Tag: Motley Fool

If you’re investing in ASX gold shares, then we hope you’re aware of how they’re leveraged to the price of gold.

By that we mean that gold miners’ costs for pulling an ounce of the yellow metal out of the ground are fairly fixed. So, any change in the price of gold goes straight to the bottom line.

For a simplified example, if it costs an ASX gold share $800 to mine one ounce, and gold is selling for $1,000 per ounce, the company is booking a profit of $200 per ounce. Now if our hypothetical gold price increases by 20% to $1,200, the gold miner’s profit leaps to $400 per ounce, up 100%, or five times more than the gold price climbed.

The same is true in reverse, should gold prices fall.

What can we expect from the gold price?

Gold prices (briefly) reached multi-year highs of US$2,050 per ounce on 8 March. Since then, the yellow metal has retraced to the current US$1,830 per ounce, which is still high by historic levels.

Some gold proponents believe the bullion will rocket to new records as inflation soars and investors seek a haven asset amid rising geopolitical tensions.

Tom Palmer, CEO of Newmont Mining Corp (NYSE: NEM), the world’s top gold producer, isn’t among them.

As reported by Bloomberg, Palmer believes gold prices will remain near the current levels, or move up slightly as inflation and global uncertainties remain in play.

However, Palmer does see the lower end of the gold price, the support price, increasing from some US$1,200 to the US$1,500 to US$1,600 range.

That higher support price would certainly be welcomed by investors in ASX gold shares.

“I see no reason why you wouldn’t, over the next year or two, see it around current levels. But more importantly sitting on top of a floor that has fundamentally moved given the events of the last couple of years,” he said.

As for Bitcoin (CRYPTO: BTC) serving as digital gold, Palmer added, “I focus on gold being a store of wealth for millennia in a transparent and highly regulated market. Gold is a different investment decision than crypto.”

How have these three ASX gold shares been performing?

With gold prices having retreated back to their early January levels, ASX gold shares have given back the sizeable year-to-date gains they were sitting on in mid-April.

Since the opening bell on 4 January, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is down 8%.

Looking at three leading ASX gold shares, the Northern Star Resources Ltd (ASX: NST) share price has lost 14% over that time, while shares in Evolution Mining Ltd (ASX: EVN) are down 15%.

The Newcrest Mining Ltd (ASX: NCM) share price has fared better, down 3%.

For some broader context, the S&P/ASX 200 Index (ASX: XJO) has dropped 13% in 2022.

The post Investing in ASX 200 gold shares? Here’s the latest on the gold price forecast appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Why is the Newcrest share price glittering on Thursday?
• 5 things to watch on the ASX 200 on Thursday
• What’s with the Northern Star share price on Wednesday?
• Evolution Mining share price dips 8% in a week as Macquarie flags ‘earnings risk’ from energy crisis

Motley Fool contributor Bernd Struben 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 Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. 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 Xero Limited (ASX: XRO) share price has fallen heavily in 2022. I think it looks like a good long-term opportunity at these levels.

How much has Xero dropped? It’s down 46% in this calendar year. Considering the business still has a market capitalisation of $11.6 billion (according to the ASX), the drop represents a hefty fall in the valuation.

However, while the Xero share price has almost halved, operationally it’s the biggest it has ever been in terms of revenue and subscribers. That’s one of the main reasons why I think the Xero share price is good value.

Ongoing growth

Every result that Xero reports includes impressive growth statistics.

It seems that investors are now getting better value when comparing the Xero share price to revenue. In FY22, Xero reported that operating revenue increased by 29% to NZ$1.1 billion, while annualised monthly recurring revenue (AMRR) grew by 28% to NZ$1.2 billion.

The business reported solid growth in its subscriber numbers as well. Subscribers increased by 19% to 3.27 million, while the net subscribers added was 16% higher at 530,000 (up from 456,000).

Despite heavily investing for growth, Xero’s FY22 earnings before interest, tax, depreciation and amortisation (EBITDA) managed to increase by 11% to NZ$212.7 million.

As Xero says, it will “continue to focus on growing its global small business platform and maintain a preference for reinvesting cash generated, subject to investment criteria and market conditions, to drive long-term shareholder value”.

While it’s not focused on making big profit in the short term, the gross profit margin of 87.3% signals that Xero can make good profit in the long term when it’s not so heavily focused on growth spending such as marketing.

With its global growth plans, I think the lower Xero share price is even more compelling.

Price increases

In FY22, Xero achieved a 7% increase in average revenue per user (ARPU) to NZ$31.36.

FY23 (and FY24) could see another increase with mid-to-high single-digit price increases planned for most customers in September 2022 in Australia, the UK, and New Zealand. This increase will come roughly halfway through Xero’s 2023 financial year, so it should help growth in both FY23 and FY24.

For example, ‘standard’ UK subscribers will see a 7.7% rise to £28 per month. ‘Premium’ subscribers will experience a 9% rise to £36 per month. Even if Xero weren’t to add many subscribers in the UK in FY23, the price increases could help revenue grow nicely over the subsequent 12 months.

Unless Xero’s costs rise by a similar rate, the price increases could lead to stronger profit margins for the business.

Strong loyalty

There could be a danger of losing subscribers because of the price increases.

However, Xero has displayed a high level of customer loyalty and the ‘churn’ has been decreasing. The FY22 subscriber churn/loss rate was just 0.66%. This was an improvement from 0.73% in FY21 and 0.84% in FY20.

I think the useful time-saving and efficient tools that Xero offers business owners and accountants will mean subscribers want to stick around, even with a higher subscription fee.

The length of time that subscribers are sticking with Xero is helping grow its total lifetime value (LTV) of subscribers. FY22 LTV rose 43% to NZ$10.9 billion.

Foolish takeaway

When combining the above factors, I think the Xero share price looks attractive for the next 12 months and beyond. I’d happily add it to my portfolio today.

The post Why I think the Xero share price is now too compelling to ignore appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy today
• Down 45% in 2022, is the Xero share price in the buy zone?
• ASX 200 midday update: ResMed’s US$1bn acquisition, tech shares continue to sink
• Why are ASX 200 tech shares getting hit hardest today?
• Brokers give their verdict on the Xero share price (hint: they are bullish)

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 positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended 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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It’s been a turbulent week in markets, to say the least.

US investors panicked on Monday night after awful inflation numbers were revealed, which the Australian market replicated on Tuesday.

Then Wednesday night the US Federal Reserve ratcheted up interest rates by an eye-watering 75 basis points.

That added to the pain here in Australia from a 50-point hike just a fortnight ago.

So what will happen to ASX shares from here?

T Rowe Price Group Inc (NASDAQ: TROW) head of Australian equities Randal Jenneke took a stab at how it could play out over the next few months.

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Although the markets agreed that inflation is out of control and central banks are right to try to tame it, the magnitude of action required without triggering a recession is notoriously difficult to judge.

“In 75% of rate hiking cycles since the 1950s, a US recession has followed,” said Jenneke.

“Australia, as a small, open economy, was only able to avoid following suit in three out of the last 11 US recessions.”

The bright side for ASX shares is that Jenneke expects it to outperform other markets for the rest of this year.

“Australia will likely benefit from increased exports of liquid natural gas and coal to Europe due to tighter sanctions on Russian energy,” he said.

“At the same time, more fiscal stimulus to support growth in China could help to support the price of iron ore, even as the global economy slows.”

The Australian market “currently looks cheap”, according to Jenneke, so global capital has been flowing into the ASX.

“Australia’s cheapness partly reflects its composition and the greater share of value sectors in the index. It also reflects the fact that the RBA was less enamoured with quantitative easing policies after the global financial crisis and more recently in response to the coronavirus pandemic,” he said.

“As a result, Australia has created less excess local liquidity to distort domestic equity valuations.”

ASX growth shares to make a comeback

Growth shares have suffered greatly over the past six months as investors turned away from them due to the prospect of rising interest rates.

But Jenneke feels like the tables will turn in the second half of the year.

“As the year unfolds and recession fears multiply, value stocks are likely to feel the most pressure,” he said.

“For the second half, we expect quality growth stocks to perform better in the face of a continuing earnings slide.”

Specifically, the T Rowe Price team has increased its investment in “defensive growth”, which typically is seen in sectors like consumer staples and healthcare.

The revival of ASX growth shares will come as markets move on from the current obsession with inflation and interest rates.

“After a period of stagflation, we believe recession risks will come to dominate equity markets in 2023,” said Jenneke.

“We believe it is better to prepare for what is likely to come in 2023 — slowing growth and rising recession risks — rather than to dwell on what stares us in the face today.”

Even though net interest margins for the big banks will increase as interest rates head north, Jenneke would stay away from those ASX shares.

“Their earnings may look reasonable now, but they have the potential to weaken sharply in six to 12 months’ time when rising non-performing loans as a result of slower growth outweigh the benefits of wider net interest margins.”

The post This is what will happen with ASX shares for the rest of 2022: expert appeared first on The Motley Fool Australia.

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More reading

• 2 defensive ASX dividend shares with good yields that analysts rate as buys
• 5 things to watch on the ASX 200 on Friday
• Is a recession coming to Australia this year?
• 2 blue chip ASX 200 shares Morgans rates as buys
• Brokers name 2 exciting small cap ASX shares to buy with 80%+ upside

Motley Fool contributor Tony Yoo 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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If you’re in the market for some dividend shares and are looking for defensive options, then you may want to look at the two listed below.

Both these dividend shares have defensive qualities and are rated as buys by analysts. Here’s what you need to know about them:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first defensive ASX dividend share to look at is the Charter Hall Social Infrastructure REIT.

The Charter Hall Social Infrastructure REIT is a real estate investment trust with a focus on social infrastructure properties. These are assets such as bus depots, police and justice services facilities, and childcare centres.

These are all in demand with end users and command very long leases. In fact, at the last count the company had a 100% occupancy rate and a weighted average lease expiry of 14.6 years.

This caught the eye of Goldman Sachs, which has put a conviction buy rating and $4.20 price target on its shares

Goldman is also expecting some generous dividends. It is forecasting dividends per share of 17.2 cents in FY 2022 and 18.3 cents in FY 2023. Based on its current share price of $3.19, this implies yields of 5.4% and 5.7%, respectively.

Coles Group Ltd (ASX: COL)

Another defensive ASX dividend share for investors to consider is retail giant, Coles.

It is one of Australia’s largest retailers with a growing network of supermarkets, liquor stores, and convenience stores across the country.

Unlike most retailers, Coles looks well-placed to benefit from rising inflation. Particularly given how the supermarket giant’s recent quarterly update showed no signs of consumers trading down in response to inflation.

Analysts at Citi noted this, commenting: “Coles provided its 3Q22 trading update with sales in line with our expectations. There were no observable signs of trading down or lower volumes in response to higher food inflation.”

In light of this, the broker has put a buy rating and $19.30 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends of 63 cents per share in FY 2022 and then 72 cents per share in FY 2023. Based on the current Coles share price of $16.81, this will mean yields of 3.75% and 4.3%, respectively.

The post 2 defensive ASX dividend shares with good yields that analysts rate as buys appeared first on The Motley Fool Australia.

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More reading

• Why are these ASX 200 retail shares lagging the market today?
• Analysts name 2 ASX dividend shares to buy to combat inflation
• Is the Coles share price a bargain buy right now?
• 2 ASX dividend shares that experts rate as buys
• Where next for the Coles share price?

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 positions in and has recommended COLESGROUP DEF SET. 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 Thursday, the S&P/ASX 200 Index (ASX: XJO) gave back its early gains to end the period in the red. The benchmark index fell 0.15% to 6,591.1 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set to end the week deep in the red following a very poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 130 points or 2% lower this morning. In the US, the Dow Jones was down 2.4%, the S&P 500 fell 3.25%, and the Nasdaq sank 4.1%. Investors were selling equities amid concerns that the Federal Reserve’s aggressive approach toward taming inflation could bring the economy into a recession.

GUD downgrades profit guidance

The GUD Holdings Limited (ASX: GUD) share price could come under extra pressure today after the diversified products company downgraded its earnings guidance. GUD now expects underlying operating earnings to be $147 million in FY 2022. This is down from its previous guidance of $155 million to $160 million. Management advised that supply chains remain volatile, and, in some cases, pressures have intensified.

Oil prices rise

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could avoid the market selloff today after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 1.5% to US$117.09 a barrel and the Brent crude oil price is up 0.7% to US$119.29 a barrel. Tight supplies continue to keep oil prices high.

TechnologyOne rated as a buy

The TechnologyOne Ltd (ASX: TNE) share price could be heading higher from current levels according to Bell Potter. This morning the broker reiterated its buy rating with a slightly trimmed price target of $12.50. Bell Potter sees “potential for uplift in growth rate/guidance next year.”

Gold price rebounds

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a positive finish to the week after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 2% to US$1,857.4 an ounce. A softer US dollar boosted the safe haven asset.

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

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More reading

• Is a recession coming to Australia this year?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why is the Newcrest share price glittering on Thursday?
• Despite rising bond yields, here’s why I’ll keep investing in ASX shares
• Market crash: A message from our CIO

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 TechnologyOne 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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Share markets and the general public are still catching their breath after massive interest rates increases this month.

Inflation is rampant, and monetary authorities here and around the world are wrestling to get it back under control.

In Australia, a fortnight ago the Reserve Bank hiked its cash rate by 50 basis points, which was the biggest lift in 22 years.

And this week, the US Federal Reserve pushed its rate upwards by a whopping 75 basis points.

Central banks are deliberately trying to slow the economy down. But they may have left their run a bit late, meaning they have to implement more dramatic rate increases. 

And that could spook their countries into recession.

Recession likely in US and 40% chance in Australia

BetaShares chief economist David Bassanese is now convinced the US is in trouble.

“I now foresee a US recession within the next 12 months,” he said on a BetaShares blog post.

“Indeed, US economic growth was negative in the March quarter — and there is now a reasonable chance that June quarter economic growth will be negative also, reflecting weakness in business investment and consumer spending.”

But what about Australia?

There is an old finance cliché that when the US sneezes, Australia catches a cold.

And this situation is no exception, according to Bassanese.

“Consumer sentiment has already tumbled and house prices are starting to weaken,” he said.

“While I am still hopeful the Australian economy can avoid recession, it is at least a 40% risk in the coming 12 months.”

What does this mean for the share market?

The prospect of recession is unambiguously bad news for stocks.

Bassanese expects the US to suffer from a bear market over the next year.

“Wall Street does not yet seem priced for recession, and there seems scope for equity markets to fall further,” he said.

“My base case is the ultimate peak-to-trough decline in the S&P 500 Index (SP: .INX) will be 35%.”

ASX shares will not be spared from ignominy.

“The local share market will not be immune to further Wall Street weakness, especially as we also face uncomfortably high inflation and likely aggressive RBA rate hikes in coming months,” said Bassanese.

“Our sharemarket will likely follow the US into bear market territory, with at least a 20% peak-to-trough decline likely in coming months – that implies a decline in the S&P/ASX 200 Index (ASX: XJO) to at least 6,000.”

The bright side is that the coming months will present “good buying opportunities”.

“For investors, periods of US recession and associated bear markets can be difficult periods to endure,” said Bassanese.

“But the lesson of history is that markets do eventually bounce back.”

The post Is a recession coming to Australia this year? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Despite rising bond yields, here’s why I’ll keep investing in ASX shares
• Market crash: A message from our CIO
• Fed rate rise breaks 28-year record. Will the RBA increase interest rates as aggressively?
• Appen share price rebounds 12%, topping ASX 200 gainers

Motley Fool contributor Tony Yoo 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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If you’re planning to invest in the market following recent volatility, then the two blue chips listed below could be worth considering.

Both of these ASX 200 blue chip shares have recently been rated as buys by analysts at Morgans. Here’s what the broker is saying:

QBE Insurance Group Ltd (ASX: QBE)

Morgans is positive on this insurance giant’s shares and believes they are trading at a very attractive level at present. Particularly given its improved outlook from premium increases and cost cutting plans. The broker commented:

With strong rate increases still flowing through QBE’s insurance book, and further cost-out benefits to come, we expect QBE’s earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on ~14x FY22F PE.

The broker has an add rating and $14.45 price target on the company’s shares.

Treasury Wine Estates Ltd (ASX: TWE)

Another blue chip ASX 200 share that Morgans is bullish on is Treasury Wine Estates. It is the wine giant behind brands including 19 Crimes, Beringer, Penfolds, and Wolf Blass.

Morgans is a fan of the company due to its strong brands, attractive valuation, and positive outlook. The broker explained:

TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The company recently reported an impressive 1H22 result despite facing several material headwinds. The foundations are now in place for TWE to deliver strong double-digit growth from 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.

Its analysts have put an add rating and $13.93 price target on the company’s shares.

The post 2 blue chip ASX 200 shares Morgans rates as buys appeared first on The Motley Fool Australia.

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More reading

• Despite recent volatility, brokers are bullish on the Treasury Wine share price
• 2 ASX 200 financials shares named as buys
• Is it time to buy A2 Milk and Treasury Wines for better China relations?
• The Treasury Wine share price has leapt 6% in 3 weeks. Why this top broker is tipping more gains
• Top broker names 2 of the best ASX shares to buy in June

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 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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While the pain at the small side of the market may not be over just yet, when it is, there are likely to be some major bargains for investors.

For example, two small cap ASX shares that have been rated as buys with major upside potential are listed below. Here’s what you need to know about them:

Catapult Group International Ltd (ASX: CAT)

The first small cap to look at is Catapult. It is a global sports technology company that provides elite sporting organisations with real time data and analytics to monitor and measure athletes.

It was a strong performer in FY 2022. Catapult’s recently released full-year results revealed a 54% increase in revenue to US$77 million and a 19.7% lift in annual contract value (ACV) to US$63.9 million. The latter was supported by a ridiculously low ACV churn rate of 3.4%.

Pleasingly, more of the same is expected in FY 2023. Management is guiding to ACV growth of between 20% to 25% with ACV churn in the range of 4.5% to 6%.

The team at Jefferies currently has a buy rating and $2.00 price target on the company’s shares. This is more than double the current Catapult share price.

Nitro Software Ltd (ASX: NTO)

Another small cap ASX share that is rated as a buy is Nitro. It is a technology company that develops document and workflow productivity software for SME and enterprise customers. Nitro’s products include PDF editing, simple e-signature solutions, and enterprise grade e-signature and digital ID solutions.

It has been growing its annual recurring revenue (ARR) at a strong rate in recent years and is expected to continue this trend in FY 2022. Management recently noted that its strong first quarter performance puts it on track to achieve its FY 2022 ARR guidance of $64 million to $68 million. This represents a 39% to 47% increase on FY 2021’s ARR.

Goldman Sachs is very positive on the company and believes it has a huge market opportunity to grow into. The broker currently has a buy rating and $2.35 price target on the company’s shares. Based on the current Nitro share price of $1.27, this suggests 85% upside for investors.

The post Brokers name 2 exciting small cap ASX shares to buy with 80%+ upside appeared first on The Motley Fool Australia.

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More reading

• Goldman Sachs rates these ASX shares as buys
• Experts name 2 top ASX growth shares to buy in June
• Why Appen, Catapult, CSR, and Select Harvests shares are dropping
• Why Catapult, Costa, Endeavour, and Whitehaven Coal shares are dropping
• Why is the Nitro Software share price leaping 8% 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 Catapult Group International Ltd. The Motley Fool Australia has positions in and has recommended Catapult Group International Ltd. The Motley Fool Australia has recommended Nitro Software 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 Index (ASX: XJO) finished slightly in the red today, but these two ASX mining shares had a better day.

Renascor Resources Ltd (ASX: RNU) and Resolute Mining Ltd (ASX: RSG) both soared more than 10% on drilling news today.

Let’s take a look at why these ASX explorers had a good day.

Renascor Resources

The Renascor Resources share price surged 14.29% today. The company reported more results from the Siviour Graphite Deposit in South Australia where high-grade graphite at the site.

On the back of these results, the company sees potential to improve and accelerate the mining schedule. Siviour noted that the graphite market continues to be strong, with prices for the mineral surging 42% in the past 12 months.

Managing director David Christensen said:

These results continue to confirm that Siviour is a tier one graphite orebody and, given
its favourable deposit geometry and location in South Australia, presents Renascor with
an opportunity to become a globally significant low-cost producer of high-value Purified
Spherical Graphite for use in Electric Vehicles.

Resolute Mining

Resolute Mining shares soared more than 10% on the market today. The company reported significant oxide and sulphide gold mineralisation at the Syama North project in West Africa.

Resolute described this result as “some of the best gold intersections ever recorded from the Syama North area”. Gold intersections included 27 metres at 6.62 grams per tonne (g/t) from 45 metres at drill hole QVRC533 and 26m at 7.8 g/t from 180m.

CEO Terry Holohan said: “I am very pleased with the progress over the last twelve months within both the exploration and operations teams”.

The post 2 ASX mining shares that surged on drilling news today appeared first on The Motley Fool Australia.

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More reading

• What Adore Beauty, Bubs, Eagers Automotive, and Renascor shares are storming higher
• 3 ASX All Ordinaries mining shares having a terrific Tuesday

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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After a strong start to the year, recent market volatility has been weighing on the AMP Ltd (ASX: AMP) share price.

This means that the financial services company’s shares have now dropped into the red in 2022.

Is this a buying opportunity?

While this weakness in the AMP share price is disappointing, insiders at the company appear to see it as a buying opportunity.

A number of AMP’s directors have been buying shares on-market in recent weeks. This includes the company’s chair, Debra Hazelton, who picked up 89,687 shares at the end of May for an average of $1.115 per share. This equates to a total consideration of $100,000.

But that wasn’t the largest purchase. Another change of director’s interest notice reveals that independent non-executive director Mike Hirst bought 100,000 shares through a couple of on-market trades at the start of June.

Hirst paid a total of $109,700 for the parcel of shares, which equates to an average of $1.097 per share.

Rounding things out, fellow independent non-executive directors Kate McKenzie and Michael Sammells both snapped up 50,000 shares via on-market trades recently for an average of approximately $1.10 per share.

So, with the AMP share price currently fetching 98 cents, investors are able to purchase shares at a discount of approximately 11% to what most of these directors paid.

Is the AMP share price good value?

Although Citi only has a (high risk) neutral rating, the broker appears to see value in the AMP share price with its price target of $1.20.

However, it feels that it may be a little soon to push the buy button. Citi commented:

“AMP’s earnings outlook is becoming easier to assess but there is still a lot of transition happening and several moving parts making it still quite hard. [..] To us, it still seems a little early for AMP with meaningful earnings improvement unlikely until FY23E.”

The post Guess how much insiders have been spending on AMP shares? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most traded ASX 200 shares on Monday
• Down 5% in a month, is the AMP share price a buying opportunity?
• This is when the pain will end: expert
• Why these 2 ASX 200 shares are undervalued opportunities: WAM
• ‘The stock can double’: Expert names 2 ASX shares market hasn’t woken up to

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 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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