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There is a famous investment theory called “Dogs of the Dow” from a 1991 book titled Beating The Dow.

This system advocates buying up the worst-performing stocks from the past calendar year, with the contrarian belief that they must be due for a recovery over the next 12 months.

Atlas Funds Management chief investment officer Hugh Dive said there’s a reason why this approach works.

“Institutional fund managers often report their portfolios’ contents to asset consultants as part of their annual reviews,” he posted on Livewire.

“This process incentivises fund managers to sell the ‘dogs’ in their portfolio towards the end of the year as part of ‘window dressing’ their portfolio before being evaluated.”

Because of this, retail investors actually have an advantage over the professionals.

“Their lack of scrutiny from asset consultants allows them the flexibility to pick up companies whose share prices have been under pressure late in the year that could see a rebound when the selling pressure stops in January and February. 

“Furthermore, retail investors can afford to take a longer-term view on the investment merits of a particular company that may have hit a speed bump.”

Refining the philosophy further, Dive has picked out 2 particular ASX shares among 2021’s ‘dogs of the ASX’ that have the best rebound potential.

One takeover candidate and coal comeback

Construction company Lendlease Group (ASX: LLC) and explosives provider Orica Ltd (ASX: ORI) saw their shares plunge 16% and 8% respectively in 2021. And they’ve each fallen a further 3% or so in the first few days of this year.

Dive is picking these two businesses to see a strong revival in 2022.

He loves the takeover potential of LendLease with “an attractive $110 billion global development pipeline”.

“It currently trades on a cheap multiple,” Dive said.

“Additionally, LendLease is a more palatable and cleaner acquisition target since exiting its volatile engineering business.”

The fall in Orica shares was triggered by a collapse of thermal coal volumes from its mining clients.

“However, in 2022 the outlook for coal looks robust, particularly in light of major exporter Indonesia banning coal exports in January 2022,” said Dive.

“This move by the Indonesian government is being made to divert coal to domestic power producers and will be beneficial for Australian coal miners — and hence Orica.”

The post 2 beaten-up ASX shares tipped to rebound in 2022 appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Thursday
• Orica (ASX:ORI) share price edges lower following $180m asset sale

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

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The S&P/ASX 200 Index (ASX: XJO) has plenty of shares that have fairly high dividend yields. But only a certain number of ASX 200 dividend shares are rated as buys.

It takes more than just paying a dividend for a business to be attractive. Investors may consider the earnings growth potential or whether the valuation is cheap enough to buy at.

For example, Commonwealth Bank of Australia (ASX: CBA) may be one of the most well-known businesses for paying a higher dividend yield, but most analysts currently rate the large bank as a sell.

However, these two ASX dividend share options are rated as buys and also have large prospective dividend yields.

Fortescue Metals Group Limited (ASX: FMG)

Fortescue is one of the biggest businesses in Australia. It’s a major player in the iron ore industry.

The mining giant is currently rated as a buy by the brokers at Macquarie with a price target of $21.

Macquarie is forecasting that Fortescue could pay a grossed-up dividend yield of 18.8% in FY22 and 13.5% in FY23.

The broker thinks that the outlook for iron is improving with an increase of demand in China.

One of the things that features in Macquarie’s thinking is both the rewards and risks of the Iron Bridge project. The project is now expected to cost quite a bit more than originally anticipated. This project is under development and is expected to deliver 22mt per annum of high grade 67% Fe magnetite concentrate product, further enhancing the range of products available to its customers.

Fortescue said that the innovative process design, including the use of a dry crushing and grinding circuit, will deliver globally competitive capital intensity and operating costs.

The ASX 200 dividend share is also working on green hydrogen projects so that it can become a world leader with that commodity in a decarbonised world.

Coles Group Ltd (ASX: COL)

Coles has seen its share price fall by more than 5% since 30 December 2021. This has had the effect of not only making it cheaper, but also boosting the prospective dividend yield for investors looking for defensive ASX 200 dividend shares.

The supermarket business has delivered reliable and growing earnings during COVID to date, though FY22 is ongoing.

It’s rated as a buy by a few different brokers including Citi. This broker has estimated that Coles is going to pay a grossed-up dividend yield of 5.4% in FY22 and 6% in FY23.

Coles is currently building two large automated distribution centres that are expected to make the business more efficient and help make the company more profitable over the longer-term.

Whilst currently battling the effects of the Omicron variant, with supply chain impacts and empty shelves, Coles is still experiencing elevated demand for plenty of its food categories in its supermarkets.

Citi’s price target on Coles is $19.60, which is approximately 15% higher than where it is right now. The Coles share price is valued at 22x FY22’s estimated earnings.

The post 2 high-yielding ASX 200 dividend shares to boost income appeared first on The Motley Fool Australia.

More reading

• Own Fortescue (ASX:FMG) shares? Here’s how the share price performed in 2021
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• ASX retail investors should be banned from ‘financial heroin’: Choice
• ASX 200 (ASX:XJO) midday update: AGL and Novonix shares shoot higher

Motley Fool contributor Tristan Harrison owns Fortescue Metals Group Limited. 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 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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Investing in a growth share takes a leap of faith.

By putting your money in, you are relying on that business to fulfil its future promises. Your support is not necessarily based on its current numbers, which may show no profit and perhaps not massive revenue.

The theory is that these ASX shares represent businesses that will re-invest any excess cash back into the business so that it can grow market share.

And that can take a while. 

Celebrated growth stocks Amazon.com Inc (NASDAQ: AMZN) and Tesla Inc (NASDAQ: TSLA) took many years to expand before they were ready to achieve a surplus. They’re both still growing, in fact.

So it could be something of a surprise when you come across a growth stock that’s already turning a profit.

But that’s exactly what Monash Investors portfolio manager Sebastian Correia just found.

The ASX share that investors ‘consistently underestimate’

Johns Lyng Group Ltd (ASX: JLG) is a business that provides building services, insurance reconstruction, and strata management in Australia and the US.

The company has seen its shares almost triple in the past 12 months.

It has consistently grown its revenue in recent years. The 2021 financial year saw it rake in $568.4 million, which was 15% up from the previous year. The 2020 revenue was a 47% boost from 2019.

So there’s not much doubt it’s a growth share.

But, to add to the intrigue, Johns Lyng has generated net profit in the tens of millions during the past 4 completed financial years.

Correia said on the Monash blog that investors have “consistently underestimated” Johns Lyng’s ability to grow.

“The predictable nature of JLG’s growth is a great example of a recurring situation that we use at Monash Investors to recognise future business outcomes that the market underestimates.”

A nice acquisition to expand overseas

Correia also likes Johns Lyng’s US$202 million acquisition of US insurance restoration business Reconstruction Holdings Inc last month.

“An acquisition by JLG was widely expected, but the market underestimated its blockbuster 64% earnings-per-share (EPS) accretion,” he said.

“When JLG shares resumed trading, the stock price jumped 16%.”

Johns Lyng’s strategic track record in Australia is enviable and Correia is looking forward to seeing it replicated overseas.

“The Reconstruction [Holdings] acquisition is a good foothold in the US,” he said. 

“By exporting their property obsession to the US, a similarly fragmented market, JLG has unlocked a much larger growth path.”

Johns Lyng shares closed Monday at $8.92.

The post Did you miss this ASX growth share already making a profit? appeared first on The Motley Fool Australia.

More reading

• Johns Lyng (ASX:JLG) shares surge 19% out of trading halt. Here’s why

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo owns Amazon. 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 Amazon. 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 Fortescue Metals Group Limited (ASX: FMG) share price failed to power ahead in 2021.

In the 12-month period, the mining outfit’s shares moved considerably lower, down 18%. In comparison, the S&P/ASX 200 Index (ASX: XJO) has gained roughly 13.5% over the same period.

At Friday’s closing bell, Fortescue shares finished 3.14% higher to $20.37 apiece. A sharp recovery from when its shares were trading around the $14 mark in early November.

What happened with the Fortescue share price?

The volatility in the Fortescue share price in 2021 was largely driven by a slowdown in Chinese demand for iron ore. It was no secret that the Asian superpower applied political pressure to its steel producers in curbing reliance on Australian iron ore.

Chinese lawmakers introduced new rules, limiting the importation of iron ore in 2021 to no more than 2020 levels. This led to supply issues as China threatened to impose harsh penalties for steel mills who exceed production limits.

As a result, the price of iron ore more than halved during the course of last year. From reaching its lofty highs of US$200 in May, the steelmaking ingredient’s price shrunk to around the US$100 mark in the following months.

Fast-forward to today, the current iron ore price has rebounded to US$125 per tonne, an ascent of 25% since December. This is partly the reason why Fortescue shares have rallied to August 2021 prices.

In addition, the company’s subsidiary, Fortescue Future Industries will team up with energy behemoth, AGL Energy Limited (ASX: AGL).

Both companies entered into a Memorandum of Understanding (MOU) to develop a hydrogen hub for the Hunter Valley coal plants. Namely, this relates to the Liddell and Bayswater coal-fired power stations, which AGL plans to transform the site.

The Liddell coal-fired power station is scheduled to close down in 2023, with Bayswater going offline in 2025.

Fortescue boss, Andrew “Twiggy” Forrest will be involved with the development, which will consist of a 12-month feasibility study. This news which arrived early last month excited investors, sending Fortescue shares 13% higher in the following two weeks.

Is this a buying opportunity?

Last month, a couple of brokers rated the company’s shares with varying price points.

Australian leading investment firm, Morgans raised its 12-month price target by 30% to $16.90 for Fortescue shares. Based on the current share price, this implies a downside of around 17% for investors.

However, JPMorgan analysts had a different tone, downgrading its outlook on the company’s share price to “neutral” from “overweight”. The broker also slashed its rating by 9.1% to $20 apiece. Currently, it appears that investors and JPMorgan are on the same page on where they believe Fortescue should be valued.

The post Own Fortescue (ASX:FMG) shares? Here’s how the share price performed in 2021 appeared first on The Motley Fool Australia.

More reading

• What’s impacting the Fortescue (ASX:FMG) share price on Monday?
• Top brokers name 3 ASX shares to sell next week
• Buying ASX shares in 2022? Here’s what you need to know: expert
• Own Fortescue (ASX:FMG) shares? The ASX 200 miner just hit a new green milestone
• 2 compelling ASX shares that could be buys in January 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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If you’re wanting to boost your income with some dividend shares, then you might want to consider the ones listed below.

Both dividend shares are expected to provide investors with attractive yields in 2022. Here’s what you need to know about them:

Centuria Industrial Reit (ASX: CIP)

The first ASX dividend share to consider is Centuria Industrial. It is a property company with a focus on high quality industrial assets that deliver income and capital growth to investors.

In FY 2022, Centuria Industrial has been experiencing strong nationwide demand for industrial space, particularly from ecommerce-related tenant customers. This resulted in Centuria Industrial reporting 10% rental growth financial year to date in mid-December.

The good news for income investors is that this positive form bodes well for dividends this year. Centuria Industrial REIT revealed that it is targeting funds from operations (FFO) of at least 18.1 cents per share and a distribution of 17.3 cents per share in FY 2022. Based on the current Centuria Industrial REIT share price of $4.00, the latter will mean a 4.3% dividend yield for investors.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that is expecting to reward shareholders with an attractive yield in FY 2022 is Rural Funds. This real estate investment trust’s focus is to deliver returns to investors generated from quality management of Australian farmland, rural infrastructure, and agricultural operations.

It has a high quality portfolio of assets and an eye for a deal. For example, the company recently added to its portfolio through the acquisition of a number of cattle and cropping properties in Queensland. Management notes that these are consistent with its strategy of acquiring assets with potential for productivity improvements.

In FY 2022, the company intends to increase its dividend by its annual target rate of 4% to 11.73 cents per share. Based on the current Rural Funds share price of $3.11 this represents a yield of 3.8%.

The post Here are 2 top ASX dividend shares with attractive yields appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares with attractive yields
• Why is the Rural Funds (ASX:RFF) share price falling on Thursday?
• 2 excellent ASX 200 dividend shares to buy now
• Got money to invest for income? Here are 2 ASX dividend shares that could be buys
• The Rural Funds (ASX:RFF) share price has gone up 20% in 2021. Is it still a buy?

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 owns and has recommended RURALFUNDS STAPLED. 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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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index dropped 0.1% to 7,447.1 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to tumble on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 43 points or 0.6% lower this morning. This follows a poor start to the week on Wall Street, which in late trades sees the Dow Jones down 0.7%, the S&P 500 down 0.7%, and the Nasdaq trading 0.75% lower.

Ramsay signs NHS agreement

The Ramsay Health Care Limited (ASX: RHC) share price will be on watch today after it reached an agreement relating to a new volume-based agreement with NHS England (NHSE). The deal will make its services available to the NHSE and its patients to meet the ongoing demands resulting from the COVID-19 pandemic.

Oil prices fall

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a difficult day after oil prices dropped. According to Bloomberg, the WTI crude oil price is down 0.6% to US$78.45 a barrel and the Brent crude oil price has fallen 0.75% to US$81.14 a barrel. Oil prices fell due to Omicron concerns.

Gold price edges higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent day after the gold price edged higher. According to CNBC, the spot gold price is up 0.1% to US$1,799.70 an ounce. Traders appear to have been buying the precious metal amid weakness in equities.

Platinum update

The Platinum Asset Management Ltd (ASX: PTM) share price will be one to watch today following the release of its latest funds under management update. Unfortunately, the fund manager had a tough month and recorded net outflows of approximately $168 million in December. This left it with funds under management of $22,006 million.

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

More reading

• Here are the top 10 ASX shares today
• 2 ASX healthcare shares to give your portfolio a boost
• ASX retail investors should be banned from ‘financial heroin’: Choice
• ASX 200 (ASX:XJO) midday update: AGL and Novonix shares shoot higher
• 2 ASX 200 shares that could be top buys for growth

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 Ramsay Health Care 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

2021 was a rough year for many manufacturers, as businesses were forced to navigate cost increases and supply chain constraints. Electric-vehicle (EV) leader Tesla (NASDAQ: TSLA) handled those issues and thrived. As a result, its business continued to grow, and investors pushed its shares up 49.8% in 2021, according to data from S&P Global Market Intelligence. That jump came after a torrid year for the stock in 2020, when shares rocketed more than 700%. Many investors are now wondering whether the stock will continue rising in 2022. 

So what

Tesla finished the year strong, reporting more than 308,000 vehicle deliveries in the fourth quarter. That brought its 2021 total deliveries to 936,172, representing an 87.4% increase over 2020. When the company reports its full-year 2021 results, investors will probably hear that revenue for the year exceeded $50 billion. And the business is profitable. Net income through the first nine months of 2021 was nearly $3.2 billion. Investors are now looking forward to new catalysts on the way. 

The company should begin production this year at both of its two new facilities in Austin, Texas, and near Berlin, respectively. The Texas plant will be the first to begin making the Cybertruck. Widely followed Wedbush Securities analyst Dan Ives believes the Austin plant will begin production as soon as next week, reports Barron’s. 

Now what

2022 looks to be the first year that Tesla won’t be the only big game in town. Competition from traditional automakers and EV startups is coming online. Ford, for example, has already begun selling its Mach-E SUV in the U.S. and China at a starting price that competes with Tesla’s midsize Model 3 sedan. And startups including Lucid Group and Chinese EV maker Nio are bringing luxury electric sedans to market in 2022 that customers might prefer over the Model S. 

But those startups have yet to prove they can manufacture vehicles at scale. Tesla itself recently was forced to recall 475,000 vehicles for issues including potential front hood latch and camera problems. 

It may be the traditional manufacturers that are converting from internal combustion to electric-powered vehicles that bring the biggest competitive threat to Tesla in 2022. But the market for EVs looks set to grow in accordance with the increased availability of new offerings.

It remains to be seen how investors will continue to value Tesla stock. But with two new plants beginning production, and the introduction of the Cybertruck, Tesla’s business looks like it should have another big year of growth in 2022. 

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

The post Why Tesla shares jumped 50% last year appeared first on The Motley Fool Australia.

More reading

• Why Tesla stock just keeps falling
• Could Tesla deliveries double this year?
• Here’s why the Tesla (NASDAQ:TSLA) share price soared 13% overnight
• Can Tesla Lead EV Stocks Higher in 2022?
• 3 obscure lithium ASX shares ready to pop in 2022

Howard Smith owns Lucid Group and Nio. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Nio and Tesla. 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.

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

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Today, the S&P/ASX 200 Index (ASX: XJO) posted a slight move to the downside. At the end of the session, the benchmark index fell 0.08% to 7,447.1 points.

It was a mixed session on the ASX today, with the market split in two directions. Unfortunately, the gains from mining and energy shares weren’t enough to compensate for the undesirable segments of the share market. The most disappointing performances were witnessed across the consumer discretionary, healthcare, tech sectors today.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Novonix Ltd (ASX: NVX) was the biggest gainer today. Shares in the battery technology company jumped 10.91% after announcing its plans to list on the Nasdaq exchange in the United States. Find out more about Novonix here.

The next biggest gaining ASX share today was AGL Energy Ltd (ASX: AGL). The energy giant experienced a positive session to the tune of 8.60% today following an upgrade on the company’s shares from analysts at Credit Suisse. Uncover the latest AGL Energy details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Novonix Ltd (ASX: NVX)	$10.37	10.91%
AGL Energy Ltd (ASX: AGL)	$6.82	8.60%
Magellan Financial Group Ltd (ASX: MFG)	$20.63	6.95%
Whitehaven Coal Ltd (ASX: WHC)	$2.905	5.64%
South32 Ltd (ASX: S32)	$4.07	3.83%
AVZ Minerals Ltd (ASX: AVZ)	$0.895	3.47%
Champion Iron Ltd (ASX: CIA)	$5.97	3.47%
Coronado Global Resources Inc (ASX: CRN)	$1.35	3.45%
Latitude Group Holdings Ltd (ASX: LFS)	$2.15	3.37%
Alumina Ltd (ASX: AWC)	$1.935	3.20%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• ASX retail investors should be banned from ‘financial heroin’: Choice
• Why AGL, Genetic Signatures, Liontown, and Novonix shares are charging higher
• Here’s why the AGL (ASX:AGL) share price is surging 8% today
• ASX 200 (ASX:XJO) midday update: AGL and Novonix shares shoot higher
• Novonix (ASX:NVX) share price jumps 7% on Nasdaq listing plans

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. 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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Due to favourable tailwinds such as ageing populations and improving technologies and treatments, demand for healthcare services is expected to grow strongly over the next few decades.

In light of this, the healthcare sector could be a good place to consider investing with a long term view. But which shares should you consider buying? Two highly rated ASX healthcare shares to consider are listed below:

Nanosonics Ltd (ASX: NAN)

The first ASX healthcare share to look at is Nanosonics. It is a leading infection prevention company behind the popular trophon EPR ultrasound probe disinfection system. Last year this system was protecting an estimated 80,000 patients from the risk of cross contamination each day.

And while this is generating strong revenues, management isn’t settling for that. The company is also busy researching and developing a number of new products which are due to be launched in the coming years.

One of these is AuditPro. It is a digital platform that has been designed to improve traceability, reporting, and compliance of infection prevention measures for medical devices. Another is the Nanosonics Coris platform. This new platform, which is expected to be launched in 2023, is for cleaning flexible endoscopes. This could be an even bigger market than ultrasound probe disinfection.

Morgans is positive on the company and has an add rating and $6.97 price target on its shares. This compares to the latest Nanosonics share price of $5.87.

Ramsay Health Care Limited (ASX: RHC)

Another ASX healthcare share to look at is Ramsay Health Care. It provides quality healthcare services to over 8 million patients each year through a network of facilities across 10 countries and over 500 locations.

Although trading conditions have been tough over the last 18 months and recent elective surgery restrictions are weighing on its performance, the company has been tipped to bounce back strongly when trading conditions normalise. Particularly given the pent-up demand for healthcare services and its proposed acquisition of Elysium Healthcare.

Goldman Sachs is a fan of Ramsay. It currently has a buy rating and $74.00 price target on the company’s shares. This compares favourably to the latest Ramsay share price of $67.25. The broker believes Ramsay’s valuation is undemanding for a defensive asset leveraged to improving vaccine rates and a favourable growth profile.

The post 2 ASX healthcare shares to give your portfolio a boost appeared first on The Motley Fool Australia.

More reading

• 3 top ASX 200 shares to buy in January
• Why is the Ramsay (ASX:RHC) share price so volatile today?
• Ramsay (ASX:RHC) share price falls 6% amid reports of COVID battle plan
• These ASX healthcare shares could be excellent buy and hold options
• These were the best performing ASX 200 shares last 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. owns and has recommended Nanosonics Limited. The Motley Fool Australia owns and has recommended Nanosonics Limited. The Motley Fool Australia has recommended Ramsay Health Care 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 Insurance Australia Group Ltd (ASX: IAG) share price had a rough year in 2021.

Shares in the company fell from $4.70 to $4.26 during the year, a 9% fall.  In contrast, the S&P/ASX 200 Index (ASX: XJO) gained around 13%

Let’s take a look at how the year played out for the insurance group.

Tough end to the year

The IAG share price was up and down like a rollercoaster in 2021 before a huge slump at the end of the year.

In an early high for the company, IAG shares soared 8% between market close on 8 February and 11 February. Strong financial results were received well by investors, with the company reporting a 3.8% rise in gross written premiums. Insurance profit also surged by 33.1% due to a low level of claims.

However, shares in the company then fell dramatically by nearly 15% between market close on 11 February and 10 March. Shares crashed on 9 March before being put in a trading halt. Media speculation on exposure to the Greensill collapse weighed on investors minds. However,  IAG informed the ASX it had “no net insurance exposure to trade credit policies including those sold through BCC to Greensill entities”.

The company’s share price then recovered this loss, soaring more than 15% between 10 March and 8 June. Several new leadership changes were announced by the CEO.

In August, the IAG share gained on the back of a major board reshuffle and positive FY21 results. Between 4 August and 12 August, the company’s shares gained 12%. The company saw a 3.8% increase in its gross written premium to roughly $12.1 million.

September saw the ING share price plummet nearly 12% between 6 September and 24 September. Investors reacted to news CMC Hospitality had filed an application to start Federal court proceedings against the company. This hit the share price hard.

Then between 11 October and 17 November, the share price took another massive hit amid news ASIC had taken IAG subsidiary Insurance Australia limited to court. Severe storm and hail activity also negatively impacted the company’s claim costs, further driving down the share price.

Share price recap

The IAG share price performed roughly 22% worse than the benchmark ASX index in 2021. On a positive note, the new year is starting well for the company, with shares up 4.23% so far this year.

Shares in the company are down 1.33% in the past month.

The company has a market capitalisation of about $10.9 billion based on the current share price.

The post What happened to the Insurance Australia (ASX:IAG) share price in 2021? appeared first on The Motley Fool Australia.

More reading

• What’s happening with the IAG (ASX:IAG) share price today?
• Leading brokers name 3 ASX shares to sell today
• Could the IAG (ASX:IAG) share price be on the road to recovery in 2022?
• Own IAG (ASX:IAG) shares? Here are the key dates to pencil in for 2022
• Brokers name 3 ASX shares to sell

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 Insurance Australia 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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