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The Rural Funds Group (ASX: RFF) share price is sliding lower today despite no news having been released by the trust. However, it’s one of many ASX shares trading ex-dividend today.

At the time of writing, the Rural Funds share price is $3.11, 2.2% lower than its previous close.

Let’s take a closer look at what’s likely dragging the agriculture-focused real estate investment trust’s (REIT’s) share price lower on Thursday.

Rural Funds share price slides amid ex-dividend date

The Rural Funds share price is slumping. Meanwhile, those investing in the company today will miss out on its upcoming dividend.

That’s right, Rural Funds has surpassed its ex-dividend date. That means that those who held the company’s stock as of yesterday’s close will be entitled to its upcoming dividend, rather than any future buyer.

The company will be handing out a 2.9331 cent per share, unfranked, ordinary dividend on 31 January 2022.

It’s the largest dividend ever handed out by Rural Funds, beating its 4 previous quarterly dividend payments by 0.11 of a cent.

Rural Funds has been paying out a dividend approximately every 3 months since 2013.

It’s one of many ASX-listed REITs going ex-dividend today. Others include:

Centuria Industrial REIT (ASX: CIP), Centuria Office REIT (ASX: COF), National Storage REIT (ASX: NSR), Charter Hall Social Infrastructure REIT (ASX: CQE), Charter Hall Retail REIT (ASX: CQR), Arena REIT No 1 (ASX: ARF), Waypoint REIT Ltd (ASX: WPR), 360 Capital REIT (ASX: TOT) Healthco Healthcare and Wellness REIT (ASX: HCW), and HomeCo Daily Needs REIT (ASX: HDN).

Of those, only the Arena REIT No 1 share price is posting a gain today, while 360 Capital REIT is flat with its previous close.

Despite today’s dip, the Rural Funds share price is still in the long-term green. Right now, it is 19% higher than it was at the start of 2021. It has also gained 5% over the last 30 days.

The post Why is the Rural Funds (ASX:RFF) share price falling on Thursday? appeared first on The Motley Fool Australia.

More reading

• The Rural Funds (ASX:RFF) share price has gone up 20% in 2021. Is it still a buy?
• 2 ASX dividend shares with better yields than term deposits
• 2 leading ASX dividend shares for compelling income
• 2 ASX dividend shares with 4% yields

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 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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The S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and is edging lower. At the time of writing, the benchmark index is down 0.1% to 7,502.7 points.

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

Afterpay Ltd (ASX: APT)

The Afterpay share price is down a further 2.5% to $82.82. This follows yet another pullback in the Block (Square) share price overnight. The Block share price has now lost 22% of its value since this time last month. This is reducing the value of the all-scrip takeover proposal that Afterpay shareholders recently approved.

Healius Ltd (ASX: HLS)

The Healius share price is down over 3% to $5.34. This decline could be due to the growing emphasis on using rapid antigen tests for COVID-19. Healius has been a huge winner from COVID-19 testing over the last 18 months but could see the current sky high volumes ease in the coming weeks as rapid antigen tests begin to rollout.

IDP Education Ltd (ASX: IEL)

The IDP Education share price is down 5% to $33.89 despite there being no news out of the language testing and student placement company. However, investors may be concerned that the significant rise in Omicron cases globally could have a negative impact on its businesses.

Transurban Group (ASX: TCL)

The Transurban share price is down 1.5% to $13.72. The catalyst for this has been the toll road operator’s shares trading ex-dividend this morning for its interim dividend. When a share trades ex-dividend it means that new buyers will not be entitled to an upcoming dividend. As a result, a share price will usually drop in line with the dividend to reflect this. Transurban will now pay eligible shareholders a 15 cents per share dividend on 22 February.

The post Why Afterpay, Healius, IDP Education, and Transurban shares are falling appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CBA rises, Sandfire’s MATSA update
• Why are Transurban (ASX:TCL), Dexus, and Mirvac shares tumbling?
• 3 fantastic ASX 200 shares to buy in 2022
• Insiders have been buying Nuix (ASX:NXL) and this ASX share
• 5 things to watch on the ASX 200 on Thursday

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 Afterpay Limited and Idp Education Pty Ltd. The Motley Fool Australia owns and has recommended Afterpay 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 Healthia Ltd (ASX: HLA) share price is trading at an all-time high today after a stellar week on the market.

Shares in the healthcare company are currently swapping hands at $2.41, up 3% on the day and 10% in the past week. The Healthia share price is also up 96.5% in the past year.

Let’s take a look at what might be impacting investor confidence in the company lately.

What is the company up to?

Healthia operates podiatry, physiotherapy, and optometry businesses all over the nation.

The Healthia share price has been surging in the final week of December on the back of several major acquisitions.

On Christmas Eve, the company informed investors it is taking over two businesses in Queensland and one company in Victoria. This includes two physiotherapy businesses and an optometry company.

These acquisitions will improve revenue by $9.52 million and increase earnings before interest, tax, depreciation, and amortisation (EBITDA) by $1.9 million.

The company also revealed it had completed settlement on five PhysioWorks physiotherapy clinics in Southeast Queensland. These were first announced to the market on November 15.

In a further possible boost to the Healthia share price, the company advised on December 23 it has completed settlement for 63 Back in Motion physiotherapy clinics. Collectively, the clinics generated an underlying revenue of $62.3 million and EBITDA of $12.2 million in the 2021 financial year.

Overall, Healthia is expecting all the acquisitions in the final six months of the year will increase underlying revenue by $82.9 million and EBITDA by $15.9 million.

The company has had a significant year despite its clinics being impacted by the COVID-19 pandemic. In October, Healthia advised the market 798 staff had received JobKeeper payments, totalling $10.8 million, in the last financial year.

Healthia share price recap

The Healthia share price has skyrocketed more than 93% in the year to date and has risen nearly 15% in the past month.

In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned more than 12% in the past year.

The company has a market capitalisation of more than $306 million based on the current share price.

The post This small-cap ASX healthcare share just hit a 52-week high appeared first on The Motley Fool Australia.

More reading

• 2 small cap ASX shares for 2022 with big potential

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended HEALTHIA FPO. The Motley Fool Australia has recommended HEALTHIA FPO. 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 Magnis Energy Technologies Ltd (ASX: MNS) share price is struggling on Thursday. This comes after the company announced a business update on its Nachu Graphite Project.

At the time of writing, the battery technology company’s shares are down 2.75% to 53 cents.

What’s up with Magnis shares today?

The Magnis share price is currently in reverse as investors take profit following a 19.78% gain yesterday.

In today’s announcement, Magnis provided an update on the recent activities at the Nachu Graphite Project.

During the past few months, the company has been ramping up its plans to build an eco-village. This is part of the resettlement package for the 56 families affected by the development of Nachu.

Clearing works are nearing completion with roadworks having commenced recently. It is expected that during the first quarter of 2022 that construction of the village will begin.

An option for powering the village is being assessed whereby the company could potentially provide its solar and battery storage solution. This would be used by lithium-ion batteries produced from iM3NY’s battery plant based in Endicott, New York.

In addition, Magnis revealed that recent water bore drilling delivered successful results, with several holes showing significant water flow. The water volumes achieved are considered to be suitable for the construction phase.

Fencing off Nachu will begin also in the first quarter of 2022, with scheduled completion within 3 months of starting.

Lastly, Magnis highlighted the binding offtake agreement signed with physical commodity trader and merchant, Traxys this month.

This will see the future supply of natural graphite concentrate from the Nachu Graphite Project.

Under the terms, the delivery of the product is valid for a period of 6 years from the commencement date. It is expected that orders will begin to be fulfilled sometime in the second half of 2024.

The sales volume must be a minimum of 600,000 tonnes of graphite across all flake sizes over the contract period.

The pricing of the product will be set at the current market rate at the time of the delivery.

More on the Nachu Graphite Project.

The project is located approximately 220 kilometres away from the Tanzanian port of Mtwara. Due to its large size, the project has significant potential to be a world-class producer of graphite. The area has an orebody with very low variation in lithology and mineralisation, and in low-cost operational model.

Magnis has a proprietary process to produce a high quality, high purity graphite concentrate ore from the Nachu graphite feedstock.

The African graphite project is estimated to contain a combined measured, indicated and inferred resources totalling 174Mt grading 5.4% graphitic carbon (Cg) at 3% Cg cut-off grade.

About the Magnis share price

In the past 12 months, Magnis shares have shot up around 170% from continued positive investor sentiment. The company’s share price charged higher in late October following an update on its New York Lithium-ion Battery Plant.

Magnis commands a market capitalisation of around $518.63 million, with roughly 978.56 million shares on its registry.

The post Magnis (ASX:MNS) share price edges lower amid graphite project update appeared first on The Motley Fool Australia.

More reading

• Why Magnis, Pilbara Minerals, Syrah, and Whispir shares are storming higher
• Here’s why the Magnis (ASX:MNS) share price is powering ahead today
• Here’s why the Magnis (ASX:MNS) share price edged higher on Wednesday
• Magnis (ASX:MNS) share price leaps 6% on new supply deal
• Why have Magnis (ASX:MNS) shares just entered a trading halt?

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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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.

Investors in Ethereum (CRYPTO: ETH) might have a bone to pick with Coinbase Global (NASDAQ: COIN), the world’s most popular trading exchange for cryptocurrencies. Coinbase does a lot of things right, but one thing that it’s not known for is being a place to generate passive income on active investments. It offers staking, inflation, or interest awards on just six of the dozens of digital currencies available for trading on its platform.

Earlier this year, Coinbase began offering Ethereum investors the ability to generate staking rewards on the world’s second-most-valuable crypto, but there was a pretty big catch. Unlike other exchanges and decentralized financial platforms that let Ethereum owners generate income on their crypto and easily withdraw from the program, Coinbase investors opting into its staking rewards would be unable to trade that position until Ethereum’s transformation to a proof-of-stake model was complete. They were converting their crypto to Ethereum 2.0, the inevitable landing place for the token once the mother of all makeovers was complete. Coinbase did promote the eventual rollout of a liquidity event ahead of the Ethereum migration, but that milestone just got moved further away.

A bridge too far

Until just a few days ago, a Coinbase help page explaining how staking rewards worked on Ethereum was pretty clear on the terms of withdrawing from the program:

During the initial launch, you will be unable to trade, send, or sell the amount you have staked. Later this year, we expect to enable liquidity of your staked ETH funds.

However, there will be no liquidity “later this year” for staked Ethereum. A new edit — so fresh that it’s even in a different font size — is pushing out the first potential exit strategy to 2022.

Coinbase investors knew that this wasn’t going to be a process for the impatient. There is no firm date for Ethereum’s makeover to the more-efficient Ethereum 2.0. But Coinbase expecting a withdrawal option at some point in 2021 offered some relief. With Ethereum prices sliding recently (down 6% over the past week and 12% over the past month), the customer complaints will likely grow louder over the program’s restrictions.

It gets worse. It’s not just the withdrawal option that’s changing. The interest earned on staked Ethereum on Coinbase keeps shrinking. When the plan was first announced, it promised an annual interest rate as high as 7.5%. It was actually 6% when the staking rewards program officially launched, it was whittled down to 5% in June, and it’s at 4.5% now. In Coinbase’s defense, it did make it clear that the interest paid would likely contract over time. The problem now is that the holding period is being extended with lower rates on a crypto that’s staging a retreat. Ethereum is now 23% below last month’s all-time high.

This doesn’t have to end badly for Coinbase or its customers with staked Ethereum. The crypto continues to be one of the more promising digital currencies with some compelling near-term catalysts for growth. If Ethereum winds up trading substantially higher by the time Coinbase makes it eligible for withdrawal, it will be the ultimate win-win situation. It may be a sticky situation now with the recent sell-off, but crypto’s volatility also comes with the promise of hefty long-term gains. 

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

The post Is Coinbase moving the goalposts on your taked Ethereum? appeared first on The Motley Fool Australia.

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• Why is the BetaShares Crypto Innovators ETF (ASX: CRYP) share price leaping higher today?
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• Ethereum in 5 figures: Is it a buy?
• Why the Ethereum price was sliding today
• Gas fees could be Ethereum’s kryptonite

Rick Munarriz owns Coinbase Global, Inc. and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Coinbase Global, Inc. and Ethereum. 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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The Bank of Queensland Limited (ASX: BOQ) share price is edging lower on Thursday and is now 0.61% in the red at $8.18.

ASX financial shares have had a rough trot these past 3 months. However, most, if not all, majors have begun to show signs of a recovery heading into the new year.

BOQ bounced off a low of $7.60 in early December after coming down hard off its previous highs. Since finding range, it is now rising as investors show support once again.

With these points in mind, we’ve gone to see what the analysts at leading investment banks are saying on the outlook for BOQ investors in 2022.

Is Bank of Queensland a buy?

Depending on who you ask, it could be. Certainly, the majority of brokers are bullish on the direction of the Bank of Queensland share price, with the consensus price target now sitting at $9.62.

Most of the commentary is centred on the bank’s net interest margin (NIM). For instance, Jefferies says BOQ’s NIM compression may be better than the market is pricing.

Jefferies notes the bank revised FY22 guidance at its AGM recently, baking in a 1% reduction in operating costs year on year. However, it did reiterate a 2% positive jaws ratio, which looks at core income relative to expenses in banks.

This could transpose to a 9 basis point contraction in NIM from the previous year, Jefferies reckons. It notes this is better than expected, alongside the 1% reduction in operating costs.

The broker revised its price target upwards by 13% to $8.50, but rates it as a hold right now.

Meanwhile, the team at Macquarie Group Ltd (ASX: MQG) is also bullish on the Bank of Queensland share price. It reckons the bank is absorbing sector-wide headwinds to margins better than its peers.

Also alluding to the bank’s FY22 guidance update, the broker says the revision was “strong given the industry backdrop” in a recent note. It reiterated its outperform rating on the stock while valuing the company at $10 per share.

Goldman Sachs also hammered in the NIM thesis in BOQ’s investment debate. It noted the bank has a suite of options to offset mortgage-related headwinds to NIMs.

It says BOQ can achieve this as its deposit book is more “rate sensitive”, particularly given that it estimated FY22 NIM would decline steeper than previous guidance of 0.05–0.07%.

For these reasons it maintains a buy rating and reiterated its price target of $9.67 per share.

Finally, JP Morgan likes BOQ’s prospects in 2022. It notes lending growth has shot out of the starting blocks already in FY22, offsetting the expected NIM decline.

It too has an overweight rating on the stock and values Bank of Queensland at $9.80 per share.

Out of the list of analysts provided by Bloomberg Intelligence, 73% of analysts covering Bank of Queensland have it as a buy whereas there is just 1 sell rating.

Bank of Queensland share price summary

The Bank of Queensland share price has lagged the major benchmark this past year, climbing just over 8% in the last 12 months.

In the past month, it has spiked around 6%.

The post Is it a buy? Top brokers’ opinion on the Bank of Queensland (ASX:BOQ) share price appeared first on The Motley Fool Australia.

More reading

• Why is December being so kind to Bank of Queensland (ASX:BOQ) shares?
• Own Bank of Queensland (ASX:BOQ) shares? Here are the key dates to watch in 2022
• Are Bank of Queensland (ASX:BOQ) shares a better buy for 2022 than Bendigo Bank?
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• Goldman Sachs names 2 ASX 200 shares to buy

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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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to remain in positive territory. The benchmark index is currently up by 1.5 points to 7,511.9 points.

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

ASX 200 bank shares largely positive

Three of the big four banks are doing their best to drive the ASX 200 higher today. Australia and New Zealand Banking GrpLtd (ASX: ANZ) shares are the only one in the group that are not pushing higher. The best performer among the big four has been the Commonwealth Bank of Australia (ASX: CBA) share price with a gain of 0.6%.

Shares fall after going ex-dividend

A number of ASX 200 dividend shares are in the red today after going ex-dividend this morning for their latest distributions. This includes property companies Charter Hall Group (ASX: CHC) and Mirvac Group (ASX: MGR), and toll road operator Transurban Group (ASX: TCL). All three will be paying their dividends to eligible shareholders in February.

Sandfire’s MATSA acquisition update

The Sandfire Resources Ltd (ASX: SFR) share price is pushing higher today after its proposed acquisition of MATSA took a step closer to completion. This morning the copper miner revealed that the Foreign Investment Authority and Competition Authority in Spain has approved the US$1,865 million acquisition of the MATSA Mining Complex.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Bega Cheese Ltd (ASX: BGA) share price with a gain of almost 4%. Bell Potter recently named the food company as one of its top picks of 2022. The worst performer has been the IDP Education Ltd (ASX: IEL) share price with a 4% decline. Omicron concerns could be weighing on this language testing and student placement company’s shares.

The post ASX 200 (ASX:XJO) midday update: CBA rises, Sandfire’s MATSA update appeared first on The Motley Fool Australia.

More reading

• Why are Transurban (ASX:TCL), Dexus, and Mirvac shares tumbling?
• Why Anteotech, Bega Cheese, Humm, and Syrah shares are racing higher
• 3 fantastic ASX 200 shares to buy in 2022
• Insiders have been buying Nuix (ASX:NXL) and this ASX share
• 5 things to watch on the ASX 200 on Thursday

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 Idp Education Pty Ltd. 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 share prices of ASX 200 companies Transurban Group (ASX: TCL), DEXUS Property Group (ASX: DXS), and Mirvac Group (ASX: MGR) are plummeting today.

At the time of writing, they’ve fallen 1.25%, 2.59%, and 1.82% respectively.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.1%.

So, what’s sent the three ASX 200 giants spiralling lower on Thursday? Let’s take a look.

What’s going on with some ASX 200 share prices today?

Many ASX 200 shares are trading ex-dividend on Thursday, including Transurban, DEXUS, and Mirvac.

That means, from today, any of the companies’ shares that swap hands won’t provide their buyer with the companies’ upcoming dividends.

Instead, the next dividend will be handed to the shares’ owner at the time of yesterday’s close.

For some stocks, that dividend represents a significant portion of its value.

For instance, the DEXUS share price closed yesterday trading at $11.38. It handed out a 28 cents unfranked dividend in February.

That means its dividend represented 2.46% of its share price at Wednesday’s close. Thus, likely as a result, its share price has fallen a similar amount today.

That’s because its dividend’s value is no longer built into that of its stock.

Transurban is handing its investors a 15 cent, unfranked dividend in February. Right now, the Transurban share price is $13.77.

Meanwhile, Mirvac has promised its shareholders a 5.1 cent, unfranked dividend to be paid in February. At the time of writing, the company’s stock is trading at $2.97.

The three popular ASX 200 companies’ shares aren’t the only ones suffering today. They are some of many stocks going ex-dividend on Thursday.

Charter Hall Group (ASX: CHC) and Shopping Centres Australasia Property Group Re Ltd (ASX: SCP) are also trading ex-dividend today. The value of their stock has slumped 0.49% and 2.46% respectively.

Meanwhile, the Goodman Group (ASX: GMG) share price is breaking the mould. It’s gaining 0.19% despite surpassing its ex-dividend date this morning.

The post Why are Transurban (ASX:TCL), Dexus, and Mirvac shares tumbling? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CBA rises, Sandfire’s MATSA update
• Insiders have been buying Nuix (ASX:NXL) and this ASX share
• 5 things to watch on the ASX 200 on Thursday
• 2 buy-rated ASX dividend shares with growing yields
• 5 things to watch on the ASX 200 on Wednesday

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 owns and has recommended Shopping Centres Australasia Property Group. 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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In late morning trade, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to record another gain. At the time of writing, the benchmark index is up slightly to 7,514.4 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are racing higher:

Anteotech Ltd (ASX: ADO)

The Anteotech share price is up 2.5% to 27.2 cents. Investors have been buying this surface chemistry company’s shares this week amid the increased demand for rapid antigen tests. Anteotech is the company behind the EuGeni Reader platform and COVID-19 Rapid Antigen Test.

Bega Cheese Ltd (ASX: BGA)

The Bega Cheese share price is up 4% to $5.54. This is despite there being no news out of the diversified food company. However, as I mentioned here, Bega Cheese was named one of Bell Potter’s top picks for 2022. This may have led to some investors taking advantage of a recent pullback to buy shares.

Humm Group Ltd (ASX: HUM)

The Humm share price has jumped 8% to 96 cents despite there being no news out of the financial services company. However, last week the company revealed that it has received approaches from third parties to acquire all or part of it. No details on the approaches have been provided. However, the Humm Board intends to engage with these potential suitors to determine whether their proposals are capable of becoming definitive offers. Some investors may feel a takeover offer is imminent.

Syrah Resources Ltd (ASX: SYR)

The Syrah share price is up a further 7% to $1.81. Investors have been buying this graphite producer’s shares this week following the release of further details on its deal with Tesla. Syrah revealed that Tesla intends to offtake 8kt per annum of the proposed initial expansion of AAM production capacity at its US-based Vidalia facility. This represents 80% of the initial planned production capacity of 10kt per annum.

The post Why Anteotech, Bega Cheese, Humm, and Syrah shares are racing higher appeared first on The Motley Fool Australia.

More reading

• Why Magnis, Pilbara Minerals, Syrah, and Whispir shares are storming higher
• Syrah (ASX:SYR) share price higher after new Tesla update
• These were the worst performing ASX 200 shares last week
• Is the Bega (ASX:BGA) share price a buy after crashing 10%?
• 5 things to watch on the ASX 200 on Friday

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 Humm 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 Newcrest Mining Ltd (ASX: NCM) share price closed the day just over 1% in the green on Wednesday, closing out a positive run over the previous 5 days of trading.

Zooming out over wider time frames, we see it wasn’t the greatest year for the gold mining giant’s share price. It’s bounced off a low three times in the past 12 months but failed to recover to former highs on each occasion.

Most recently it has tested the $25 per share mark a couple of times but investors didn’t throw support behind the company at that level.

However, investors are buying the most recent dip and have pushed the Newcrest Mining share price to $24.29 at the time of writing.

The price of gold hasn’t fared much better in this time either, with the yellow metal now trending down almost 5% since December 2020. For most of the year, it has averaged a sideways trend and failed to break the US$1,800/t.oz mark on several occasions.

With these points in mind, we’ve gone to what analysts at leading investment banks are saying on the outlook for Newcrest investors in 2022.

What’s the outlook for Newcrest in 2022?

Despite the run down in the Newcrest Mining share price in 2021, the analyst teams at leading investment firms are all keeping a very close eye on the company as we roll on into the new year.

For instance, Jefferies, JP Morgan, Scotiabank, Morgan Stanley, Credit Suisse, Goldman Sachs, and Morgans reckon Newcrest has more headroom to grow in 2022.

In a list provided by Bloomberg Intelligence, almost 65% of the analysts covering Newcrest have it as a buy, with the consensus price target sitting at $29.16.

Not a bad signal of upside potential for a stock that was beaten down and overlooked by the market in 2021.

Macquarie Group Ltd (ASX: MQG) is heavily bullish and has Newcrest to strongly outperform. The investment bank reckons investors will benefit from exposure to gold prices coming into FY23 and FY24, as the gold miner’s Lihir mine in Papua New Guinea gains steam.

The firm estimates that every 10% increase in the price of gold will garner a 32% increase in Newcrest’s earnings in the coming years.

Furthermore, Macquarie sees these gains next to a 20% gain in net present value (NPV) on the site, which bodes well for the company’s valuation.

In a recent note, Macquarie said Newcrest “offers leverage to copper prices, and a 10% increase in copper price translates to a 9% earnings upside and 10% valuation improvement”.

The New South Wales Government also recently approved plans to increase capacity at Newcrest’s Cadia Valley gold mine to 35 million tonnes of ore each year. That’s up from 32 million tonnes previously.

Macquarie values Newcrest at $34 per share. Additionally, Barrenjoey, Credit Suisse, and Goldman Sachs have assigned price targets of $33, $31, and $30.50 respectively.

Gauging this list it appears sentiment on the Newcrest Mining share price is bullish heading into the new year.

Newcrest Mining share price summary

Newcrest shares have posted a loss of 6% since the start of 2021. In the past month, they have levelled off and are trading less than 1% in the green after climbing again this week.

Over these longer time frames, Newcrest has lagged the benchmark S&P/ASX 200 index (ASX: XJO)’s return.

The post Is it a buy? Newcrest Mining (ASX:NCM) share price outlook in 2022 appeared first on The Motley Fool Australia.

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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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