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It wasn’t too long ago that the Fortescue Metals Group Limited (ASX: FMG) share price was handily outperforming the broader S&P/ASX 200 Index (ASX: XJO). But alas, times have changed.

Fortescue shares are currently going for $20.93 apiece. That’s up 1.06% for the day at the time of writing.

Unfortunately, that means Fortescue shares are also down more than 15% in 2021 so far. That’s not a very pleasant contrast with the ASX 200, which is currently up around 12% over 2021.

But contrast that with 2020. Over last year, the ASX 200 ended up losing around 3.5%, largely thanks to the coronavirus-induced market crash we had early in the year.

In stark contrast, Fortescue spent last year climbing by more than 100%, from around $11 a share in January to almost $23.50 by December.

Fortescue shares’ monster 2020

Putting those numbers in perspective, suddenly Fortescue’s 2021 performance thus far doesn’t seem so bad. After all, Fortescue shares are still up close to 150% over the past 2 years to date. It’s certainly not rare to see a company, especially a miner like Fortescue, undergo a bit of a pullback after going on a run like we saw last year.

But that’s all water under the bridge now. So what has been holding Fortescue back in 2021 after 2020’s bumper year? Well, we only have to look at the price of iron ore – Fortescue’s lifeblood – to understand what’s happened with this miner.

As you may know, iron ore has gone on an absolute tear over the past year or two. According to Market Insider, iron ore was fetching a price of around US$80 a tonne in early 2020. But by June of that year, it had already cracked US$100 per tonne. And by the end of the year, it was up to US$150.

Investors could evidently see the writing on the wall, knowing that these record-high prices were about to tip a truckload of cash into the low-cost miner Fortescue’s coffers. By the time iron ore hit US$200 a tonne back in May, speculation over the kinds of dividend Fortescue would be able to pay out was hitting fever pitch.

March had just seen the miner dole out its largest dividend payment ever, at $1.47 a share. It will pay out an even higher final dividend of $2.11 per share on 30 September.

So what’s gone wrong in 2021?

Now investors have an idea of what to expect from Fortescue in terms of dividends for the rest of the year, attention is likely turning, once again, to the price of iron ore.

The industrial metal has spent the past few months falling steeply from its highs of more than US$200 a tonne. As it stands today, one tonne of iron ore is going for just US$140 a tonne.

It’s probably a combination of these falling iron ore prices, the company going ex-dividend in March for its monster payout (it trades ex-dividend for its final payout next Monday), and Fortescue’s stunning year last year, that is proving a drag on the Fortescue share price over the year to date.

At the current Fortescue share price, this miner has a market capitalisation of $64.04 billion and a massive dividend yield of 17.2%.

The post Why the Fortescue (ASX:FMG) share price has underperformed the ASX 200 in the last year appeared first on The Motley Fool Australia.

More reading

• Fortescue (ASX:FMG) share price under pressure as iron ore slides to 7-month low
• This leading broker tips Fortescue Metals (ASX:FMG) share price to rise by 42%
• Why Blackmores, BWX, Fortescue, & Wesfarmers shares are dropping
• These were the worst performing ASX 200 shares in August
• ASX 200 miners beware as UBS warns iron ore will sink under US$100 in 2022

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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In late trade, the S&P/ASX 200 Index (ASX: XJO) is on course to finish the week with a decent gain. At the time of writing, the benchmark index is up 0.5% to 7,522.4 points.

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

AMA Group Ltd (ASX: AMA)

The AMA share price is down almost 7% to 41.5 cents. This morning the crash repair company hit back at media reports suggesting it may need to raise funds to improve its precarious capital position. Management reiterated that its banking syndicate remain supportive of the company and that it is confident its capital structure review will yield a positive outcome.

Bellevue Gold Ltd (ASX: BGL)

The Bellevue Gold share price has fallen 8.5% to 85.5 cents. This morning the gold explorer announced that it has received firm commitments to raise $106 million via an institutional placement at 85 cents per share. This represents a 9.9% discount to its last close price. Combined with its $200 million debt facility, Bellevue Gold is now fully funded to production.

Bendigo and Adelaide Bank Ltd (ASX: BEN)

The Bendigo and Adelaide Bank share price is down 1.5% to $9.94. Today’s decline has been driven by the regional bank’s shares going ex-dividend this morning for its final dividend. Eligible shareholders can now look forward to receiving the fully franked 26.5 cents per share final dividend on 30 September.

BlueBet Holdings Ltd (ASX: BBT)

The BlueBet share price is down 5.5% to $2.43. This is despite there being no news out of the sports betting company on Friday. However, with its shares up 30% in the space of a month prior to today, this decline could have been driven by profit taking from some investors.

The post Why AMA, Bellevue Gold, Bendigo Bank, & BlueBet shares are falling appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: TechnologyOne hits record high, lithium miners rise
• AMA Group (ASX:AMA) share price drops 6% following media criticism
• Bellevue Gold (ASX:BGL) share price dives 8% after successful $106 million placement
• 5 things to watch on the ASX 200 on Friday
• Why the Bellevue Gold (ASX:BGL) share price is in a trading halt

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

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International shares are rising on the radars of Aussie retail investors.

While there are plenty of great companies listed on the ASX, they only represent a tiny fraction of the global stock offering.

So it pays to take some time to investigate the potential risks and rewards offered by international shares.

While there are added risks with investing overseas – exchange rate fluctuations chief among them – international shares can help diversify your portfolio from issues likely to predominantly impact Aussie companies.

The potential rewards offered by international shares has certainly been reflected in the past financial year’s investment allocations by Austalia’s superfunds.

As the Australian Financial Review notes, FY21 saw a record $130 billion of Aussie capital invested into global exchanges.

According to Robert Rennie, senior strategist at Westpac Banking Corp (ASX: WBC), a record share of the $450 billion increase in FY21’s super assets was invested in international shares.

“In effect, 28 cents in every dollar placed in super went into foreign equity. That takes foreign assets relative to domestic assets to 19.4%, which is the highest on record,” he said.

With that in mind, Josh Gilbert, market analyst at global online investment platform eToro, outlines 2 exciting international shares to consider.

Global share number 1

The first international share Gilbert recommends is Crowdstrike Holdings Inc (NASDAQ: CRWD).

Crowdstrike counts among the world’s largest cybersecurity companies.

Gilbert points to United States President Joe Biden’s May 2021 executive order to beef up the nation’s cybersecurity measures as likely to offer significant tailwinds for the company moving forward:

Crowdstrike, is expected to reap the rewards of Joe Biden’s plans. The company is growing at an exceptional rate, with 70% year-over-year revenue growth in its Q2 earnings, whilst adding over 1,660 customers, up 81%. Crowdstrike also raised guidance for Q3 and the full-year, with both coming in above analyst expectations.

As many global businesses continue to upgrade their cybersecurity systems, and enterprises move more work to the ‘cloud’ than ever before, cybersecurity spending is expected to top US$200 billion by 2024.

The Crowdstrike share price is up 36% in 2021.

International share number 2

Another overseas share Gilbert tips is Alibaba Group Holding Ltd (NYSE: BABA).

The Chinese multinational technology company, co-founded by billionaire Jack Ma, has struggled this year. Shares are down 25% in 2021 amid increased red tape from the Chinese government.

Despite this, however, Gilbert says, “Alibaba’s fundamentals remain strong, with a positive earnings report at the start of August 2021, announcing US$2.57 per share on US$31.85 billion in revenue.”

Additionally:

Alibaba reported a significant increase to its share buyback program, increasing by 50% to US$15 billion. This essentially means Alibaba feels the stock is undervalued and expects further growth in the share price.

Alibaba’s valuation is close to historic lows, trading at a forward P/E ratio of 17.37, lower than value stocks such as Home Depot and Target. This essentially opens an exciting opportunity for investors looking for a bargain. Of course, there will be ongoing risks with Chinese stocks, but adopting a dollar cost averaging strategy can help investors navigate the volatility on a stock that’s undervalued.

The next time you’re looking at adding to your investment portfolio, don’t ignore the ASX.

But you may want to balance the potential risks and rewards offered by international shares as well.

The post Two exciting international shares to consider as superfunds hit record global investments appeared first on The Motley Fool Australia.

More reading

• What is the outlook for the Westpac (ASX:WBC) share price?
• ASX investors were buying Alibaba, Pfizer shares last week
• ASX 200 bank shares could struggle due to lockdowns – expert
• Here’s why the Westpac (ASX:WBC) share price is down in the last 3 months
• How does the NAB dividend compare to its sector?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alibaba Group Holding Ltd. and CrowdStrike Holdings, Inc. 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 Cimic Group Ltd (ASX: CIM) share price is set to finish the week on a positive note. This comes after the global engineering company announced two oil and gas contract extensions.

At the time of writing, Cimic shares are edging 1.35% higher to $21.85. The company’s shares last reached above the $22 mark in early February before plummeting thereafter.

What did Cimic announce?

According to its release, Cimic advised that its subsidiary, UGL has secured two contract extensions for planning, maintenance and shutdown services in Western Australia.

UGL is a diversified engineering company in end-to-end asset solutions. The business delivers critical assets and essential services in power, water, resources, transport, defence and security, and social infrastructure.

The works will see the implementation services for a leading oil and gas company under a non-binding framework agreement. This will include planning and execution of mechanical, electrical, instrumentation, access, insulation, coatings and fire protection.

In addition, UGL will provide maintenance, projects and shutdown services for an oil and gas company with assets in the North-West of Western Australia. This consists of onshore and offshore operations.

Cimic expects the contract to generate revenue of roughly $160 million for its wholly-owned subsidiary.

The implementation services contract is valid until 2024, while the maintenance, projects and shutdown services contract expires in 2022.

What did management say?

Cimic group executive chair and CEO, Juan Santamaria commented:

UGL has the workforce and expertise to support the full spectrum of structural, mechanical, piping, electrical and instrumentation services for the resources sector. We’re proud to contribute to some of the nation’s most advanced gas production systems and the delivery of energy solution for all Australians on behalf of these leading oil and gas companies.

UGL managing director, Doug Moss added:

UGL is pleased to extend our relationship with our longstanding clients. We are one of Australia’s leading service providers in the oil and gas industry and we look forward to continuing these operations in Western Australia.

About the Cimic share price

It has been an eventful 12 months for Cimic shares, rising to a 52-week high of $27.51 early this year. However, this was short-lived, with the company’s share price freefalling after reporting its full year results.

Since then, Cimic shares have gradually trekked higher rebounding to late February levels.

Cimic commands a market capitalisation of roughly $6.8 billion, with approximately 311 million shares outstanding.

The post Cimic (ASX:CIM) share price nears a 6-month high following contract extensions appeared first on The Motley Fool Australia.

More reading

• Two exciting international shares to consider as superfunds hit record global investments
• Here’s why the IAG (ASX:IAG) share price is up 10% in a month
• ASX uranium shares are booming this week. Here’s why.
• 3 growing small cap ASX shares named as buys
• Brokers name 3 ASX shares to buy 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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The Insurance Australia Group Ltd (ASX: IAG) share price has shone over the last month, outpacing the broad index.

Whereas the S&P/ASX 200 index (ASX: XJO) has posted a return of around 0.5% from August until date, IAG shares have climbed a further 10% in the green.

What tailwinds are behind the IAG share price lately?

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

In the report, the company recognised a 170% year on year gain in cash earnings to $747 million. As a result, the company grew its dividend by 100% to 20 cents a share.

Another key takeout was an approximate 4% growth in gross written premium (GWP), which helped insurance profit climb 36% to over $1 billion.

Investors often value a company’s shares based on historical earnings results and future earnings expectations.

That’s why it is important to consider a company’s guidance, and how this fits in with the bigger growth narrative.

Zooming in on IAG’s guidance, management expects “low single-digit GWP growth” and an insurance margin of 13.5%–15.5% in FY22. As a result, IAG forecasts an insurance profit of “at least $250 million” over the coming years.

This is no doubt heavily considered by many sophisticated and retail investors, who could be buying IAG shares on the company’s future earnings expectations.

One other factor that has weighed in on the IAG share price was the board restructuring back in early August.

The company announced that three new directors will join its board, David Armstrong, George Sartorel and Scott Pickering. All members come with extensive experience in financial services and are said to bring immense value to the IAG board.

The IAG share price jumped from $4.87 to $5.45 over the time in which these two events took place.

IAG share price snapshot

The IAG share price has climbed 14.5% this year to date, extending the gain over the previous 12 months to 9.5%.

Both of these results have outpaced the broad index’s return of around 25% over the past year.

The post Here’s why the IAG (ASX:IAG) share price is up 10% in a month appeared first on The Motley Fool Australia.

More reading

• Here’s why the IAG (ASX:IAG) share price is down 3% in a week
• Here’s why the IAG (ASX:IAG) share price is up 6% in the last 3 months
• If you invested $1,000 in IAG (ASX:IAG) shares a decade ago, here’s what it would be worth now
• 10 ASX shares we’re overweight in right now: fund
• How does the IAG (ASX:IAG) earnings result compare to Suncorp?

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 owns shares of and has recommended Insurance Australia 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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ASX uranium shares are surging across the board this week, as uranium spot prices lift to 6-year highs of US$34.25/lb.

The largest of the ASX uranium shares, Paladin Energy Ltd (ASX: PDN) has rallied 56% over the past week to an 8-year high of 78 cents.

Explorers including Deep Yellow Limited (ASX: DYL), Boss Energy Ltd (ASX: BOE), Energy Resources of Australia Limited (ASX: ERA) and Peninsula Energy Ltd (ASX: PEN) have also experienced a flurry of buying activity, surging between 20% and 40% this week.

The newest of all ASX uranium shares, 92 Energy Ltd (ASX: 92E) is another big winner, surging 104% this week to 51 cents. The uranium explorer was successfully listed on the ASX on 15 April at a listing price of 20 cents.

Uranium prices lift to 6-year highs

Uranium prices have been in a prolonged bear market after spot prices peaked at about US$135/lb in June 2007.

Between early 2016 and March 2020, it lingered below US$30/lb, rendering many producers unprofitable and discouraging new exploration projects. This explains why many ASX uranium shares are still down more than 90% from 2007 highs.

It wasn’t until after the initial March COVID-19 sell-off in 2020 that uranium spot prices managed to climb above US$30/lb. This week, prices touched US$35/lb for the first time in six years.

To add some perspective, Paladin Energy recently announced plans to restart its “globally significant” Langer Heinrich mine. The company estimates that it will cost approximately US$81 million to restart operations, with life of mine production cash costs of US$27/lb. In addition to freight and logistics of US$0.95/lb and sustaining capex of US$2.90/lb.

Encouragingly, Paladin Energy believes there is an emerging “structural supply deficit with growing demand”. The company’s March equity raising presentation stated the “current primary uranium supply [is] unable to meet current demand”.

The post ASX uranium shares are booming this week. Here’s why. appeared first on The Motley Fool Australia.

More reading

• Up 50% this week, the Paladin Energy (ASX:PDN) share price is booming. Here’s why.
• Which ASX shares are set to finish the week as the top movers on the ASX 300?
• The 92 Energy (ASX: 92E) share price is rocketing 44% today. Here’s why
• Up 29% this week, the Boss Energy (ASX:BOE) share price is soaring again
• Which ASX 300 shares are the biggest winners and losers on Thursday?

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

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If you’re wanting to invest in the small side of the Australian share market, then the three small caps listed below could be worth a closer look. All three have been tipped for big things in the future.

Here’s why these small cap ASX shares could be worth adding to your watchlist:

Adore Beauty Group Limited (ASX: ABY)

The first small cap to watch is Adore Beauty. It is a leading online beauty retailer which has been growing strongly. This has been underpinned by a significant lift in customer numbers thanks to the shift online. And as this shift is only really getting started in the beauty category, Adore Beauty appears very well positioned for growth over the long term.

Earlier this week Morgan Stanley put an overweight rating and $6.00 price target on its shares. It believes the company can grow strongly over the medium term.

Over The Wire Holdings Ltd (ASX: OTW)

Another small cap ASX share to add to your watchlist is Over The Wire. It is a telecommunications, cloud, and IT solutions provider that has a national network with points of presence in all major Australian capital cities. It offers a range of products and services to businesses including data networks and internet, voice, hosting and security, and managed services. In FY 2021 Over The Wire reported a 29% lift in revenue to $112.7 million and a 36% jump in EBITDA to $23.5 million.

Ord Minnett was pleased with its performance and expects more of the same in FY 2022. In response, it retained its buy rating and lifted its price target to $5.06.

Volpara Health Technologies Ltd (ASX: VHT)

A final small cap ASX share to watch is Volpara. It is a growing MedTech software as a service company and the provider of breast imaging analytics and analysis products. These products improve clinical decision-making and support the early detection of breast cancer. Demand for its offering has been growing strongly, leading to annualised recurring revenue (ARR) rising to NZ$27.8 million this year. However, this is still only a fraction of its US$750 million addressable market in just breast cancer screening.

Morgans currently has an add rating and $1.87 price target on the company’s shares.

The post 3 growing small cap ASX shares named as buys appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX small cap shares to buy
• 2 online ASX shares expecting big things
• Why Adore Beauty, Fortescue, InvoCare, & Temple & Webster are charging higher
• Adore Beauty (ASX:ABY) share price climbs on record result
• 2 quality ASX shares to look at this weekend

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 Over The Wire Holdings Ltd and VOLPARA FPO NZ. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia has recommended Over The Wire Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

NEXTDC Ltd (ASX: NXT)

According to a note out of Citi, its analysts have retained their buy rating and lifted their price target on this data centre operator’s shares to $15.40. Although Citi was a little underwhelmed with its full year results, it remains positive on the future. This is due to the broker’s medium term earnings estimates being largely underpinned by contracts and customer expansion options. The NEXTDC share price is trading at $13.95 on Friday afternoon.

Regis Resources Limited (ASX: RRL)

A note out of Morgans reveals that its analysts have retained their add rating and $3.93 price target on this gold miner’s shares. This follows the release of a full year result that was in line with the broker’s expectations. Outside this, the broker remains bullish due to the Tropicana acquisition and underground developments at Duketon. The Regis Resources share price is fetching $2.40 this afternoon.

Telstra Corporation Ltd (ASX: TLS)

Analysts at Goldman Sachs have retained their buy rating and $4.30 price target on this telco giant’s shares. The broker has been looking at the telco industry and remains positive on Telstra’s prospects. It notes that NBN prices are rising as market rationality returns. It also highlights regulatory support, with the NBN’s recent 2022 corporate plan implying a reduction in access costs for providers like Telstra. This could be a boost to Telstra’s NBN margins. The Telstra share price is trading at $3.84 on Friday afternoon.

The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• If you invested $1,000 in Telstra (ASX:TLS) shares a decade ago, here’s what it would be worth now
• 5 things to watch on the ASX 200 on Friday
• Here are the 3 most traded ASX 200 shares on Thursday
• The Regis Resources (ASX:RRL) share price is falling on Thursday
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The ResMed Inc (ASX: RMD) share price has enjoyed strong returns over the past 10 years, up 1,300%. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up around 80% over the same time frame.

Below, we take a look at the power of long-term investing. Let’s calculate how much you would have made if you invested $1,000 in ResMed shares a decade ago.

How does ResMed compare against the ASX 200?

On average, the ASX 200 has returned a yearly average of 5.84% to shareholders in the past decade. The most significant gain was achieved in 2019 when the index grew by 23.02%.

On the other hand, the biggest fall came in 2011, down by 10.84%. You might be thinking that 2020 would be on the list due to major COVID-19 disruptions, but the ASX 200 rebounded sharply during that year.

The healthcare company’s shares have historically outperformed the ASX 200 by a long shot, consistently treading upwards. In the past 10 years, the company has delivered a yearly average return of 30.34% since 2011.

What if you had invested $1,000 in ResMed shares 10 years ago?

If you had invested $1,000 in ResMed shares on this day 10 years ago, you would have bought them for around $2.78 each. This would have given you approximately 359 shares without factoring in any dividend reinvestments over the years.

Fast-forward to today, the current ResMed share price at the time of writing is $39.43. This means those 359 shares would now be worth an astonishing $14,155.37 (359 shares x $39.43). When considering percentage terms, this implies an upside of 1,315%.

Are ResMed shares a buy now?

Following the company’s full-year results, a number of brokers rated ResMed shares with similar price points.

Last month, Goldman Sachs raised its 12-month price target by 27% to $36.20 for the healthcare company’s shares. Macquarie soon followed, adding 7.3% to its outlook of $37.40 per share.

The most recent note came from Citi, which lifted its price on ResMed shares by 12% to $36.50.

The post If you invested $1,000 in ResMed (ASX:RMD) shares a decade ago, here’s what they would be worth now appeared first on The Motley Fool Australia.

More reading

• 3 top ASX 200 shares that could be buys
• Will the ResMed (ASX:RMD) share price continue its massive bull run?
• Top broker names 3 ASX 200 shares to buy
• 3 ASX growth shares that analysts love
• Revealed: The biggest shocker from results season

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 recommended ResMed. The Motley Fool Australia has recommended 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 past week hasn’t been kind to the BHP Group Ltd (ASX: AXE) share price. Over the past week, shares in the mining giant have tumbled around 7%.

Let’s take a look at what’s been weighing down BHP shares.

Why is the BHP share price struggling?

Earlier this week, a new bidder emerged to acquire Canadian nickel miner Noront Resources Ltd.

According to reports, Andrew “Twiggy” Forrest’s Wyloo Metals Pty Ltd offered to acquire Noront for C70 cents (A76 cents) per share in an all-cash offering.

The new offer was a 27% premium on BHP’s previous offer of C55 cents (A60 cents) per share.

Shares in BHP came under further pressure after curtailed steel production in China resulted in a weaker iron ore price.

Arguably the largest catalyst that caused the BHP share price to sink was yesterday when the company was trading ex-dividend.

As a result, new shareholders in BHP are deemed ineligible to receive the upcoming dividend payment.

In its full-year report for FY21, BHP declared a record fully-franked dividend of $2.73 per share.

How did BHP perform in FY21?

BHP released its full-year results for FY21 in mid-August. The BHP share price sunk soon after the report was released.

The mining giant’s report was highlighted by a record dividend and news of a merger with Woodside Petroleum Limited (ASX: WPL).

The proposal involved BHP merging its oil and gas assets with Woodside, and Woodside would be providing new shares to BHP shareholders.

Other highlights from the company’s full-year report included:

• Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) up 69% to US$37,379 million;
• Underlying attributable profit increased 88% to US$17,077 million;
• Net operating cash flow up 73% to US$27,234 million;
• Underlying earnings per share of 337.7 US cents.

Snapshot of the BHP share price

In addition to struggling this past week, shares in BHP have taken a dive since the company reported its results. Since releasing its full-year results, the BHP share price has tanked more than 17% in the last 3 weeks.

As a result, shares in BHP have given away all their gains for 2021 to be flat for the year.

At the time of writing, BHP shares are up 1.24% on the day to $42.46.

The post This last week hasn’t been great for the BHP (ASX:BHP) share price appeared first on The Motley Fool Australia.

More reading

• Which ASX 300 shares are the biggest winners and losers on Thursday?
• Why BHP, NIB, Northern Star, & Redbubble shares are tumbling lower
• ASX 200 midday update: BHP sinks, Flight Centre expansion
• Why the BHP (ASX:BHP) share price is down 7% today
• Here’s why the BHP (ASX:BHP) share price is down 7% today

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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