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The S&P/ASX 200 Index (ASX: XJO) is having another relatively pleasant day on the ASX boards this Friday. At the time of writing, the ASX 200 is up a healthy 0.53% so far to 7,351 points. But let’s delve a little deeper and check out the ASX 200 shares that are topping the volume charts so far this Friday, according to investing.com.

3 most active ASX 200 shares by volume today

South32 Ltd (ASX: S32)

This diversified ASX 200 mining company is our first share to check out today. This Friday has seen 8.89 million S32 shares swap owners so far. There has been no major news or announcements out of the company to explain why it might be the third-most traded ASX 200 share so far today.

The South32 share price has had something of a wild day today so far. The company is presently down 0.26% at $3.82 a share. However, earlier today, it initially rose as high as $3.99 a share before settling back to its current level. it might be this volatility that is behind South32’s elevated trading volume today.

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Minerals is our second ASX 200 share today. This lithium producer has seen a sizeable 12.1 million of its shares bought and sold so far this Friday. Like with South32, there is a dearth of any price-sensitive news or announcements out of Pilbara, at least for now. That’s aside from the release of its annual general meeting letter to shareholders.

However, the Pilbara share price has also had a volatile time today. This company has bounced around between $2.03 and $2.10 a share all day today, despite the fact it is currently sitting at $2.08 a share, up by 0.49%. It’s this volatility that is likely behind so many Pilbara shares trading today.

Platinum Asset Management Ltd (ASX: PTM)

Our final; and most traded ASX 200 share today is a rare guest appearance on this list (unlike South32 or Pilbara). Platinum has seen a hefty 14.41 million shares change hands thus far today. This high volume of shares appears to be a byproduct of the nasty fall the Platinum share price has taken this Friday. This fund manager is presently down 6.7% to $3 a share.

This could be in response to the notice the company put out this morning, announcing that one of its directors, Tim Trumper, will be stepping down after the company’s annual general meeting next month. But Platinum shares have been under pressure all week, ever since the company’s disappointing September funds under management announcement. This steep fall is probably behind Platinum’s elevated trading volume today.

The post These 3 ASX 200 shares are topping the volume charts this Friday appeared first on The Motley Fool Australia.

More reading

• Why ASX lithium shares are booming on Thursday
• These 3 ASX 200 shares are topping the volume charts this Thursday
• Why Adriatic Metals, Platinum, Redbubble, & Whitehaven Coal are dropping
• ASX 200 (ASX:XJO) midday update: HUB24 & Netwealth impress, A2 Milk surges again
• Why the South32 (ASX:S32) share price is jumping 11% to a multi-year high

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

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The Xero Limited (ASX: XRO) share price has returned to form this week and has been charging higher.

The cloud accounting platform provider’s shares are currently up almost 4% since last Friday’s close at $144.52.

Could the Xero share price keep rising to $165.00 by the end of 2021?

What happens between now and the end of 2021 for the Xero share price will depend a lot on its half year results next month, but one leading broker appears to see potential for its shares to reach $165.00 in the near future.

According to a recent note out of Goldman Sachs, its analysts have a buy rating and $165.00 price target.

Based on the current Xero share price, this implies potential upside of 14% for investors.

Why is Goldman positive on Xero?

Most recently the broker has been looking at an update from one of its key rivals and saw a number of positives. That rival is Intuit, which is the company behind the QuickBooks accounting platform.

Goldman notes that QuickBooks grew its international subscribers by 11% or ~160k in FY 2021 and US subscribers by 18%. The former was notably slower than Xero’s growth, which the broker feels bodes well for its global expansion.

It commented: “While we acknowledge the y/e timing impacts between Intuit/Xero, this subscriber performance was significantly below vs. Xero (+412k ex. NA). Therefore, we see this update as a strong positive for Xero in its global traction, noting a key pillar of our positive thesis is the ability to leverage its best in class product to expand in new geographies (NZ$18bn Cloud Accounting Expansion TAM).”

Another positive was Intuit’s update on the QuickBooks ecosystem. Goldman has previously stated how it believes Xero has a massive opportunity to monetise its own app ecosystem, so takes comfort from Intuit’s update.

It explained: “In FY21 40% of QBO customers use an ecosystem service or 3rd party app (vs. 36% in FY20) with the company generating a much higher share of platform revenues (i.e. Payroll, Time tracking etc., with Online Services c.38% of FY21 QBO revenues) vs. Xero (7% of FY21 revenues ex Hubdoc).”

Overall, the broker was happy with what it heard and remains very positive on the Xero share price.

It concluded: “We re-iterate our Buy on Xero (12m TP of A$165), noting Xero has closed its premium vs. the ASX InfoTech index to 140% vs. 2 year average 179% (12mf EV/Sales), and is -27% cheaper on 12mf EV/Sales vs. key peer WTC. We expect revenue acceleration into FY22 to drive outperformance (+4% vs. VA Consensus) with significant LT opportunities to unlock further value (NZ$76bn TAM).”

The post Could the Xero (ASX:XRO) share price reach $165 by the end of 2021? appeared first on The Motley Fool Australia.

More reading

• Why ASX 200 tech shares have outperformed today
• Why is the Xero (ASX:XRO) share price leaping 5% today?
• These ASX tech shares are lighting up the ASX 200 today
• Why ASX 200 tech shares are struggling this week
• Why did ASX tech shares just have such a good FY22 first quarter?

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 Xero. The Motley Fool Australia owns shares of and has recommended Xero. 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 ASX banking scene here in Australia is a little more complicated than it may initially seem. Whilst we ASX investors love to discuss the big 4 ASX banks, there appear to be dozens of banking brands throughout the country that might make us forget about the old ‘four pillars’ policy.

Four pillars was the brainchild of former treasurer and prime minister Paul Keating, and was designed to ensure that the largest 4 banks in Australia would never be allowed to merge or consolidate further.

That’s all well and good, you might think, but there are far more than 4 banks in Australia…

Well, there may not be as many as you might think.

4 pillars, but 20 lenders?

Most of the big 4 ASX banks house banking brands outside their own. Many investors over a certain age might remember the blockbuster merger of Westpac Banking Corp (ASX: WBC) with St. George Bank way back in 2008.

You might think St George is its own bank today, going off of its separate branding, advertising campaigns and branches. But it is in fact still a complete subsidiary of Westpac. As are Bank of Melbourne and BankSA, mind you. Westpac also owns the wealth manager BT, as well as the home loan provider Rams.

Likewise, Commonwealth Bank of Australia (ASX: CBA) also owns Bankwest, as well as stakes in Colonial First State and Aussie Home Loans. 

National Australia Bank Ltd (ASX: NAB) owns the online-only brand Ubank, as well as the recently acquired neobank 86 400.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) is the only big four bank that seems to just stick with its main branding house.

But what of the other ASX banks outside the big four? Specifically Bendigo and Adelaide Banking Group Ltd (ASX: BEN)?

What other banks do Bendigo and Adelaide Bank shareholders own?

Well, it turns out Bendigo Bank is well as truly on the ‘divide and conquer’ train. According to this bank’s website, it owns both the Bendigo Bank and Adelaide Bank names (duh). But in addition to these flagship brands, this company also houses Rural Bank, Community Bank, DelphiBank and Alliance Bank. It also recently acquired the neobank Up.

In addition to these banking brands, Bendigo and Adelaide Bank also owns wealth manager Sandhurst Trustees.

So if you own Bendigo and Adelaide Bank shares, you really own a lot more than just those two names. Something to keep in mind for all banking investors today!

At Bendigo and Adelaide Bank’s last share price of $9.44 (at the time of writing), this ASX bank has a market capitalisation of $5.29 billion and a dividend yield of 5.79%.

The post Own Bendigo Bank (ASX:BEN) shares? Then you also own these 5 other banks appeared first on The Motley Fool Australia.

More reading

• Why has the Bendigo Bank (ASX:BEN) share price fallen 15% in 8 weeks?
• The ASX 200 banks may be in danger as half of mortgage-stressed households have “borrowed to the hilt”
• 5 things to watch on the ASX 200 on Thursday
• Confirmed: APRA is planning action on home loans, ASX 200 banks drop
• Bendigo Bank (ASX:BEN) share price slips despite recycling partnership

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank 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 shares of and has recommended Bendigo and Adelaide Bank 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 Fortescue Metals Group Limited (ASX: FMG) share price is climbing today after a choppy week for iron ore miners.

At the time of writing, the Fortescue share price is 1.68% higher at $14.56.

Mixed signals for China’s steel industry

China’s energy restrictions for industrial use, which weighed on the steel industry in late September, have been easing in some areas in October. This has allowed steel mills to gradually resume production since the beginning of the month, mill sources and traders told S&P Global Platts.

Despite the potential good news for iron ore markets and subsequently Fortescue shares, sources in the regions said most steelmakers were not expected to ramp-up to full capacity to ensure 2021 crude steel output remains near 2020 levels.

Traders also told S&P Global construction steel demand in September and October turned out to be weaker than expected. Any signs of recovery in the fourth quarter were expected to be limited by a slowdown in the property sector.

Some flat steel traders went as far as saying demand from the manufacturing sector has been battered by a double whammy of power rationing and surging commodity prices.

Iron ore prices are also sending mixed signals for the Fortescue share price.

Spot prices edged higher overnight on Thursday with prices up US$1.74 or 1.4% to US$125.91 a tonne.

Prices rose slightly amid active trading activity in the spot market and at Chinese ports, sources told Fastmarkets.

China’s most active futures contracts for January 2022 delivery on the Dalian Commodity Exchange are currently trading 0.8% lower at approximately 725 yuan (US$112.7) a tonne.

Fortescue shares find support at $14

The Fortescue share price is down 41% year-to-date and sitting around 15-month lows. It is also down around 12% over the past 12 months.

Its free-fall has stabilised in recent weeks, consolidating around the mid $14 level.

The post Own Fortescue (ASX:FMG) shares? Here’s the latest on China’s steel demand appeared first on The Motley Fool Australia.

More reading

• Fortescue (ASX:FMG) share price rises amid Gigafactory plans with Plug Power
• Fortescue (ASX:FMG) share price up 3% against all odds
• 3 reasons why the Fortescue (ASX:FMG) share price could be a buy
• Fortescue (ASX:FMG) share price down 5% as iron ore retreats
• Why Bank of Queensland, Fortescue, Liontown, & Pact shares are dropping

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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The S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a solid gain. In afternoon trade, the benchmark index is up 0.5% to 7,346.6 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Harvey Norman Holdings Limited (ASX: HVN)

The Harvey Norman share price is down 3.5% to $4.90. The majority of this decline is attributable to the retail giant’s shares going ex-dividend this morning. Eligible shareholders can now look forward to being paid Harvey Norman’s fully franked 15 cents per share final dividend next month on 15 November.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price has fallen 3% to $4.92. Investors have been selling the insurance giant’s shares after it revealed that ASIC has launched civil proceedings against it in the Federal Court. The corporate regulator is alleging that the company misled customers by applying discounts while simultaneously upping premiums. It is alleged that NRMA customers missed out on more than $60 million worth of discounts.

Pendal Group Ltd (ASX: PDL)

The Pendal share price has tumbled almost 13% to $6.75 following the release of its funds under management (FUM) update for the September quarter. Although Pendal reported strong growth in its FUM, this was largely due to an acquisition. Excluding this, Pendal actually reported net fund outflows of $2.3 billion during the three months.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price is down 5% to $11.67 after the release of a first quarter trading update at its annual general meeting. The wine giant revealed that its performance during the quarter was softer than it was expecting. Management advised: “As we exit the first quarter of fiscal 22, the recovery of key luxury channels impacted by the pandemic are slightly behind the expectations we had at the beginning of the year.”

The post Why Harvey Norman, IAG, Pendal, and Treasury Wine are dropping appeared first on The Motley Fool Australia.

More reading

• Here’s why the IAG (ASX: IAG) share price is down 3% on Friday
• ASX 200 (ASX:XJO) midday update: Rio Tinto cuts guidance, Treasury Wine disappoints
• Why the Treasury Wine (ASX:TWE) share price is tumbling 6% on Friday
• Why the Pendal (ASX:PDL) share price is sinking 9% today
• IAG (ASX:IAG) share price on watch as ASIC launches legal action

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 shares of and has recommended Harvey Norman Holdings Ltd., Insurance Australia Group Limited, and Treasury Wine Estates 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 Tabcorp Holdings Limited (ASX: TAH) share price is crawling higher in afternoon trade today and is currently up 0.57% to $5.29.

As of today Tabcorp shares have reached a new 52-week high, after rallying 10% in the last month and being added to the S&P/ASX 50 Index (ASX: XFL) in September.

Gambling giant on a winning run

Tabcorp shares made a jump late last month. This coincided with the NSW Premier’s roadmap navigating the reopening of NSW’s economy, once the state hit an 80% double vaccination target.

The gambling services company saw its share price climb 8.5% in the week or so following the government’s announcement, as investors regained confidence in a more favourable consumer environment.

Tabcorp shares popped once more on 11 October, the same day NSW announced it was reinstating a suite of “freedoms” after hitting the required vaccine numbers.

And since, the Tabcorp share price has shown no signs of slowing.

As the easing of Covid-19 related restrictions begins to ramp up over the coming months, many investors are wondering, can Tabcorp shares sustain this momentum?

One leading broker has weighed in on the debate, and offered its opinion on the Tabcorp share price.

Can the Tabcorp share price continue charging higher?

Analysts and investment banking giant Macquarie Group Ltd (ASX: MQG) certainly think so, and see the winding back of restrictions as a big plus to the company’s future prospects.

The broker anticipates an improved gaming and wagering environment as more and more lockdown mandates ease.

It also reckons this improved environment is accretive to Tabcorp’s earnings, and could attract investors betting on a “reopening play”.

Consequently, it has upgraded its FY22 and FY23 earnings before interest, taxes, depreciation, and amortisation (EBITDA) forecasts by 3% and 4% respectively, baking these many growth levers into its modelling.

Aside from this, Macquarie also believes Tabcorp’s demerger from its lotteries business earlier this year will be a catalyst to drive valuations into the coming years.

This is compounded by the low EBITDA multiple the broker assigns on Tabcorp’s wagering segment.

As a result of its analysis, Macquarie expanded its price target by 1.6% to $6.55, implying a 23% upside potential from the current market price.

The Tabcorp share price has climbed 36% this year to date, and 56% over the past 12 months.

The post Why Macquarie tips the Tabcorp (ASX:TAH) share price to jump 22% appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday

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 Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Splitit Ltd (ASX: SPT) share price has been in the red all day today, sinking by as much as 8% in afternoon trade.

The plunge follows the company’s annual general meeting, where Splitit’s leaders outlined its future direction and reflected on a year in which COVID-19 amplified its business.

The company’s interim CEO, John Harper, noted that his view as an involved newcomer had led to a new action plan to increase the company’s value.

Despite positive overtones and forward planning from its leaders, the buy now, pay later (BNPL) company’s stock has failed to rally. At the time of writing, the Splitit share price is trading at 41.5 cents, 5.68% lower than its previous close.

Simultaneously, the broader market is gaining. The S&P/ASX 200 Index (ASX: XJO) and the All Ordinaries Index (ASX: XAO) are both around 0.5% higher right now.

Splitit’s next steps forward

According to today’s releases, Splitit’s annual general meeting was topped off by the company’s interim CEO’s address. Within his speech, Harper outlined several changes Splitit will be making soon, saying:

We are operating in a market that is moving and growing quickly. We need to bring a greater sense of urgency to capitalise on this opportunity from a sales perspective…

[Splitit has] a natural and untapped opportunity in the market, but we need to do a better job of effectively articulating [its] value.

To help grasp such opportunities, Harper will bring in a chief people officer and a product team. He said the new additions would foster collaboration within Splitit’s global segments and allow its technical engineers to remain connected to customers’ needs.

The company will also focus on the North American and United Kingdom markets. Harper said doing so would enable it to tap into more “higher-value merchants”.

It will also focus on improving its core product and attracting new merchants while reducing costs.

Splitit share price snapshot

The Splitit share price has had a challenging year so far, falling 68% since the start of 2021. Splitit shares are also trading 72% lower than this time last year.

The post The Splitit (ASX: SPT) share price slumped 8% today. Here’s why appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX BNPL shares in September
• Despite today’s falls, the Splitit share price is up 23% in 7 days. Here’s why
• Why the Splitit (ASX:SPT) share price is surging 10% today
• ASX tech shares are leading the market’s gains on Thursday

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

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Yesterday I looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Macquarie, its analysts have retained their underperform rating and $5.40 price target on this infant formula company’s shares. The broker notes that smaller rival Bubs Australia Ltd (ASX: BUB) reported a strong rebound in sales in the first quarter. While this could be good news for A2 Milk, Macquarie appears to believe that investors should wait for an update from the company before getting too excited. It notes that an investor briefing is scheduled late this month. The A2 Milk share price is fetching $6.72 today.

Evolution Mining Ltd (ASX: EVN)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating and cut their price target on this gold miner’s shares to $3.70. Goldman believes that Evolution’s shares are expensive in comparison to peers. In addition, the broker has been looking at commodities and has updated its price expectations. Goldman has reduced its average gold price estimate for 2021 to US$1,850 per ounce (from US1,890 per ounce). The Evolution share price is trading at $3.94 today.

Pact Group Holdings Ltd (ASX: PGH)

Analysts at Morgan Stanley have retained their underweight rating and $3.30 price target on this packaging company’s shares. This follows the release of a trading update that disappointed the market earlier this week. Though, it was largely in line with what the broker was expecting. One thing that did surprise Morgan Stanley was the company’s decision to cancel the sale of its Contract Manufacturing business. The broker was expecting the sale of the struggling business to be a positive catalyst. The Pact share price is now trading below this price target at $3.09.

The post Top brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• Could the A2 Milk (ASX:A2M) share price hit $8 by the end of 2021?
• These 3 ASX 200 shares are topping the volume charts this Thursday
• Why A2 Milk, HUB24, Netwealth & Perseus shares are storming higher
• Why is the A2 Milk (ASX:A2M) share price leaping again today?
• ASX 200 (ASX:XJO) midday update: HUB24 & Netwealth impress, A2 Milk surges again

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 A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Commonwealth Bank of Australia (ASX: CBA) share price is largely flat in afternoon trading, up 0.07% having earlier posted gains of 0.5%.

CommBank shares closed up on Monday and Tuesday this week and retraced on Wednesday and Thursday. All told, the CBA share price is down 1.95% since the closing bell last Friday, currently at $101.97 per share.

We take a look at what’s been putting the big bank in the news this week.

A potential legal headache failed to dampen CBA share price

On Monday, the CBA share price closed up 0.2%, despite the bank reporting that the Fair Work Ombudsman (FWO) had commenced civil proceedings against it and its stockbroking subsidiary, CommSec.

As the Motley Fool reported on the day: “The FWO alleges that Australia’s largest bank breached the Fair Work Act by not paying 7,425 of its employees their correct entitlements. Staff mainly in customer services roles were affected by the underpayment.”

CBA said it had self-reported the issue to the FWO and publicly disclosed this in 2019. With a remediation program launched in early 2018, the bank believes the situation is resolved without the need for additional compensation payments.

Highlights from the Annual General Meeting (AGM)

The CBA share price slipped on Wednesday when the bank held its AGM.

CommBank’s CEO, Matt Comyn, and Chairman, Catherine Livingstone, both presented at the AGM.

Livingstone highlighted the bank’s $6.2 billion in dividends paid out during FY 21. She also noted that CBA shareholders received another $6 billion from the bank’s off-market share buyback.

Pointing to the profit line, Livingstone said, “Cash net profit after tax was up 19.8 per cent on the prior year, reflecting an improvement in economic conditions, and the strong operating performance of our core banking businesses.”.

Looking at the year ahead, Comyn added, “The stimulus provided by our governments during lockdowns has been doing its job. Australians continue to accumulate more savings and many businesses are ready to take advantage of opportunities ahead.”.

Comyn also pointed to the rapid pace of technological development. “We’re seeing digital technology enable a raft of changes, which come with both opportunities and risks,” he said.

CBA share price snapshot

Year to date, the CBA share price is up about 22%, well outpacing the 10% gains posted by the S&P/ASX 200 Index (ASX: XJO) so far in 2021.

Over the past month, CBA shares edged out the ASX 200, gaining 0.54% compared to a loss of 1.03% on the index.

The post What’s happening with the CBA share price this week? appeared first on The Motley Fool Australia.

More reading

• These ASX 200 banks just made a decision that will affect 76,000 workers
• Own CBA (ASX:CBA) shares? Here’s the bank’s latest stance on climate pressures
• Leading brokers name 3 ASX shares to sell today
• Own CBA (ASX:CBA) shares? Here are the highlights from the bank’s AGM
• Own CBA (ASX: CBA) shares? Here’s the latest on the bank’s AI technology

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 BHP Group Ltd (ASX: BHP) share price is on the move on Friday. This follows the company conducting its annual general meeting (AGM) yesterday. In this meeting, the miner discussed a multitude of important topics, not the least of which was its commodity portfolio transformation.

Heading into afternoon trade, shares in the diversified mining company are exchanging hands for $38.73 apiece, up 2.46%. Despite this, the BHP share price is still 29.6% off its 52-week high of $54.55.

Nevertheless, the company’s management shared its ambitions for the future in its AGM. Let’s unpack what was covered during this event.

What’s happening with the BHP share price today?

The pressure for companies, governments, and organisations to abide by some form of climate target is a growing trend. As we speak, the Australian government is squabbling over the details of a climate agreement before heading into the Glasgow Climate Conference (COP26).

While some might see it as a hindrance, others are viewing the emerging policies as an opportunity. Australia’s third-largest listed company is one such player that is positioning for the potential megatrends to come out of this shift.

In its AGM yesterday, BHP explained it had conducted its own modelling in 2020 of a world aligned to the Paris Agreement. The result indicated such an environment would be beneficial to shareholders, with the company playing a role in the energy transition. From this, BHP reiterated its composition of assets will play a vital role in this trend.

In addition, the company highlighted its ongoing effort to assess its portfolio to ensure it delivers value to shareholders. Currently, import assets fitting the growing environmental, sustainability, and governance (ESG) narrative include copper, nickel, steel, and potash. As such, ESG investors might be taking the BHP share price more seriously today.

Climate efforts

Potash has been a major focus for BHP, with its Jansen mine expected to produce 4.5 megatonnes per year of the potassium-rich resource.

Furthermore, in its AGM, BHP outlined it has made strong progress towards meeting its climate initiatives. These include the following items:

• Establishing a pipeline of decarbonisation projects to achieve an emission reduction target of at least 30% by FY 2030.
• Committing an additional US$75 million to partnerships for decarbonising steelmaking customers.

To incentivise management towards achieving BHP’s climate goals, a component of executive remuneration is tied to climate-specific targets.

Shareholders will be hoping these targets provide better BHP share price returns than the past year. In the last 12 months, BHP shares have underperformed the benchmark index, rising only 4.4%.

The post BHP (ASX:BHP) share price climbs as miner hones in on ESG future appeared first on The Motley Fool Australia.

More reading

• Own BHP (ASX:BHP) shares? Here’s the miner’s latest push to reduce emissions
• 5 things to watch on the ASX 200 on Thursday
• Why did the BHP (ASX:BHP) share price have such a lousy FY22 first quarter?
• Could the Woodside (ASX:WPL) share price hit $27.50 by the end of 2021?
• BHP (ASX:BHP) share price rises amid coal asset sale rumours

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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