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The S&P/ASX 200 Index (ASX: XJO) is out of form again on Tuesday. In afternoon trade, the benchmark index is down 0.9% to 7,143.3 points.

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

Codan Limited (ASX: CDA)

The Codan share price is down 4% to $7.16. Investors have been selling this metal detector focused technology company’s shares this week after S&P Dow Jones Indices kicked it out of the ASX 200 index at the next quarterly rebalance.

Incitec Pivot Ltd (ASX: IPL)

The Incitec Pivot share price is down 2.5% to $3.51. This appears to have been driven by a broker note out of Ord Minnett this morning. According to the note, the broker has downgraded this industrial chemicals company’s shares to a hold rating with a $3.90 price target. Ord Minnett has a few concerns with the company’s plans to spin off its commercial explosives business.

Xero Limited (ASX: XRO)

The Xero share price is down 3% to $82.00. This follows broad weakness in the tech sector on Tuesday which has seen this side of the market become a sea of red. The S&P/ASX All Technology Index is down 1.8% at the time of writing.

Zip Co Ltd (ASX: ZIP)

The Zip share price is down 10% to 68.7 cents. Investors have been selling Zip and other buy now pay later (BNPL) shares after tech giant Apple announced the launch of its BNPL service. Apple Pay Later allows users to split the cost of an Apple Pay purchase into four equal payments with no interest. The service works with any merchant that already supports Apple Pay and does not require a new payments terminal.

The post Why Codan, Incitec Pivot, Xero, and Zip shares are dropping appeared first on The Motley Fool Australia.

More reading

• Down 13% in a month, fundie says Xero share price is ‘very reasonable’
• When will it end? Zip share price plummets again on Tuesday
• 3 ASX 200 shares trading ex-dividend today
• Zip share price dips to yet another 4-year low on Monday
• Appen and PolyNovo tumble after being kicked out of the ASX 200 along with these shares

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 Xero and ZIPCOLTD FPO. 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 pretty paltry month or so for the Xero Limited (ASX: XRO) share price, no way around it. Xero shares were going for $95.20 back on 5 May. Today, the online accounting software provider is asking just $82.20 a share at the time of writing.

Not only is that down a nasty 2.58% for the day thus far, but it also means Xero has lost more than 13% since 5 May.

But this is arguably just an extension of the pretty bleak year Xero has suffered through so far in 2022. Since the start of the year, the Xero share price is down by 44%.

So now that we’ve seen such a steep fall in the value of Xero shares, many investors might be wondering whether this is turning into a buying opportunity for this ASX tech share. So let’s see what the experts reckon.

Is the Xero share price a buy today?

One ASX broker who likes the look of Xero right now is Goldman Sachs. As we covered a few days ago, Goldman has maintained a buy rating on Xero shares, together with a 12-month share price target of $118.00. Goldman liked what it saw in Xero’s recent earnings report, and expects another strong increase in revenues in FY 2023 to almost NZ$1.4 billion.

But Goldman isn’t the only investor expecting big things from Xero. My Fool colleague Tony chatted to Tribeca Investment Partners’ Jun Bei Liu this week. Here’s some of what she said about Xero:

We love this company because, for many years, it’s demonstrated its execution in dislodging incumbents and growing its share and became a dominant player across the New Zealand, Australian markets. And now it’s gone to the UK. It’s demonstrated it’s gaining [market] share really well.

Share price, again, [is] being punished because of people rotating out of growth stocks into others. And I think the current share price is [at] very reasonable levels. It’s not something you buy for next month’s earnings. It is something you buy for the bottom drawer, for the longer term, for the next five years.

So we love Xero.

So that’s how two ASX investing experts view the Xero share price right now. They seem to be fairly unanimous on this tech company’s rosy future. But we shall have to wait and see how right they are.

In the meantime, the current Xero share price gives this ASX 200 tech share a market capitalisation of $12.44 billion.

The post Down 13% in a month, fundie says Xero share price is ‘very reasonable’ appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares to buy now (and one bonus): fund manager
• 2 stellar ASX growth shares analysts are tipping as buys this month
• Why are ASX 200 tech shares having such a cracking Friday?
• Xero share price has 19% upside potential, top brokers say
• Why did the Xero share price go backwards in May?

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 Goldman Sachs and 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing, the benchmark index is down 0.8% to 7,150.2 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are pushing higher:

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is up 6% to $1.27. This is despite there being no news out of the lithium developer today. However, a number of emerging lithium players are rising today. Investors appear to believe they have been oversold during recent market volatility.

Perenti Global Ltd (ASX: PRN)

The Perenti Global share price is up 15% to 79.8 cents. Investors have been buying this engineering company’s shares after it announced a major contract win. According to the release, Evolution Mining Ltd (ASX: EVN) has awarded Perenti a contract for all the underground development and production works for its Cowal Underground project. This contract is estimated to be worth $520 million.

Strandline Resources Ltd (ASX: STA)

The Strandline Resources share price is up 6% to 36 cents. This morning the minerals sands company revealed that construction of its 100%-owned Coburn mineral sands project in Western Australia is now 75% complete. This means the company remains on track for its first production of heavy mineral concentrate later this year.

Yancoal Australia Ltd (ASX: YAL)

The Yancoal share price is up 3% to $5.60. Investors have been buying this coal miner’s shares after an independent expert concluded that a low-ball takeover offer was not in the best interests of shareholders. Yankuang Energy Group – Yancoal’s parent company and controlling shareholder – was hoping to snag the company at a discount of $5.07 per share.

The post Why Core Lithium, Perenti, Strandline, and Yancoal shares are pushing higher appeared first on The Motley Fool Australia.

More reading

• Here’s why the Perenti share price is rocketing 18% today
• Yancoal share price lifts as potential takeover slammed
• Here are the best performing ASX dividend shares so far this year
• Could the Core Lithium share price be set to take off again in June?
• Appen and PolyNovo tumble after being kicked out of the ASX 200 along with these shares

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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The Vanguard Australian Shares High Yield ETF (ASX: VHY) is one of the more popular exchange-traded funds (ETFs). The fund size is around $2.3 billion.

As the name suggests, it’s an investment that targets businesses with higher dividend yields from the ASX share market.

Vanguard is the provider of this investment. It’s one of the largest funds management organisations in the world. Vanguard tries to provide its investment options as cheaply as possible.

In Vanguard’s own words:

The ETF provides low-cost exposure to companies listed on the Australian Securities Exchange (ASX) that have higher forecast dividends relative to other ASX-listed companies. Security diversification is achieved by restricting the proportion invested in any one industry to 40% of the total ETF and 10% in any one company. Australian real estate investment trusts (A-REITs) are excluded from the index.

Let’s look at two of the key features of this ETF.

Low cost

Vanguard says this ETF is a low-cost investment.

Its annual management fee is 0.25% per annum. That is relatively low compared to many other investment options. However it’s not the cheapest way to invest in ASX shares.

Vanguard itself has an ETF that charges less than half this cost annually. The Vanguard Australian Shares Index ETF (ASX: VAS) charges an annual fee of just 0.10%.

Higher dividend yield

There are some businesses on the ASX where the dividends and distributions they provide make up a sizeable part of the total return over time.

The top 10 positions in the VHY ETF all pay relatively high dividends to shareholders. Those top 10 largest holdings are Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), National Australia Bank Ltd (ASX: NAB), Wesfarmers Ltd (ASX: WES), Westpac Banking Corp (ASX: WBC), Telstra Corporation Ltd (ASX: TLS), Australia and New Zealand Banking Group Ltd (ASX: ANZ), Transurban Group (ASX: TCL), Macquarie Group Ltd (ASX: MQG) and Rio Tinto Limited (ASX: RIO).

Looking at the returns of the ETF, at the end April 2022, the distribution return had been an average of 5% per annum over the prior three years. That also doesn’t include the franking credits, which makes the income return even higher.

According to Vanguard, the forecast grossed-up dividend yield for the ETF is currently 7.3%.

Any downsides?

I think it’s important to remember that an investment isn’t a buy just because of a dividend.

In my opinion, the investment and valuation also have to make sense.

Businesses paying out most of their profit as a dividend aren’t generally known for displaying growth. They aren’t re-investing much profit back into the business for more growth. At the end of April 2022, Vanguard Australian Shares High Yield ETF had seen capital growth of an average of 2.1% per annum over the prior five years and 3.3% per annum over the previous 10 years.

Maybe that’s all investors are looking for — a little bit of long-term capital growth with strong dividend potential year to year.

For investors that aren’t seeking maximum income, I think other options could produce better total returns over the longer term as those (underlying) businesses re-invest more profit back into the business. For example, over the last five years to April 2022, the VAS ETF returned an average of 0.65% per annum more than the VHY ETF, showing that the excluded ASX growth shares made a difference to the overall picture.

The post Is the Vanguard Australian Shares High Yield ETF a good investment for dividends? appeared first on The Motley Fool Australia.

More reading

• Why Core Lithium, Perenti, Strandline, and Yancoal shares are pushing higher
• Guess which ASX mining share just exploded 50% on a ‘substantial discovery’
• Why is the Strike Energy share price popping on Tuesday?
• Why did the Dateline Resources share price just pop 34% then stop?
• 3 ASX 200 shares defying today’s sell-off to leap higher

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 positions in and has recommended Telstra Corporation Limited and Wesfarmers Limited. The Motley Fool Australia has recommended Macquarie 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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Shares of Lion One Metals Ltd (ASX: LLO) have surged to more than 48% higher in trade on Tuesday after a key company update.

Investors have rallied the stock to $2.06 at the time of writing, a shade off the intraday high of $2.45 in early trade.

The price action also marks a 52-week high for the company whose share price had flatlined up until today’s announcement.

What did Lion One release?

The company announced the discovery of a major new feeder structure at its Tuvatu Alkaline Gold Project in Fiji.

Specifically, Hole TUG-141 has encountered the longest high-grade intercept yet recorded at Tuvatu. The company was targeting a complex network of high-grade structures called the 500 Zone at the site.

It intersected 20.86 g/t Au over 75.9m, including 43.62 g/t Au over 30.0m which includes 90.35 g/t Au over 7.2m.

“The new discovery is located at depth beneath the current resource fully within the permit boundaries of the Tuvatu mining lease,” it remarked.

The company’s CEO, Walter Berukoff, said the find “represents a substantial discovery for Lion One”.

I have long encouraged our team to find that “gold room” at Tuvatu, and hole TUG-141 leads me to believe they have found it. We have only to look at other notable large alkaline Au deposits as direct
analogues to better understand what this latest discovery tells us, and it is clear that the discovery of a major high-grade feeder such as this should be viewed as very promising.

I am confident that Tuvatu will one day fall in the ranks of notable multi-million ounce Au deposits such as Porgera and Vatukoula.

The company says that further drilling is required to better understand the results, and that hole TUG-141 is still being drilled. Other mineralised structures are yet to be assayed.

Its immediate priority is to follow up with additional drilling in the Tuvatu system.

The post Guess which ASX mining share just exploded 50% on a ‘substantial discovery’ appeared first on The Motley Fool Australia.

More reading

• Why is the Strike Energy share price popping on Tuesday?
• Why did the Dateline Resources share price just pop 34% then stop?
• 3 ASX 200 shares defying today’s sell-off to leap higher
• When will it end? Zip share price plummets again on Tuesday
• Magellan share price lifts amid buyback speculation

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The Strike Energy Ltd (ASX: STX) share price traced higher in early trade on Tuesday, nudging past a 5% gain before cooling off to 31 cents. That’s still up 3.33% on yesterday’s closing price.

Investors are bidding up the oil and gas explorer’s shares amid a company announcement regarding its Project Haber development strategy.

What did Strike Energy announce?

Strike has launched the Mid West Low Carbon Manufacturing Precinct via the acquisition of freehold farming land in the Three Springs Shire in Western Australia.

It has signed an unconditional binding contract to purchase the 3,500 hectares of freehold farming land on a $13.5 million valuation. Settlement is set to finalise in H2 FY22.

It also agreed to lease the farm back to the current owners on a periodic lease.

Strike hopes to open a mortgage facility “that takes into account the various income streams that will be produced from the land over the next three to five years” to finance the transaction.

The land sits above Strike’s 100%-owned South Erregulla gas fields. The company will use the land to create a low carbon integrated energy and industrial manufacturing centre.

Management commentary

CEO Stuart Nicholls said the precinct will produce “some of the lowest cost and lowest carbon fertiliser in the global market”. He added:

Strike continues to display sectoral leadership through its strategic development approach at Project Haber, in utilising its natural resource endowment in partnership with world class renewable energy in the Mid West to manufacture globally low carbon critical agricultural commodities.

Strike says the land contains natural resources and assets. These include the South Erregulla Kingia and Wagina low impurity gas fields, 103 metres of “excellent Jurassic aged carbon sequestration sandstone reservoir”, and wind resources.

“The land will now be referred to as the Mid West Low Carbon Manufacturing Precinct and it is planned that other proponents may join Strike in the development/expansion of the Precinct,” it remarked.

With regards to the fertiliser component, Strike says the emissions would result in “an estimated 50% carbon reduction against the current imported supplies”.

Strike Energy share price snapshot

In the last 12 months, the Strike Energy share price has slipped around 14% into the red. However, it has gained more than 40% this year to date (see below) amid surging energy markets.

The post Why is the Strike Energy share price popping on Tuesday? appeared first on The Motley Fool Australia.

More reading

• 3 ASX All Ordinaries shares defying the sell-off to surge higher
• Here’s why the Strike Energy share price is zipping 10% higher today
• Why Bubs, IGO, Strike Energy, and Woodside shares are pushing higher
• Why Aristocrat, Arafura, Calix, and Strike Energy shares are charging higher
• Here’s why the Strike Energy share price is avoiding the bloodshed today

Motley Fool contributor Zach Bristow 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 Dateline Resources Ltd (ASX: DTR) share price has been placed on ice today.

This comes after the mineral exploration company’s shares rocketed 33.64% to 14.7 cents during early morning trade.

Why are Dateline Resources shares frozen?

Investors will have to wait for a pending announcement by the company before Dateline Resources shares reopen for trading.

According to the release, the company is preparing to make an announcement in relation to a capital raising.

Management advised it needs the “necessary time to plan and secure commitments from sophisticated and professional investors.”

As such, the requested trading halt will remain in place until Thursday 9 June or following the release of the announcement, whichever comes first.

A possible catalyst as to why Dateline Resources shares surged earlier today could be investor excitement regarding the company’s drilling results.

Yesterday, Dateline Resources received the final assay results for drill hole CM22-05 at its Colosseum gold project in California.

The highlights included a strike of 100.6 metres at 4.16g per tonne of gold from a depth of 79.24 metres.

A quick look at Dateline Resources

Australian-based mineral exploration company, Dateline Resources is focused on gold mining and exploration activities in North America.

The company wholly owns the Gold Links and Green Mountain Projects in Colorado, United States.

Furthermore, the Colosseum Gold Mine in California was acquired last year.

The Colosseum Gold Mine is located in the Walker Lane Trend in East San Bernardino County.

So far, the asset has produced approximately 344,000 ounces of gold, with significant potential for further gold mineralisation.

Dataline Resources has also identified radiometric anomalies which could lead to rare earth mineralisation at the southern end.

About the Dateline Resources share price

Over the past 12 months, Dateline Resources shares have surged by 70% following a boom in gold prices.

Based on valuation grounds, the company has a market capitalisation of roughly $48.74 million, with approximately 443.06 million shares outstanding.

The post Why did the Dateline Resources share price just pop 34% then stop? appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares defying today’s sell-off to leap higher
• When will it end? Zip share price plummets again on Tuesday
• Magellan share price lifts amid buyback speculation
• ASX shares investor faces 10 years’ jail: This is what he did
• If the future of digital payments is crypto, then this long-time internet darling could soar

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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It’s a rough day on the market for many S&P/ASX 200 Index (ASX: XJO) shares.

Right now, the index is recording a 0.87% slump with all 11 sectors also in the red.

But not all ASX 200 shares are suffering. These three are currently trading in the green on Tuesday.

3 ASX 200 shares recording gains on Tuesday

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is recovering from yesterday’s near-14% tumble.

The fall was brought on by a disappointing funds under management update and news the company will soon be dropped from the S&P/ASX 100 Index (ASX: XTO).

Right now, stock in the ASX 200 funds management business is swapping hands for $13.15, 2.33% higher than its previous close.

Thus, Magellan’s Tuesday gain might be a simple market correction. It might also be due to expectations an on-market buyback could kick off soon.

One expert is reportedly calling for the company to begin the buyback promised in March following the multi-year low recorded by the Magellan share price yesterday.

Sandfire Resources Ltd (ASX: SFR)

The Sandfire Resources share price is also in the green on Tuesday, gaining 3.53% to trade at $5.86.

There’s been no news from the ASX 200 copper share today. In fact, the last time the market heard word from Sandfire Resources was way back in April.

However, the price of copper did rise overnight. The metal’s value lifted 2.6% to reach US$9,743 per tonne, according to CommSec.

The Lottery Corporation Ltd (ASX: TLC)

The final ASX 200 share recording a notable gain on Tuesday is The Lottery Corporation. Stock in the ASX newbie is currently trading for $4.49 apiece – representing a 1.58% gain.

There’s been no news from the Tabcorp Holdings Limited (ASX: TAH) spin-out to explain its gains.

Though, it’s worth noting that prior to today, The Lottery Corporation suffered a six-session long losing streak.

The post 3 ASX 200 shares defying today’s sell-off to leap higher appeared first on The Motley Fool Australia.

More reading

• Magellan share price lifts amid buyback speculation
• Why A2 Milk, Appen, Magellan, and Tyro shares are dropping today
• ASX 200 midday update: Magellan smashed, Liontown signs Tesla deal
• Why is the Magellan share price tumbling 10% on Monday?
• Appen and PolyNovo tumble after being kicked out of the ASX 200 along with these shares

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 Zip Co Ltd (ASX: ZIP) share price is sliding.

Again.

Shareholder faith is certainly being tested with dip buyers taking a bath as the Zip share price is down 9.8% in early afternoon trade.

Zip shares closed yesterday at 77 cents apiece and are currently trading for 69 cents.

What’s going on with the Zip share price?

The buy now, pay later provider (BNPL) has come under sustained selling pressure since hitting all-time highs of $12.35 on 19 February last year.

Since that milestone, the Zip share price has collapsed 94.1%. It is also down 90% over the past year.

Buy the dip buyers aren’t feeling the joy, with Zip shares now posting six consecutive days of losses. Barring a miraculous turnaround in afternoon trading, the company will end the day at its ninth multi-year low in the past month alone.

In fact, you have to go back to December 2017 to find Zip shares at a lower price than today.

But they are not the only BNPL company struggling.

Why are BNPL shares selling off?

The wider BNPL sector has come under intense selling pressure over the past 12 months.

Sezzle Inc (ASX: SZL) shares, for example, are down 95% over that time, while industry giant Block Inc (ASX: SQ2) – owner of Afterpay – is down 36% over the 12 months.

The companies have all faced stiff headwinds from fast-rising inflation and the resulting interest rate rises.

Many, including Zip, have also seen their bad debts increase. Some analysts say the BNPL companies have not done enough to ensure that clients taking out small installment loans for purchases will be able to make those repayments.

With the Reserve Bank of Australia (RBA) flagged to most likely hike the official cash rate again today, you can see why the Zip share price is again deep in the red.

Shares are likely to remain under pressure until central banks begin easing back on the current monetary tightening cycle.

The post When will it end? Zip share price plummets again on Tuesday appeared first on The Motley Fool Australia.

More reading

• Zip share price dips to yet another 4-year low on Monday
• The carnage continues: Why the Zip share price has hit 7 multi-year lows in a month
• Why Nanosonics, REA, Sayona Mining, and Zip shares are dropping
• Why is the Zip share price sinking yet again on Thursday?
• Is this a ‘fundamental flaw’ with ASX BNPL shares like Zip

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. 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 Magellan Financial Group Ltd (ASX: MFG) share price is bouncing back from yesterday’s carnage amid calls for the company to kick off its promised on-market buyback.

Bell Potter’s Richard Coppleson reportedly believes the “whole market will now be watching” the company, expecting it to announce the start of the buyback aiming to snap up 10 million shares.

At the time of writing, the Magellan share price is $13.28. That’s 3.35% higher than the near-eight-year low it closed yesterday’s session at.

For context, the S&P/ASX 200 Index (ASX: XJO) isn’t having such a great day. It’s currently down 0.78%.

Let’s take a closer look at the commitment Bell Potter is reportedly calling for the company to make.

Will Magellan kick off its promised buyback?

Coppleson – Bell Potter’s head of institutional sales and trading – believes now is the time for Magellan to kick off its on-market buyback after its share price slipped to a multi-year low yesterday, reports The Australian.

The stock took another hit on Monday when the company announced its funds under management had tumbled 5.2% in May, reaching $65 billion.

Additionally, news the company will be removed from the S&P/ASX 100 Index (ASX: XTO) later this month dropped after Friday’s close and likely weighed on its shares yesterday.

The resulting fall could have brought about the best time for the company to start snapping up its own shares. And not doing so is “sending a message”, according to Coppleson.

“I think they have to go through with it soon – it’s a joke if they don’t action it at all – otherwise the market will crucify them for saying they would but not going through,” Coppleson said, courtesy of The Australian. He continued:

They cannot sit back after their stock has collapsed from $21.70 [when the company first flagged a buyback] and still not buy a share …

It’s sending a message to the market they still think their stock is still too expensive and they are waiting for it to drop further before they buy back any stock.

The company announced the planned buyback in March. It’s expecting to buy up to 5.4% of its outstanding shares, using cash from reserves to do so.

Though, it noted the timing and actual number of shares purchased would depend on the company’s share price, market conditions, and other factors.

Magellan share price snapshot

Today’s gains included, the Magellan share price is still 30% lower than it was at the start of 2022.

It has also slipped 70% since this time last year.

The post Magellan share price lifts amid buyback speculation appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, Appen, Magellan, and Tyro shares are dropping today
• ASX 200 midday update: Magellan smashed, Liontown signs Tesla deal
• Why is the Magellan share price tumbling 10% on Monday?
• What to do with these 3 pummelled ASX shares: advisor
• Can the Magellan share price stage a comeback in June?

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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