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The team at Morgans has been working hard this month analysing the seemingly endless stream of results that have been released.

Two companies that caught the broker’s eyes recently are listed below. Here’s why it thinks investors should be buying these ASX shares post-results:

Accent Group Ltd (ASX: AX1)

The first ASX share that Morgans is tipping as a buy is footwear retailer Accent.

While FY 2022 was a difficult year for the company, the broker was pleased to see that FY 2023 has started positively. And with management aiming to stop discounting and sell at full price, its analysts see scope for margin improvements.

All in all, it feels this makes the Accent share price undervalued at current levels. Morgans has upgraded its shares to an add rating with a $2.00 price target. It commented:

We upgrade from Hold to Add with an increased target price of $2.00. With customer activity showing no signs of a pullback so far in FY23 and with demand for new (and often higher priced) products running strong over the past 8-12 weeks, we have become more positive on the immediate prospects for sales growth.

AX1’s renewed focus on selling at full price will, in our view, support a recovery in the gross profit margin in FY23 back towards historical averages. We welcome AX1’s moderation of the pace of its store rollout in favour of a more selective expansion strategy focused on return on investment. We see AX1 as undervalued at the current share price.

New Hope Corporation Limited (ASX: NHC)

Another ASX share that Morgans is bullish on is coal miner New Hope. The broker was pleased with its recent update and notes that coal prices continue to surprise to the upside.

In light of this and the strong free cash flow the company is generating, it suspects that a re-rating could be in order in the near future. Particularly given its favourable dividend outlook.

Morgans has retained its add rating with an improved price target of $5.50. It commented

4Q Production/Sales were more resilient to disruption than we had feared. Coal prices continue to surprise, driving further EPS/ valuation upgrades. Valuation/target adjusts to (login to view). We think NHC can re-rate as the market awakens to the sheer scope of current cash flows and ongoing dividend upside potential. ADD.

The post Morgans names 2 ASX shares to buy post-results appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares breaking multi-year highs on Tuesday
• Leading brokers name 3 ASX shares to buy today
• New Hope share price slides despite quarterly coal production boost
• Why ASX 200 energy shares could still have decades of prosperity ahead: broker
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. 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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Investors that are looking to bolster their portfolio with some blue chip ASX 200 shares might want to check out the two listed below.

Both of these ASX 200 shares have recently been rated as buys. Here’s why analysts are bullish on them:

Cochlear Limited (ASX: COH)

Analysts at Morgans are positive on this hearing solutions company following the release of its full year results. The broker notes that its “FY22 results tracked our estimates and guidance.”

Looking ahead, its analysts appear confident that Cochlear’s growth can continue. It explained:

We see continued momentum, with N8 launch underpinning continued gains across Services, and ongoing recovery and backlog supporting CI growth, despite likely slower uptake, clinical capacity shifts and cloud-computing costs.

Despite juggling a lot of moving parts (eg new IT system; N8 launch; Oticon acquisition; China factory commissioning), management has a strong record of executing, coupled with improving demand, portends a solid earnings profile.

In light of this, the broker has retained its add rating with a $236.70 price target on the company’s shares. This compares favourably to the current Cochlear share price of $215.01.

Rio Tinto Limited (ASX: RIO)

Another ASX 200 blue chip share that has been given the tick of approval by analysts is mining giant Rio Tinto.

The team at Goldman Sachs remains very positive on the miner. This is due to its “compelling valuation,” with its shares trading at a sizeable discount to net asset value.

In addition, the broker believes that Rio Tinto will generate significant free cash flow and is on the cusp of returning to production growth. It commented:

Rio is a FCF story in our view, but despite challenges in 1H22, we see RIO returning to production growth in 2H22 with +6% in Cu Eq prod growth in 2023E driven by the Gudai-Darri iron ore mine and a rebound in mined copper volumes.

Goldman has a buy rating and $121.50 price target on the miner’s shares. Based on the current Rio Tinto share price of $97.66, this implies potential upside of 24% for investors.

The post Here’s why analysts say these blue chip ASX 200 shares are buys appeared first on The Motley Fool Australia.

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More reading

• How have ASX dividend shares been performing this earnings season?
• Here’s the Rio Tinto dividend forecast through to 2026
• Could this be set to boost ASX 200 iron ore shares?
• Could ASX battery minerals shares be in for a boost next month?
• 3 buy-rated ASX 200 shares that analysts love

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. 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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It’s hump day, and we are right in the thick of it now with earnings season. Strap yourself in, because the torrential downpour of results from ASX shares is about to sweep through.

Here’s a quick summary of what to expect today so you have a jump on the market.

ASX shares set to report today (smallest to largest)

Rural Funds Group (ASX: RRF), $992.1 million

Netwealth Group Ltd (ASX: NWL), $3.19 billion

Iluka Resources Limited (ASX: ILU), $4.01 billion

Domino’s Pizza Enterprises Ltd (ASX: DMP), $5.81 billion

Seven Group Holdings Ltd (ASX: SVW), $6.43 billion

Lottery Corporation Ltd (ASX: TLC), $9.88 billion

APA Group (ASX: APA), $13.62 billion

Sonic Healthcare Limited (ASX: SHL), $15.93 billion

WiseTech Global Ltd (ASX: WTC), $17.30 billion

Coles Group Ltd (ASX: COL), $24.99 billion

Woolworths Group Ltd (ASX: WOW), $46.02 billion

(Market capitalisations as of 22 August 2022)

To see the complete list of ASX shares, visit our reporting season calendar here.

What to expect

Starting at the big end of town, Woolworths is expected to release its full-year results for FY22 today. Onlookers will likely be keeping a watchful eye on this ASX share to see if it has been able to pass on inflationary costs to the customer.

Analysts over at Citi are expecting $1,502 million in net profit after tax (NPAT) from Woolworths today. Furthermore, both Bell Potter and Citi currently have a buy rating on the supermarket giant.

Moving along, one ASX tech share that has managed to avoid the worst of the tech wreck is set to full-year accounts on Wednesday. According to analysts’ consensus, cloud-based logistics software provider WiseTech is expected to report $175.7 million on the bottom line.

On 15 July, WiseTech dazzled the market with its upgraded FY22 guidance. By the company’s own estimates, revenue will be between $600 million and $635 million.

Lastly, the Lottery Corporation will give the market its first taste of full-year results as a standalone ASX share.

The post Earnings preview: Here’s which ASX shares are reporting today appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Looking to buy Woolworths shares? Here’s what to watch in this week’s earnings results
• Earnings preview: Here are 3 ASX 200 shares reporting this week
• Considering Woolworths shares? Here’s why this key exec just jumped ship for Amazon
• Brokers name 2 blue chip ASX 200 shares to buy

Motley Fool contributor Mitchell Lawler has positions in Sonic Healthcare Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth and WiseTech Global. The Motley Fool Australia has positions in and has recommended APA Group, COLESGROUP DEF SET, Netwealth, RURALFUNDS STAPLED, and WiseTech Global. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited and Sonic Healthcare 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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If you’re looking for income, then the ASX 200 could be a great place to start. The benchmark index is filled with a range of quality companies that share their profits with shareholders.

Two ASX 200 dividend shares that do this and have been tipped as buys are listed below. Here’s what you need to know about them:

Telstra Corporation Ltd (ASX: TLS)

The first ASX 200 dividend share to consider is Telstra.

It recently released its full year results for FY 2022 and impressed the market thanks to the success of its T22 strategy.

For the 12 months ended 30 June, Telstra posted a 4.7% decline in revenue but an 8.4% increase in underlying EBITDA to $7.3 billion. A key driver of Telstra’s earnings growth was its mobile business, which reported EBITDA growth of 21.2% or $700 million over the prior corresponding period.

The good news is that the company is now embarking on its T25 strategy, which is targeting high-teens underlying earnings per share (EPS) compound annual growth rates from FY 2021 to FY 2025.

One broker that is positive on the company is Morgans. In response to its results, the broker put an add rating and a $4.60 price target on the company’s shares.

As for dividends, its analysts are forecasting fully franked dividends per share of 17 cents in FY 2023 and FY 2024. Based on the latest Telstra share price of $4.13, this will mean 4.1% yields for investors.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that could be in the buy zone is Westpac.

It is of course one of Australia’s big four banks, operating under the Westpac brand and a number of regional banking brands such as St George and Bank of Melbourne.

It could be a quality option for investors thanks to its exposure to rising rates and its bold cost reduction plans. Combined, these should be supportive of earnings and dividend growth in the coming years.

The team at Goldman Sachs certainly expect that to be the case. The broker recently upgraded Australia’s oldest bank’s shares to a conviction buy rating with a $26.12 price target.

Its analysts believe “WBC provides strong leverage to rising rates” and “will also see the benefit of higher rates play through its NIM quicker than peers.” And while the broker doesn’t expect Westpac to achieve its full cost base reduction target of $8 billion, it believes $8.9 billion is achievable, which will still be an 18% reduction.

In light of the above, the broker is forecasting fully franked dividends per share of 123 cents in FY 2022 and 135 in FY 2023. Based on the current Westpac share price of $21.36, this represents yields of 5.75% and 6.3% respectively.

The post 2 excellent ASX 200 dividend shares that brokers love appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• 3 ASX All Ordinaries shares trading ex-dividend tomorrow
• Is the Westpac share price a buy for the bank’s ‘surplus capital’?
• Hoping to ring in the latest Telstra dividend? Here’s what you need to do
• How have ASX dividend shares been performing this earnings season?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 positions in and has recommended Telstra Corporation Limited. 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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With ASX reporting season in full swing, S&P/ASX 200 Index (ASX: XJO) shares are declaring dividends left, right, and centre.

Once dividends are declared, there’s a cut-off date to determine which shareholders are entitled to the upcoming payment. This is known as the ex-dividend date.

As I covered yesterday, three S&P/ASX All Ordinaries Index (ASX: XAO) shares went ex-dividend on Tuesday, putting downwards pressure on their companies’ respective share prices.

Notably, the Australian Clinical Labs Ltd (ASX: ACL) share price suffered a steep 11% fall as the company’s shares no longer traded with a handsome final dividend.

When a company’s shares go ex-dividend, the share price typically falls. The extent of this drop is linked to the size of the dividend. But it varies based on sentiment and how the broader market is faring that day.

With this in mind, here are three ASX 200 shares going ex-dividend tomorrow. 

REA Group Limited (ASX: REA)

Shares in ASX 200 market darling REA are set to trade without the company’s final dividend on Thursday.

The online property business recently released its FY22 results, declaring a fully franked final dividend of 89 cents per share. This was a 24% increase on the final dividend declared in FY21.

Investors who own REA shares before the market closes tomorrow should see this final dividend land in their accounts in mid-September.

Adding in the company’s interim dividend earlier in the year, REA shares currently trade on a dividend yield of 1.3%. With the benefit of franking credits, this bumps up to 1.8%.

JB Hi-Fi Limited (ASX: JBH)

ASX retailer JB Hi-Fi is another ASX 200 share going ex-dividend tomorrow.

The company recently declared a final fully franked dividend of $1.53, up 43% on the prior corresponding period.

If you own JB Hi-Fi shares before the closing bell tomorrow, you should see this dividend payment land in your account on 9 September.

This final dividend alone spins up a dividend yield of 3.5%. But throwing the company’s interim dividend into the mix puts JB Hi-Fi shares on a sizeable trailing dividend yield of 7.3%. This grosses up to 10.4% including franking credits.

Deterra Royalties Ltd (ASX: DRR)

Last but not least, shares in mining royalties business Deterra will also be going ex-dividend on Thursday.

The ASX 200 share recently announced a final fully franked dividend of 22.08 cents per share, almost double the final dividend declared in FY21.

Shareholders on the company’s registry by the time the market closes tomorrow will see this dividend payment come through on 21 September. 

Combined with its interim dividend, Deterra’s total FY22 dividend payments add up to 33.76 cents per share, fully franked.

This puts Deterra shares on a trailing dividend yield of 7.5%, or 10.7% grossed up.

The post 3 ASX 200 shares going ex-dividend tomorrow appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• The Imugene share price has tumbled 18% since the company’s last update. What’s happening?
• Why did the EML share price tumble 12% on Tuesday?
• Here are the top 10 ASX 200 shares today
• Looking to buy Woolworths shares? Here’s what to watch in this week’s earnings 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group 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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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form again and sank into the red. The benchmark index fell 1.2% to 6,961.8 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market could snap its losing streak on Wednesday despite a relatively poor night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 7 points or 0.1% higher this morning. In late trade on Wall Street, the Dow Jones is down 0.3%, the S&P 500 has dropped 0.1%, and the Nasdaq is trading marginally higher.

Oil prices rebound strongly

Energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a great day after oil prices rebounded strongly overnight. According to Bloomberg, the WTI crude oil price is up 3.8% to US$93.81 a barrel and the Brent crude oil price is up 3.8% to US$100.22 a barrel. This was driven by speculation that Saudi Arabia could cut its output if demand softens.

Coles FY 2022 results

The Coles Group Ltd (ASX: COL) share price will be in focus this morning when the supermarket giant releases its full year results. According to a note out of Citi, its analysts are forecasting a net profit after tax of $1,019 million. This is slightly ahead of the market consensus estimate of $1,008.5 million.

Gold price higher

Gold miners such as Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent day after the gold price traded higher overnight. According to CNBC, the spot gold price is up 0.7% to US$1,760.50 an ounce. A pullback in the US dollar following weak US retail sales data boosted the precious metal.

WiseTech results day

The WiseTech Global Ltd (ASX: WTC) share price could be on the move today when the logistics solutions company releases its full year results for FY 2022. WiseTech has a habit of outperforming expectations, so investors may be hoping for the same today. The market consensus estimate is for a net profit after tax of $175.7 million.

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

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More reading

• The Imugene share price has tumbled 18% since the company’s last update. What’s happening?
• Why did the EML share price tumble 12% on Tuesday?
• Here are the top 10 ASX 200 shares today
• Looking to buy Woolworths shares? Here’s what to watch in this week’s earnings results
• 3 ASX 200 shares breaking multi-year highs on Tuesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET and WiseTech Global. 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 PointsBet Holdings Ltd (ASX: PBH) share price has taken a hit in 2022.

Since the start of the year, the sports betting company’s shares have lost 53% of their value.

This has been driven by the market’s aversion to loss-making tech stocks as interest rates rise.

Is the PointsBet share price weakness a buying opportunity?

The team at Bell Potter believes that investors should take advantage of the weakness in the PointsBet share price to pick up shares.

According to a recent note, the broker has retained its speculative buy rating with a $5.25 price target.

Based on the current PointsBet share price of $3.22, this implies potential upside of 63% for investors over the next 12 months.

What did the broker say?

Bell Potter was pleased with PointsBet’s fourth quarter update and highlights that the company is making “positive steps.” It was also pleased that management has confidence that its cash balance will be sufficient to see it through the near term.

Bell Potter commented:

PointsBet released its Appendix 4C for the June quarter and most of the key metrics were slightly better than our forecasts: net win in Australia up 28% to A$55.2m in Q4 and up 30% to $215.4m in FY22 (vs BPe A$212.9m); net win in the US (including iGaming) up 70% to A$30.4m in Q4 and up >100% to A$93.9m in FY22 (vs BPe $84.4m); operating cash outflow of A$60.8m in Q4 and A$197.5m in FY22 (vs BPe A$201.8m); and corporate cash of A$472.7m at 30 June (vs BPe c.A$450m).

The company also provided the first result for the recently launched Canadian operation and the net win (including iGaming) was A$0.2m in Q4. The blended online handle market share was 3.5% in Q4 which was consistent with the 3.6% in Q3. PointsBet confirmed it had generated a positive EBITDA result in the Australian operation in FY22 and said that post the placement of stock to SIG Sports it had sufficient funding for the “near term”.

The post Broker tips PointsBet share price to jump 60% appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why CSL, Downer, Magellan, and PointsBet shares are falling today
• Here are the top 10 ASX 200 shares today
• Betmakers share price slips despite new $20 million deal
• Why Baby Bunting, PointsBet, ResMed, and Suncorp shares are dropping today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. 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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If you’re searching for growth shares to buy, then two ASX shares listed below could be worth considering.

Both have been named as buys by brokers and tipped to have major upside potential. Here’s what they are saying about them:

Readytech Holdings Ltd (ASX: RDY)

The first ASX growth share to look at is enterprise software provider Readytech.

Earlier this month, Readytech released its full year results and revealed a 16.8% year over year increase in revenue to $78.3 million and a 45.5% jump in underlying EBITDA to $27.5 million.

Goldman Sachs was pleased with this in-line result and notes that its “strong organic growth execution builds confidence in medium-term earnings outlook.”

In response to the result, the broker reiterated its buy rating with a trimmed price target of $4.30. Goldman commented:

We are constructive on RDY’s growth outlook given its defensive end-market exposures (government and education represent ~3/4 of FY23E revenue) and see scope for margins to grow from FY23 onwards, aided by transitioning IT Vision’s on-premise customer base to cloud in coming years (generating a 2-3x ARPU uplift).

RDY remains materially undervalued relative to profitable SaaS peers (we estimate >50% discount on growth-adjusted FY24E EV/EBITDA) and is building an impressive track record of organic growth execution which in our view will drive a re-rating over time.

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX growth share that could be a top option for investors is Treasury Wine. It is one of the world’s leading wine companies with a portfolio of popular brands including Penfolds, 19 Crimes, and Wolf Blass.

It also recently released its full year results and revealed solid growth across the business. This went down well with analysts at Morgans, which are expecting this strong form to continue in the future.

In response to its result, the broker retained its add rating and lifted its price target to $15.71. The broker commented:

Despite all the external headwinds, TWE’s FY22 result was solid and in line with our forecast and its guidance. Importantly, the 2H demonstrated strong EBITS and NPAT growth (+14.1% and +18.8% on pcp). Despite cost pressures, the foundations are now in place for TWE to deliver strong double digit growth from FY23.

Pleasingly, the benefits of its new divisional model are clearly evident and the Penfolds reallocation strategy has been a success. Trading at a material discount to our valuation and its pre-COVID multiples, we maintain an Add rating with a new price target of $15.71 on this high quality company.

The post Brokers name 2 ASX growth shares to buy now appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• Treasury Wine share price celebrates Friday with a more than two-year high
• 2 exciting small cap ASX shares that analysts rate as buys
• Here are the top 10 ASX 200 shares today
• Why CSL, IPH, Renascor, and Treasury Wine shares are pushing higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Readytech Holdings Ltd. The Motley Fool Australia has recommended Readytech Holdings Ltd and Treasury Wine Estates 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 S&P/ASX 200 Materials Index (ASX: XMJ) fell 0.08% on Tuesday, but two ASX mining shares outperformed the index.

The American West Metals Ltd (ASX: AW1) and Magmatic Resources Ltd (ASX: MAG) share prices both soared today.

Let’s take a look at why these ASX mining shares had such a good day.

Magmatic Resources

The Magmatic Resources share price exploded 108% today. Magmatic shares soared on drilling results.

The company reported visible copper sulphide mineralisation intersected a more than 740 metre interval.

Magmatic is exploring its wholly owned Myall project, 25 kilometres southwest of Narromine in New South Wales.

Commenting on the results, managing director Dr Adam McKinnon said:

This is an absolutely stunning result for the first full hole of our drilling program at Myall. It’s difficult to describe the excitement of our team each time we look over the previous day’s core and see an ever-increasing interval of visible sulphide mineralisation.

American West Metals

American West shares soared 16% today amid a “major copper discovery” in Canada.

Drill hole ST22-10 intersected with more than 68 metres of stratiform copper sulphide mineralisation. This was from a 277 metre downhole.

Managing director Dave O’Neill described the discovery, at the company’s Storm Copper Project, as “game changing”.

The importance of this discovery for the project cannot be overstated, as it has hugely positive implications for the copper endowment within the project area.

The post 2 ASX mining shares that rocketed between 16% and 108% on Tuesday appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX mining share just exploded 48% on a major copper discovery

Motley Fool contributor Monica O’Shea 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 Imugene Limited (ASX: IMU) share price finished the session on Tuesday at 25 cents — down 3.85%.

This is broadly in line with the general market, which also had a poor showing today. The S&P/ASX 200 Health Care Index (ASX: XHJ) fell 1.5% and the S&P/ASX All Ordinaries Index (ASX: XAO) dropped 1.21%.

The last time we heard from Imugene was on 10 August when it gave us an update on a clinical trial. The Imugene share price shot 11.11% higher on the day of the announcement.

Since then, Imugene shares have taken a decidedly downwards trajectory. Let’s take a look.

What’s happening with the Imugene share price?

Imugene shares are now down 17.67% on their closing price on 10 August. What gives? Well, let’s start at the beginning of this mystery.

On 10 August, Imugene shared some exciting news with the ASX. As my colleague Aaron covered, Imugene announced that the first patient from the third cohort of the Checkvacc Phase 1 clinical trial had been dosed.

Checkvacc is an oncolytic virotherapy candidate that aims to activate a patient’s immune system to treat and eradicate cancerous tumours.

ASX investors loved the news and bid up the Imugene share price to 30 cents. But the very next day, the shares went into reverse, losing 3.3%. That sometimes happens after a share price surge. Some investors take the short-term gains they’ve made after big news pushes an ASX share price higher.

But the downhill movement has been continuous — and painful. At 25 cents today, the shares are now lower than they were when the clinical trial announcement was made.

Is Imugene just following the market?

Well, the general market has fallen since 10 August but not as much as Imugene.

Since the closing bell on 10 August, the S&P/ASX 200 Health Care Index (ASX: XHJ) has fallen by 1.44%. The S&P/ASX All Ordinaries Index (ASX: XAO) has dropped 0.55%.

But with no news out of the company since 10 August, we might just have to put this almost 20% dip down to volatility. This isn’t uncommon with healthcare companies that are still trialling products and not yet making a profit. Their share price movements tend to hinge on clinical trial progress and results.

Is the Imugene share price a buy?

Arguably, one of the best times to buy any ASX share is on a share price dip that no one can explain. Or at least, a dip that has nothing to do with the fundamentals of the company itself. That’s called ‘buying the dip‘.

It’s worth noting that earlier this month, my colleague Zach reported that every broker covering Imugene had a buy rating on it, according to Refinitiv Eikon data.

The consensus price target for Imugene shares at the time was 56 cents per share.

Based on today’s closing share price, that means there’s a 124% upside available to ASX investors here.

The Imugene share price is down 42% year to date and down 22% over the past 12 months.

The post The Imugene share price has tumbled 18% since the company’s last update. What’s happening? appeared first on The Motley Fool Australia.

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More reading

• Why did the EML share price tumble 12% on Tuesday?
• Here are the top 10 ASX 200 shares today
• Looking to buy Woolworths shares? Here’s what to watch in this week’s earnings results
• 3 ASX 200 shares breaking multi-year highs on Tuesday
• Why has the Chalice Mining share price dived 13% in the past week?

Motley Fool contributor Bronwyn Allen 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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