Tag: Motley Fool

Bitcoin (CRYPTO: BTC) mania has reached Australia’s listed markets.

It comes in the form of a new exchange-traded fund (ETF).

Run by Cosmos Asset Management, the Cosmos Global Digital Miners Access ETF (DIGA) began trading in Australia yesterday.

DIGA doesn’t aim to track the price of Bitcoin, or any altcoin, for that matter. Instead, as the name implies, it aims to track the prices of a basket of cryptocurrency mining and infrastructure companies.

To answer the question posed in our headline, DIGA does not trade on the ASX. It listed yesterday on the ASIC regulated Aussie exchange Chi-X.

If you’re unfamiliar with the alternate exchange, here’s a simple explanation from CommSec, “Chi-X Australia is an alternative trading venue to ASX TradeMatch on the ASX which uses its own trading system and provides trading in a subset of ASX listed securities.”

Cosmos CEO on DIGA

Explaining why the company decided to launch DIGA, Cosmos CEO Dan Annan said (quoted by the Australian Financial Review), “For too long, investors have had to weigh up access to the growth of digital assets such as cryptocurrencies with the risks associated with investing through unregulated structures.”

Investing in DIGA, Annan said, “means investors do not have to directly hold cryptocurrencies and, importantly, provides Australians with the ability to access the potential upside of the next wave of financial market innovation.”

The ETF holds some 30 shares, including Riot Blockchain, Marathon Digital Holdings and Hut 8 Mining Corporation. These companies generate much of their revenue from cryptocurrency mining and transactions, dominated by Bitcoin.

No direct Bitcoin ETF for Australia… yet

If you were hoping for a direct Bitcoin ETF listed in Australia – akin to the futures-based ProShares Bitcoin Strategy ETF (NYSE: BITO) that launched with great success in US markets last week – get in line.

As the AFR notes, Annan had hoped, and still hopes to, launch an ETF that directly invests in Bitcoin. “There has been pent-up demand for a bitcoin ETF for some time. That is still in the works with the regulator and exchanges but we began looking at ‘what is the alternative?’”

But Aussie regulators aren’t racing to give a Bitcoin ETF the green light.

According to Chi-X CEO, Vic Jokovic, “There are fund managers that are ready. The hold-up is that it’s just not clear in whose wheelhouse regulation sits. There are a lot of people waiting for clarity from the government or regulator.”

The post Bitcoin mania down under: Is the new crypto miners ETF (DIGA) listed on the ASX? appeared first on The Motley Fool Australia.

More reading

• Will an Ethereum ETF follow in Bitcoin’s footsteps?
• How this ‘systemic risk’ could take down Bitcoin: experts
• Why has the DigitalX (ASX:DCC) share price rallied 57% in a month?
• This cryptocurrency is a 130-bagger just this year
• Here’s what’s next for the Bitcoin price: expert panel

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. 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 Anteotech Ltd (ASX: ADO) share price is falling in early trading this morning. This comes after the research and development company released its quarterly activities and earnings update.

Shares in Anteotech are now changing hands at 23.5 cents apiece, which is a 2.08% drop from yesterday’s close.

Here we cover the central points in Anteotech’s performance for the period ending 30 September 2021.

Anteotech share price cools as regulatory approvals heat up

The company outlined several investment highlights it had achieved this quarter, including:

• Progress on achieving Australian regulatory approvals including ISO 13485 certification and TGA submission for EuGeni Reader and SARS-CoV-2 Ag rapid diagnostic test (RDT);
• Expansion of Life Science international distribution network to include 9 distributors across 17 territories;
• Addition of two new independent directors to its board;
• Established and held first meetings of clinical and energy advisory boards;
• Four new provisional product patent applications launched;
• Appointed three new executives after the quarter ended to enhance its marketing capability; and
• Continues to develop market entry strategy for EuGeni.

What happened this quarter for Anteotech?

It was a period of regulatory momentum for Anteotech. It received ISO 13485 certification and completed submissions to the Therapeutic Goods Association (TGA) for its EuGeni Reader and Covid-19 RDT.

For reference, ISO 13485 certification means the company has established an effective quality management system as it relates to safety and efficacy of medical devices.

It’s a 6-step process, and receiving the certification is essential before commercialisation of medical devices. It ensures products are designed, manufactured and distributed to Australian standards.

As such, Anteotech is currently “finalising the regulatory requirements for the EuGeni platform in a number of European countries and in Australia”.

This momentum was supported by efforts in expanding the company’s Life Science international distribution network to now cover 17 countries using 9 distributors of its products.

Anteotech also managed to advance its product development further this quarter. It achieved a “full technical transfer of test design and scaled manufacturing to a third party in Europe”, alongside the ISO 13485 audit.

The company also appointed three new executives, including Tim Pritchard as CFO.

These appointments are “the first of a number of new executives that herald an increased focus on product and market elements” for the company.

All in all, it was a quarter earmarked by significant advancements in the regulatory domain. This ultimately is another step towards full commercialisation of its EuGeni and AnteoX products.

However, the update hasn’t fired up investors, with the Anteotech share price falling from market open.

What did management say?

Addressing shareholders on the EuGeni platform, Anteotech CEO Derek Thompson said:

Whilst the success of the project has delivered considerable value to the company, the profile of achievement for a new legal manufacturer entrant to the IVD industry can only be measured against industry benchmarks. In the IVD industry, the average time to deliver a fully operational multi-test platform and distribution network from scratch is five to seven years at an average cost of $US34m. EuGeni has been built and delivered in a fraction of that time and cost.

What’s next for Anteotech?

Anteotech’s key focus areas are centred around commercialising its EuGeni platform, according to its release.

It also hopes to “expand its international Life Science distribution network and complete country-level regulatory approvals”.

Additionally, it hopes to continue building on market entry into the US for EuGeni after seeking regulatory approval there. It will also concurrently work to commercialise AnteoX.

Anteotech share price snapshot

Despite a 13% decline this past month, the Anteotech share price has soared by around 120% this year to date. It has also gained around 140% in the last 12 months.

That’s well ahead of the benchmark S&P/ASX 200 Index (ASX: XJO)’s return of around 25% in that time.

The post Anteotech (ASX:ADO) share price slides as product platforms make waves appeared first on The Motley Fool Australia.

More reading

• Is AM Diagnostics listed on the ASX?

The author Zach Bristow has no positions 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 PointsBet Holdings Ltd (ASX: PBH) share price has come under pressure again on Friday.

In morning trade, the sports betting company’s shares are down a further 10% to a 52-week low of $7.76.

Is the weakness in the PointsBet share price a buying opportunity?

The PointsBet share price has been sold off over the last couple of trading sessions following the release of its first quarter update.

According to a note out of Goldman Sachs, its analysts believe this could be a buying opportunity for investors. This morning the broker retained its buy rating but trimmed its price target to $12.79.

Based on the current PointsBet share price, this implies potential upside of 65% for investors over the next 12 months.

How did Goldman respond to the update?

Goldman notes that PointsBet delivered softer growth but stronger margins than it was anticipating during the quarter.

It commented: “PBH reported its 1Q22 update, which was characterized by: 1) Australia Net Win up 56% to A$54.8mn, well above recent peer commentary for the Sep-21 quarter, 2) strong gross/net margins in Aus of 13.9%/8.7% despite elevated promotional activity, 3) US turnover of +112% to A$348.6 mn came in softer than what was implied by our prior 1H21E, 4) however US Net Win was up 307% to A$12.5mn on 3.6% margins vs GSe 2.2% prior FY22E, and 5) overall sales/marketing spend of A$46.5 mn in the quarter was run-rating well below our prior 1H estimate of ~A$120mn.”

In addition, the broker highlights that management remains confident of operating in Arizona, as well as its 10% market share target in both Australia and the US over the long term.

Overall, Goldman has seen enough in this result to remain positive on the PointsBet share price. It feels investors should focus less on the short term and more on its long term opportunity.

It commented: “[We] Reiterate our Buy rating on PBH […] We believe the sell off is driven by the market’s focus on its short term quarterly handle market share trends; however we believe the LT thesis remains intact.”

The post Why Goldman says PointsBet (ASX:PBH) share price sell off is a buying opportunity appeared first on The Motley Fool Australia.

More reading

• Why Codan, IOOF, Orocobre, and PointsBet shares are tumbling
• PointsBet (ASX:PBH) share price sinks 17% as expansion comes at a cost
• ASX 200 (ASX:XJO) midday update: ANZ result impresses, Fortescue higher
• PointsBet (ASX:PBH) share price slides 8% after Q1 trading update
• Why Goldman is tipping 47% upside for the PoinstBet (ASX:PBH) share price

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 shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. 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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When it comes to investing in ASX shares, there are many variables to consider. One variable that can be worth a look at before buying is whether the company’s own directors and board members have also been investing in it.

While it may not be a green flag to go and buy, it certainly is a good sign when insiders show conviction in the company that they are working for by putting some of their own cold hard cash into it.

Let’s take a look at a few ASX-listed shares experiencing buying from insiders in the last month.

3 ASX shares that insiders are investing in

Ampol Ltd (ASX: ALD)

Landing on our list is one of Australia’s most popular fuel retailers, Ampol Ltd, formerly known as Caltex. This Aussie company has been busy during the last couple of months. Earlier this month the company agreed to fork out NZ$2 billion to acquire New Zealand fuel retailer, Z Energy.

The final details of the Z Energy acquisition were shared with the market on 11 October. It must have seemed like a good deal to non-executive director Elizabeth Donaghey, with the board member purchasing 1,600 shares in ASX-listed Ampol 2 days later. According to the notice, Donaghey picked up the holding at a price of $30.11, amounting to a total investment of $48,171.

The Ampol share price has increased 13.2% in the past month. In fact, the company’s shares are nearing a new 52-week high, with the milestone less than 1% away.

Data#3 Limited (ASX: DTL)

The next ASX share on the list is the $880 million IT solutions company, Data3. Despite a disappointing year of performance for the company, the last month has seen its share price increase by more than 20%. This came shortly after the unveiling of a record full-year result, booking $25.4 million in net profit after tax.

It appears two Data3 board members timed their investment well, with Mark Gray and Richard Anderson buying ~$60,000 and $46,500 respectively earlier in the month. According to the notice, the non-executive director and chair grabbed the shares between $4.65 and $5.

Following a continued rise in the Data3 share price, the two board members are now sitting on roughly $22,000 in paper profits between them.

Orica Ltd (ASX: ORI)

Last, but certainly not least, is possibly the only explosives and blasting systems company on the ASX. Shares in Orica have been spiralling upwards this month, gaining nearly 27% in the process.

This impressive 1-month move follows Orica releasing a trading update at the end of September. In the update, the company highlighted it expects significant items of between $345 million to $370 million to impact FY21 profits.

On 30 September, non-executive director Denise Gibson decided to load up on Orica shares on the back of the abovementioned announcement. The reported notice indicates that Gibson acquired 10,000 shares in the ASX company at a total value of ~A$136,700.

The post Here are 3 ASX shares insiders have been buying recently appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO) midday update: Crown and Pilbara Minerals surge higher
• Ampol (ASX:ALD) share price higher following Q3 update
• What this top broker is saying about the Ampol (ASX:ALD) share price
• Why Ampol, Fortescue, IAG, & Perenti shares are charging higher
• Ampol (ASX:ALD) share price zooms higher on NZ$2.8bn Z Energy acquisition

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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What happened

The Facebook (NASDAQ: FB) share price took off overnight (Thursday afternoon in the United States), rising 3.6% as of 3.10pm EDT after the company made a big announcement that up till now had only been rumoured.

Pretty soon, Facebook won’t be ‘Facebook’ anymore. It’ll be ‘Meta’ instead.

So what

You heard that right. The company that basically defined the concept of “the social network” (I hear they even made a movie about it) is pivoting away from plain vanilla social media and forging ahead in a new direction, entering the metaverse.

So what exactly is a metaverse? As the company explained:  

The metaverse will feel like a hybrid of today’s online social experiences, sometimes expanded into three dimensions or projected into the physical world. 

It will let you share immersive experiences with other people even when you can’t be together — and do things together you couldn’t do in the physical world. [And] it’s the next evolution in a long line of social technologies…

And while no one company actually has a metaverse up and operational just yet, Facebook has decided that it will be the first, and dominate this new frontier.

Now what

Give Facebook credit: For a company that has done so exceedingly well as a social media company, growing basically tenfold in value from its May 2012 IPO up until its recent “Facebook Files” troubles, Facebook isn’t being one bit shy in its commitment to its new business model.

Not only does Facebook plan to build a metaverse, and not only has it committed to spending $10 billion on the effort this year alone. Facebook is so committed to this venture that it is changing its name to Meta, changing its corporate logo, and committing to put all of “Facebook’s apps and technologies under [this] one new company brand”.

It’s a bold move, and judging by how the Facebook share price was moving this afternoon, it’s a move investors approve of.

The post Why the Facebook share price popped overnight appeared first on The Motley Fool Australia.

More reading

• Facebook will finally start reporting financial results for its virtual reality business
• Why Facebook stock fell on Tuesday
• What scandal? Facebook (NASDAQ:FB) just reported 35% revenue growth
• Why ASX 200 tech shares are leading the charge higher today
• Facebook (NASDAQ:FB) just announced a monster US$50 billion share buyback program

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The National Australia Bank Ltd (ASX: NAB) share price is trading lower on Friday following the release of an announcement.

In morning trade, the banking giant’s shares are down 0.5% to $29.29.

What did NAB announce?

Last week NAB announced the appointment of James Spenceley as a Non-Executive Director effective from 1 December. This was then to be voted on by shareholders at its annual general meeting on 17 December.

The bank highlighted that Mr Spenceley is a successful businessman, entrepreneur and venture capital investor who would bring important experience and different perspectives to the NAB Board.

He is the founder and former CEO of Vocus Communications, the Chair of Airtasker Limited (ASX: ART) and Swoop Holdings Limited (ASX: SWP), and a Non-Executive Director on the boards of Kogan.com (ASX: KGN) and Think Childcare Limited (ASX: TNK).

However, this appointment received some very negative press coverage and appears to have attracted the attention of proxy advisers.

What’s the latest?

This morning NAB Chair Philip Chronican revealed that Mr Spenceley has decided not to proceed with his appointment as a NAB Non-Executive Director.

Mr Chronican advised that the decision was made after Spenceley reconsidered his overall commitments after feedback was received from proxy advisors as well as a number of NAB investors.

He explained: “James was selected to bring diversity of experience to the NAB Board and his interest in market transformation. He has advised that he does not want his appointment and other commitments to cause concern for NAB or his other business positions.”

“We accept his decision and will consider other candidates for the Board in due course, taking into account the need for Board renewal and breadth of experience,” Chronican added.

Mr Spenceley added: “I have received feedback from proxy advisors on the impact of a large Board role on their ability to recommend my election at NAB and my other board positions. I appreciated the NAB opportunity and while I was comfortable with my capacity, I do not want to disrupt NAB, its shareholders or any company I am involved with.”

The post NAB (ASX:NAB) share price lower following director announcement appeared first on The Motley Fool Australia.

More reading

• NAB (ASX:NAB) share price hits 2-year high, CEO welcomes net zero commitment
• The NAB (ASX:NAB) share price is outperforming its rivals this month: Is it a buy?
• Own NAB (ASX:NAB) shares? Here’s how the bank upset activists this week
• Own Afterpay (ASX:APT) shares? Here’s how the big banks are honing in on the BNPL sector
• NAB (ASX:NAB) share price nudges 2-year, post-COVID high

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 shares of and has recommended Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. 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 ResMed Inc. (ASX: RMD) share price is on the move on Friday morning.

At the time of writing, the sleep treatment focused medical device company’s shares are up 7.5% to $38.41.

This means the ResMed share price is now 40% in 2021.

Why is the ResMed share price rising?

Investors have been bidding the ResMed share price higher this morning following the release of its first quarter update. Here’s a summary of how it performed:

• Revenue increased 20% over the prior corresponding period to US$904 million (19% on a constant currency basis)
• Gross margin down 230 basis points to 56%
• Income from operations increased 21% to US$261.9 million
• Net income up 14% to US$203.6 million
• Diluted earnings per share up 14% to US$1.39

What happened during the quarter?

For the three months ended 30 September, ResMed reported a 20% increase in revenue to US$904 million. This was driven by strong demand for its sleep and respiratory care devices and increased demand following a recent product recall by one of its competitors. This was partially offset by decreased COVID-19 related demand for ventilators.

This top line result was ahead of the market consensus estimate of revenue of ~US$860 million.

One slight disappointment was its softening gross margin. Management advised that this decreased by 230 basis points due to higher manufacturing costs, incremental freight costs, and lower average selling prices.

Nevertheless, this didn’t stop ResMed from beating the market’s earnings expectations during the quarter. ResMed reported GAAP earnings per share of US$1.39 per share for the period, up 14% on the prior corresponding period. This was 15 cents per share ahead of the market consensus estimate. Which goes some way to explaining why the ResMed share price is performing so positively today.

Management commentary

ResMed’s CEO, Mick Farrell, was pleased with the company’s performance during the first quarter.

He said: “Our first-quarter results demonstrate strong performance across our business with double-digit growth in both topline and bottom-line metrics, driven by ongoing high demand for our sleep and respiratory care products, and steady growth across our software-as-a-service business,”

“It is through the extraordinary efforts of our global ResMed team that we were able to deliver products and solutions to our customers amid unprecedented supply chain challenges that continue to restrict access to critical electronic components. As we navigate supply limitations and are forced to allocate products, we continue to ensure priority for highest-acuity and highest-need patients first, as well as working with physicians, providers, and community systems to maintain a sustainable flow of medical devices and digital health solutions to patients who need care.”

Mr Farrell appears positive on the company’s long term prospects.

He commented: “Despite constantly evolving market dynamics, we continue to pivot to meet the needs of our stakeholders, driving sustainable long-term growth, and ensuring that we are investing strongly in medical device research and development, as well as digital health innovation that will unlock value for all of our customers. I’m incredibly proud of our global teams that are working with providers and physicians in the most unusual times across 140 countries, to get products directly into the hands of patients who need our solutions most.”

No guidance was provided for the remainder of the half or full year.

The post ResMed (ASX:RMD) share price jumps 7% on Q1 earnings beat appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• 3 buy-rated ASX shares
• 2 high quality ASX 200 shares named as buys
• Top broker names 2 of the best ASX shares to buy in October
• 5 defensive ASX shares to guide you through the market correction

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 recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. 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 Vulcan Energy Resources Ltd (ASX: VUL) share price has returned from its trading halt and is crashing lower.

At the time of writing, the lithium developer’s shares have dropped 20% to $12.05.

Why is the Vulcan Energy share price crashing?

As well as releasing its quarterly update this morning, the company responded to a scathing report from short-focused activist investor J Capital.

In response, Vulcan stated that the report contains many claims that are wrong and misleading.

Vulcan Energy’s Managing Director, Dr. Francis Wedin, stated: “Vulcan Energy Resources is a world class company dedicated to decarbonisation, with world class technical experts.”

“Vulcan’s goal is to be a world leader in sustainable lithium production and to create the world’s first fully integrated renewable energy and battery raw minerals company. While any misinformed short selling attack is disappointing, we are buoyed by the support of our leading institutional investors in understanding the project’s technical detail – and risks.”

Nevertheless, this support from institutional investors hasn’t been enough to stop the Vulcan share price from sinking today. This may be due to the uncertainty that the report highlights and the significant future value that its already priced into the Vulcan share price.

What else did Vulcan say?

Below is a summary of some key points of the response. To read the response in full detail, you can click here.

J Capital claims: “Research by the U.S. Department of Energy published in May 2021 states that the cost to produce a ton of lithium carbonate using DLE will be around $4,000. That would put Vulcan’s project in the highest quartile of cost. Every expert we spoke to believes costs will be at the high end of the cost curve.”

Vulcan refutes this, stating that its cost per tonne is expected to be $2,640. Furthermore, even a cost per tonne of $4,000 would not be in the highest quartile of cost. Rather it would still be the lowest quartile of cost for lithium carbonate for current production.

The company also highlights that the report claims the Upper Rhine Valley has much lower lithium grades than in the Salton Sea. However, Vulcan notes that the grades are actually similar.

In response to criticism of its employees, Vulcan stated that it stands by every one of its employees, noting that many of them are highly respected globally and do not have a “record of failure”, as J Capital claims.

What else?

Another concern J Capital has are the flow rates that will underpin the geothermal power at the Zero Carbon Lithium project.

However, management responded: “As Vulcan stated 11 times within its PFS publication, we have not drilled any geothermal wells into our greenfields development areas, and until we do so, as we have already stated on numerous occasions, risks around flow rate will remain. Vulcan believes it has an appropriate level of confidence around its assumptions surrounding flow rates, based on the experience of its team, and state-of-the-art scientific tools, data and studies as elaborated below.”

“Vulcan has, based on its detailed analysis and the various factors mentioned above, used between 100 and 120l/s as assumed flow rates for its projects in its PFS. The Report incorrectly suggests that Vulcan should base its flow rates off some of the first wells drilled in the area, including a well drilled 41 years ago in 1980, without the benefit of 3D seismic data and industry best practice and learnings,” it added.

What’s next?

Unfortunately for shareholders, one report is rarely where it ends.

J Capital and other short sellers will often respond to the company’s response soon after. So investors may want to keep an eye for that and on the Vulcan Energy share price.

The post Vulcan (ASX:VUL) share price sinks 20% after responding to short seller appeared first on The Motley Fool Australia.

More reading

• What’s going on with the Vulcan Energy (ASX:VUL) share price today?
• Why is this ASX lithium explorer being targeted by activist investors?
• Could the Vulcan Energy (ASX:VUL) share price hit $22 by the end of 2021?
• Which ASX 300 shares are leading the way on Monday?
• Why MyDeal, Senex, Superloop, and Vulcan shares are surging higher

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 Insurance Australia Group Ltd (ASX: IAG) share price has been moving in circles throughout the year. This comes as the insurance giant has been battling allegations and regulatory headwinds.

Nonetheless, investors appear to have mixed feelings about the value of IAG shares in the current climate.

At Thursday’s market close, IAG shares finished down 1.79% to $4.94.

How do you value IAG shares?

The most common way to value an ASX share is to calculate the company’s price-to-earnings (P/E) ratio. Traditionally, this metric is used to provide more clarity if a company is overvalued or undervalued.

A P/E ratio can be broken down as the relationship between a company’s share price and its earnings per share (EPS).

Currently, IAG has a P/E ratio of 28.99. The formula to work out the P/E ratio is the current share price divided by EPS.

Essentially, this means that the company can be viewed as expensive when compared to its peers. Banking and insurance company, Suncorp Group Ltd (ASX: SUN) holds a P/E ratio of 15.85, while QBE Insurance Group Ltd (ASX: QBE) is hovering around 16.37.

How is IAG performing lately?

IAG released a trading update at its annual general meeting (AGM) last week, highlighting growth for FY22.

Gross written premium (GWP) improved in the first quarter of the financial year, lifting in the mid-single digit range. Guidance for the full-year is forecasted to increase in the low single-digit area.

IAG is also on track to meet its reported insurance margin guidance of 13.5% to 15.5%. During the lockdowns in both Australia and New Zealand, lower vehicle claims were made by customers. This partly offset by inflationary pressure on claims costs in the company’s motor and home portfolios.

However, weighing down the over result for the Q1 FY22 period came from elevated natural perils costs. Rough storm activity and the earthquakes in Victoria were primarily to blame. IAG has set aside $765 million as a natural perils allowance buffer for the financial year.

Swiss investment firm, UBS cut its rating on IAG shares to “neutral” from “buy” in mid-October. Its analysts reduced the 12-month price target by 5.3% to $5.35 apiece. At the present price, this implies an upside of about 8%.

IAG share price summary

It’s been a rollercoaster ride for IAG shares, having moved unpredictably over the past 12 months. Its shares are currently up just 5% since this time last year.

Based on valuation metrics, IAG has a market capitalisation of around $12.18 billion, with approximately 2.47 billion shares on issue.

The post How do you value the IAG (ASX:IAG) share price? appeared first on The Motley Fool Australia.

More reading

• Here’s why Morgans tips another 10% upside for the IAG (ASX:IAG) share price
• IAG (ASX:IAG) share price rises following solid start to FY22
• What is the current IAG (ASX:IAG) dividend payout ratio?
• The IAG (ASX:IAG) share price has slumped 8% in a week. Here’s why
• These were the worst performing ASX 200 shares last week

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 owns shares of 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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The Sezzle Inc (ASX: SZL) share price could be a mover on Friday after the company released its third-quarter market update.

We take a look at how the buy now, pay later (BNPL) provider performed during the quarter ending 30 September 2021.

Third-quarter highlights

Market watchers will be keeping a keen eye on the Sezzle share price after the company recapped its September quarter. It announced triple-digit year-on-year growth across most key performing metrics. Highlights include:

• Underlying merchant sales rose 101.9% to US$460.7 million;
• Total income grew 78.8% to US$28.5 million;
• Active merchants jumped 112.5% to 44,400;
• Active customers rose 77.9% to 3.2 million; and
• Launched Sezzle Capital for merchants.

On 20 July, Sezzle launched its Capital program via a partnership with Wayflyer. The program enables the funding of working capital for up to US$10 million for qualified merchants. The partnership enables qualified Sezzle merchants to apply and receive funding, without adding any credit risk or capital requirements to Sezzle.

Looking ahead, Sezzle said it was excited for the upcoming holiday season and the increase in consumer and merchant engagement it brings.

The company plans to promote several campaigns in the fourth quarter to help consumers shop for the best deals, drive traffic and consumer engagement for merchant partners.

However, it wasn’t a great quarter for the Sezzle share price — it fell almost 35% between July 1 and September 30.

International markets

International markets have been the name of the game for many ASX-listed BNPL players, most notable Zip Co Ltd (ASX: Z1P).

Sezzle continued to see “promising activity” in its international markets, pointing to early-stage growth across Canada, Europe, and India.

Sezzle Canada reached a “key milestone” of 3,000 active merchants in its second year of operations. The company said Canada’s underlying merchant sales run rate currently sits in excess of US$100 million annually. Additionally, consumer adoption remains strong, reaching nearly 190,000 active customers, a 232% year-on-year increase.

Elsewhere, Sezzle Europe and India are in very early stages following recent launches. The performance of both regions remains immaterial to the overall company but shows positive growth rates across key operating metrics.

Sezzle share price snapshot

The Sezzle share price is down 14.5% year-to-date, broadly consistent with the sluggish performance of the broader ASX-listed BNPL sector. It is also down 22.4% over the past 12 months.

The post Sezzle (ASX:SZL) share price on watch following third-quarter update appeared first on The Motley Fool Australia.

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• The Sezzle (ASX:SZL) share price has leapt 19% in 2 days. Here’s why
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Motley Fool contributor Kerry Sun 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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