ASX shares in the uranium sector surged to multi-year highs last week thanks to a jump in spot prices.
The largest ASX-listed uranium player, Paladin Energy Ltd(ASX: PDN) surged 56% last week to an 8-year high of 78 cents.
Explorers were also quick to re-rate, with players such as Boss Energy Ltd(ASX: BOE), Deep Yellow Limited(ASX: DYL), Peninsula Energy Ltd(ASX: PEN) and Vimy Resources Ltd(ASX: VMY) surging between 32% and 45%.
The best performing uranium stock last week goes to 92 Energy Ltd(ASX: 92E), surging 104% to 51 cents. The uranium explorer successfully listed on the ASX on 15 April at a listing price of just 20 cents.
What’s driving ASX shares in the uranium sector?
The Motley Fool US reported that the Sprott Physical Uranium Trust (SPUT) Exchange Traded Fund began aggressively buying uranium from the spot market.
Sprott is the world’s largest actively managed uranium fund that invests in physical uranium.
The fund’s updates show that it bought a significant 900,000 pounds of uranium on 21 August and another 1.1 million pounds by the end of August.
The aggressive buying activity would continue through to September, with the ETF adding another 400,000 pounds on 2 September.
The immense buying on the spot market helped drive uranium prices to a six-year high of $35/lb.
The resurgence of spot prices initiated a frenzy of buying activity for ASX shares in the uranium sector last week.
In addition, The Motley Fool US highlighted another encouraging signal from the industry:
“… the world’s largest uranium producer, Kazatomprom, announced its decision to keep production flat in 2022 and 2023, and meanwhile buy uranium from the spot market to meet its sales commitments through this year at least.”
“Limited production and higher buying activity in the spot market, whether by an ETF or uranium miners to meet their contracted sales, is a near-perfect recipe to drive uranium prices higher.”
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
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.
from The Motley Fool Australia https://ift.tt/3zQB3Nb
The Pilbara Minerals Ltd(ASX: PLS) share price raced to record highs last month due to continued interest in the lithium sector.
Similarly, shares in the company’s peers Orocobre Ltd(ASX: ORE) and Core Lithium Ltd(ASX: CXO) have also been on fire.
Pilbara Minerals shares are up 160% for 2021. In comparison, both the Orocobre and Core Lithium share prices are up around 120% and 140%, respectively. When pitted against the All Ordinaires Index (ASX: XAO), the index has risen a paltry 14% over the same period.
However, all three companies’ share prices have dropped off slightly this month due to some profit-taking. That’s not to say that these share price gains couldn’t extend further in the coming months.
What’s driving Pilbara shares forward?
There are a number of reasons why the Pilbara share price has accelerated in recent times.
First and foremost, the spot price for lithium has surged over the past year. The battery making ingredient is expected to be adopted across a number of industries, notably the transitioning to electric vehicles.
Furthermore, Pilbara Minerals released its full-year results late August, highlighting a significant increase in shipments of spodumene concentrate. This was underpinned by improved market conditions and robust operational performance at its Pilgangoora Lithium-Tantalum Operations in Western Australia.
A number of brokers weighed in on the company’s share price following its FY21 scorecard.
Analysts at Macquarie reduced their rating on Pilbara Minerals by 4% to $2.40. JPMorgan also cut its outlook by 4% to $2.40.
The latest broker note came from Citi, which raised its valuation on Pilbara Minerals shares by 6.9% to $2.20.
Pilbara Minerals share price snapshot
It’s been a great 12 months for Pilbara Minerals shareholders, with the share price posting an all-time high of $2.46 on 11 August 2021. Long-term investors would also be reaping some serious benefits, with shares up around 1,300% since March 2020.
The Pilbara Minerals share price added another 2.26% last Friday to its last closing price of $2.26.
On valuation grounds, Pilbara Minerals commands a market capitalisation of roughly $6.6 billion, with almost 3 billion shares on hand.
Should you invest $1,000 in Pilbara Minerals right now?
Before you consider Pilbara Minerals, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pilbara Minerals wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
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.
from The Motley Fool Australia https://ift.tt/3kVVp1d
The report focuses on steps made by Woolworths to increase inclusivity for its staff, provide healthy, ethically sourced food options, lessen its carbon emissions, and create sustainable financial growth.
The Woolworths share price closed Friday’s session slightly higher at $40.72.
Let’s take a closer look at the supermarket giant’s 2021 sustainability report.
Sustainability report
The Woolworths share price will be on the radar this morning after the company outlined its goals and progress towards sustainability.
Within its first annual sustainability report since launching Sustainability Plan 2025 in November 2020, Woolworths announced its carbon emissions are currently 27% less than its 2015 baseline.
Additionally, the company reduced its plastic usage by more than 2,500 tonnes and diverted 113,238 tonnes of organic waste from landfill in the 2021 financial year (FY21).
Woolworths also began rolling out LED lighting across its store network. The LEDs will eventually see the company reduce its total store energy consumption by 11%. It has also placed solar panels atop 197 of its stores, which now generate 44GWh of electricity each year.
Woolworths is continuing to invest in its employees’ ‘holistic health’.
The company partnered with First Nations cultural awareness experts, Evolve Communities, to launch ‘Learning for Reconciliation’ in FY21. Learning for Reconciliation is an online module designed to provide the steps to practical reconciliation for Woolworths employees.
It is also working to create ethical and mutually beneficial partnerships through its entire value chain. The company is planning to scale up its human rights diligence across its value chain.
Finally, Woolworths still has work to do to create a gender-equal leadership team. Generally, a gender-equal team is defined as one that includes 40% women, 40% men, and 10% of leeway. Woolworths’ leadership team was 36.54% female in FY21.
The company is also lagging in achieving some of its own goals. These include practising responsible stewardship of natural resources, improving sourcing of ethical protein, and creating meaningful retail careers.
What did management say?
Woolworths CEO Brad Banducci and chair Gordon Cairns issued a joint statement within the company’s 2021 sustainability report.
We are no longer satisfied with limiting the negative impacts of our operations – we are actively looking to create positive change in our business and, hand in hand with our partners, in our extended value chain. We see sustainability as an opportunity to create long‑term value through innovation and resilience building measures that will deliver benefits for decades to come…
As we move toward our 100th anniversary, we are building the business that will take us into our second century, and as Today’s Fresh Food People, sustainability is at the heart of who we are.
Woolworths share price snapshot
The Woolworths share price is currently 20% higher than it was at the start of 2021. It has also gained 28% since this time last year.
Should you invest $1,000 in Woolworths Group right now?
Before you consider Woolworths Group, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woolworths Group wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
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.
from The Motley Fool Australia https://ift.tt/3thYHQ9
The Wesfarmers Ltd (ASX: WES) share price will be one to watch when trading resumes this Monday. That’s after the retail conglomerate reopened its Bunnings and Officeworks stores in some parts of Sydney.
At the close of trade on Friday, shares in the company were trading for $57.78 – down 0.07%. The S&P/ASX 200 Index(ASX: XJO) meanwhile ended the day 0.5% higher.
Let’s take a closer look at today’s news.
Bunnings, Officeworks to reopen in parts of Sydney
From today, Wesfarmers hardware and office supplies stores that are not located in the 12 local government areas (LGAs) of concern, as defined by the New South Wales government, will reopen in line with COVID-19 regulations. These hotspot LGAs are predominately located in Sydney’s western, southwestern, and southern suburbs.
Wesfarmers highlighted the growing number of NSW residents who have received either one or two doses of the Pfizer or AstraZeneca jab. At the time of writing, 73.5% of the state’s eligible population has received at least one dose. Nearly 41% are fully inoculated.
“Since the start of the pandemic, the safety of our team and customers has been at the core of everything we do and we continue to follow government guidance in all the states and territories where we operate,” said Mike Schneider, Bunnings managing director.
“The acceleration of the vaccine rollout and the increase in opportunities for our team to get vaccinated has given us the confidence to reopen our stores in Greater Sydney, with strong COVID-safe protocols in place, including a one per 10 metre density limit applied.”
It will be interesting to see what this will mean for the Wesfarmers share price.
Stores within hotspot LGAs will still be open for contactless click and collect only, as well as trade customers in the case of Bunnings. Wesfarmers will keep Target and Kmart stores closed across Greater Sydney, in line with government regulations.
Wesfarmers share price snapshot
Over the past 12 months, the Wesfarmers share price has increased 25.6%. That’s only slightly below the ASX 200 Index’s performance over that time. Year to date, Wesfarmers shares have appreciated 12.2%. This is roughly in line with the 200 largest companies on the ASX.
Before you consider Wesfarmers, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Wesfarmers wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
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 Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3yL4xuI
This telco giant could be an ASX 200 dividend share to consider. This is due to its improving outlook, which is being underpinned by rational competition, the easing NBN headwind, and cost cutting.
In fact, Telstra’s outlook is improving so much that management is forecasting a long-awaited return to growth in FY 2022. It has provided underlying EBITDA growth guidance of 4.5% to 9% and appears confident that it can deliver a further increase in FY 2023.
Analysts at Goldman Sachs are positive on the company. They have a buy rating and $4.30 price target on its shares.
In addition, the broker is forecasting fully franked dividends per share of 16 cents through to FY 2023 and then 18 cents in FY 2024. Based on the current Telstra share price of $3.85, this will mean yields of 4.2% through to FY 2023 and then 4.7% in FY 2024.
Another ASX 200 dividend share to consider is Westpac. As with Telstra, Australia’s oldest bank has seen a major improvement in its outlook this year.
This is thanks to Australia’s strong economic recovery from the pandemic, a booming housing market, and its bold cost reduction plans.
It is largely for the latter that the team at Citi are bullish on the bank. They recently put a buy rating and $30.00 price target on the bank’s shares.
In addition, the broker has pencilled in dividends per share of $1.16 in FY 2021 and then $1.30 in FY 2022. Based on the current Westpac share price of $26.02, this will mean fully franked yields of 4.5% and 5%, respectively.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
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 Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3DQXXX1
The Mineral Resources Limited(ASX: MIN) share price will be on watch today.
This follows the release of an announcement relating to an asset sale this morning.
Why is the Mineral Resources share price on watch?
The Mineral Resources share price will be on watch today after it decided to take profit on a very successful investment.
According to an announcement, the company has decided to exit its shareholding in high-flying lithium miner Pilbara Minerals Ltd(ASX: PLS). The mining and mining services company held a 5.4% stake prior to its sale.
The release explains that Mineral Resources has raised gross pre-tax proceeds of approximately $328 million from the sale. It notes that the sale was executed via a fully underwritten accelerated block trade offered to institutional investors.
This has been a highly successful investment for the company. For example, in just the last 12 months alone, the Pilbara Minerals share price is up 600%.
What now?
Management advised that the company intends to use the cash proceeds from the sale on its capital expenditure program.
When the market opens, the Mineral Resources share price performance will be a good indication of whether investors believe this is a good use of the cash or whether they feel the company should have held onto the Pilbara Minerals stake.
Management believes it is the former. It commented: “MRL is delighted with the share price value delivered by Pilbara Minerals’ development of Pilgangoora but believes it is time to redirect this investment into the Company’s own growth projects, including in the hard-rock lithium and iron ore sectors.”
Mineral Resources became a substantial shareholder in Pilbara Minerals back in October 2016. This was as part of an agreement to relinquish offtake rights and a royalty that the company held over Pilbara Minerals’ Pilgangoora project.
The Mineral Resources share price is up 42% since the start of the year.
Should you invest $1,000 in Mineral Resources right now?
Before you consider Mineral Resources, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Mineral Resources wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/2WWB7fF
Nine Entertainment is the first of the two businesses.
It’s a diversified media business that operates things like the Nine TV network, Stan, the Australian Financial Review, The Age and the Sydney Morning Herald.
One of the brokers that currently rates Nine as a buy is Credit Suisse, with a price target of $3.40. That suggests the Nine share price could rise by around 20% over the next 12 months.
The broker projects that Nine will pay a grossed-up dividend yield of 5.6% in FY22.
FY21 saw advertising market growth, “strong” audience results across all of its operating segments, growth in revenue and profitability for its ‘TV combined’, the launch of Stan Sport and “strong” cashflows. It also completed agreements with digital platforms like Facebook, providing recurring revenue for publishing.
In financial terms, total revenue increased 8% to $2.33 billion and net profit rose 83% to $261 million.
In July 2021, it saw free to air ad revenue grow by 20% with costs rising 3%, 9Now revenue was up 70%, Stan subscribers are growing and publishing digital subscription revenue was up 9%.
Nine has committed to pay a dividend payout ratio of 60% to 80% of net profit after tax, before ‘specific items’.
Bapcor is a leading auto parts business across Australia, New Zealand and, increasingly, south east Asia after the Tye Soon investment and Thailand expansion.
It was one of the few S&P/ASX 200 Index(ASX: XJO) shares to grow its dividend during FY20, even if it was just a small increase.
Bapcor is seen as a defensive business – car owners and mechanics will always need new parts when the demand arises.
Burson is a key brand within the portfolio. It has been steadily growing its store network, same store sales and profit margins. Autobarn has also seen growth.
The ASX dividend share is currently rated as a buy by a few different brokers including Credit Suisse. The broker has a price target of $9.20 on the business, which suggests the Bapcor share price could rise by more than 20% over the next year.
Credit Suisse thinks that Bapcor is going to pay a grossed-up dividend yield of 4.4% in FY22.
That projection comes after the business paid a dividend of 20 cents per share in FY21 (a 14.3% increase on FY20). This was funded by a 26.8% increase of earnings per share (EPS) to 38.3 cents (and a 46.5% increase of net profit after tax to $130 million).
Bapcor said its performance was driven by increased market share, elevated market demand, ongoing network expansion, a launch of new own brands and focused management of cost of doing business.
Before you consider Bapcor, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bapcor wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
Motley Fool contributor Tristan Harrison 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 Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3zRqeuu
The S&P/ASX 200 Index (ASX: XJO) has just enjoyed another week of gains, although one far more muted than investors are used to. The ASX 200 rose a mild 0.5% last week, a move that left the index sitting at 7,522.9 points on Friday afternoon. That’s still not quite at the ASX 200’s all-time high of 7,632.8 points, but it’s certainly still an elevated level by historical standards.
So this latest move comes as the ASX just about wraps up its earnings season. It also comes as we learned on Wednesday that the Australian economy has avoided a quarter of negative growth that would have almost certainly resulted in a technical recession in a few months’ time when the current quarter’s numbers are released.
So, what were the major ASX shares up to last week?
ASX 200 miners enjoy another stellar week
Well, the ASX banks had a pretty pleasing week for one. We saw National Australia Bank Ltd(ASX: NAB) hit a new 52-week high, as did Macquarie Group Ltd(ASX: MQG). The other ASX banks enjoyed a week of muted gains, with the exception of Australia and New Zealand Banking Group Ltd(ASX: ANZ), which went backwards by 1.6% last week.
But perhaps the biggest stars of the market last week were ASX resources shares. Most miners and drillers had a fantastic week just passed, with big gains being made all round. One of the biggest winners was diversified miner South32 Ltd(ASX: S32), which rocketed by more than 13% last week amid soaring commodity prices. Alumina Limited(ASX: AWC) and Whitehaven Coal Ltd (ASX: WHC) saw even bigger rises, but more on that later.
Meanwhile, we also had some late reporters for earnings season. These included InvoCare Ltd(ASX: IVC), releasing its earnings report on Monday which was received well by investors.
However, Altium Limited(ASX: ALU) and Nuix Ltd(ASX: NXL) were not so lucky. Both companies’ reports came out on Monday, and were not met with too much enthusiasm, but again, more on that later.
How did the markets end the week?
It was a bit of a mixed bag for the ASX 200 last week. Monday and Tuesday both saw the index start the week off well, with respective rises of 0.22% and 0.4%. But following up was a double loss for Wednesday and Thursday, with the ASX 200 sliding 0.1% and 0.55% on those days respectively. Friday saved the week, with a gain of 0.5%.
Overall, since the ASX 200 started the week at 7,488.3 points and finished up at 7,522.9 points, we had a gain of 0.46% for the week.
Meanwhile, the All Ordinaries Index (ASX: XAO) managed an even better week. The All Ords started the week at 7,760.1 points but ended up at 7,826.7 points – a rise of 0.86%.
Which ASX 200 shares were the biggest winners and losers?
It’s time for our Foolish gossip pages, where we put the ‘S’ in salacious by checking out the ASX 200’s biggest winners and poorest losers of the week. So get the coffee brewing as we, as always, start with the losers:
Well, our ASX 200 wooden spooner share last week was none other than the biotech company Mesoblast. It was the release of Mesoblast’s FY21 earnings results that seemed to be the cause of this sell off. Investors evidently weren’t too impressed with the loss after tax of US$99 million the company reported on Tuesday.
ASX tech share Atlium suffered a similar fate, as we touched on earlier. This circuit board design software company dropped its earnings on Monday, reporting sluggish revenue growth of 1% for the year, as well as a 7% drop in profits before tax to US$48 million. Investors seem to have reacted accordingly.
ASX 200 blue chip Wesfarmers was next up with a 7.1% slide. This drop was mostly due to the company trading ex-dividend on Wednesday for its upcoming 7 October final dividend of 90 cents per share – probably the best reason out there to have a sharp drop in value.
Finally, Nuix was also on the wrong end of investor sentiment following its own earnings report, which was released on Monday. Anaemic revenue growth of 0.1% for FY21, and an after-tax loss of $1.64 million seemed to be to blame here.
Now with last week’s losers out of the way, let’s check out the winners!
Well, it was quite a week to be in the ASX commodities space last week. We can largely thank surging commodity prices, especially aluminium, for the rises of Alumina, Whitehaven Coal and South32.
As my Fool colleague James reported, the recent landfall of Hurricane Ida over in the United States last week has dented the country’s aluminium production, adding supply constraints to an already surging aluminium price. This has likely fed into both South32 and Alumina’s performance last week. The price of thermal coal has also been rising, boosting the prospects of Whitehaven Coal.
Meanwhile, our only non-resources share, Clunivel Pharmaceuticals had a top week as well following a well-received earnings report from the week prior. The company reported a very healthy 43% surge in revenues and a 63.5% leap in net profits after tax to $24.7 million. Investors seem to have kept the celebratory party going this week.
A wrap of the ASX 200 blue-chip shares
Before we go, here is a look at how the ASX 200’s blue-chip shares are faring as we settle into spring.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited, Newcrest Mining Limited, and Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Altium, and CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, Altium, COLESGROUP DEF SET, Macquarie Group Limited, Telstra Corporation Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended InvoCare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3zO0wqF
The Kogan.com Ltd(ASX: KGN) share price will be one to watch on Monday.
This follows the announcement of significant insider selling after the market close on Friday.
What was announced?
After the market close on Friday, the ecommerce company released a change of director’s interest notice revealing that one of its executives has been selling shares.
According to the note, Kogan’s Co-Founder, Chief Financial Officer, Chief Operating Officer and Executive Director, David Shafer, sold a total of 1 million shares through a series of on-market trades between 31 August and 1 September.
The release notes that Mr Shafer sold 350,000 shares at an average price of $11.50, then a further 350,000 shares at an average of $11.18, and finally 300,000 shares at an average of $10.95.
This represents a total consideration of just over $11.2 million.
What now?
Heavy insider selling can weigh on shares, so the Kogan share price could potentially come under pressure today.
Though, it is worth noting that Mr Shafer still has a significant holding. Following this sale, he has 6,075,642 shares and 2,400,000 options.
In addition, Mr Shafer certainly cannot be accused of selling at the top. The Kogan share price is down 43% since the start of the year and down 57% from its 52-week high of $25.57.
Is the Kogan share price in the buy zone?
One leading broker that wouldn’t be in a rush to sell the company’s shares is Credit Suisse.
In response to its full year results last month, the broker put an outperform rating and $14.06 price target on its shares.
Based on the current Kogan share price, this implies potential upside of almost 28% over the next 12 months.
Credit Suisse appears to believe investors should look beyond the short term headwinds it is facing due to its strong long term growth potential.
Before you consider Kogan, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Kogan wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3BEQKra
The National Australia Bank Ltd (ASX: NAB) share price currently offers a projected grossed-up dividend yield of 6.6%. Does that make it a buy?
According to Commsec, NAB is expected to a pay an annual dividend of $1.32 per share in FY22. That translates to a grossed-up dividend yield of 6.6%. NAB is also expected to pay an annual dividend of $1.25 per share. That means the bank is expected to grow the FY22 dividend by 5.6%.
NAB’s profit and dividends are recovering
A few months ago NAB reported its FY21 half-year result. Cash earnings were $3.34 billion – that was an increase of 94.8% year on year. Excluding large notable items in the first half of FY20, NAB cash earnings were up 35.1%.
The board decided to pay an interim dividend of $0.60 per share. That was the same as the entire FY20 dividend. NAB doubled its half-year dividend from $0.30 per share to the $0.60 per share payment. Not only did profit improve but NAB’s common equity tier 1 (CET1) capital ratio improved to 12.37%.
With that excess capital, NAB decided at the end of July to announce it was going to buy back up to $2.5 billion of ordinary shares on the market. NAB said this is intended to manage its CET1 capital ratio towards a target range of 10.75% to 11.25%.
The NAB share price has risen by 11% since the announcement of the buyback.
The big four ASX bank explained that its stated target range reflects a balance between retaining a strong balance sheet through the cycle, supporting growth and recognising the importance of capital discipline to improve shareholder returns.
On 12 August 2021, NAB then announced it had generated $1.7 billion of cash earnings for the three months to 30 June 2021. This represented 10.3% growth of cash earnings year on year.
Ross McEwan, the NAB CEO, said:
Continued COVID-19 outbreaks and lockdowns are creating uncertainty and challenges for some of our customers. Through this we will support them while keeping our bank safe. However, we remain optimistic about the long-term outlook for Australia and New Zealand. The strong economic momentum leading into this period, ongoing government support and customers’ relatively healthy starting positions give us confidence that once restrictions are eased, the economy will again bounce back.
Is the NAB share price a buy?
NAB recently announced the intended acquisition of Citigroup’s Australian consumer business for a price of its net assets plus a premium of $250 million. At the time of the acquisition, that implied the required equity was $1.2 billion.
The deal price implied a multiple of 8x the Citigroup consumer business pro forma net profit after tax of $145 million for FY21.
It will be funded by NAB’s existing balance sheet.
The broker Morgans thinks that NAB is a hold at the moment, with a price target of $27.50, noting the FY21 third quarter was assisted by a credit provision release of $112 million.
At the current NAB share price, it is valued at 14x the estimated earnings Morgans thinks the bank will generate in FY21.
Before you consider NAB, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and NAB wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
Motley Fool contributor Tristan Harrison 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.
from The Motley Fool Australia https://ift.tt/3yMcTlQ
