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Shares in Polynovo Ltd (ASX: PNV) were 7% higher in early trading today but have since resettled at $1.16, up 2.67% despite no market-sensitive information being released by the medical device company today.

Polynovo shares have risen from the dead, having spiked in a vertical fashion by 35.1% in the past five trading days. This has potentially ended a downwards trend that began at the start of FY22 when the Polynovo shares were trading at $2.82.

The Polynovo share price has also bifurcated away from the S&P/ASX 200 Health Care Index (ASX: XHJ). Over the past five trading days, the broader index gained just 0.6%.

What’s up with the Polynovo share price?

Recently, share purchases by various insiders have made the news.

As we reported on Tuesday: “An entity owned by the company’s chair David Williams splashed out yesterday, snapping up $227,500 worth of Polynovo stock on the market. Additionally, another two of the company’s directors reported buying into its stock last week, each snapping up parcels of 100,000 shares.”

Insider purchases by executives and directors are often interpreted as a vote of confidence by the market. This might be inspiring ASX investors to bid up the Polynovo share price in recent days.

The gain comes at the expense of short-sellers who still appear to have their tentacles wrapped around the stock. Polynovo is the fifth most shorted stock on the ASX, as we reported on Monday.

What do the experts think of Polynovo?

The shift in market sentiment appears to be matched by analyst sentiment. Three out of the five analysts covering Polynovo say it’s a buy right now, according to Bloomberg data.

The teams at Evans & Partners, Macquarie, and Bell Potter say buy. They value Polynovo shares at 12-month target prices of $1.40, $1.60, and $1.50 respectively. Meanwhile, Ord Minnett and Wilsons each rate it as a hold.

Polynovo share price snapshot

In the past 12 months, the Polynovo share price has slipped by 55%.

Polynovo has a market capitalisation of $711.31 million with 661.7 million shares outstanding.

The post Why is the Polynovo share price surging 35% in 5 days? appeared first on The Motley Fool Australia.

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• Why is the Polynovo share price rocketing 17%?
• Why EOS, Pendal, PolyNovo and Xero shares are charging higher
• Why BrainChip, PolyNovo, TPG, and Westpac shares are pushing higher
• Down 40% in 2022, this ASX 200 share is climbing amid insider buying action
• These are the 10 most shorted ASX shares

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 positions in and has recommended POLYNOVO FPO. 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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Last month, we looked at the Australian Vanadium Ltd (ASX: AVL) share price and how this vanadium hopeful’s shares had rocketed more than 160% over the preceding month. At the time, Australian Vanadium had soared more than 16% in one day, meaning its shares had risen from 4 cents per share to almost 12 cents.

Well, as it turns out, that was about as good as it got for Australian Vanadium. Today, the company is trading 3.5% down for the day so far at a share price of 5.5 cents. That means this company has fallen by around 31% over the past month alone. Since its new all-time high of 12 cents a share that we saw on 4 April, the company has now dropped by 50%. Ouch.

Why has the Australian Vanadium share price crashed more than 30% in a month?

So, what’s going on with this vanadium company? Well, as we covered last month, what really seemed to set investors onto Australian Vanadium shares was the March announcement that the company would be awarded a $49 million grant from the federal government’s Modern Manufacturing Initiative.

As we noted at the time, investors seemed to be flocking to ‘green metals’ shares such as lithium and cobalt. And vanadium looked set to join the list. Vanadium does indeed have potential uses in next-generation battery technology. Some experts believe vanadium can enable batteries known as ‘redox flow batteries’, which have the potential to last for more than 20 years, with little loss of charging capacity.

But unfortunately for investors, enthusiasm for green metals and the companies that mine or produce them, has waned dramatically over the past month. Lithium shares that were red hot only weeks ago, such as Pilbara Minerals Ltd (ASX: PLS) and AVZ Minerals Ltd (ASX: AVZ), have seen steep falls in value recently. We’ve seen this trend extend right across most ASX metals and mining shares for that matter. So it’s probably for this reason that Australian Vanadium shares have had such an awful month.

Even so, the Australian Vanadium share price remains up a pleasing 83% in 2022 so far, and up 175% over the past 12 months.

The post Why has the Australian Vanadium share price crashed 31% in a month? appeared first on The Motley Fool Australia.

More reading

• 3 critical minerals you might not have heard of (and the ASX shares that have surged because of them)

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 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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S&P/ASX 200 Index (ASX: XJO) mining shares have, as a whole, delivered some outsized gains to investors over the past full year.

But despite soaring commodity prices, many ASX 200 mining shares have struggled in 2022.

What’s been happening with the big miners?

Over the past month, for example, the Allkem Ltd (ASX: AKE) share price has fallen 15%. At the current share price, the lithium producer has a market cap of $7.2 billion.

Copper, gold, and nickel miner Oz Minerals Limited (ASX: OZL) also had a rough month, falling 15% since 12 April. It has a current market cap of $7.4 billion.

Lynas Rare Earths Ltd (ASX: LYC) is another ASX 200 mining share giving back gains recently. Though still up 49% over the past full year, the Lynas share price is down 11% over the past month. The world’s second-largest producer of rare earths now has a market cap of $7.9 billion.

For some context, the ASX 200 is down 6.3% over the past month.

Are these ASX 200 mining shares now good value?

With the recent retracement in their share prices, are these ASX 200 mining shares a buy?

According to analysts at Canaccord, led by Reg Spencer, the answer is yes.

“Looking through the short-term volatility, we see the recent pullback as an opportunity to invest in sector leaders with robust balance sheets and near-term earnings growth/positive free cashflow yields, particularly those with leverage to attractive long-term supply/demand fundamentals such as Allkem, Lynas Rare Earths, and Oz Minerals,” they said, as reported by The Australian.

Canaccord said miners like these ASX 200 mining shares haven’t performed as well as expected, given their historically close correlation to commodity prices, likely dragged lower by the wider market sell-off.

Despite some pressure from rising interest rates, the analysts also have a positive outlook for gold, citing supply disruptions and the looming potential of a recession in the United States as supportive of prices.

And miners involved in producing commodities like lithium and copper, required for the global push for electrification, should see strong long-term demand for their products. Canaccord said that’s despite short-term pullbacks in demand due to China’s COVID-19 lockdowns and forecasts of sluggish global economic growth.

The post Falling ASX 200 mining shares ‘an opportunity to invest in sector leaders’: broker appeared first on The Motley Fool Australia.

More reading

• Why is the Lynas share price storming higher today?
• Low charge: Is the party over for ASX lithium stocks?
• The Lynas share price has plunged 6% today! What’s going on?
• Expert warns investors about lithium and battery mineral ASX shares
• Here’s why ASX lithium stocks are rocketing higher today

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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Cryptocurrency prices are falling hard across the board today, with Maker (CRYPTO: MKR) being a notable exception. At 11:15 a.m. ET, the price of Maker tokens was up a whopping 19% over the previous 24 hours. And it’s likely because TerraUSD (CRYPTO: UST) and Terra’s Luna tokens (CRYPTO: LUNA) are trending toward zero at the moment. 

So what

For context, a stablecoin is a cryptocurrency for which the price is supposed to always be equal to a government-issued currency — most often the U.S. dollar. MakerDAO is the organization behind a stablecoin called Dai (CRYPTO: DAI). Terraform Labs is behind a stablecoin called TerraUSD. 

There are other U.S. dollar stablecoins as well, including Tether and USD Coin. And to be clear, different stablecoins use different mechanisms to keep their values, well, stable. And right now, these various stablecoin models are trying to demonstrate their merits in order to gain widespread adoption.

Tether and USD Coin both hold real U.S. dollars in reserve, making them close competitors. By contrast, Dai issues new tokens based on crypto assets locked up in the system. Similarly, TerraUSD isn’t backed by dollars but rather by a burning-and-minting symbiotic relationship with Luna.

Without going too far into the weeds, the rivalry between TerraUSD and Dai isn’t imaginary. On March 23, Terra founder Do Kwon said on social media, “By my hand Dai will die.” 

The sad irony is that over the past couple of days, TerraUSD and Luna entered a death spiral, with the value of each declining faster than its algorithmic mechanisms can repair the damage. As of this writing, TerraUSD has bounced off its lows, but it’s still down more than 50% from $1, and it’s fair to wonder if it will ever recover.

Now what

While TerraUSD’s demise would be good for Dai because there’d be one fewer player, I’d be cautious approaching the stablecoin space right now. I believe the true takeaway with TerraUSD’s decline is that these models are still new and still being tested. Because of this, weaknesses are sometimes unexpectedly uncovered, and the fallout can be swift. 

Therefore, if you do chose to buy Maker tokens because of what’s happening with Terra, be sure that — like always — it’s a disciplined investment and not more than you could afford to lose if something goes wrong. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why a crypto called Maker is surging higher as others fall apart appeared first on The Motley Fool Australia.

More reading

• Broker says Webjet share price is a buy ahead of its FY22 results
• Why did the Maggie Beer share price just crumble 17%?
• Scentre share price defies ASX 200 sell-off to lift on strong earnings outlook
• Here’s why the Incannex share price is rocketing 18% today
• Analysts name 2 ASX dividend shares to buy to beat inflation

Jon Quast 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. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Webjet Limited (ASX: WEB) share price is sliding lower with the market on Thursday.

In afternoon trade, the online travel agent’s shares are down 2% to $5.39.

This latest decline means the Webjet share price is now in negative territory for 2022.

Is the Webjet share price in the buy zone?

According to a note out of Goldman Sachs, its analysts have reiterated their buy rating and $6.90 price target on the company’s shares ahead of its full-year results release later this month.

Based on the current Webjet share price, this implies potential upside of 28% for investors over the next 12 months.

What did the broker say?

Firstly, Goldman is expecting a soft result from Webjet in FY 2022 due to COVID headwinds. Its analysts have forecast FY 2022 revenue of $143.6 million and EBITDA of $1.5 million.

However, the broker believes that this release will signal the end of the market’s willingness to look through weak results. Particularly given how in April passenger traffic numbers reached 90.5% of pre-COVID levels in the US and 81.4% in London’s Heathrow Airport. It explained:

In our view the market will no longer look through weak results beyond FY22 and we expect stock prices to start being more correlated to company fundamentals as opposed to trading based on news of travel recovery.

However, that shouldn’t matter because Goldman is expecting strong results from Webjet in FY 2023 and FY 2024.

What is expected?

Goldman is bullish on the Webjet share price due to its belief that the company is well-placed for strong growth over the coming years. This is thanks to its Bedbanks business, acquisition opportunities, and the ongoing shift to online booking. It said:

We reiterate our Buy rating on WEB due to the stronger outlook for the Bedbanks business in the longer term, favorable exposure to the growing online channel and the strong balance sheet offering the opportunity to explore bolt-on acquisitions as well as weather interim volatilities driven by COVID-19.

The broker is expecting revenue growth of 152% to $362.2 million in FY 2023 and then 20% to $434.7 million in FY 2024.

Things are expected to be even better for its EBITDA, with Goldman pencilling in a material lift in EBITDA from $1.5 million to $155.4 million in FY 2023 and then a 32.8% jump to $206.4 million in FY 2024.

All in all, this could make Webjet a share to consider if you’re looking for travel sector exposure.

The post Broker says Webjet share price is a buy ahead of its FY22 results appeared first on The Motley Fool Australia.

More reading

• Own Webjet shares? Here’s what to expect from next week’s FY22 results
• Will Webjet pay a dividend in 2022?
• Are ASX 200 travel shares already fully valued in May?
• These are the 10 most shorted ASX shares
• 2 top ASX growth shares Goldman Sachs rates as buys

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 Webjet 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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The Maggie Beer Holdings Ltd (ASX: MBH) share price is sinking after the company released a trading update for financial year 2022.

While sales continued to increase at the company’s core businesses, it’s faced notable unforeseen costs. In reaction, the company dropped its earnings guidance and upped prices charged for its products.

At the time of writing, the Maggie Beer share price is 40 cents, 13.04% lower than its previous close.

However, that’s an improvement on its earlier performance. The stock was swapping hands for just 38 cents at its intraday low, representing a 17% tumble.  

Maggie Beer share price plummets as costs surge

Some of the key points from the Maggie Beer trading update include:

• The company’s core business Hampers and Gifts Australia saw pro-forma sales increase 25.6% over the financial year to April compared to the same period of last financial year
• Fellow core business, Maggie Beer Products, saw a 19.3% increase in sales over the period
• Maggie Beer’s e-commerce sales rose 165.6% while its net sales increased 13.1%.
• The company dropped its earnings guidance by $4.2 million
• It’s on track to announce its maiden dividend at the end of the financial year

What’s happened over the financial year so far?

The Maggie Beer share price is plunging on bad news regarding the company’s full-year earnings.

The company has realised $4.2 million of unforeseen and higher than expected costs. Many of these were born from floods in Australia, the war in Ukraine, lockdowns in China, and global fuel and freight costs.

Maggie Beer’s dairy segment accounted for around $2.8 million of the expenses. It was hampered by ongoing COVID-19 impacts, a shortage of milk, and high commodity prices.

Paris Creek Farms’ branded milk’s launch into 400 stores – scheduled for March – was delayed by COVID-19 disruptions and flood events. The milk reached 200 stores in May with the remainder expected to be on shelves by September. That will dint the company’s earnings for this financial year.

Additionally, its Saint David Dairy has struggled through skills and labour shortages, resulting in the loss of some customers.

The company noted it has now labelled its dairy businesses “non-core”. It expects to outline the segment’s future in its full-year results.

Maggie Beer started working to increase the price of its products to offset the additional costs in March.

However, such increases are slow to hit the major supermarkets. The price rise should be reflected on grocery store shelves later this month.

What did management say?

Maggie Beer CEO and managing director Chantale Millard commented on the news driving the company’s share price lower today, saying:

As with all businesses, the second half of [financial year 2022] has seen many new challenges arise, with further flow-on effects of COVID-19, increases in costs due to the devastating floods in Central Australia and Northern NSW and QLD, and the war in Ukraine.

The group and in particular [Maggie Beer Products] and [Hampers and Gifts Australia] have continued to perform well, with its diversified revenue stream, whilst absorbing the higher costs and delivering industry leading gross margins.

With price increases being implemented across the group we expect to see our earnings growth return to expected levels in [financial year 2023].

What’s next?

The Maggie Beer share price is likely also being dinted by a guidance downgrade.

It’s on track to reach its previously given net sales guidance of between $95 million and $100 million.

However, its earnings before interest, tax, depreciation, and amortisation (EBITDA) for the full year is now expected to fall between $9.25 million and $10.5 million. Previously, its financial year 2022 EBITDA guidance was $13.5 million to $15.5 million.

The company has also brought forward its working capital requirements on the expectation of increased demand and supply chain issues next financial year.

Finally, Maggie Beer expects to declare a maiden dividend or capital return of no less than 1 cent per share alongside its final results.

Maggie Beer share price snapshot

Today’s fall included, the Maggie Beer share price has tumbled 27% in 2022.

Though, it’s 25% higher than it was this time last year.

The post Why did the Maggie Beer share price just crumble 17%? appeared first on The Motley Fool Australia.

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• Scentre share price defies ASX 200 sell-off to lift on strong earnings outlook
• Here’s why the Incannex share price is rocketing 18% today
• Analysts name 2 ASX dividend shares to buy to beat inflation
• Blockdown! Why is the Block share price crashing by 16% today?
• Thursday thrashing: ASX tech shares tumble

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 Scentre Group (ASX: SCG) share price is shaking off the wider market sell-off to gain 0.4% at the lunch hour.

Scentre shares closed yesterday at $2.77 and are currently trading for $2.78. This comes as the S&P/ASX 200 Index (ASX: XJO) is down 1%.

The Australian real estate investment trust (REIT) released its first-quarter update for the three months ending 31 March today.

What happened during the quarter?

Scentre compared many of its quarterly performance statistics to 2019 — before the global pandemic ushered in lengthy store closures for the retail group.

The Scentre share price could be getting a boost today from its report, which shows customer visitation numbers are back to 88% of the 2019 figures and 112% of the 2021 numbers.

The company’s total majors and specialty sales were 7.1% higher in the first quarter of 2022 compared to Q1 2019.

Scentre also reported strong occupancy across its portfolio, with 98.7% leased as of 31 March. The company said that some 80% of its specialty leases are inflation-linked with average annual rent increases of CPI plus 2%. Specialty rent represents approximately 90% of its net operating income.

Stepping a month beyond the Q1 update, Scentre reported its gross rent collections for the first four months of 2022 (through to 30 April) came in at $800 million.

In Q1, the REIT also completed 536 leasing deals. Those deals included signing on 237 new merchants, with 50 new brands introduced into Scentre’s portfolio.

During the first quarter, the Scentre share price fell 6.5%.

What did Scentre management say?

Commenting on the first-quarter results, Scentre CEO Peter Allen said:

I am very pleased with the Group’s operating performance for the first quarter. We have continued to drive more visitation and saw a significant increase in sales for our business partners, above pre-pandemic levels…

During the quarter, we opened the $55 million rooftop entertainment, leisure and dining precinct at Westfield Mt Druitt. During the first month of trading, customer visitation and dwell time has significantly increased, with an overall increase of 56% compared to the same period last year.

Addressing Scentre’s preparations for higher interest rates in the years ahead, Scentre’s CFO and CEO-Elect Elliott Rusanow added:

The Group has restructured its interest rate hedging profile to increase hedging in 2023 and 2024. Interest rate hedging at January 2023 has been increased from 50% to approximately 65%, with a weighted average rate of 1.87%. At January 2024 interest rate hedging has increased from 40% to approximately 50% with a weighted average rate of 1.79%.

What’s next for Scentre Group?

Looking ahead, Allen said he was confident about the future of the business.

“The underlying structure of our revenue with inflation linked leases, provides long-term growth for our securityholders,” he said. “In light of the improving conditions and strong performance of our business, earnings are expected to grow in excess of 5.3% in 2022.”

Scentre said it expects to distribute at least 15 cents per security in 2022, an increase of at least 5.3% year-on-year.

Scentre share price snapshot

The Scentre share price is up 3.5% over the past 12 months. That compares to a 0.5% full-year loss posted by the ASX 200.

The post Scentre share price defies ASX 200 sell-off to lift on strong earnings outlook appeared first on The Motley Fool Australia.

More reading

• Feel the squeeze: 3 ASX property shares with a whole lot of debt
• 3 ASX companies that can raise prices whenever they want

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 Incannex Healthcare Ltd (ASX: IHL) share price is on the move today following a company’s latest acquisition.

At the time of writing, the healthcare company’s shares are trading at 43 cents, up 17.81%.

Incannex progresses on APIRx takeover

According to its release, Incannex announced it has entered into a share sale and purchase agreement to acquire APIRx Pharmaceuticals.

Based in the United States, APIRx is a leading pharmaceutical company specialising in cannabinoid active pharmaceutical ingredients and drug products.

The acquisition will be made by an all-scrip transaction of 218 million Incannex shares at a value of $0.573 per share.

This requires Incannex’s shareholders to approve the issue of the new shares to the sellers under ASX Listing Rule 7.1.

A shareholder vote will be held at the extraordinary general meeting in June 2022.

If green-lit, the shares will be issued at the completion of the acquisition and thus APIRx will become a wholly-owned subsidiary of the company.

Incannex noted that the acquisition of APIRx delivers a strong portfolio of patented drug candidates. This includes 22 development programs covering a total addressable market of US$400 billion per annum.

Together, Incannex and APIRx will form the world’s largest portfolio of patented medicinal cannabinoid drug formulations and psychedelic treatment protocols.

The takeover is expected to be seamless, as APIRx’s assets are similar to Incannex’s operational capabilities and pharmaceutical development strategy.

Incannex CEO and managing director, Joel Latham commented:

The acquisition of APIRx presents us with clear long and short-term opportunities for significant value growth. Several drug candidates have shortened regulatory pathways to break into areas of patient need representing very large global markets. These candidates are our initial development priority.

Incannex’s strong cash position allows us to pursue these near-term product opportunities at the same time as moving at pace to develop the Incannex combination drug candidates. Once the acquisition of APIRx has been finalised, Incannex will have many diverse projects under development, the progress over which we will update the stock exchanges with ongoingly.

Incannex share price snapshot

Over the past 12 months, the Incannex share price has surged close to 60%.

While investor optimism took hold late last year, this hasn’t been the case in 2022 with losses sitting around 31%.

The company’s shares reached a multi-year high of 75.5 cents in early March, before giving up their astonishing gains.

On valuation grounds, Incannex presides a market capitalisation of around $549.97 million.

The post Here’s why the Incannex share price is rocketing 18% today appeared first on The Motley Fool Australia.

More reading

• Down 25% in a month, the Incannex share price is now halted. Here’s why
• How have ASX cannabis shares been performing so far in 2022?

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

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Listed below are a couple of dividend shares that brokers believe are in the buy zone right now and offer yields that could help combat inflation.

Here’s what income investors need to know about these dividend shares:

Charter Hall Long WALE REIT (ASX: CLW)

The first ASX dividend share to look at is the Charter Hall Long Wale REIT.

The Charter Hall Long Wale REIT is a property company that invests in high quality ANZ real estate assets that are predominantly leased to corporate and government tenants on long term leases.

At the last count, the company’s portfolio weighted average lease expiry (WALE) stood at 12.2 years. Management believes this provides long-term income security.

The team at Citi is very positive on the Charter Hall Long Wale REIT. Its analysts currently have a buy rating and $5.71 price target on its shares.

In respect to dividends, the broker is forecasting dividends per share of 30.8 cents in FY 2022 and 30.9 cents in FY 2023. Based on the current Charter Hall Long Wale REIT share price of $4.84, this will mean yields of ~6.3%.

Wesfarmers Ltd (ASX: WES)

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

It is the conglomerate behind businesses including Bunnings, Catch, Covalent Lithium, Kmart, Officeworks, and Priceline.

Analysts at Morgans are very positive on Wesfarmers. They recently put an add rating and $58.50 price target on its shares.

The broker likes Wesfarmers due to it having “one of the highest quality retail portfolios in Australia” and “a highly regarded management team.”

As for dividends, the broker is forecasting fully franked dividends per share of $1.62 in FY 2022 and $1.81 in FY 2023. Based on the current Wesfarmers share price of $49.21, this will mean yields of 3.3% and 3.7%, respectively.

The post Analysts name 2 ASX dividend shares to buy to beat inflation appeared first on The Motley Fool Australia.

More reading

• Why is the Wesfarmers share price beating the ASX 200 this week?
• Leading brokers name 3 ASX shares to sell today
• 2 ASX shares to buy as Aussies tighten their belts
• 5 things to watch on the ASX 200 on Tuesday
• Broker names 2 of the ‘best’ ASX dividend shares to buy next week

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 Wesfarmers 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) is once again falling over this Thursday’s trading session thus far. At the time of writing, the ASX 200 is down by a depressing 1.02% to just under 7,000 points. But things are faring far worse today with the Block Inc (ASX: SQ2) share price.

Block shares are getting a hammering today. The US-based fintech company and new owner of Afterpay is down by a nasty 15.63% at $102.30 a share as it currently stands. That puts Block very close to its 52-week low of $102 a share. It also means the company has fallen close to 30% over just the past five trading days. Not to mention more than 37% over the past month.

So what’s going on with Block today that has elicited such a sharp selloff?

Why are Block shares getting smashed today?

Well, it’s not entirely clear. There hasn’t actually been any news or developments out of Block itself that might explain this tanking share price. However, there are still several factors that we can look to. The first is the Block Inc (NYSE: SQ) stock price, the original US listing of Block.

SQ2 shares are simply an ASX-listed version of Block’s American SQ shares. They are more or less the same investment, just priced on a different stock exchange. But last night (our time), Block’s US shares were also smashed. The company dropped 15.61% in last night’s trading down to US$71.22 a share.

This seems to have been sparked by both the ongoing sell-off in the US tech shares sector and a sharp plunge in the price of Bitcoin (CRYPTO: BTC). Block famously has a large stockpile of Bitcoin. But unfortunately for the company, this would have dropped a hefty 7.5% or so over the past 24 hours thanks to the price of Bitcoin itself dropping by that number.

But Block wasn’t the only US tech company copping a pounding last night, although it was one of the larger fallers. We had Tesla Inc (NASDAQ: TSLA) drop more than 8%, and Apple Inc (NASDAQ: AAPL) fall by more than 5%.

Meanwhile, the S&P/ASX All Technology Index (ASX: XTX) is also taking a beating, down 5.41% at the time of writing.

It sure is a tough time to be a tech share.

At the current Block share price, this ASX 200 fintech share has a market capitalisation of US$41.34 billion.

The post Blockdown! Why is the Block share price crashing by 16% today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Apple, Bitcoin, Block, Inc., and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Bitcoin, Block, Inc., and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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