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The Commonwealth Bank of Australia (ASX: CBA) share price is in positive territory on Tuesday. This comes after Australia’s largest bank provided an update regarding its prudential inquiry remedial action plan.

During early afternoon trade, CBA shares are up 0.24% to $104.94.

CBA completes remedial action plan

In today’s statement, CBA published the final report on its remedial action plan, improving on governance, culture, and accountability issues.

In 2018, the Australian Prudential Regulation Authority (APRA) launched an inquiry into CBA following a number of scandals. This included giving out poor advice, major anti-money laundering breaches, fee errors, and issues with insurance.

At the time, APRA’s findings led it to believe the bank had a negligent attitude to non-financial risks.

Independent consulting firm Promontory made a suite of recommendations to improve the bank’s culture. Since then, the agency has conducted quarterly reviews to monitor CBA’s progress in remedying the issues at hand.

As such, the bank has noted that all milestones have been completed and all recommendations have been implemented.

APRA will undertake further validation work to assess the sustainability of CBA’s improvements with Promontory. In addition, APRA will also continue to monitor the bank’s prudential inquiry work.

However, this latest report is unlikely to be directly affecting the CBA share price today.

CBA chief executive Matt Comyn commented:

Three years ago, we committed to delivering all recommendations in the prudential inquiry final report.

Completing the Remedial Action Plan is a significant milestone but we recognise there is still much more for us to do. Our focus is to now demonstrate that the changes we’ve made are sustained and continuously improved.

About the CBA share price

It has been a strong 12 months for the CBA share price, rising by more than 50% despite moving in circles since mid-June. However, when looking at the year to date, the company’s shares have travelled more than 25% higher.

Based on today’s price, CBA commands a market capitalisation of roughly $178 billion and has approximately 1.7 billion shares outstanding.

The post CBA share price (ASX:CBA) gains amid remedial action plan update appeared first on The Motley Fool Australia.

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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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The Telstra Corporation Ltd (ASX: TLS) share price has been an interesting one to watch over the past year. Since bottoming out around $2.66 back in October last year, Telstra shares have been on quite the run. The telco is today sitting at a share price of $3.86. That’s roughly 45% off of the 52-week low that we saw back in October. We also see Telstra shares up 28.4% year to date in 2021 so far, and up 39% over the past 12 months to date.

But how did Telstra shares perform over the most recent quarter? The FY2022 year just saw its first quarter (running 1 July – 30 September) end, so how did Telstra shares go?

Well, this ASX 200 telco started the quarter off at a share price of $3.76. It finished up the quarter on 30 September at a price of $3.93. That puts its raw capital gains at roughly 4.52% for the quarter just passed. Not bad, one could say, especially considering that the broader S&P/ASX 200 Index (ASX: XJO) only managed a performance of 0.26% over the same period. That means the Telstra share price handily outperformed the market over the FY22 first quarter.

It’s also worth noting that this performance includes Telstra going ex-dividend for its final shareholder dividend during the quarter. Telstra traded ex-dividend on 25 August for its 8 cents per share payout, which naturally resulted in the Telstra share price taking a commensurate hit.

But this payout only hit shareholders’ pockets on 23 September, after the quarter ended. If these dates had been shuffled around to include the dividend payment in the quarter, shareholder returns for the period would have been even better.

So where to now for Telstra shares?

Could the Telstra share price be a buy today?

One broker who thinks so is investment bank Goldman Sachs. Goldman last month reaffirmed Telstra shares as a ‘buy‘, with a 12-month share price target of $4.40. That implies a future potential 12-month upside of roughly 14% on current pricing.

Goldman is bullish on Telstra following the company’s T25 update, which outlined a number of further cost-saving measures Telstra is planning on implementing. It also notes Telstra’s prioritisation of “growing franked dividends over time” as well as an expected share buyback program.

At the current Telstra share price, this telco has a market capitalisation of $44 billion and a dividend yield of 4.15%.

The post What happened for the Telstra (ASX:TLS) share price in the FY22 first quarter? appeared first on The Motley Fool Australia.

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• When will the Telstra (ASX:TLS) dividend increase?
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Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation 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 Telstra Corporation 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 Ansell Limited (ASX: ANN) share price took a dive this morning after a leading broker urged investors to dump the shares.

That sent the glove maker’s ASX share price crashing over 4% to $32.33 at the time of writing. Adding insult to injury, the Ansell share price is the worst performer on the S&P/ASX 200 Index (Index:^AXJO).

If you are wondering, the Corporate Travel Management Ltd (ASX: CTD) share price is the second worse while the Clinuvel Pharmaceuticals Limited (ASX: CUV) is in third spot.

Ansell share price whacked by broker downgrade

Investors are hitting the “sell” button after Macquarie Group Ltd (ASX: MQG) downgraded the Ansell share price to “underperform”.

That may sound counterintuitive as we are still in the midst of the COVID-19 pandemic. Demand for personal protective equipment (PPE) is still strong and that’s unlikely to change.

In fact, single-use gloves for examinations (Exam/SU) were Ansell’s biggest revenue contributor in FY20. The product accounted for around one-third of group revenue.

From hero to zero?

The item remained a hot product in FY21 but price pressures started to bite and management was able to increase prices to offset the squeeze.

They did such a good job that Macquarie estimates that the price increase was above the extra cost for raw materials.

This pretty much shows the price inelasticity for essential items like PPE during a pandemic!

Victim of its own success

Based on Macquarie’s numbers, the price increase added $70 million to Ansell’s gross profit in 2HFY21. This equates to around a 60% increase of the year-on-year gross profit improvement in FY21.

But cracks in the Ansell share price growth story have started to appear that prompted the downgrade.

“Recent industry feedback suggests reduced demand and increased supply thinner nitrile Exam/SU gloves, leading to lower ASPs (approaching pre-COVID-19 levels),” said Macquarie.

“In addition, feedback suggests a refocus of supply into other segments (thicker exam/single use, surgical). We now assume weaker volumes for Exam/SU in FY22/23 as well as the reversal of the majority of price increases implemented in FY21.”

Ansell share price at risk of consensus downgrades

In other words, the Ansell share price could soon be facing a consensus downgrade cycle, if Macquarie is right.

The broker’s FY22 earnings per share (EPS) forecast for Ansell of US$1.70 sits under the low-end of the company’s guidance. The guidance is for between US$1.75 and US$1.95 a share.

What is the Ansell share price worth?

Further, Macquarie’s FY23 EPS estimate is 16% under consensus. The broker’s 12-month price target on the Ansell share price is $32.

At least the shares don’t have to fall by much more to reach fair value after today’s big sell-off.

The post Why the Ansell (ASX: ANN) share price is crashing today appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO) midday update: Star shares crash, tech shares tumble

Motley Fool contributor Brendon Lau owns shares of Ansell Ltd. and Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Macquarie Group Limited. The Motley Fool Australia has recommended Ansell 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 Woodside Petroleum Limited (ASX: WPL) share price is bucking the wider selling trend on the S&P/ASX 200 Index (ASX: XJO).

Woodside is up 0.2% at time of writing, while the ASX 200 has given back early morning gains and is currently down 0.2%.

The Woodside share price has outperformed the benchmark for some time now.

Taking a look at the past 3 weeks, it’s up 24% since the closing bell on 20 September. That compares to a 0.5% gain on the ASX 200.

Below we take a look at what’s driving investor interest in the Aussie energy giant.

Namely…

A global energy crunch

There are numerous factors at play that determine any company’s share price.

For the Woodside share price, one of those factors is the company’s plans to merge with BHP Group Ltd‘s (ASX: BHP) oil and gas business, which it announced in mid-August.

But one of the strongest tailwinds the company has enjoyed of late is soaring energy prices.

As the world moves to reopen, demand for everything from coal, to natural gas, to crude oil (and more) is booming. Meanwhile, new supplies are lagging.

The result?

International benchmark Brent crude prices have rocketed 12.8% in just the past 3 weeks, from US$73.92 per barrel on 21 September to US$83.33 per barrel today.

These kind of price rises often go straight to the bottom line for commodity producers. That’s because their fixed costs remain largely the same, regardless of the price of the fuel they pump from the ground.

Hence, the 24% leap in the Woodside share price isn’t unexpected.

Indeed, most ASX energy shares have enjoyed a strong run lately. The S&P/ASX 200 Energy Index (ASX: XEJ), for example, is up 20% in 3 weeks.

Woodside share price snapshot

As we saw above, the Woodside share price has slightly outpaced the Energy Index over the last 3 weeks and left the ASX 200 in the dust.

Year-to-date Woodside shares are up 10%. That’s right in line with the 10% gains posted by the Energy Index and just edges out the 9% gains made on the ASX 200.

The post Why the Woodside (ASX:WPL) share price has rallied 24% in 3 weeks 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 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 Forrestania Resources Ltd (ASX: FRS) share price is soaring 17.14% into the green during early afternoon trade and is now changing hands at 41 cents.

Forrestania shares are on the move after the company announced a key update regarding its Forrestania project.

Here’s what we know.

Forrestania share price lifts on significant lithium target finds

The company advised that it had identified “significant new lithium target areas” based on testing done at the Forrestania site.

It used a technology known as “Advanced Spaceborne Thermal Emission and Reflection Radiometer (ASTER)” to identify alteration footprints and target anomalies at the project.

ASTER technology is an instrument onboard NASA’s Terra satellite, which produces images of the Earth’s surface in 14 alternate wavelengths of the electromagnetic spectrum, per the release.

Forrestania is integrating the technology into its exploration targeting process, in order to rank and define areas of interest.

The release notes that Forrestania stumbled across a major ASTER lithium target anomaly, adjacent to the Wesfarmers/SQM MT Holland Lithium mine – a site labelled ‘world class’ by the company.

As a result of the testing outcomes, Forrestania proclaims that “outstanding lithium prospectivity (at the project) is supported by a substantial first-pass geochemical database”.

The next moves for Forrestania at the site involve “geological reconnaissance and field checking; and geochemical sampling” alongside other groundwork.

The company will release more on the results as they become available, as per the release.

Management appeared impressed by the news, and are optimistic about the new target find. Speaking on the announcement, Forrestania CEO, Melanie Sutterby, said:

The ASTER data presented in this release is a small but significant part of our exploration efforts at the Forrestania Project, which is a unique and prospective portfolio. Geologically, our package holds the potential to discover a range of commodities, including lithium, nickel and other speciality metals.

Sutterby also went on to add:

With its status as a world-class lithium province ascribed within the past decade, explorers have only just scratched the surface at Forrestania, and we plan to play a lead role in the development of the area.

Forrestania Resources share price snapshot

It’s been all systems go for the Forrestania Resources share price since listing last month.

In that time, initial investors have gained 115% on their investment, capturing another 30% this week alone.

The post Forrestania (ASX:FRS) share price rockets 17% on lithium and gold update appeared first on The Motley Fool Australia.

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• Forrestania Resources (ASX:FRS) share price rockets 45% on IPO

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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ASX lithium shares are charging higher on Tuesday as lithium prices reached all-time highs amid limited supply and elevated demand.

ASX 200 lithium heavyweights Orocobre Limited (ASX: ORE) and Pilbara Minerals Ltd (ASX: PLS) are up 1.4% and 3.8% respectively.

Towards the more speculative end of town, Piedmont Lithium Inc (ASX: PLL), Charger Metals NL (ASX: CHR) and Argosy Minerals Limited (ASX: AGY) are big winners today, up 6.2%, 10.5% and 3.8% respectively.

Not all gains are made equal, however, with players such as Liontown Resources Ltd (ASX: LTR), Firefinch Ltd (ASX: FFX) and Core Lithium Ltd (ASX: CXO) underperforming in today’s session so far, down a respective 0.7%, 2.4% and 1.2%.

Runaway spot prices drive ASX lithium shares higher

According to Benchmark Mineral Intelligence, prices for battery-grade lithium carbonate rose 26.5% in China to 160,000 yuan (US$24,800) a tonne in the final two weeks of September.

This marks a new all-time high for battery-grade lithium carbonate prices, surpassing 2018 highs of US$24,750 a tonne.

Prices have jumped on the back of strong demand from China, with demand for lithium-ion batteries “remaining high and steady after a year of significant growth”.

Looking ahead, Benchmark Minerals said that record prices are “likely to incentivise a strong upward revision of contract prices in Q4 as new deals and pricing breaks are negotiated for the start of 2022”.

It also observed that supply contracts negotiated in the fourth quarter can be influenced by spot market sentiment.

“It is this revision that sparked the surge in lithium chemicals pricing in 2015, indicating that the start of 2022 could see further momentum in price rises,” the report added.

The bullish performance of lithium has helped buoy ASX lithium shares.

The broader sector has cooled off in recent months with many shares trading 15-20% below recent multi-year or all-time highs.

The post ASX lithium shares lift as spot prices hit all-time highs appeared first on The Motley Fool Australia.

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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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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and is trading lower. The benchmark index is currently down 0.1% to 7,291.5 points.

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

Westpac’s notable items

The Westpac Banking Corp (ASX: WBC) share price is trading lower today after revealing a number of notable items that will impact its financial results. Westpac advised that its profit will be hit by a total of $1.3 billion of notable items. These include $965 million write down of assets in Westpac Institutional Bank (WIB) following its annual impairment test, and additional provisions for customer refunds, payments, associated costs and litigation provisions of $172 million.

Ansell shares downgraded

The Ansell Limited (ASX: ANN) share price is under pressure today after being the subject of a bearish broker note. According to a note out of Macquarie Group Ltd (ASX: MQG), its analysts have downgraded the health and safety protection solutions company’s shares to an underperform rating and cut the price target on them to $32.00. The broker believes that recent trends pose downside risk to the market’s earnings expectations.

Mining giants rise

The shares of BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) are rising today after a strong night for iron ore prices. According to Metal Bulletin, the spot iron ore price has jumped 9.4% to US$135.03 a tonne thanks to supply concerns. BHP and Rio Tinto’s shares are both up approximately 1.5% at the time of writing.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Alumina Limited (ASX: AWC) share price with a 5% gain. This appears to have been driven by rising alumina prices. The worst performer on the index has been the Ansell share price with a 4% decline following the broker downgrade.

The post ASX 200 (ASX:XJO) midday update: Westpac’s $1.3bn earnings hit, Ansell sinks appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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 Australia has recommended Ansell 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 Tinybeans Group Ltd (ASX: TNY) share price is soaring on Tuesday morning. This follows the tech company’s business update in regards to its new paid subscription model, Beanstalk.

At the time of writing, the company’s shares are up 6.25% to $1.02. In earlier trading, they jumped by 10% to $1.06 before partially retreating.

What did Tinybeans announce?

In its release, Tinybeans advised its subscription offering, Beanstalk, has acquired more than 3,500 new paying subscribers since being launched. The product was integrated in full across the platform in August 2021.

The company’s strategy has been to grow consumer subscriptions with recurring revenues to complement its growing advertising revenues. To facilitate this, the model moved from a mostly free experience into a new, comprehensive paid subscription service.

As such, Tinybeans highlighted its advertising revenue is on track to reach record levels in Q1 FY22.

CEO Eddie Geller commented on the news possibly driving the Tinybeans share price today:

The strong early adoption trends we have experienced following the launch of our paid subscription product, Beanstalk, in August highlight the additional value we are delivering to our userbase.

Additionally, we have maintained our momentum in our advertising business, which remains on track to deliver record revenues in Q1 FY22. We believe this is a testament to the success of our efforts to improve the platform experience for our advertising partners and increase engagement from our valued members.

We are proud of the incremental milestones that we have achieved and look forward to providing additional details when we report our results for Q1 FY22.

Quick take on Tinybeans

Developed in Australia, Tinybeans is a social media platform that allows parents to share photos and videos of their children within a secure community.

The platform addresses cyber security and user privacy concerns by creating a contained, invite-only environment. This gives users peace of mind when uploading content and sharing within an approved network.

Tinybeans share price snapshot

Over the past 12 months, the Tinybeans share price has fallen by around 13%. It is also down around 32% year to date.

Based on today’s price, Tinybeans commands a market capitalisation of roughly $48 million and has approximately 46.3 million shares outstanding.

The post Why the Tinybeans (ASX:TNY) share price is up 6% today appeared first on The Motley Fool Australia.

More reading

• The Tinybeans (ASX:TNY) share price has jumped 9% on Friday

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. owns shares of and has recommended Tinybeans Group 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 Plenti Group Ltd (ASX: PLT) share price is off to the races today, up 7% at time of writing after earlier posting gains of more than 8%.

Below we take a look at the ASX fintech lender’s trading update for the quarter ended 30 September 2021 (Q2 FY22).

(Note that different companies abide by different financial year calendars.)

What were the growth figures for Q2 FY22?

The Plenti share price is soaring today after the company reported a 140% increase in quarterly loan originations compared to Q2 FY21.

The record high $256.4 million of loan originations also represented an 18% boost from the previous quarter (Q1 FY21).

September, with $95.5 million, proved to be another record month for Plenti’s loan originations. That figure was up 159% from September 2020 which the company said was a record month for loan originations at that time.

With another strong quarter behind it, Plenti reported its first half of the 2022 financial year (H1 FY22) loan originations leapt to $473 million. That’s up 183% from the previous corresponding period and up 56% from the previous half year.

The Plenti share price may also be getting a lift from the 110% year-on-year increase in the company’s loan portfolio which stood at $915 million as at 30 September.

Commenting on the results, Plenti’s CEO Daniel Foggo said:

I am delighted to report yet another outstanding quarter for Plenti, with record quarterly loan originations across each lending vertical. By continuing to take market share, Plenti has achieved strong growth despite COVID-induced lockdowns.

This strong growth along with the high level of operational leverage from our technology-led business model has accelerated our targeted timeframes for achieving a one-billion-dollar loan book and reaching Cash NPAT profitability, now targeted by end December 2021.

Plenti share price snap shot

The Plenti share price is up 23% in 2021, well outpacing the 9% gains posted by the All Ordinaries Index (ASX: XAO) over that same time.

Over the past month, Plenti’s shares are trading flat.

The post Why the Plenti (ASX:PLT) share price is soaring 7% today appeared first on The Motley Fool Australia.

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• Star Entertainment and SkyCity share prices plunge, Whitehaven Coal up. Scott Phillips on Nine’s Late News
• Qantas (ASX:QAN) share price falls amid new budget airline competition
• Why has the Australian Strategic Materials (ASX:ASM) share price tumbled 22% since August?
• Own NAB (ASX:NAB) shares? What to expect from its FY21 results

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 Macquarie Group Limited (ASX: MQG) share price had an amazing first quarter to the new financial year.

Starting the 3-month period at $156.43, shares rose 16.3% to end the quarter at $182.00 per share. That incredible growth comes despite the S&P/ASX 200 Index (ASX: XJO) having a mediocre quarter – rising only 0.26% in that time.

Let’s take a closer look at what’s been happening.

Macquarie Group performed really well

The first story that may have had a material impact on the Macquarie share price in the quarter was the positive brokers note out of Morgans in early August.

As Motley Fool previously reported, Morgans said at the time:

“We still see MQG as relatively inexpensive and continue to like its exposure to long-term structural growth areas such as infrastructure and renewables. Near term, MQG is likely to face earnings pressures from the impact of soft economic conditions but it remains well-positioned to ride out the current COVID-19 period and seize opportunities on the other side.”

A pretty mediocre July for the company, from that point, turned into a green August and September. Of course, this is not to say the rise is because of the note, but just to show the growth coincided with the note being released.

The next big story that seemed to have had a positive impact on the Macquarie share price was the release of its second-half forecast for the financial year – the company gaining 6% on the day.

At the time, Macquarie advised it expects 1H FY22 results to be “slightly down on 2H FY21”.

The investment bank gave the following reasons for the outlook:

• Competition amongst peers driving down margin pressure;
• Forecasted higher expenses to “support growth and investment”;
• Commodity income was also “expected to be down following a strong FY21”.

In the medium-term, Macquarie gave a more optimistic outlook. Macquarie believes it remains “well-positioned to deliver superior performance in the medium term”. That’s a stark contrast to its near term forward estimates at the time.

Macquarie share price snapshot

Over the past 12 months, the Macquarie share price has risen by 41%. Year-to-date, its shares are up 32%. Its 52-week high is $183.71 (hit yesterday) and its 52-week low is $125.56.

Macquarie Group has a market capitalisation of approximately $67 billion.

The post Why did the Macquarie (ASX:MQG) share price have such a great FY22 first quarter? appeared first on The Motley Fool Australia.

More reading

• Is the Westpac (ASX:WBC) share price a buy for its 7% dividend yield?
• Why the Macquarie (ASX:MQG) share price hit its all-time high on Friday
• How did the Macquarie (ASX:MQG) share price perform in September?
• The most important catalyst for outperforming ASX shares: fund manager
• 2 compelling ASX shares that could be buys in October 2021

Motley Fool contributor Marc Sidarous 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 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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