estate and infrastructure business has fallen to just $20 million.

The sale originally came with an earn-out potential of $300 million but that dropped to $75 million when AMP previously lost control of its $7.7 billion AMP Capital Wholesale Office Fund (AWOF) in July.

Meantime in August, the company enjoyed a rally in its share price amid rumours AMP proposed a final offer to buy the Westpac Banking Corp (ASX: WBC) wealth management business.

AMP share price snapshot

The AMP share price is currently $1.17, down 2.09% so far today, while the S&P/ASX 200 Financials Index (ASX: XFJ) is 2.81% lower in early afternoon trade.

Despite the gloom surrounding the company today, AMP shares are up 17% year to date while the S&P/ASX 200 Index (ASX: XJO) has lost almost 10% over the same period.

AMP’s current market capitalisation is around $3.8 billion.

The post Are AMP shares worth keeping? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• When it comes to AMP shares, is it time for investors to give up the ghost?
• Savings or dividends? What these 3 ASX bank shares are offering for income
• Here are the top 10 ASX 200 shares today
• Why is AMP buying back shares?

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

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