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The S&P/ASX 200 Index (ASX: XJO) is getting pummeled on Monday, down 2.22% to a 3-month low of 7,239.

Most sectors are in deep red, with the exception of the utilities sector.

Headlining today’s losses are the energy, materials and information technology sectors, with heavyweight names such as BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) down between 2.25% and 5.6%.

While the market has managed to pull a vast majority of ASX 200 shares in negative territory, here are the few that have managed to stand tall.

Ausnet Services Ltd (ASX: AST)

The Ausnet share price has had a little help staying afloat amidst today’s sharp selloff.

The company received an unsolicited, indicative and non-binding takeover offer from Brookfield Asset Management to acquire 100% of Ausnet at $2.50 per share.

As a result, the Ausnet share price jumped 17.93% to $2.34.

Interestingly, the S&P/ASX Utilities (INDEXASX: XUJ) is the only sector that was positive on Monday.

In addition to Ausnet’s booming share price, the broader utility sector is holding up well with large cap players such as Meridian Energy Ltd (ASX: MEZ), APA Group (ASX: APA) and Infratil Ltd (ASX: IFT) down just 0.20%, 0.28% and 1.27% respectively.

Endeavour Group Ltd (ASX: EDV)

The Endeavor share price is up 3.18% to $6.65 on no price-sensitive news.

Endeavour shares have struggled to grasp any upside following the release of its FY21 results on 26 August.

This is where the company flagged significant volatility in the first 8 weeks of FY22. Retail and hotels sales were tracking a respective 1.7% and 7.3% lower than FY21 due to the pandemic.

Wesfarmers Ltd (ASX: WES)

Investors seem to be holding onto their Wesfarmers shares despite the panic taking place across the ASX 200.

At the time of writing, the Wesfarmers share price has managed to eke out a gain of 0.09% to $57.33.

Wesfarmers has tumbled about 10% since the release of its FY21 results on 27 August.

The company cited similar challenges as Endeavour, with management warning that:

Given the impact of lockdowns in recent months and the prospect of continued trading restrictions, earnings in the Group’s retail businesses during the first half of the 2022 financial year may be below the prior corresponding period.

Despite a weaker near-term outlook, investors might have used its recent selloff as a buying opportunity following a significant uptick in volume last Thursday and Friday.

During the two days, a respective 2.92 million and 4.06 million shares traded hands compared to its 10-day average of around 2.1 million shares.

The post 3 ASX 200 shares holding up amidst today’s market crash appeared first on The Motley Fool Australia.

More reading

• The Endeavour (ASX:EDV) share price is lifting today
• Which ASX 300 shares are leading the way on Monday?
• ASX 200 (ASX:XJO) midday update: Transurban acquisition, BHP & Fortescue sink
• Ausnet (ASX:AST) share price rockets 20% on fresh takeover bid
• How has the Wesfarmers (ASX:WES) share price been performing since reporting results?

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. owns shares of and has recommended Xero. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited and 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 Metalstech Ltd (ASX: MTC) share price has stepped into the green in afternoon trade on Monday.

At one point today, Metalstech shares were changing hands 7% higher at 46 cents each and are now trading at 44 cents apiece.

Investors are buying the lithium and cobalt company’s shares on the back of a drilling update announced earlier today.

What did Metalstech announce?

Metalstech announced it had made the “discovery of historic high-grade intersections in untested regional target zones” at its Sturec gold mine in Slovakia.

In addition, a “mapping and rockchip exploration program” has commenced at the site to “help plan and design a regional exploration drilling program” that will follow up on these high-grade intersections.

The drilling will “attempt to understand the structural setting and extent” of the high-grade mineralisations that were intersected.

Metalstech also advised that “importantly”, these historic high grade mineralised zones “sit outside of the updated 2021 Sturec mineral resource estimate area” announced in July.

Following the results announced today, Metalstech advised exploration is to “focus on three main prospects outside the updated 2021 Sturec mineral resources estimate area”.

The three prospects are the Vratislav, Wolf and Katerina prospects respectively, located at the company’s Sturec mine.

Investors have bought the news and are still buying Metalstech’s shares into the afternoon session on Monday.

This continues an impressive run for the Metalstech share price which has climbed a further 48% into the green over the last week.

What did management say?

Commenting on the results, Metalstech chair Russel Moran said:

We’ve always had the belief that Sturec possesses incredible prospectivity outside of the existing core zone where the current mineral resource is located.

Speaking on the company’s next moves, Moran added:

The results from these prospects clearly warrant the company undertaking further exploration as part of our planned regional drilling program. We look forward to expanding our drill campaign to include these and other regional targets as we continue to develop a better understanding of the growth potential of the deposit.

Metalstech share price snapshot

The Metalstech share price has climbed 110% this year to date, extending the last 12 month’s gain to 100%.

Over the last month alone, it has jumped a further 115% into the green.

These results have outpaced the S&P/ASX 200 Index (ASX: XJO)’s return of around 25% over the past year.

The post Metalstech (ASX:MTC) share price leaps 7% on drilling update appeared first on The Motley Fool Australia.

More reading

• Metalstech (ASX:MTC) share price surges 20% on $2 million investment
• Metalstech (ASX:MTC) share price jumps 15% on lithium spin out update
• Why Metalstech, Mineral Resources, TechnologyOne, & Webjet are storming higher
• Why the Metalstech (ASX:MTC) share price is rocketing 16% on Friday
• Why the MetalsTech (ASX:MTC) share price is soaring 15% today

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 Bluescope Steel Ltd (ASX: BSL) share price is sliding into the red on Monday and, at the time of writing, is trading at $21.65 apiece.

That’s a 5.87% drop from the open and well behind the S&P/ASX 200 Index (ASX: XJO)’s loss of around 2% today.

Let’s take a look at what’s at play here.

What’s up with the Bluescope Steel share price today?

There’s been no major market news for the company today, however, the Bluescope Steel share price is sliding after the company gave the first day of its investor presentation today.

Today’s presentation follows the release of Bluescope’s climate action and sustainability report on 14 September.

In its presentation, the steel giant covered its “strategy update”, revealing how it intends to tackle climate change and sustainability issues moving forward.

For instance, one of its five “key sustainability topics” outlined the company intends to deploy “financial strength for long-term sustainable growth and returns”.

This encompasses an “initial 5-year climate investment program of up to $150 million”. It also foreshadows investing over $1.5 billion in long-term business segments and “targeting 50 cents per share per annum” in its dividend program, just to name a few.

Bluescope summarised its “clear” strategy in three distinct areas: Transform (technology and climate change), Grow (its businesses), and Deliver (returns and so on).

What else is driving Bluescope shares lower?

Aside from the company putting its long-term growth vision on display, one other factor weighing on the Bluescope Steel price today is the current price of iron ore in the commodity markets.

Recent curbs in 2021 in steel production from the world’s biggest steelmaker, China, have cratered steel prices lately.

Iron ore closed 8% lower on Friday to US$104.50/tonne. That’s down around US$120/tonne or 50% since mid-July, well off a record high of US$230/tonne in May this year.

It’s important to know Bluescope is an ASX resource share that has unique exposure to producing commodities, in this case, steel. As a result, its share price can and does fluctuate coinciding with fluctuations in the broader commodity markets.

Given the nature of this relationship, and how iron ore prices have bungee-jumped since July, it’s clear to see what’s fuelling the Bluescope Steel share price today.

Bluescope Steel share price snapshot

The Bluescope Steel share price has climbed 23% this year to date. However, it has struggled lately and is 12% in the red over the last month.

Despite this, Bluescope’s share price has gained 67% over the past 12 months which has outpaced the broad index’s return of around 25% in the past year.

The post BlueScope Steel (ASX:BSL) share price sinks 7% despite strategy update appeared first on The Motley Fool Australia.

More reading

• These ASX 200 shares are trading ex-dividend today
• Why Appen, BlueScope, Fortescue, & Marley Spoon shares are dropping
• 5 things to watch on the ASX 200 on Tuesday
• 10 ASX shares we’re overweight in right now: fund

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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It has been a poor day of trade for the Pilbara Minerals Ltd (ASX: PLS) share price on Monday.

In afternoon trade, the lithium producer’s shares are down 6.5% to $2.14.

Despite this, Pilbara Minerals’ shares are still up 145% in 2021.

Why is the Pilbara Minerals share price sinking?

The decline in the Pilbara Minerals share price on Monday has been driven by broad market weakness.

That broad market weakness means the Australian share market is a sea of red today, with almost all sectors recording declines.

Concerns over the Chinese economy appear to be weighing on investor sentiment. This follows reports that Chinese property giant Evergrande could collapse with US$300 billion worth of debts.

The lithium sector has been hit particularly hard, potentially due to profit taking after some very strong gains this year.

Is this a buying opportunity for investors?

One leading broker that is likely to see the pullback in the Pilbara Minerals share price as a buying opportunity is Macquarie Group Ltd (ASX: MQG).

This morning the broker retained its outperform rating and lifted its price target on the company’s shares by 7.4% to $2.90.

Based on the current Pilbara Minerals share price, this implies potential upside of almost 36% over the next 12 months.

Macquarie made the move after upgrading its near term lithium forecasts to reflect recent strong rises in China. This led to a further upgrade to its earnings estimates for the company.

What else did the broker say?

In addition to Pilbara Minerals, the broker is bullish on rival Liontown Resources Limited (ASX: LTR). This morning Macquarie held firm with its outperform rating and lifted its price target on Liontown Resources’ shares to $1.70.

The broker is very positive on the potential of the company’s Kathleen Valley Lithium Project. It believes it has the potential to produce 700,000tpa of spodumene.

The post The Pilbara Minerals (ASX:PLS) share price is down 6% today. Is it a buy? appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 (ASX:XJO) shares last week
• Why Macquarie sees 18% upside in the Pilbara Minerals (ASX:PLS) share price
• These 3 ASX 200 shares are the most heavily traded so far this Thursday
• Here are the top 10 ASX shares today
• Top brokers name 3 ASX shares to buy today

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 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 Etherstack PLC (ASX: ESK) share price is bucking the trend on the All Ordinaries Index (ASX: XAO) today. This comes after the communications wireless technology company announced a positive update to the market.

At the time of writing, Etherstack shares are fetching for 58 cents, up 7.41%. In comparison, the All Ords is hovering around 7,531 points, down 2.23%.

Etherstack secures first order with AT&T

Investors are sending the Etherstack share price higher after digesting the company’s latest news.

According to its release, Etherstack advised that it has been awarded an initial order with American conglomerate AT&T.

The order is for the supply of Etherstack software licences and equipment, as well as integration and professional services.

Etherstack operates in wireless communications technologies for customers in the public safety, defence, utilities and mining industries. The company’s protocol stacks are exported globally and licensed by leading radio manufacturers.

The first order is expected to generate around US$420,000 (A$575,000) with delivery and revenue to be recognised this financial year.

Etherstack CEO David Deacon commented:

We are extremely honoured to secure our first direct deal with AT&T. It is a great achievement for Etherstack’s team and technology to be able to supply the world’s largest and most venerable telecommunications company.

We look forward to building a lasting relationship on the back of this initial order.

The win builds on the company’s recent success in securing another purchase order with communications provider RCS Telecommunications in May. That deal alone was worth $600,00 with most of the funds received in FY21.

About the Etherstack share price

The majority of the last 12 months has been relatively indifferent for Etherstack shares. However, a sharp and sudden dip in May saw the company’s share price plunge to 46 cents, before picking up again.

Since then, its shares have gradually trodden lower to post a loss of around 7% year-to-date.

Based on today’s price, Etherstack presides a market capitalisation of about $75.1 million and has approximately 131 million shares outstanding.

The post Etherstack (ASX:ESK) share price soars 7% on initial order with telecommunications giant appeared first on The Motley Fool Australia.

More reading

• Just when you thought the AMP (ASX:AMP) share price couldn’t sink any lower…
• Why is the CBA (ASX:CBA) share price outperforming its big four peers today?
• Why the Deep Yellow (ASX:DYL) share price is tanking 18% today
• Rio Tinto (ASX:RIO) share price craters as iron ore hits US$100 a tonne
• The Endeavour (ASX:EDV) share price is lifting today

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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Well, the AMP Ltd (ASX: AMP) share price has done it again. AMP shares are today finding yet another new all-time low. This embattled wealth manager is currently trading at a share price of just 96 cents a share, down 3.33% today. Last week, we covered how AMP had sunk below $1 a share for the first time ever in its 20-year-plus history of being an ASX company.

Well, today that dubious record has been extended. The current AMP share price of 96 cents a share is indeed the lowest AMP shares have ever traded at.

But, unfortunately, this is just the latest move for a company that has been sliding in value for years now. AMP last reached an all-time high way back in 2002, just a few years after it demutualised and IPOed on the ASX boards. Back in 2002, AMP reached a share price of close to $14 a share, which investors may find difficult to comprehend today.

But AMP shares have been on a slow but steady decline ever since. Just take a look at this share price graph for the past decade, and you’ll (literally) get the picture:

Not a pretty picture for investors. AMP shares are now down more than 38% year to date, as well as by more than 82% over the past 5 years.

So what has gone so wrong for the AMP share price?

Well, it’s most recent woes all start with the 2018 Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. This Royal Commission uncovered systemic failures and rorts at a number of ASX financial institutions.

But AMP was one of the companies singled out for some pretty awful alleged conduct. Including the infamous ‘fees for no service’ scandal. The report’s findings prompted a mass exodus in AMP’s leadership at the time, with the company bringing in new CEO Francesco de Ferrari.

However, de Ferrari’s tenure as AMP CEO failed to result in a meaningful turnaround for the company’s battered reputation, even though he successfully managed AMP’s sale of its life insurance business. Ferrari resigned from his CEO position earlier this year, and was replaced by Alexis George last month.

In saying that, the company did release an initially well-received FY21 earnings report last month. AMP reported a 57% increase in net profits after tax, as well as an 8% bump in funds under management.

As it stands today, shareholders are waiting to see how AMP’s planned spin-off of AMP Capital Private Markets, scheduled for the first half of FY2022, fares.

But we can’t deny that today’s new low for AMP is depressing news for shareholders. Many will have their fingers crossed that the next few years will turn out better than the last few.

At the current AMP share price, the company has a market capitalisation of $3.13 billion.

The post Just when you thought the AMP (ASX:AMP) share price couldn’t sink any lower… appeared first on The Motley Fool Australia.

More reading

• The shrinking AMP (ASX:AMP) share price now comes with one benefit
• AMP (ASX:AMP) share price hits fresh lows amid advisory board resignations
• The AMP (ASX:AMP) share price hit an all-time low of $1 today
• The AMP (ASX:AMP) share price has fallen another 7% in a month. What’s next?
• Here’s why the AMP (ASX:AMP) share price is down 4% in a week

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 Commonwealth Bank of Australia (ASX: CBA) share price is leading its big four peers on the ASX today.

At the time of writing, the CBA share price is $101.47, 1.37% lower than its previous close.

In second place is the National Australia Bank Ltd (ASX: NAB) share price, which has dropped 1.45%.

Next best is Australia and New Zealand Banking Group Ltd (ASX: ANZ). Its stock has slipped 1.77%. Meantime, that of Westpac Banking Corp (ASX: WBC) is bringing up the rear, sporting a 1.97% drop at the time of writing.

Let’s take a look at what might be putting CBA’s stock in the lead on this brutal day.

CBA stock leads the big four

The CBA share price is outperforming its fellow big four banks as the ASX 200 battles through a rough day.  

The S&P/ASX 200 Index (ASX: XJO) is currently down 2.15%, having fallen 159.2 points today. If the index doesn’t manage to correct itself this afternoon, it will be recording its fourth-worst day of the last 12 months.

Unsurprisingly, only a handful of ASX 200 shares are managing to record gains today as CBA and its peers struggle.

There’s no real rhyme or reason as to why the CBA share price is ahead of those of the other big four banks today.

This is particularly curious as the Australian Securities and Investments Commission (ASIC) handed CBA, Australia’s biggest bank, 30 criminal charges late last week.

The Commission alleges CBA sold its customers unusable insurance products for credit cards and loans.

The bank has agreed to plead guilty to the charges which each carry a maximum penalty of $1.7 million.

CBA share price snapshot

Despite today’s fall, the CBA share price has been performing well lately.

It is currently 23% higher than it was at the start of 2021. It has also gained 58% since this time last year.

The post Why is the CBA (ASX:CBA) share price outperforming its big four peers today? appeared first on The Motley Fool Australia.

More reading

• The next ASX 200 shares that could undertake a big capital return
• Why this fund manager sees limited growth potential for ASX 200 banks
• What’s happening with the CBA (ASX:CBA) share price this week?
• This year’s ASX 200 Santa Rally to get a whopping $84bn cash boost
• Commonwealth Bank (ASX:CBA) faces 30 criminal charges

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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The Deep Yellow Limited (ASX: DYL) share price has ended its miraculous run today.

Shares in the uranium explorer have tanked 18% in today’s session.

Let’s take a look at why investors are dumping their shares in Deep Yellow.  

Why is Deep Yellow tanking?

Deep Yellow has not released any price-sensitive news today that could explain why its shares are tanking.

As a result, shares in the uranium explorer have been on the receiving end of general weakness in the broader uranium sector.

Last Friday, the Global X Uranium ETF (NYSE: URA) tumbled more than 7.5%.

The fund invests in a broad range of companies engaged in uranium mining, including Deep Yellow.

As a result, most uranium players on the ASX, including Deep Yellow, have been deep in the red today.

What’s been fuelling the uranium sector?

Before Friday’s pullback, spot prices for uranium rallied 60% over the past month to hit 9-year highs.

The spot uranium price touched $50 last week for the first time since 2012.

The driving force behind the resurgence in the uranium sector has been aggressive buying from the world’s largest uranium fund, Sprott Physical Uranium Trust (TSE: U.U).

This euphoric price action was reflected in the Deep Yellow share price, which hit a record high of $1.37 last week.

Snapshot of the Deep Yellow share price

Deep Yellow explores uranium mineral properties and has pre-development activities in Namibia and the states and territories of Australia. 

The company has various exploration prospects, including its cornerstone Tumas Project in Namibia.

Deep Yellow recently completed drilling at its Tumas 1 East site. The company reported an impressive conversion rate of inferred mineral resources to indicated mineral resources of 102%.

On the back of a surging uranium spot price, shares in Deep Yellow bordered on vertical last month.

Upon closing Friday’s session at $1.37, Deep Yellow shares had surged more than 72% since the start of September.

The uranium explorer has given back much of those gains, tanking more than 18% in today’s session.

At the time of writing, the Deep Yellow share price is trading near its intra-day low of $1.13.

The post Why the Deep Yellow (ASX:DYL) share price is tanking 18% today appeared first on The Motley Fool Australia.

More reading

• Why ASX uranium shares are diving double-digits on Monday
• Deep Yellow (ASX:DYL) share price jumps 6% to 8-year high. Here’s why.
• Is there a uranium ETF listed on the ASX?
• Why are ASX uranium shares in focus today?
• Here’s why the Deep Yellow (ASX:DYL) share price is up 50% this month

Motley Fool contributor Nikhil Gangaram 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 Rio Tinto Limited (ASX: RIO) share price has slipped firmly into the red as we commence the week’s trading today.

Rio shares are now changing hands at $93.58, a 5% drop from the open, and a further 12% decrease over the last week.

Rio’s share price is swimming in a sea of red, so let’s investigate further.

What’s up with the Rio Tinto share price lately?

The Rio Tinto share price is likely tanking on the back of a downward spiral in the price of iron ore, that has spurred on since July. Take one look at iron ore’s chart, and you see it’s on a bee-line straight to the south pole.

The spot price of iron ore has come down 53% since mid-July from highs of around US$222/Tonne (T), and now trades at US$104.50/T. That’s an even further 8% drop on the day.

Prior to this, iron ore went on a steep run from November 2020, to fetch a record high of US$230/T in May 2021. However, the recent drop is now well below the lowest price levels seen since August 2020 – and the trend is continuing.

What’s causing this rapid selloff in the iron ore markets? It appears to boil down to steel production curbs imposed from the worlds biggest steelmaker, China, that started back in 2020 and have continued to date.

There are a number of instigators of this policy, most notably to curb CO2 emissions. However, the most recent downstep in production came from a sharp downturn in the Chinese property sector (including the largest property developer Evergrande facing a default on its US$300 billion in debt), which has flowed through to steel demand.

Aside from this, the recent push away from fossil fuels and carbonisation towards renewable energy has weighed in on steel and iron ore production.

Iron ore miners are also withholding on new explorations, and divesting away from traditional operations into “green” alternatives.

Rio Tinto is in a unique position, in that it is an ASX resource share that produces a commodity. In that sense, its share price is expected to fluctuate with this kind of volatility in the broader commodity markets.

Given this relationship, and the fact the price of iron ore has decreased by around $120 since July, it starts to make sense why the Rio Tinto share price is trading down today.

Investors continue selling Rio’s shares to avoid catching the falling knife – as such, the Rio Tinto share price is down 13% over the last month as well.

Rio Tinto share price snapshot

The Rio Tinto share price has had a horrendous year to date, posting a loss of 18% since January 1. This extends its loss over the past 12 months to 7%.

Both of these results have lagged the S&P/ASX 200 index (ASX: XJO)’s return of around 25% over the past year.

The post Rio Tinto (ASX:RIO) share price craters as iron ore hits US$100 a tonne appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Transurban acquisition, BHP & Fortescue sink
• Why this fund manager is ditching Rio Tinto for BHP (ASX:BHP) shares
• 5 things to watch on the ASX 200 on Monday
• Use the sharp commodity sell-off to buy these ASX 200 mining shares
• Rio Tinto (ASX:RIO) share price breaks below $100 for the first time since November 2020

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 Endeavour Group Ltd (ASX: EDV) share price is trading 3.4% higher at $6.65 so far today.  

By comparison, the broader S&P/ASX 200 Index (ASX: XJO) has tumbled 2.23% since the market open.

The drinks retailer has not released any price-sensitive news that could explain the bullish price action. Let’s take a look at other possible reasons why the Endeavour share price is up today.

What’s fuelling the share price lift?

There are few factors that might contribute to the Endeavour share price performance.

The company was recently added to the ASX 50 Index so it’s possible today’s price action could be a result of institutional interest.

Today’s movement may also reflect a slight market correction after the Endeavour share price has struggled in the past few weeks, likely as a result of COVID-19 lockdowns. Prior to today’s bounce, shares in the drinks company were down more than 9% since the start of the month.

As a result, shares in Endeavour have given back much of its gains after posting positive maiden FY21 results.

How did Endeavour perform in FY21?

Late last month, Endeavour released its full-year results for FY21. The company highlighted a 9.3% increase in group sales to $11.6 billion.

Other highlights included;

• Group earnings before interest and tax (EBIT) lifting 22.1% to $899 million
• Group net profit after tax of $445 million
• Final dividend of 7 cents per share

Endeavour noted that a shift to in-home consumption had fuelled retail sales 9.6% to $10,178 million.

However, the company also acknowledged that its hotel business continued to face challenging conditions due to COVID-related restrictions and associated costs.

Snapshot of the Endeavour share price

Following its demerger from Woolworths Group Ltd (ASX: WOW), Endeavour has become a separately-listed entity.

The company’s businesses comprise bottle shop chains Dan Murphy’s and BWS as well as 300 licensed venues and 12,000 gaming machines.

The Endeavour share price has lifted more than 10% since listing on the ASX in June.

The post The Endeavour (ASX:EDV) share price is lifting today appeared first on The Motley Fool Australia.

More reading

• Which ASX 300 shares are leading the way on Monday?
• How has the Woolworths share price performed since reporting results?
• Woolworths (ASX:WOW) share price struggles amid bricks frustration
• Canva is now worth more than Woolworths! When can we buy shares?
• How does the Wesfarmers (ASX:WES) dividend compare to Woolworths?

Motley Fool contributor Nikhil Gangaram 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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