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The Magellan Financial Group Ltd (ASX: MFG) share price is enduring a tough end to the week, currently down 1.33% at $17 in afternoon trading.

As the fallout from a spate of internal and external pressures comes to full force, analysts are tipping further outflows for the embattled fund manager in 2022.

More outflows to come?

Magellan released its latest funds under management (FUM) update yesterday. In it, the company reported another $1.1 billion in net outflows between 11 March and 31 March. Across the board, total FUM stood at $70 billion at the end of the March quarter. The Magellan share price spiked 11% yesterday on the back of the update.

However, analysts at Macquarie are confident investors will continue withdrawing funds from the firm, with outflows likely to persist until FY24, it says.

It expects heavy outflows in Q4 FY22 that look set to extend well into a $7.8 billion outflow in 1H FY23.

“We expect outflows of $7.1 billion in 4Q FY22 and $7.8 billion in 1H FY23 as recent investment performance has remained below respective benchmarks and the stronger AUD will continue to weigh on investment performance,” it said in a note.

“We continue to expect material outflows to persist for several quarters limiting scope for re-rating,” it added, pegging FUM to eventually sink to $56 billion in FY23.

This would imply a total outflow of $25 billion in FUM from its flagship fund, Macquarie says, cited by Bloomberg.

Meanwhile, UBS reckons the likelihood of a turnaround at Magellan is highly unlikely, analyst Shreyas Patel said in a note.

“Fundamentals remain poor with ongoing investment underperformance, reduced performance fee potential, higher outer year staff retention costs, and risks to retail fees,” the analyst commented.

It too believes there will be $24 billion in outflows for 2H FY22, setting the firm up for potentially extensive losses.

Macquarie and UBS both have Magellan as a sell on a valuation of $13.25 and $13 respectively.

In the last 12 months, the Magellan share price has slipped 65% into the red.

The post Magellan share price dips as Macquarie tips further outflows appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell today
• Why Ardent Leisure, GQG, Magellan, and Melbana shares are charging higher
• ASX 200 midday update: Magellan jumps, tech shares tumble
• Magellan share price rockets 11% despite continued FUM carnage
• Magellan share price sinks again, down 6%

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 recommended Macquarie Group Limited. 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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The IGO Ltd (ASX: IGO) share price is finishing a rough week on the ASX in the red.

The nickel, copper, cobalt, and lithium explorer and producer may have had its previously accepted acquisition offer swept out from underneath it on Tuesday.

Today, its facing reports analysts estimate a revised bid for nickel producer, Western Areas Ltd (ASX: WSA) could start at $4 per share – 19% higher than IGO’s previously accepted bid.

Additionally, the company has faced a bearish note from broker UBS on Friday.

At the time of writing, the IGO share price is $13.62, 2.12% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 0.6% so far on Friday.

Let’s take a closer look at what could be driving the resource company’s shares lower today.

What’s weighing on the IGO share price today?

The IGO share price is in the red on Friday, bringing its losses for the week so far to 5.4%. And today’s dip is not without cause.

As The Motley Fool Australia’s James Mickleboro reported earlier today, UBS’ latest outlook on IGO is far from positive.

The broker reportedly slapped it with a $12.65 price target and a ‘sell’ rating today. It cited its concerns the prices of lithium and nickel are unsustainable.

Additionally, analysts from Shaw and Partners – which reportedly has a price target of $4.40 on Western Areas – were quoted by The Australian on Friday, saying:

We think that a price up to $4 [per] share would be digestible – given the evolving nickel backdrop – for the dispassionate and disciplined IGO team.

The reports follow previous rumours IGO is in talks to bid up to $4 apiece for Western Areas’ stock.

While the IGO share price has been suffering, that of Western Areas is still frozen.

The acquisition target extended its then-two-day trading halt on Thursday pending the release of an update on the takeover talks.  

The post Why is the IGO share price underperforming on Friday? appeared first on The Motley Fool Australia.

More reading

• Why Block, IGO, Navigator Global, and Platinum shares are dropping
• ASX 200 lunch update: GrainCorp jumps on earnings upgrade, Pro Medicus signs $32m deal
• Top brokers name 3 ASX shares to sell today
• IGO share price slips amid latest takeover rumours
• Why A2 Milk, IGO, Lynas, and Sayona shares are dropping

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 Bruce Jackson.

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The long end of the Australian Government bond yield curve has just surpassed 3% for the first time since 2015.

Yields on long-dated bonds have spiked in 2022, with the Australian Government 30-year bond, in particular, shooting up to a yield to maturity of 3.33% at the time of writing.

Meanwhile, the Australian 10-year yield is 25 basis points off the 3% mark, while bonds with three and five-year maturities are at 2.5% and 2.8% respectively.

The Australian Government yield curve is also upward sloping, but flattening for long-duration bonds, data shows.

The rally in government bond yields comes somewhat as a surprise to fixed income investors seeing as yields were at their lowest points on record just some months ago.

“Market fragility after the end of RBA [Reserve Bank of Australia]’s yield-curve control has meant the speed or normalisation priced in overnight-indexed swaps [OIS] isn’t calibrated to local fundamentals,” wrote JP Morgan analysts, cited by Bloomberg, regarding the RBA’s posture on changing base rates.

Investigations by Bloomberg Intelligence support this view, noting “OIS meeting-dated swaps signal approximately 70% odds of [a] May RBA hike [to base rates],” in reporting today.

As investors pay more attention to risk budgeting, the yields on government bonds are becoming increasingly important indicators of market sentiment.

How have ASX 200 shares held up?

Typically there’s an inverse correlation between the yields on long-dated bonds and the overall stock market in the longer term.

However, these aren’t typical times. Recently correlations have turned more positive than not, and Australian large caps have snapped back in 2022 alongside the rise in government yields, seen below.

The relationship has carried on until today, with the benchmark S&P/ASX 200 Index (ASX: XJO) spiking 52 basis points on the day to 7,481 while the 10-year yield is up 37 basis points.

As a result, Australian shares are powering home on Friday having restrengthened over the past month. Miners and financials still lead the way, although there are plenty of pockets of green dotted throughout the market.

But that’s not all for Aussie investors. The RBA looks certain to increase the cash rate, says Jay Sivapalan of Janus Henderson.

“The three preconditions the RBA set for cash rate lift-off (unemployment close to 4%, inflation sustainably within the 2-3% band, and wages inflation above 3%) are likely to be satisfied within the coming six months,” he told Livewire.

This could mean a wave of buying opportunities, Sivapalan says, seeing as higher yields on long-dated bonds means lower valuations on equities.

“The recent lift in bond yields, swap spreads, and credit spreads have, in our assessment, created a unique opportunity to effectively ‘lock in’ investor outcomes at reasonably attractive levels,” he added.

That’s worth thinking about.

The post Bond yields bounce past 3% for the first time since 2015. Here’s how the ASX 200 is responding appeared first on The Motley Fool Australia.

More reading

• ASX 200 lunch update: GrainCorp jumps on earnings upgrade, Pro Medicus signs $32m deal
• Worried about current ASX share market uncertainty? Read this
• 5 things to watch on the ASX 200 on Friday
• What’s the outlook for the Cochlear share price in April?
• Here are the 3 most heavily traded ASX 200 shares on Thursday

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 Bruce Jackson.

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ASX 200 investors are dumping Platinum Asset Management Ltd (ASX: PTM) shares today, at one point driving them down to an all-time low.

The Platinum share price plummeted to $1.87 this morning, the lowest level the company has traded at since it was listed in 2007. By contrast, the S&P/ASX 200 Index (ASX: XJO) is up 0.52% today. Platinum shares have since gained a little ground and are now trading 15% lower at $1.90.

At the time of writing, 13.56 million shares in the ASX 200 investment manager have already changed hands. That’s more than quadruple the company’s 30-day average of 3.14 million shares traded per day.

What’s going on with this ASX 200 share?

It appears ASX investors may be disappointed with Platinum’s latest funds under management report. Released yesterday, the report shows net outflows of approximately $222 million in funds in March.

This includes approximately $162 million in net outflows from the Platinum Trust Funds.

Platinum now has 19.44 billion in funds under management.

Adding insult to injury is a broker note out of Credit Suisse downgrading Platinum shares from neutral to underperform.

According to reporting in The Australian, the broker recommends that ASX investors sell. It has cut its price target for the ASX 200 share to $1.90.

Platinum share price recap

This ASX 200 share is having a rough time of it in 2022. The Platinum share price is down 32% year to date. This is in stark contrast to the ASX 200 benchmark, which is down 1.4%.

The past 12 months have been no better with the shares down 62% compared to an ASX 200 gain of 7%.

The Australian-based investment manager describes its investing strategy as contrarian and long-term. According to the website, the team looks “beyond short-term market turbulence… to seek out ‘unfashionable’ companies whose actual worth is greater than the value implied in their present share price”.

The post Here’s why this ASX 200 share just dived 16% to an all-time low appeared first on The Motley Fool Australia.

More reading

• Why Block, IGO, Navigator Global, and Platinum shares are dropping
• 3 high-yield ASX dividend shares trading near 52-week lows
• Cash machines: 6 ASX 200 shares with the highest dividend yields right now
• 5 things to watch on the ASX 200 on Wednesday

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

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2022 hasn’t been the best of years for crypto investors.

Although a few top-altcoins have managed to wildly outperform.

Overall, however, the digital assets have been hit by many of the same headwinds that have pressured other risk assets, like high growth tech shares. Namely fast rising inflation numbers and soaring geopolitical uncertainty.

In fact, 17 of the top-100 cryptos by market cap are down more than 40% this calendar year.

Even the biggest players, Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) are in the red. Bitcoin is down 8% this year while Ethereum has lost 14%.

But those aren’t close to the worst performers.

Here are the 3 worst tokens (out of the top 100) to have bought on 1 January and held onto through today.

This crypto is down 50% in 2022

The third worst performing crypto of 2022 to date is Loopring (CRYPTO: LRC), down 50% since 1 January.

That’s despite gaining 5% over the past 24 hours to currently be worth US$1.03. At the current price, Loopring has a market cap of US$1.4 billion, making it the 75th biggest token in virtual circulation.

Loopring launched with an initial coin offering (ICO) in 2017.

So, what is Loopring?

According to CoinMarketCap, it’s an Ethereum-based cryptocurrency token, “an open protocol designed for the building of decentralised crypto exchanges… [combining] elements of centralised and decentralised cryptocurrency exchanges to create a protocol that will enjoy their unique advantages and eliminate inefficiencies.”

Loopring reached an all-time high of $3.83 on 10 November. It’s down 73% since that record.

2022’s second worst altcoin performer

Moving on, our runner up for worst crypto to own in 2022 is Algorand (CRYPTO: ALGO).

Algorand is also gaining today, up 3.5% to 80 US cents. But that still leaves the crypto’s price down a painful 54% year-to-date.

At the current price, Algorand comes in as the 30th biggest token with a total market valuation of US$5.4 billion.

Launched in June 2019, Algorand, CoinMarketCap tells us, is “a self-sustaining, decentralised, blockchain-based network that supports a wide range of applications. These systems are secure, scalable and efficient”.

Algorand hit its record high of US$3.28 on 21 June 2019, not long after launching. The crypto is down 75% from that high.

The worst performing crypto in 2022 is down 59%

The crypto that would have lost you the most money had you bought it on 1 January and held on through today is – drum roll please – Curve DAO Token (CRYPTO: CRV).

Like much of the crypto market today, Curve is enjoying a boost, up 4% to US$2.57. But that’s hardly enough to erase the previous losses, leaving Curve down 59% in 2022.

At the current price, Curve has a market cap of US$1.2 billion, placing it at number 90 on the top-100 list.

Curve launched in January 2020 and works in the decentralised finance (DeFi) space. According to CoinMarketCap, it’s a “decentralised exchange for stablecoins that uses an automated market maker (AMM) to manage liquidity”.

The crypto reached an all-time high of US$60.50 on 14 August 2020. It’s now down a gut wrenching 96% from that high.

Invest with care.

The post These are the worst 3 cryptos to own in 2022, so far appeared first on The Motley Fool Australia.

More reading

• Here’s why the lithium price is in the spotlight today
• E-commerce is booming. Which ASX shares have exposure to warehouses?
• Warren Buffett just bought $4 billion of HP stock, sending the share price soaring
• ASX market beater? Here’s how Coles shares performed during March
• Why is the Andromeda share price skyrocketing 32% on Friday?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. 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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Lithium prices are a hot topic right now and the broker UBS has given its latest views on where it thinks the lithium price is going in 2022.

The share prices of many of ASX’s lithium miners have gone up over the past year.

In the last 12 months:

The Allkem Ltd (ASX: AKE) share price has risen 141%.

The Pilbara Minerals Ltd (ASX: PLS) share price has gone up 176%.

Liontown Resources Limited (ASX: LTR) has seen its share price rise by 275%.

The Mineral Resources Limited (ASX: MIN) share price has gone up by 50%.

UBS’ latest thoughts on lithium 

According to reporting by the Australian Financial Review, UBS has increased its forecast for lithium prices in 2022.

The broker said that it’s reviewing its long-term assumptions with lithium spot prices outperforming expectations. UBS noted that there are no signs of easing yet.

UBS increased spodumene expectations by 17% for 2022 to US$4,485 per tonne and its long-term price remains at US$800 per tonne.

UBS pointed out that at a price of US$4,485 per tonne, this is lower than the US$5,000 per tonne guidance that has been given by Allkem.

The broker suggested that while lithium producers may not receive the spot price for what they produce (due to fixed-price contracts), the lithium sector could move towards spot pricing.

A closer look at UBS-rated miner, Allkem 

UBS rates Allkem as a buy.

The lithium miner said that the materially higher realised pricing for lithium will result in a material lift to revenue and cash flow in the upcoming quarters.

In terms of the supply and demand, Allkem said that demand for lithium chemicals is estimated to increase rapidly, supported by “favourable government EV policies and the transition to electrification by automakers.”

The lithium miner says that the transition to carbon neutrality will help, with carbon emissions targets and penalties, government regulations and subsidies, and a growing range of electric vehicle models.

According to Allkem, the majority of supply growth from lithium chemicals is expected to come from “incumbent producers” with quality resources and technical processing expertise.

The market is estimated to remain in a supply deficit for the remainder of the decade.

Allkem notes that electric vehicle demand is forecast to increase by 63% between 2021 to 2022. Electric vehicle demand is expected to increase at a compound annual growth rate (CAGR) of 23% from 2021 to 2030.

The electric vehicle penetration rate is expected to rise from 6% to 34% between 2021 to 2030.

The post Here’s why the lithium price is in the spotlight today appeared first on The Motley Fool Australia.

More reading

• Why not all ASX lithium shares are winners from surging commodity prices
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• Lithium boom: Broker tips Mineral Resources share price to jump 23%
• 5 things to watch on the ASX 200 on Thursday
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It probably goes without saying that COVID-19 accelerated a retail renaissance. For shoppers, it means more time spent at a digital checkout, rather than a physical one. However, for ASX retailer shares, the repercussions have extended the foundation of commerce — the humble warehouse.

Yesterday, Premier Investments Limited (ASX: PMV) Retail CEO Richard Murray described industrial land as “liquid gold”. Prompting a question among investors: which ASX shares have some of that liquid gold in their hands?

These ASX property shares are loaded with land

During the summit, Murray expressed his perspective of an incredible shift toward online shopping which has bolstered the demand for e-commerce infrastructure.

This sentiment was shared by Big W managing director Pejman Okhovat, with him describing a challenging situation in Auckland, New Zealand. According to Pejman, warehouse vacancy rates in Auckland were sitting around 0.5% when he recently visited.

In the world of e-commerce, warehouses are an essential building block in the supply chain. Basically, they allow retailers to store, pick, pack, and send products efficiently.

According to Australia Post’s February 2022 edition of its Inside Australian Online Shopping e-commerce update, online shopping has continued to surge in the last year. In fact, on a year-over-year basis, e-commerce purchases increased by 16.6%.

In turn, ASX property shares with exposure to warehousing assets could be in the spotlight. These include Goodman Group (ASX: GMG), Dexus Property Group (ASX: DXS), and Mirvac Group (ASX: MGR).

How do the big dogs of property compare?

Goodman Group is the largest ASX-listed property name there is. However, it hasn’t segmented its business clearly into the different real estate segments that it operates in recently, so it is difficult to say its involvement in the industry of warehouses.

Although, we do know that the property giant is working with Amazon.com Inc (NASDAQ: AMZN) as it expands into Australia. For example, the world’s largest e-commerce company is working with Goodman to open a sorting centre in Melbourne this year. The square metreage of the new site will almost be equal to the Melbourne Cricket Ground.

Meanwhile, Dexus informed investors in its half-year presentation that its industrial portfolio is now worth $11 billion. According to the ASX share, e-commerce operators require three times the space of a regular retailer.

Likewise, Mirvac highlighted its push forward in the industrial market as it benefits from e-commerce. Though, this segment only makes up around 4% of the ASX share’s external assets and funds under management.

The post E-commerce is booming. Which ASX shares have exposure to warehouses? appeared first on The Motley Fool Australia.

More reading

• 2 blue chip ASX 200 shares to buy according to experts
• 2 blue chip ASX 200 shares analysts are urging investors to buy
• Brickworks (ASX:BKW) share price on watch amid 269% first half profit jump
• 2 ASX 200 blue-chip shares to buy this month: experts
• 3 buy-rated blue chip ASX 200 shares according to experts

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Amazon. The Motley Fool Australia has recommended Amazon and Premier Investments Limited. 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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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 

HP‘s (NYSE: HPQ) share price is rising sharply this morning after investors found out that Warren Buffett’s Berkshire Hathaway recently took an 11% stake in the personal computer and printer company.

The tech stock is up by 16.3% as of 10:47 a.m. ET.

So what

Berkshire Hathaway revealed in an SEC filing yesterday that it had purchased about 121 million shares of HP. That massive purchase now makes Warren Buffett’s company the largest shareholder of HP.

The move comes on the heels of Berkshire Hathaway’s acquiring the insurance company Alleghany for $11.6 billion.

When Buffett’s company snatches up a significant portion of a company’s stock or makes an acquisition, investors often pay close attention because of Buffett’s proven track record as a successful investor.

Additionally, the fact that Berkshire bought shares of a technology company — technology being a sector that Buffett typically stayed away from for many years (before buying Apple stock about six years ago) — is likely causing additional enthusiasm from HP investors.

Now what 

It’s no surprise that HP investors are excited about this latest development. When Buffett’s Berkshire invests in a company, it often signals to other investors that buying shares of the company could be a good long-term investment strategy.

With today’s huge share price jump, HP’s stock has gained a very impressive 47% over the past six months. And with Berkshire now HP’s largest shareholder, investors are hoping that they have more to look forward to in the coming years. 

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

The post Warren Buffett just bought $4 billion of HP stock, sending the share price soaring appeared first on The Motley Fool Australia.

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• 2 Warren Buffett stocks to buy and hold if the market crashes
• Is Warren Buffett’s best in the past?
• 3 strong Warren Buffett stocks for a volatile market

Chris Neiger owns Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Apple and Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple and Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The Andromeda Metals Ltd (ASX: ADN) share price is surging higher on Friday despite no news having been released by the company.

However, its enthusiastic performance might be in response to recent turbulence.

At the time of writing, the Andromeda share price is 13 cents, 31.58% higher than its previous close.

For context, the broader market is also in the green today, though, not to such a dramatic extent. Right now, the All Ordinaries Index (ASX: XAO) and the S&P/ASX 200 Index (ASX: XJO) are both up around 0.5%.

So, what could be driving the Andromeda share price today? Let’s take a look.

What’s pushing Andromeda’s stock higher on Friday?

Andromeda’s stock is launching nearly 32% on Friday after tumbling 45% over the previous two sessions.

The halloysite-kaolin-focused producer of industrial metals released the definitive feasibility study for its Great White Kaolin Project on Wednesday.

The project was a joint venture between Andromeda and the previously ASX-listed Minotaur Exploration.

The pair merged in February, with Minotaur shareholders each receiving 1.5 shares in Andromeda for their investment.

Under its definitive feasibility study, the Great White Kaolin Project was given a valuation of $613 million and an internal rate of return of 36%.

Previously, the project’s prefeasibility study indicated a valuation of $736 million and an internal rate of return of 175%.  

On the release of the latest study on Wednesday, the Andromeda share price tumbled 33%. It ditched another 16% the following day.

Thus, today’s movements might be the market’s way of correcting the company’s valuation following the sell-off.

Andromeda share price snapshot

Today’s gains haven’t been enough to boost the industrial metals stock back into the long-term green.

Right now, the Andromeda share price is 34% lower than it was at the start of 2022. It has also fallen 57% since this time last year.

The post Why is the Andromeda share price skyrocketing 32% on Friday? appeared first on The Motley Fool Australia.

More reading

• Why Andromeda Metals, ARB, BCI Minerals, and WiseTech shares are tumbling lower
• Why Andromeda Metals, Block, Paladin Energy, and Zip shares are dropping

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 Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) ended up having a very solid month during March, after what was an extremely volatile start to the year. Over the month just passed, the ASX 200 gained a healthy 6.4%. But how did the Coles Group Ltd (ASX: COL) share price fare?

Coles is one of the mid-tier blue-chip shares of the ASX 200. It of course owns the supermarket chain of the same name, and is the second-largest player in its market, coming runner up to Woolworths Group Ltd (ASX: WOW).

Coles is often cited as a defensive ASX share due to its consumer staples nature and strong dividend record. So let’s see how it fared over March.

Coles started the month at a share price of $17.38. Last week, the grocer finished up March trading at $17.91 a share. That’s a gain of 3.05%. Nothing to complain about of course. But also a performance worth less than half of what the ASX 200 delivered.

A caveat though. Coles paid out its interim dividend during March as well. The value of this payment left the Coles share price on 3 March when the company traded ex-dividend and hit investors’ bank accounts on 31 March. Since both of these dates fall within the month, we can add the value of this dividend (worth a yield of 1.84% on the day it was received) to those returns if we wish.

So now that March is done and dusted, what could be in store for the Coles share price going forward?

Is the Coles share price a buy today?

Well, one ASX broker who is expecting big things is Citi. As my Fool colleague James covered last week, Citi is currently bullish on Coles shares, with a “buy” rating and a 12-month share price target of $19.30.

That’s around 5.5% higher than where Coles is trading today. Citi reckons the recent federal budget will result in a boost to disposable income, which the broker is expecting will flow through to sales at Coles’ supermarkets.

No doubt shareholders will be hoping that Citi’s predictions turn out to be accurate.

At the current Coles share price of $18.29 (at the time of writing), this ASX 200 supermarket share has a market capitalisation of $24.06 billion, with a dividend yield of 3.34%

The post ASX market beater? Here’s how Coles shares performed during March appeared first on The Motley Fool Australia.

More reading

• Coles share price falls amid reports Wesfarmers is selling down its stake: Time to buy?
• Are Woolworths shares positioned for ‘a long-term, post-COVID trend?’
• 5 things to watch on the ASX 200 on Wednesday
• Are Woolworths shares worth buying for their defensive properties?
• What’s the outlook for the Woolworths share price in April?

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 owns 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 Bruce Jackson.

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