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The Sezzle Inc (ASX: SZL) share price is on fire today. Technology shares are in the green, and the company had a positive update for the market.

The buy now, pay later (BNPL) share is currently trading at $1.58, a 7.85% gain. In comparison, the S&P/ASX All Technology Index (ASX: XTX) is also up 3.37% at the time of writing.

Let’s take a look at what’s happening today.

Workforce reduction

The Sezzle share price is soaring after the company revealed today it will carry out a workforce reduction. The goal is to position the company for long-term growth and on the road to profit.

The company estimates these cuts will lead to $10 million in cost savings per year. In North America, 20% of positions will be lost.

Commenting on the change, CEO and executive chair Charlie Youakim said:

Sezzle has experienced significant growth in its history and is now at an important juncture, as we look to take decisive steps toward profitability and free cash flow.

Sezzle’s growth prospects remain unchanged, and these actions position the company to maximize its long term success. These decisions are not easily made as we greatly value our team members. We thank our team for their efforts during this process.

In late February, Sezzle agreed to a takeover proposal from Zip. The Sezzle and Zip boards of directors have recommended the proposed transaction.

If the deal is approved, Sezzle shareholders would receive 0.98 Zip shares for each Sezzle share owned.

The Sezzle share price may be up today, but it is not the only BNPL share on the rise.

The Zip Co Ltd (ASX: Z1P) share price is also jumping 7.36% today, while Block Inc CDI (ASX: SQ2) shares are surging 8.22%.

Sezzle share price snapshot

The Sezzle share price has descended 80% in a year, while it has lost 48% this year to date. It is also down 25% over the past month. For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned around 6% over the past year.

The company has a market capitalisation of about $308 million.

The post What’s causing the Sezzle (ASX:SZL) share price to sizzle on Thursday? appeared first on The Motley Fool Australia.

More reading

• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends
• Has Zip (ASX:Z1P) got this key metric wrong in the Sezzle takeover?
• Why did the Block (ASX:SQ2) share price sink 9% today?
• Zip (ASX:Z1P) shares have tumbled 14% since the merger news. Top brokers offer possible reasons why
• ‘Strategic sense’: What brokers are saying about the Zip (ASX:Z1P)-Sezzle deal

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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After a sustained period of selling, ASX tech shares are beginning to give their tested shareholders some hope.

This follows a flood of green across technology stocks on Wall Street last night, leading to the biggest percentage gain in a single session for the S&P 500 since June 2020.

At present, information technology is the best performing sector on the ASX today. With not a single ASX tech share constituent in the red, the sector is up by more than 4%. Meanwhile, the broader S&P/ASX 200 Index (ASX: XJO) is up a lesser 1.09%.

Are buyers beginning to sweep in?

There’s no doubt about it, the past few months have been a difficult time for tech investors. The once-booming sector began to fall away as inflation fears entered the fray late last year. Since then, the situation has only worsened.

In turn, it is estimated that around 70% of US tech shares have fallen by more than 20% — entering a bear market. Even bleaker, approximately a third have sunk more than 50% from their recent highs. The rapid south trajectory has shown a lack of willing buyers.

Simultaneously, an energy shortage — that has only been amplified by the circumstances surrounding Russia — has led to a rejuvenation in sentiment towards oil and gas companies. As such, the performance of ASX tech shares and US tech shares has been the polar opposite of the energy sector, as shown in the chart below.

However, with oil prices retreating by 12.8% overnight to US$107.64, the market is deliberating over whether the impacts are starting to be overblown.

Which ASX tech shares are winning today?

Simply put, all of the tech names inside the ASX 200 are riding the wave higher today. Though, here are the five best performing shares in the sector on Thursday:

• Appen Ltd (ASX: APX) up 4.2%
• Wisetech Global Ltd (ASX: WTC) up 3.9%
• Codan Limited (ASX: CDA) up 3.8%
• Life360 Inc (ASX: 360) up 3.6%
• Tyro Payments Ltd (ASX: TYR) up 3.4%

Notably, US-based digital payments giant Block Inc CDI (ASX: SQ2) is trading 7.8% higher after gaining 11.3% overnight.

The post Tech-tonic shift? ASX tech shares rally following Nasdaq’s lead appeared first on The Motley Fool Australia.

More reading

• Why did the WiseTech (ASX:WTC) share price jump 6% today?
• 3 beaten-up ASX tech shares that ‘tick all the boxes’: fundies
• The Tyro share price (ASX:TYR) has crashed 45% in 2022. Here’s why this fundie says ‘the future could look quite different’
• Time is running out to lock in the WiseTech (ASX:WTC) dividend. Here’s why
• Broker names the 3 best ASX tech shares to buy today

Motley Fool contributor Mitchell Lawler owns Appen Ltd and Block, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd, Block, Inc., Life360, Inc., Tyro Payments, and WiseTech Global. The Motley Fool Australia owns and has recommended Appen Ltd, Block, Inc., and WiseTech Global. The Motley Fool Australia has recommended Tyro Payments. 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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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and is charging higher. The benchmark index is currently up 1% to 7,122.8 points.

Here’s what is happening on the ASX 200 today:

Rio Tinto shares tumble

The Rio Tinto Limited (ASX: RIO) share price has come under pressure on Thursday and is tumbling notably lower. This decline has been driven by the mining giant’s shares trading ex-dividend this morning for its enormous $6.63 per share fully franked final dividend. Eligible shareholders can now look forward to receiving this payout next month on 21 April.

Gold price weigh on the ASX 200

Gold miners Newcrest Mining Ltd (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) are falling today after a sizeable pullback in the gold price overnight. This was caused by investors switching back to risk assets after investor sentiment improved. It isn’t just Newcrest and Northern Star that are falling. The S&P/ASX All Ords Gold index is down 3% at the time of writing.

Tech and travel rebounds

The beaten down tech and travel sectors have been on form on Thursday after investor sentiment improved following a pullback in oil prices. This has led to shares such as Flight Centre Travel Group Ltd (ASX: FLT) and Zip Co Ltd (ASX: Z1P) charging higher today. In respect to the tech sector, the S&P ASX All Technology index is up an impressive 3.4%.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Block Inc (ASX: SQ2) share price with an 8% gain. This follows a similarly strong gain by its US listed shares overnight. The worst performer has been the Nickel Mines Ltd (ASX: NIC) share price with an 11% decline. This morning Credit Suisse downgraded the company’s shares to a neutral rating and cut its price target to $1.34. It suspects that investor sentiment may suffer due to its relationship with the embattled Tsingshan.

The post ASX 200 (ASX:XJO) midday update: Rio Tinto goes ex-div, tech and travel shares rebound appeared first on The Motley Fool Australia.

More reading

• Here’s why the Rio Tinto (ASX:RIO) share price is sliding 7% today
• Here’s why the Newcrest (ASX:NCM) share price is in the red today
• Why did the Flight Centre (ASX:FLT) share price have such a volatile time in 2022?
• Warning: Only 4 ASX shares just added to ASX 300 are profitable
• Is the Nickel Mines (ASX:NIC) share price chaos a buying opportunity?

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. owns and has recommended Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Block, Inc. The Motley Fool Australia has recommended Flight Centre Travel 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 Bitcoin (CRYTPO: BTC) price is up 8.3% since this time yesterday.

The world’s original crypto is currently trading for US$41,975 (AU$57,425). That brings its market cap back up to some US$790 billion, according to data from CoinMarketCap.

Mind you, though, that’s still well below the US$1.2 trillion market valuation it had back in November.

So, why did the Bitcoin price leap overnight?

Why did the Bitcoin price just leap 8%?

It looks like there are 2 factors that really offered some healthy tailwinds for the Bitcoin price.

First, Bitcoin has tended to track alongside risk assets over the past months. And share markets across Europe and North America leapt higher yesterday (overnight Aussie time).

In the United States, the tech-heavy Nasdaq closed up 3.6%. In Europe, Germany’s DAX led the charge, closing up an eye-popping 7.9%.

The Bitcoin price also looks to have gotten a healthy push after US President Joe Biden signed an executive order relating to crypto regulation. That order will impose greater oversight on crypto markets.

It will also see US government agencies, including the Commerce Department and Treasury Department, look into the potential of creating a digital dollar via the Federal Reserve.

Commenting on the executive order, Hany Rashwan, CEO of crypto exchange traded product provider 21Shares, said (quoted by Reuters):

At 21Shares, we’ve always believed that the best way to introduce and expose investors to crypto is through a safe and regulated approach. Today’s action will help the US establish itself as a leader in crypto for years to come.

Have other cryptos benefited too?

It’s not just the Bitcoin price that’s logged some hefty gains in the past 24 hours.

Ethereum (CRYPTO: ETH), the second largest crypto by market valuation is up 5.2% over that same time.

In fact, running the slide rule over the top 100 cryptos, only 7 are in the red since this time yesterday.

The post The Bitcoin price is rocketing 8% today. What’s going on? appeared first on The Motley Fool Australia.

More reading

• Will soaring commodity prices hold back the Bitcoin price in 2022?
• 52% of Aussies will never put money in this investment
• How might Visa and Mastercard’s Russia ban impact the Bitcoin price?
• Why the Bitcoin price should surge to US$50,000 in March: expert
• Considering adding crypto to your super? Read this

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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A message from our CIO, Scott Phillips:

“G’day Fools. If you’re like us, you’re dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So, we’ll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine.” 

——-

The Woodside Petroleum Limited (ASX: WPL) share price is falling today after oil prices crashed overnight.

Global oil prices nosedived after the United Arab Emirates (UAE) expressed support for increasing output into the market.

A report on CNN said the UAE intended to encourage the Organization of the Petroleum Exporting Countries (OPEC) to ramp up supply.

As a result, the Brent crude oil price fell 13.16% to US$111.14 a barrel, according to Bloomberg. The drop was the ‘worst one-day decline since 21 April 2020’, a report on NAB trade stated.

Woodside shares are currently trading at $31.75, a 4.3% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 1% today.

Meanwhile, Woodside CEO Meg O’Neill has shared her insights into the global energy market.

Like the 1970s oil crisis, says Woodside boss

O’Neill says the shift in global energy dynamics due to the Ukraine war felt like a change “that will be with us for decades”.

Speaking at yesterday’s Australian Financial Review Business Summit in Sydney, O’Neill added:

Maybe the analogy is the 1970s oil crisis, which was a real wake-up call for the world that being highly dependent on energy from one particular nation, whose values may not be well aligned with yours, was a huge risk.

And so I think the world is going to have some real sober reflection on the pathway to diversify energy supply, and will look to countries like the US and like Australia, to see how they can support like-minded countries in providing their energy.

The NAB trade report said the US is in discussions about relaxing oil sanctions on Venezuela. This would be conditional on Venezuela shipping oil directly to the US.

Woodside share price snapshot

The Woodside share price has rocketed 27% over the past year. In 2022, it is up 40%.

In the past month, Woodside shares have gained 19% as the war in Ukraine creates global fear about energy supply.

Woodside has a market capitalisation of about $32.19 billion based on its current share price.

The post Woodside (ASX:WPL) share price tumbles but boss sees ‘a change with us for decades’ appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Record $36bn in dividends could help ASX share market recovery
• Up 48% in 2022, why this ASX 200 energy giant is gaining again today
• Why Bapcor, GQG, Smartgroup, and Woodside shares are dropping
• Woodside (ASX:WPL) share price slips for first time in 7 days

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 BrainChip Holdings Ltd (ASX: BRN) share price has been a strong performer on Thursday.

In morning trade, the artificial intelligence technology company’s shares are up 8% to $1.14.

Why is the BrainChip share price shooting higher today?

The gain by the BrainChip share price today appears to have been driven by a rise in its US listed shares overnight in response to a press release.

According to the release from Wednesday morning Australia-time, the company has signed new sales partnerships in Europe and Israel that will further expand the commercial reach of its Akida neuromorphic computing platforms.

The release explains that BrainChip has partnered with Eastronics, a large, high-tech distributor in Israel, and SalesLink, a technology solutions provider in Europe.

Management believes these relationships serve as a gateway for introducing Akida technology to customers looking to leverage BrainChip’s IP across a wide range of applications. These include industrial Internet of Things (IoT), cybersecurity, autonomous vehicles, and smart sensors that can detect and act on visual features, sound, touch, smell, and taste.

It believes that Eastronics is ideally suited to benefit BrainChip’s global expansion in terms of customer presence and broad reach. This is from verticals such as medical, military, and industrial IoT markets, in the Israeli territory.

Whereas SalesLink has a broad reach that management believes will be instrumental in the building of BrainChip’s ecosystem and the go-to-market IP licensing plan in the Central Europe region.

BrainChip’s CEO, Sean Hehir, commented: “Partnerships with region and domain-focused sales organizations like Eastronics and SalesLink extend our reach to meaningful geographies and commercial opportunity.”

“We look forward to working closely with Eastronics and SalesLink, as well as developing relationships with other organizations in key territories, as we continue to deploy our commercialization plan for our revolutionary technology,” he added.

The post Why is the BrainChip (ASX:BRN) share price jumping 8% today? appeared first on The Motley Fool Australia.

More reading

• Brainchip (ASX:BRN) share price sinks 7% as ‘Most successful year in history’ comes at a cost
• Why is the Brainchip (ASX:BRN) share price tumbling 6% on Monday?

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 Bruce Jackson.

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The Commonwealth Bank of Australia (ASX: CBA) share price is up 1.2% in morning trade. That’s twice the 0.6% gain posted by the S&P/ASX 200 Index (ASX: XJO) at this same time.

CBA shares closed yesterday at $97.31 and are currently trading for $98.61.

That’s the early day price action. Now here’s why CBA’s boss is bullish on the year ahead.

Enormous surplus savings in the Aussie economy

If you own CBA shares, you’re probably familiar with the bank’s CEO, Matt Comyn.

Speaking on Tuesday at The Australian Financial Review Business Summit, Comyn said, “We’re very optimistic about everything that we’re seeing in the underlying data and looking ahead.”

Comyn noted that Russia’s invasion of Ukraine adds “a pool of uncertainty geopolitically”, while the severe flooding on the east coast “is going to have an economic impact”.

However, he said that following a “sharp contraction in operating performance across lots of sectors of the economy” in January, by the end of the month things began to “pick up right across the economy. And that’s held through.”

According to Comyn (quoted by the AFR):

We’re very positive about everything that we’re seeing in the economy. Obviously, unemployment is phenomenally strong and low. We’ve got enormous surplus savings in the economy. We think consumer and business confidence continues to come back. It’s going to be a couple of years of quite a strong tailwind. I think it’s a great set of economic conditions. It’s a great region to be in, Australia.

CBA estimates that the Aussie economy has grown more than 4% in the past 12 months. And the bank expects similar growth over the next 12 months.

Atop that, “We’re forecasting unemployment to get to 3.8% later this year,” Comyn said. “That’s going to be the lowest in 50 years – on the back of unprecedented monetary and fiscal support. I think we should feel pretty confident about the outlook.”

As for the businesses that have suffered through 2 years of pandemic restrictions, Comyn added:

It’s an opportunistic time, I think, for many businesses, having gotten through a period of extreme difficulty over the last couple of years of enormous uncertainty, and having demonstrated a lot of resilience and adaptability.

How have CBA shares been performing?

Over the past 12 months, CBA shares have gained 13.8%, outpacing the 5.8% gains posted by the ASX 200 in that same period.

Year-to-date the CBA share price is down 3.8%.

The post Own CBA (ASX:CBA) shares? Here’s why the bank’s boss is ‘very optimistic’ for 2022 appeared first on The Motley Fool Australia.

More reading

• Is the Westpac (ASX:WBC) share price the cheapest bank to buy right now?
• Record $36bn in dividends could help ASX share market recovery
• CBA (ASX:CBA) boss says this presents ‘a lot of opportunity’ for the bank
• ANZ has the largest ASX big four bank dividend yield right now. What?
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends

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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Shares in AGL Energy Limited (ASX: AGL) are back in focus following a critique from one of the company’s major shareholders.

That shareholder is Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). The comments relate to the AGL board’s rejection of an increased $8.25 per share takeover offer from the Brookfield Consortium at the beginning of the week.

The AGL board strongly believes that the bid is well below fair value for the company. However, the AGL share price is still trading below the beefed-up bid. At the time of writing, shares in the energy giant are fetching $7.26 apiece.

So, what exactly did the board of the $9 billion investment house say about AGL?

Don’t look a gift horse in the mouth

In a second attempt to secure AGL and accelerate its green transition, Mike Cannon-Brookes and Brookfield lobbed a sweetened deal at AGL on Monday.

While many analysts and shareholders agreed the original $7.50 bid wasn’t enticing enough, the latest offer has been more warmly received.

However, AGL CEO Graeme Hunt and his fellow board members did not bite. Instead, they criticised their suitors for ignoring the potential future value of the company’s planned demerger.

Commenting on AGL’s reaction to the revised bid, Soul Patts chief executive Todd Barlow said:

It’s possibly something that needs a bit more thought from the board. I think you are seeing smaller premiums being offered because it is being weighed up against the risks that you are seeing with the demerger.

Soul Patts is not the only shareholder that believes the offer was at least worth exploring. Global investment manager VanEck holds a $27.6 million position in AGL.

VanEck deputy head of investments and capital markets, Jamie Hannah stated:

We absolutely think that AGL should open their books to the consortium so they can do a proper due diligence.

Will it be Brookfield’s last crack at taking AGL off the ASX?

The current situation is akin to a game of poker. There are two players in this game and both might be trying to bluff their way to a winning outcome.

Firstly, AGL could be playing the uninterested approach to secure another increased bid from the consortium. Secondly, the Brookfield Consortium could be parading the $8.25 as its final bid to get the Aussie energy company at a reasonable price.

Following the rejection of the revised bid, Cannon-Brookes posted on Twitter that it was ‘pens down’ for them.

The Brookfield-Grok consortium looking to take private & transform AGL is putting our pens down – with great sadness.

This weekend, the board rejected our raised offer of $8.25. 46% more than the price of $5.55 about 90 days ago (1/3) pic.twitter.com/c5KYwGozDo

— Mike Cannon-Brookes (@mcannonbrookes) March 6, 2022

https://platform.twitter.com/widgets.js

Ultimately, we’ll have to wait and see whether this is truly Brookfield’s last play at AGL.

AGL share price snapshot

The AGL share price is up 16.2% since the beginning of the year.

The post Soul Patts urges AGL (ASX:AGL) board to give ‘more thought’ to takeover bid appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: AGL rejects new takeover offer, Appen makes strategic investment
• AGL (ASX:AGL) share price on watch amid improved takeover offer
• Will Mike Cannon-Brookes bring an extra $1 billion to the table in his AGL takeover bid?
• Why did AGL (ASX:AGL) shares smash Origin in February?
• Shareholder calls out AGL (ASX:AGL) planned demerger as ‘value destructive’

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 Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended Washington H. Soul Pattinson and Company 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 S&P/ASX 200 Index (ASX: XJO) is having another pleasing opening so far this morning after yesterday’s welcome recovery. At the time of writing, the ASX 200 is up a decent 0.69% at just under 7,101 points. So it might come as an initial disappointment to see that the South32 Ltd (ASX: S32) share price doesn’t seem to be joining the party.

In fact, South32 shares look like they are tanking today. The diversified miner is currently down by a nasty 4.06% at $4.73 a share.

Now, you might think this drop is related to the general rejection of mining and energy shares that we are seeing so far on the ASX today. South32’s compatriots, such as BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Woodside Petroleum Limited (ASX: WPL), are indeed all in the red thus far.

But investors can blame another factor for making things worse for the South32 share price. However, it’s not necessarily a bad one.

South32 share price lower after trading ex-dividend

Today is the day that South32 shares have traded ex-dividend for the company’s upcoming interim dividend payment. Yes, from today, any new investors in South32 will be ineligible to receive this company’s latest dividend. As such, the value of this dividend has left the South32 share price.

But investors who owned the shares prior to today can look forward to a figurative cheque in the mail. The fully franked interim payment will be worth 8.7 US cents per share. This will be sent out to investors on 7 April.

As is common with dividends initially determined in a foreign currency, we don’t yet know for sure how much this dividend is worth in our own dollars. But on today’s exchange rates, a payment of 8.7 US cents would equate to approximately 12 Australian cents per share.

On the current South32 share price, this ASX 200 miner has a dividend yield of 3.59%.

South32 shares are up 18% this year to date and 72% over the past 12 months.

The post Here’s why the South32 (ASX:S32) share price is sliding today appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Here are the 3 most heavily traded ASX 200 shares this Wednesday
• Want the dividends from these 5 ASX shares? You’d better be quick!
• These 3 ASX 200 shares are topping the volume charts on Tuesday
• Here’s why the South32 (ASX:S32) share price has soared 25% in a month

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 Bruce Jackson.

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The Rio Tinto Limited (ASX: RIO) share price is heading south during morning trade on Thursday.

This comes despite the world’s second-largest miner not releasing any market-sensitive news today.

At the time of writing, Rio Tinto shares are down 7.32% to $111.10 apiece.

Why are Rio Tinto shares falling today? 

Following the company’s full-year results released on 23 February, investors are eyeing Rio Tinto shares as they go ex-dividend today.

This means that investors who bought the company’s shares on Wednesday or before will be eligible for the latest dividend. Anyone who purchases the shares today will miss out as the seller has secured the dividend.

Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out.

When can Rio Tinto shareholders expect payment?

For those eligible for Rio Tinto’s final dividend, shareholders will receive a total payment of US$10.40 per share on 21 April. The dividend is fully franked which means that investors will receive tax credits from this.

The latest dividend is an 87% increase compared to the prior corresponding period (US$5.57 per share in FY20).

The payout figure represents an annualised dividend yield of 11.87% based on Wednesday’s closing price.

Furthermore, the $16.8 billion full-year dividend represents a payout of 79% of underlying earnings. This is above management’s policy of returning between 40% to 60% of underlying earnings to shareholders.

Are Rio Tinto shares a buy?

Following the company’s full-year results, a number of brokers weighed in on the Rio Tinto share price.

The team at Citi downgraded its outlook on the miner’s shares to “neutral” from “buy”, but raised its price target by 4.3% to $120.00.

In addition, Morgans has a similar view for Rio Tinto shares, lifting its take by 9.3% to $117.00.

However, the most bullish brokers were Goldman Sachs and Macquarie. The former improved its price target by 2.1% to $132.50, while Macquarie slashed its rating by 1% to $129.00.

This represents an upside of between 6% and 20% from were Rio Tinto shares are trading today.

About the Rio Tinto share price

Despite today’s drop, the Rio Tinto share price has climbed by 10% since the beginning of the year.

On valuation grounds, Rio Tinto commands a market capitalisation of around $44.5 billion, with approximately 371.22 million shares outstanding.

The post Here’s why the Rio Tinto (ASX:RIO) share price is sliding 7% today appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Record $36bn in dividends could help ASX share market recovery
• 3 under-the-radar commodity prices soaring since the Ukraine crisis
• Want the dividends from these 5 ASX shares? You’d better be quick!
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends

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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