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The Carsales.com Ltd (ASX: CAR) share price has jumped into the green again on Monday, reaching a new record high at $25.98.

It’s been a great few weeks for shares in the online automotive company, with the Carsales share price up almost 16% in the past month. In contrast, the S&P/ASX 200 index (ASX: XJO) has slipped 0.08% lower over the same period.

What are the tailwinds behind Carsales shares?

The Carsales share price has been on the move since the company reported its FY21 earnings in mid August.

In its report, Carsales recognised a 4% year on year increase in revenue, whereas earnings before interest, tax, depreciation and amortisation (EBITDA) grew 20% to $241 million.

This led to a net profit after tax (NPAT) of $131 million, a 9% increase from the year prior.

In addition, Carsales gave its dividend a 10% haircut from FY20, setting a final dividend payment of 22.5 cents per share.

Carsales dividend history 2010 – 2021

Source: The Motley Fool

Despite the dividend cut, Carsales’ shares have shown strengths on the chart, as investors look towards the company’s earnings growth instead.

The Carsales share price immediately shot up from $22.72 to $25.60 in the week following its FY21 earnings release, and has gained more than 14% from this event to date.

Carsales also completed the 49% acquisition of Trader Interactive in an announcement on 1 September.

Trader Interactive is a digital marketing corporation and a “provider of online market places and digital marketing products”.

Carsales advised that the acquisition was financed through a successful $600 million fully underwritten pro-rata accelerated renounceable entitlement offer and an “upsize” of the company’s existing debt facilities.

Given there has been no other market sensitive information for the company over the last month, it appears that investors are buying Carsales shares on the back of this momentum.

Carsales share price snapshot

The Carsales share price has climbed 31.3% into the green since January 1 and has gained 29.6% over the previous 12 months.

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

The post Up 15% in a month, the Carsales.com (ASX:CAR) share price hits record high appeared first on The Motley Fool Australia.

More reading

• These ASX 200 dividend shares slashed their payouts in August
• 2 ASX shares shining this results season
• ASX 200 drops, Bendigo Bank sinks, JB Hi-Fi rises
• Here are the top 10 ASX shares today
• Carsales (ASX:CAR) share price records a modest rise on dividend slash

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 recommended carsales.com 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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In all too regular news for shareholders, the A2 Milk Company Ltd (ASX: A2M) share price is having a bad day.

At the time of writing, shares in the company are trading for $5.70 – down 0.52%. For context, the S&P/ASX 200 Index (ASX: XJO) is currently 0.28% lower.

One possible reason may be the S&P Dow Jones Indices quarterly rebalance of ASX shares. S&P Dow Jones is a division of S&P Global Inc (NYSE: SPGI).

Let’s take a closer look.

ASX quarterly rebalance sees A2 Milk share price fall

Periodically, S&P will re-examine all shares in the ASX and will recalibrate their indices, like the S&P/ASX 200 Index (ASX: XJO) to reflect changes in the values of different companies.

Unfortunately for A2 Milk, it has been shunted out of the S&P/ASX 50 Index (ASX: XFL) due to its declining value. Energy giants AGL Energy Limited (ASX: AGL) and Ampol Ltd (ASX: ADL) were also booted out of the largest 50 public companies in Australia. Woolworths Group Ltd (ASX: WOW) also lost its place in the ASX 50 after its demerger with Endeavour Group Ltd (ASX: EDV).

For those paying close attention to the A2 Milk share price, today’s unceremonious withdrawal of the company from the ASX 50 shouldn’t come as much of a surprise. Over the last 12 months, shares in the New Zealand based dairy company have plummeted 66.2%. Year-to-date it’s a smaller but still disastrous 51.2% decline for A2 Milk shares.

The COVID-19 pandemic has hit the dairy company hard. The closure of Australia and New Zealand’s international borders closed off an extremely lucrative market for A2 Milk – the daigou channel.

According to the Cambridge English dictionary, a daigou is “someone who is outside China who buys goods for someone who lives in China.” Daigou buyers are usually, but not always, Chinese nationals who have travelled abroad for whatever reason. They purchase in demand goods in China that are not readily available in the People’s Republic and import them into the country at a premium. Another ASX listed company that has relied heavily on daigou channels in the past is Blackmores Limited (ASX: BKL).

Foolish takeaway

As Motley Fool has previously reported, expert opinion on the A2 Milk share price is very evenly divided. Bells Porter analysts say the company is a buy. Goldman Sachs, on the other hand, rates the company as a hold.

A2 Milk has a market capitalisation of approximately $4.3 billion.

The post Why the A2 Milk (ASX:A2M) share price is souring again today appeared first on The Motley Fool Australia.

More reading

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• Top broker says A2 Milk (ASX:A2M) share price is a buy
• When was the best ever day on the A2 Milk (ASX:A2M) share price chart?
• A2 Milk and Zip were among the most traded ASX shares last week
• Why the A2 Milk (ASX:A2M) share price has underperformed the ASX 200 in the last year

Motley Fool contributor Marc Sidarous owns shares of Endeavour Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended S&P Global. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. 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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At the start of each week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) has become the most shorted ASX despite its short interest falling to 10.1%. Short sellers are still holding onto their positions despite the travel agent revealing that it hopes to reach profitability again during FY 2022.
• Zip Co Ltd (ASX: Z1P) has seen its short interest rise slightly week on week to 9.8%. Rising costs and increasing competition appear to be why short sellers are targeting the buy now pay later provider. Not even takeover speculation has put them off.
• Webjet Limited (ASX: WEB) has seen its short interest fall to 9.7%. A positive trading update which revealed a significant improvement in its WebBeds performance may have spooked short sellers.
• Kogan.com Ltd (ASX: KGN) has short interest of 9.1%, which is up week on week again. Short sellers have been increasing their positions after the ecommerce company released a disappointing full year result.
• Electro Optic Systems Hldg Ltd (ASX: EOS) has 8.7% of its shares held short, which is down slightly week on week. Cash flow concerns have been weighing heavily on investor sentiment.
• Inghams Group Ltd (ASX: ING) has 8% of its shares held short, which is up week on week. Short sellers aren’t giving up on this one despite the poultry company extending its key supply contract with Woolworths Group Ltd (ASX: WOW).
• Piedmont Lithium Inc (ASX: PLL) has short interest of 7.9%, which is down slightly since last week. Short sellers appear to have concerns over its valuation and mining license approvals.
• Tassal Group Limited (ASX: TGR) has short interest of 7.8%, which is up week on week. Short sellers continue to target this seafood company amid weaker seafood pricing.
• Resolute Mining Limited (ASX: RSG) has short interest of 7.1%, which is up week on week. Short sellers have been increasing their positions after the gold miner reported a US$220 million half year loss.
• Cooper Energy Ltd (ASX: COE) is a new entry in the top ten with 7% of its shares in the hands of short sellers. This appears to have been driven by the poor performance of its Project Sole. Its underperformance meant Cooper had to purchase gas on market to meet contract obligations.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• 4 ASX shares to hold for 5 years
• Zip (ASX:Z1P) share price jumps 2% despite new BNPL competitor
• How do you value the Webjet (ASX:WEB) share price?
• Kogan (ASX:KGN) share price on watch after $11 million co-founder sale
• Here’s what experts are saying about the Kogan (ASX:KGN) share price

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel 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 Pan Asia Metals Ltd (ASX: PAM) share price is surging again today, up 23% in afternoon trading to 63 cents per share.

Below, we take a look at the ASX critical metals explorer’s capital raising announcement issued this morning after the company exited a trading halt.

What did the lithium explorer announce?

Pan Asia Metals is rocketing higher after the company reported it has completed a $6 million private placement capital raising. Institutional and sophisticated investors took up 15 million shares at an issue price of 40 cents per share.

Viriathus Capital acted as Lead Manager.

Pan Asia Metals said it intends to raise an additional $2 million via a Share Purchase Plan (SPP). Under the SPP, existing shareholders will be offered shares at the same price of 40 cents. That’s well below the Pan Asia Metals’ current share price of 63 cents.

The company plans to use the new funds to accelerate exploration activities at its Reung Kiet and Kata Thong lithium projects, both located in Thailand.

Commenting on the capital raising, Pan Asia Metals’ managing director Paul Lock said:

The success of the placement sends a strong message that we are on the right track. Our aim is to build a suite of low cost battery and critical metal projects which provide PAM an option to extend beyond the mine gate and value add; we believe the Reung Kiet and Kata Thong lithium projects will help us achieve this.

Pan Asia Metals share price snapshot

The Pan Asia Metals share price has been on fire over the past few weeks.

And that’s no exaggeration.

Shares have soared 313% since 27 August. That brings Pan Asia Metal’s gains for 2021 to a whopping 343%, dwarfing the 12% gains posted by the All Ordinaries Index (ASX: XAO) during that same time.

ASX investors have been snapping up shares following the company’s lithium project update on 31 August and a positive results update on 1 September.

The post Up 265% in 5 days, why the Pan Asia Metals (ASX:PAM) share price is rocketing 23% today appeared first on The Motley Fool Australia.

More reading

• Pan Asia Metals (ASX:PAM) share price soars another 53% following results update
• Pan Asia Metals share price soars 130% on lithium project update

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 Brickworks Limited (ASX: BKW) share price is rising on Monday after giving investors a FY21 profit update.

Earlier today, Washington H. Soul Pattinson and Co. Ltd gave an update about its consolidated regular FY21 profit expectations. Soul Patts expects regular profit to be in the range of $316 million to $336 million.

Brickworks noted that this will have a flow on effect to its reported consolidated net profit after tax for FY21, through its equity accounted profit of its 39.4% shareholding in Soul Patts.

The uplift for Soul Patts is expected to add to Brickworks’ statutory after tax profit in the range of $64 million to $72 million.

Brickworks said these figures are preliminary and subject to audit.

What was in the Soul Patts’ profit update?

The investment conglomerate said that its key drivers of success are growth in the capital value of the portfolio as well as a growing yield. Earnings are not considered to be a key indicator, but there has been a range of factors that have had a material impact on the profit:

New Hope Corporation Limited (ASX: NHC) disclosed in its quarterly report ending 31 July 2021 that it expects earnings before interest, tax, depreciation and amortisation (EBITDA) to be $372 million for FY21. This is primarily as a result of thermal coal prices being at a 10-year high.

Soul Patts also said that Brickworks’ own trading update highlighted that it expects record earnings from its property division, driven by the continued increase in the value of the property trust.

The third and final positive from the Soul Patts update was Round Oak, a base metal mining company, which is wholly owned by the investment conglomerate. Round Oak expects to generate a regular FY21 net profit after tax in the range of $64 million to $68 million. This was described as a “significant improvement” on the FY20 loss of $43 million as commodity prices, being mostly zinc and copper, improved and the company moved from development to production at a number of its mines.

However, these higher profit contributions will be offset by a lower contribution from TPG Telecom Ltd (ASX: TPG). Following the merger of TPG and Vodafone in July 2020, Soul Patts no longer equity accounts it share of TPG’s net profit after tax. Soul Patts only received one dividend from TPG amounting to $18 million in FY21, compared to the equity accounted profit of $72 million in FY20.

Soul Patts also noted that the statutory profit in FY21 will be materially lower because FY20 included a one-off accounting gain of $1.05 billion after the derecognition of TPG as an equity accounted associate. That large one-off gain will not be repeated in FY21.

The post Here’s why the Brickworks (ASX:BKW) share price is lifting on Monday appeared first on The Motley Fool Australia.

More reading

• Soul Patts (ASX:SOL) share price slips on FY21 earnings update
• ASX 200 rises, TechnologyOne climbs, Milton up
• 3 reasons why Soul Patts (ASX:SOL) could be a great share to own
• ‘Price makers’: 2 ASX shares to protect against inflation
• The Brickworks (ASX:BKW) share price is now trading on a forecast 2.5% fully franked dividend yield

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company 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 Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom 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 Premier Investments Limited (ASX: PMV) share price is dancing around at the start of the week.

At the time of writing, shares in the specialty retailer are trading 0.57% higher to $28.30. However, the share price has been 0.21% down in earlier trade.

Here’s a look at what is weighing on the minds of shareholders today.

Filling the shoes earlier than expected

Monday is shaping up to be an interesting start to the week for the Premier Investments share price. This coincides with the official start of the company’s recently appointed Premier Retail CEO, Richard Murray.

Murray’s appointment was originally announced on 28 April this year. It was a bittersweet moment, as it meant JB Hi-Fi Limited (ASX: JBH) shareholders were losing a key person instrumental in the recent successes of the retail business.

At first, Murray was aligned to start his new position at Premier on 4 October 2021. However, shareholders won’t need to wait around that long now, with the executive’s new role at Premier Investments kicking off today.

Meanwhile, all other terms of the new CEO will remain unchanged as he officially starts a new journey. Murray replaces previous Premier Retail CEO Mark McInnes, who decided to step down in January after 10 years of service.

As Retail CEO, Murray will be responsible for leading the Premier Investments brand portfolio. This includes The Just Group, Smiggle, Portmans, Just Jeans, Peter Alexander, and JayJays.

While Premier has been performing strongly, undoubtedly shareholders are hoping Murray can build upon this momentum. According to its June trading update, total global sales for the first 18 weeks of 2H21 were up 70% on the same period in 2H20.

Premier Investments share price snapshot

It has been a year of exceptional performance for the Premier Investments share price. In the past 12 months, shares in the retailer have gained 50%. In contrast, the S&P/ASX 200 Index (ASX: XJO) has climbed 26% higher.

For comparison, the JB Hi-Fi share price is down 7% over the past 12 months.

The post Premier Investments (ASX:PMV) share price moves as new retail CEO takes charge appeared first on The Motley Fool Australia.

More reading

• 2 impressive ASX shares that could be buys in September 2021
• Shaver Shop (ASX:SSG) share price in focus as profit jumps but outlook softens
• 2 top ASX dividend shares to think about
• Here are the top 10 ASX shares today
• Which ASX shares are the biggest movers on the ASX 300 today?

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 owns shares of and has recommended Premier Investments 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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Last month, The Motley Fool readers loved seeing which ASX shares professional investors wanted to keep in their portfolios for 5 years.

This is because even though retail investors are told to look to the long term, fund managers behave in the opposite way. 

Their performances are judged on a weekly, monthly, quarterly and yearly basis, which is not necessarily conducive for holding onto a stock for several years.

This is why during each interview for our Ask A Fund Manager series, The Motley Fool refreshingly asks ‘If the market closed tomorrow for 5 years, which stock would you want to hold?’

Here are 4 more ASX shares that the pros would be happy to hold onto until 2026:

ASX tech share that founder still holds after 30+ years

NAOS Asset Management portfolio manager Robert Miller picked Objective Corporation Limited (ASX: OCL), which has been listed on the ASX for more than 20 years.

The share price has multiplied 21 times over that time.

Objective Corp makes enterprise software for governance and workflow, which is primarily used by public sector organisations.

“The business was founded by Tony Walls, who founded it over 30 years ago now. He’s still the CEO and the major shareholder. He still owns over 65% of the shares on issue,” Miller told The Motley Fool. 

“They haven’t raised capital since back in 2000.”

Miller likes how Objective Corp keeps putting money back into the business to grow it.

“They are continually reinvesting in the product and the software offering to make it a benefit for their customers, which in turn drives growth, which they in turn reinvest back in the businesses, and it becomes a bit of a perpetual cycle like that,” he said.

“Very much if the market closed tomorrow … happy to hold this for that period of time.”

Internet connection is a utility now

The last 18 months of one and off COVID-19 lockdowns has really brought home the fact that internet connectivity is now as basic as water or electricity.

This is why 1851 Capital portfolio manager Martin Hickson reckons connectivity wholesaler Uniti Group Ltd (ASX: UWL) is one to hold for the next 5 years.

The network infrastructure company was the fund’s largest position back in June.

“Reason is 90% of their earnings are recurring — so there’s not a lot of risk around that,” he told The Motley Fool.

“They’re providing data to their customers. And so they’re participating in that thematic of increased data usage, demand for high speeds, and that’s not going away over the next 5 years.”

SG Hiscock portfolio manager Hamish Tadgell told The Motley Fool in January that Uniti had a comfortable position in the market.

“Our view is that Uniti is now the number 2 player in what is essentially a duopoly market with NBN.”

Uniti shares are up a stunning 188% over the past 12 months.

ASX share that’s not too hot, not too cold

Sage Capital portfolio manager Sean Fenton thought 5 years is an eternity for ASX shares and the economy.

“Inflation could go up, interest rates could be structurally higher, it might get lower or could be all great,” he told The Motley Fool.

“I don’t think you want to go for a stock that’s got too much growth, that would be pressured by rising yields. And you don’t want to go for something that’s too cheap… or too cyclical because the cycle could have turned within 5 years.”

So the stable choice for him was Metcash Limited (ASX: MTS).

“That’s one where we see some operational improvement come into the business.”

Like other supermarkets, the company has been a COVID beneficiary. But Fenton reckons eating-in will be a lasting trend as working from home or regional areas become more prevalent going forward.

“That benefits Metcash and their IGA network being more exposed to suburban regional areas, less CBD-style areas.”

Metcash is also set to benefit from a surge in building and renovations.

“They’ve also been moving more into hardware — so from Mitre 10 to buying Home Timber & Hardware from Woolworths Group Ltd (ASX: WOW) and Total Tools recently, that’s an area that’s really benefiting.”

Shares for Metcash have risen 17.4% this year.

‘Australia’s major defence stock’

Defence, in more ways than one, is the best 5-year bet for Monash Investors co-founder and director Simon Shields.

“Electro Optic Systems Holdings Ltd (ASX: EOS) [is] Australia’s probably major defence stock, and fantastic technology in laser targeting for use in space communications, tracking satellites, space junk, and by the military,” he told The Motley Fool.

“It’s just got a very long pipeline of contracts that it’s going to be bidding on and almost certainly likely to win a very large percentage of those, given its leadership in those areas.”

EOS shares are in a dip at the moment. They’ve sunk more than 36% for the year so far, despite rising 177% over the past 5 years.

The post 4 ASX shares to hold for 5 years appeared first on The Motley Fool Australia.

More reading

• ASX 200 falls, Metcash down, 4DMedical drops
• ASX 200 midday update: Metcash update, Wesfarmers goes ex-div
• Metcash (ASX:MTS) share price drops following trading update
• Electro Optic Systems (ASX:EOS) share price falls despite revenue growth
• These are the 10 most shorted ASX shares

Motley Fool contributor Tony Yoo 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 Electro Optic Systems Holdings Limited and Objective Corporation Limited. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Uniti 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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Our largest telco is the latest major company getting in on the act to encourage COVID-19 vaccinations, and the Telstra Corporation Ltd (ASX: TLS) share price is holding up despite the controversy from its campaign.

The Telstra share price inched up 0.1% to $3.86 in after lunch trade. That may not be much of a move, but it’s a positive sign as the S&P/ASX 200 Index fell 0.3%.

Investors are unperturbed by the backlash from some of Telstra’s customers to its “LetsVaxx” campaign, reported News.com.au.

Telstra share price inches up as vaccination campaign draws heat

The telco is offering fully vaccinated customers bonus Telstra Plus Points and it has put “#LetsVaxx” on every customers mobile phone.

However, some customers have reacted angrily to the message. They either believe its an invasion of their privacy and/or do not believe in getting vaccinated.

“Hey Telstra stick your #letsvaxx hashtag that you’ve stuck at the top of my device fair up ya clacker,” one customer wrote, according to News.com.au.

Some are even threatening to terminate their Telstra service unless the company removed the hashtag.

Telstra standing firm

But that isn’t likely to happen. For one, it appears most people support Telstra’s move as several have applauded the company for encouraging people to get the jab.

Our political leaders believe vaccination are the only way for life to return to any kind of normality.

Telstra has also stood by its campaign. It said it respected everyone’s right to choose whether to get vaccinated and pointed out that all Telstra Plus customers will be eligible for bonuses regardless of their vaccination status.

The bonuses include free movie, food delivery discounts, and discounts on items in its rewards store.

Paying employees to get the jab

What’s more, Telstra has hired satirist Mark Humphries for a social media campaign to bust common COVID myths.

“Mark’s sharp satire successfully busted conspiracy theories around 5G and now we’re calling on him to help cut through the noise and debunk Covid-19 vaccination myths,” News.com.au reported Telstra’s chief executive Andy Penn as saying.

The company is also offering employees $200 to get the shots and more than 5,500 of them have taken up the offer.

Other ASX 200 shares backing COVID vaccinations

But Telstra isn’t the only one on the ASX 200 share benchmark to encourage vaccinations. Qantas Airways Limited (ASX: QAN) is offering to reward its customers who are fully vaccinated and requires all customer facing staff to be immunised.

Others jumping in on the act include the Transurban Group (ASX: TCL) share price, National Australia Bank Ltd. (ASX: NAB) share price and Bapcor Ltd (ASX: BAP) share price.

The post Telstra (ASX:TLS) share price withstands its LetsVaxx campaign backlash appeared first on The Motley Fool Australia.

More reading

• Why the Evolution Mining (ASX:EVN) share price is leaping higher today
• The Qantas (ASX:QAN) share price is having a great start to the week
• Leading brokers name 3 ASX shares to buy today
• ASX 200 midday update: Fortescue & Pro Medicus sink, gold miners rise
• Nuix (ASX:NXL) faces yet another indignity

Motley Fool contributor Brendon Lau owns shares of National Australia Bank Limited and 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 Bapcor and 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 ResMed Inc. (ASX: RMD) share price is in the green today after it was boosted into the S&P/ASX 50 Index (ASX: XFL).

The respiratory medical device company focused on the treatment of sleep-apnoea is now officially one of ASX’s largest companies, and the market is seemingly pleased with its recognition.

Right now, the ResMed share price is $39.55, 0.64% higher than its previous close.

Let’s take a closer look at ResMed’s new spot among the exchange’s top dogs.

ResMed joins the ASX’s top 50

The ResMed share price is gaining today as the company moves in with ASX’s big wigs.

S&P Dow Jones Index’s quarterly rebalance of the S&P/ASX indices dropped after Friday’s close.

It saw ResMed and Tabcorp Holdings Limited (ASX: TAH) added to the ASX 50. Sadly, A2 Milk Company Ltd (ASX: A2M) and AGL Energy Limited (ASX: AGL) were shown the door. As was Ampol Ltd (ASX: ALD).

Those interested in how other S&P/ASX index’s faired through the rebalance can find The Motley Fool Australia’s in-depth report on all the changes here.

It’s no wonder the healthcare company has wiggled its way into a higher class. The ResMed share price has gained an impressive 64% over the last 6 months.

For comparison, the S&P/ASX 200 Index (ASX: XJO) increased just 11% in the same time frame.

ResMed’s stock isn’t only gaining today, it’s also flying off the shelf.

An average month sees 906,863 of the company’s shares swap hands. Today, more than 1.4 million of ResMed’s securities have been traded. That represents more than $55 million worth of ResMed stock.

ResMed share price snapshot

The ResMed share price has gained 43% year to date. It has also increased 66% since this time last year.

The company has a market capitalisation of around $57 billion.

The post Here’s why the ResMed (ASX:RMD) share price is in the green today appeared first on The Motley Fool Australia.

More reading

• ASX quarterly rebalance: A2 Milk dumped from ASX 50, Nuix kicked out of ASX 200
• How to turn $20,000 into $475,000 in 10 years with ASX shares
• If you invested $1,000 in ResMed (ASX:RMD) shares a decade ago, here’s what they would be worth now
• 3 top ASX 200 shares that could be buys
• Will the ResMed (ASX:RMD) share price continue its massive bull run?

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

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The S&P/ASX 200 Index (ASX: XJO) has not had a great start to the trading week this Monday so far. At the time of writing, the ASX 200 is down 0.35% to 7,496 points. However, the same cannot be said of the Evolution Mining Ltd (ASX: EVN) share price.

Evolution Mining shares are currently up a very healthy 4.36% to $4.07 a share. That comes after this ASX gold miner closed at $3.89 a share on Friday and opened at $3.96 this morning.

So why are Evolution shares shooting so convincingly higher today when the broader market is having a pullback?

Well, there are no major news or announcements out of Evolution today, so we can rule that out.

But we do see some similar moves from many of Evolution’s gold mining peers today. The ASX’s largest gold miner Newcrest Mining Ltd (ASX: NCM) is also on the rise today, up 2.91% so far to $25.29 a share. Likewise, Northern Star Resources Ltd (ASX: NST) is up 2.36% to $9.99 a share. And Gold Road Resources Ltd (ASX: GOR) has enjoyed a 2.8% rise today to $1.29 a share.

So this is definitely a sector-wide trend we are seeing. And that points to one thing in the ASX gold mining space – the price of gold itself. Certainly, looking at the gold price, we can see a very obvious trend.

According to Bloomberg, the yellow metal is currently priced at US$1,829 an ounce. Just a few days ago, it was at US$1,815 an ounce. Around 3 weeks ago, it was at US$1,725.

That’s some significant price appreciation there and likely explains today’s bullishness in ASX gold mining shares.

Could the Evolution Mining share price be a buy today?

Such a healthy leap in the Evolution share price might be drawing some investors’ attention today. So could this ASX gold miner be a buy at current pricing?

Well, one broker who doesn’t think so is investment bank Goldman Sachs. Goldman currently rates Evolution shares as a ‘sell’ with a 12-month share price target of $3.90 a share. That implies a potential downside of more than 4% over the next year.

Goldman doesn’t rate Evolution shares at the current level due to valuation concerns. It points out that the miner is facing “higher corporate costs [and] provisions” and risks in the company’s growth plans.

At the current Evolution Mining share price, the company has a market capitalisation of $7.46 billion and a dividend yield of 2.95%.

The post Why the Evolution Mining (ASX:EVN) share price is leaping higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns shares of Newcrest Mining 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 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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