Tag: Motley Fool

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is outperforming the broader market today amid news of its newest board appointment. 

And by outperforming the market, we mean it’s not falling. The Bendigo Bank share price is currently 0.15% higher than its previous close, trading at $10.01. 

That’s a better day’s trade than the S&P/ASX 200 Index (ASX: XJO) is struggling through. Right now, the ASX 200 Index has fallen 0.07%, while the All Ordinaries Index (ASX: XAO) has slipped 0.16%. 

It may be news of an appointment to its board that’s keeping the Bendigo Bank share price in the green today.

Let’s take a closer look at today’s news from Bendigo Bank.

Bendigo Bank’s newest appointment

The Bendigo Bank share price is gaining amid news that former Deloitte CEO Richard Deutsch, will be joining the bank’s board. 

Jacqueline Hey, chair of Bendigo Bank, commented that Deutsch’s past experience will be of benefit to the bank. She said:

Richard’s deep audit and advisory experience will bring significant weight to both our board and board audit committees. Richard’s commitment to strengthening community and social justice also strongly aligns with our Bank’s values, longstanding purpose and vision to be Australia’s bank of choice.

Prior to taking on the top role at Deloitte, Deutsch served as the company’s managing partner of the audit and advisory practice and a member of the global audit and advisory leadership team.

Deutsch has also previously taken on leadership roles at charitable organisations OzHarvest and Adara Group. He has also been a member of Male Champions of Change, the Australian Climate Leaders Coalition, and the Business Council of Australia. 

Deutsch commented that he was honoured to be joining the board. He said he’s “strongly aligned to the organisation’s sense of purpose and community”. 

Deutsch will take his new seat in September. His appointment follows news that Robert Hubbard and Tony Robinson will retire from Bendigo Bank’s board in November. 

Bendigo Bank share price snapshot

Today’s slight gain included, the Bendigo Bank share price is 5% higher than it was at the start of 2021. It has also gained 55% since this time last year.

The post Why the Bendigo Bank (ASX:BEN) share price is outperforming today appeared first on The Motley Fool Australia.

More reading

• Bendigo Bank (ASX:BEN) share price outperforming amid ‘sustainability first’
• How does the CBA (ASX:CBA) earnings result compare to Bendigo Bank?
• ASX 200 drops, Bendigo Bank sinks, JB Hi-Fi rises
• The ASX reporting wrap-up: Bendigo, Beach, Lendlease
• Why Beach, Bendigo & Adelaide Bank, Flight Centre, & Lendlease are tumbling lower

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/38izdIU

The Atomo Diagnostics Ltd (ASX: AT1) share price has been out of form on Friday.

Earlier today, the medical device company’s shares fell as much as 8% to 22.5 cents. This was in response to the release of its full year results.

Atomo Diagnostics share price falls after losses double in FY 2021

• Revenue increased 25% to $6.72 million
• Cost of sales up 52% to $3.3 million
• Gross profit up 7% to $3.42 million
• Underlying operating loss widened 101% to $4.79 million
• Cash balance of ~$18 million

What happened for Atomo in FY 2021?

For the 12 months ended 30 June, Atomo reported a 25.1% increase in revenue to $6.72 million.

This was driven largely by demand for devices from customers in Europe and North America for the production of COVID-19 antibody tests.

Also supporting its sales growth was demand in Australia for Atomo branded COVID-19 rapid antibody and antigen tests and its HIV products in Australia and internationally.

What did management say?

Management was pleased with the company’s performance during a year filled with both headwinds and tailwinds.

It commented: “Atomo’s activities continued throughout FY21 nothwithstanding the COVID-19 pandemic. There were some delays in activity caused by the pandemic, for example, the global tender for HIV Self Tests run by Unitaid was substantially delayed, the consequence of which was that Atomo’s revenue from that tender was modest and primarily occured at the very end of the financial year.”

“That said, a significant portion of additional revenue was driven by demand for Atomo’s COVID-19 products in Australia and for its platforms for use by OEM customers in their own COVID-19 rapid tests internationally,” it added.

What’s next?

No guidance was given for the year ahead, which could be weighing on the Atomo share price a touch today.

However, management has stated that it is prioritising the continued expansion of strategic commercialisation partnerships across key global markets. This includes seeking a US market entry partnership.

In addition, it is aiming to expand its COVID-19 revenues with a core focus on the Australian market. It will also target HIV sales growth in existing territories and look to secure commercial agreements in new territories.

The post Atomo Diagnostics (ASX:AT1) share price sinks 8% on FY21 results appeared first on The Motley Fool Australia.

More reading

• Here’s why the Atomo (ASX: AT1) share price flew 4% higher today
• The Atomo (ASX:AT1) share price has shot up 9%. Here’s why
• Ellume is making news and these ASX shares are surging, again
• Here’s why the Atomo (ASX:AT1) share price is soaring 10%

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/3jrfayt

The Integral Diagnostics Ltd (ASX: IDX) share price is sliding today after the company released its earnings results for the financial year 2021 (FY21).

Right now, the Integral share price is trading at $4.62, 14.44% lower than its previous close.

Integral Diagnostics share price down despite revenue boost

Here’s how the diagnostic imaging provider performed in FY21:

• $350.9 million of revenue, 27.2% higher than that of FY20
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) came to $88.9 million, up 28.5% on the prior financial year
• Net profit after tax of $38.1 million, up 25.3%
• $66.5 million of free cash flow
• 7 cent fully franked final dividend, up from FY20’s 4 cent final dividend.

Integral Diagnostics received $6.6 million in JobKeeper payments in FY21. Of that, it chose to voluntarily pay back $2.9 million ($2 million after tax).

The company experienced organic revenue growth of 12.2% in Australia and 12.5% in New Zealand. Its average fee per exam also increased by 3.3%. 

The company ended the period with $62.2 million of cash and $137.4 million of debt.

What happened in FY21 for Integral Diagnostics?

FY21 was a busy period for Integral Diagnostics and its share price. 

The company acquired New Zealand-based Ascot Radiology in September. Integral said Ascot’s operating performance in 9 diagnostic imaging clinics was in line with expectations. 

In February, Integral also announced a joint venture with UK-based Medica Group. The companies will provide teleradiology reporting services and additional reporting capacity in Australia, New Zealand, the United Kingdom, and Ireland. 

In addition, the company has added new technology to many of its sites during FY21. It installed a 3T non-rebateable MRI at the Spine Centre on the Gold Coast, a second CT in Toowoomba, and a Cardiac CT in Busselton.

Integral also initiated an MRI service for the Western Australia Health Service and replaced an older MRI with a new 3T MRI at Ascot Radiology.

It also opened several new clinics and solidified plans to develop 4 sites in FY22.

What did management say?

Integral CEO and managing director Dr Ian Kadish commented on the results: 

Our financial performance in FY21 was strong. Our patients and referrers were well taken care of, and our teams across the business delivered all that was asked, and more.

COVID-19 outbreaks and associated government lockdowns and border closures all took a toll, team morale was impacted, but the professionalism, dedication and commitment of our doctors and staff has been inspiring.

What’s next for Integral Diagnostics?

Here’s what those interested in the Integral share price might want to keep an eye on in FY22:

The company believes COVID-19 will continue to impact its business. It notes that the first half of FY22 has already seen its businesses hit with restrictions and closures. 

In FY22, it will focus on organic growth, accelerating digital and AI technologies, strategic expansion opportunities, and its environmental, social and governance strategy.

Integral also expects its business to grow in the longer term due to the growing elderly population. 

It noted that increasing occurrences of chronic disease and promising new digital, imaging, and AI technologies placed it in a strong position.

Additionally, MRI, CT and PET scans are well-positioned for growth from new diagnostic applications in the fields of oncology, cardiology and neurology.

The post Integral Diagnostics (ASX:IDX) share price slides 14% on FY21 earnings appeared first on The Motley Fool Australia.

More reading

• Which ASX shares are ending the week as the biggest movers today?
• Why Chalice Mining, GUD, Integral Diagnostics, & PointsBet are dropping

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 recommended Integral Diagnostics 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/3jhiWKy

The Blackmores Limited (ASX: BKL) share price has walked through today’s session in the green.

A short time ago Blackmores shares were changing hands 7% higher on the day at $98.34 each, just down from their 52-week high of $98.92 earlier in the day.

What’s the news out of Blackmores?

The Blackmores share price is surging after the company released its FY21 earnings results on Thursday. In the report, the company grew revenue by 1.3% year-on-year, while underlying earnings before interest and tax (EBIT) increased by 51% on the year prior.

As such, Blackmores’ underlying net profit after tax (NPAT) also grew about 52% from last year to $25.4 million.

Much of the performance was underscored by strength in its China segment, which grew almost 18% year-on-year. This was despite its Australian segment revenue contracting by 14% over the year.

Furthermore, the company also declared a fully franked final dividend of 42 cents per share, bringing the total FY21 dividend to 71 cents.

This is a significant down step from the $2.20 declared in FY19; nonetheless, Blackmores’ shareholders are no doubt happy to enjoy the dividend’s return back into their bank accounts.

The Blackmores share price initially struggled to find its range yesterday after the company first released its FY21 earnings, however it finished the day 15% higher. It ran from $76.76 at the opening of trade on Thursday to a close of $92.09.

There is no market-sensitive news for the company today. Therefore, it stands to reason that investors are buying Blackmores shares on the back of the robust financial performance that saw its share price soar yesterday.

Blackmores share price snapshot

The Blackmores share price has posted a year-to-date return of 30%, and is up 49% over the past 12 months.

In the last month alone, Blackmores shares have climbed a further 29% into the green.

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

The post Blackmores (ASX:BKL) share price surges 7% to new 52-week high appeared first on The Motley Fool Australia.

More reading

• Why Ardent Leisure, Blackmores, Clinuvel, & Qube shares are surging higher
• Which ASX shares are ending the week as the biggest movers today?
• ASX 200 drops, A2 Milk sinks, Appen plummets
• Why Blackmores, Flight Centre, Kuniko, & Qantas shares are soaring today
• Which ASX shares are leading the ASX 300 today?

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores 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/2XVLtgl

In afternoon trade on Friday, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down slightly to 7,486.3 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are surging higher:

Ardent Leisure Group Ltd (ASX: ALG)

The Ardent Leisure share price is up 10% to $1.39. Investors have been buying this entertainment company’s shares since the release of its better than expected full year results. One broker that was particularly pleased with its improving performance was Ord Minnett. This morning its analysts upgraded Ardent Leisure’s shares to a buy rating with a $1.75 price target.

Blackmores Limited (ASX: BKL)

The Blackmores share price is up 6% to $97.68. This appears to have been driven by a broker note out of Credit Suisse this morning. According to the note, the broker has upgraded its shares to a buy rating with a $100.00 price target. Credit Suisse notes that Blackmores’ bold medium term growth targets are ahead of its estimates.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel share price has jumped 17% to $34.35. Today’s gain appears to have been driven by the release of a bullish broker note in response to yesterday’s full year results. According to a note out of Jefferies, its analysts have upgraded the biopharmaceutical company’s shares to a buy rating with a $36.80 price target.

Qube Holdings Ltd (ASX: QUB)

The Qube share price has climbed 4% to $3.17. This morning analysts at Credit Suisse upgraded the logistics solutions company’s shares to an outperform rating with an improved price target of $3.30. Credit Suisse was pleased with its strong FY 2021 result and believes a major share buyback could be announced with its half year results in FY 2022.

The post Why Ardent Leisure, Blackmores, Clinuvel, & Qube shares are surging higher appeared first on The Motley Fool Australia.

More reading

• Which ASX shares are ending the week as the biggest movers today?
• ASX 200 midday update: Wesfarmers’ $2.3bn capital return, Appen & Pilbara Minerals fall
• ASX 200 drops, A2 Milk sinks, Appen plummets
• Why Blackmores, Flight Centre, Kuniko, & Qantas shares are soaring today
• Which ASX shares are leading the ASX 300 today?

from The Motley Fool Australia https://ift.tt/38icKLW

The S&P/ASX 300 Index (ASX: XKO) is edging slightly lower today after most company’s wrapped up their earnings season.

During afternoon trade, the ASX 300 is down 0.11% to 7,461 points.

Let’s take a look at which ASX companies are sprinting on the ASX 300 chart today.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel share price is rocketing 16.28% to a multi-year high of $34 following an optimistic broker note.

Multinational investment bank, Jefferies raised its price target for Clinuvel by 27% to a bullish $36.80. It appears its analysts viewed the company’s full-year results in a positive light.

Based on the current share price, this implies an upside of around 8.2% for investors.

Blackmores Limited (ASX: BKL)

The Blackmores share price is also pushing ahead on Friday, up 6.65% to $98.21. The health supplements company also received a broker note by Macquarie following the release of its full-year results yesterday.

Analysts at Macquarie added 19% to its outlook on Blackmores, valuing its shares at $87.50 apiece. It’s worth noting that this is still a significant downside from the current price, roughly 11%.

Atlas Arteria Group (ASX: ALX)

Another significant mover today is the Atlas Arteria share price, up 6.27% to $6.69. The toll-road developer provided its half-year results yesterday, however, a number of brokers weighed in on the company.

Swiss investment firm, UBS lifted its rating on Atlas Arteria shares by 19% to $6.85. Morgans has a slightly bearish view, adding just 1.7% to $6.44. And lastly, Macquarie improved its assessment by 4.8% to $6.52.

And which ASX companies are heading the other way?

Australian Strategic Materials Ltd (ASX: ASM)

Deep in negative territory, the Australian Strategic Minerals share price is down a sizeable 16.51% to $11.40. Investors are heading for the hills despite no news coming out of the company.

A possible catalyst for the sharp fall could be investors deciding to take profit off the table. The rare earth elements miner’s shares have climbed to incredible highs over the past year, up 400%. In August alone, the company’s share price rose 72% to hit a record high of $14 apiece.

Integral Diagnostics Ltd (ASX: IDX)

Also being weighed down by investors today is the Integral Diagnostics share price, down 12.96% to $4.70. The company released its full-year results today, highlighting a mostly positive performance.

However, with the ongoing impacts of COVID-19, the group could not provide revenue or profit guidance for FY22.

The post Which ASX shares are ending the week as the biggest movers today? appeared first on The Motley Fool Australia.

More reading

• Why Ardent Leisure, Blackmores, Clinuvel, & Qube shares are surging higher
• ASX 200 midday update: Wesfarmers’ $2.3bn capital return, Appen & Pilbara Minerals fall
• ASX 200 drops, A2 Milk sinks, Appen plummets
• Why Blackmores, Flight Centre, Kuniko, & Qantas shares are soaring today
• Which ASX shares are leading the ASX 300 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 owns shares of and has recommended Blackmores Limited. The Motley Fool Australia has recommended Integral Diagnostics 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/38e8g9g

After a rough, rough year, what’s left of Nuix Ltd (ASX: NXL)’s shareholders might have another clanger to endure on Monday.

To recap, analytics software provider Nuix was the darling float of last year. The shares listed on the ASX in December after selling during the initial public offering for $5.31.

Growth hype then immediately rocketed the stock, which hit $11.86 in January.

But then scandal after downgrade after scandal hit the Nuix share price hard. As of Friday afternoon, Nuix shares were going for $2.86.

Multiple identities involved with the company’s past and present are currently under investigation by authorities.

Chief executive Rod Vawdrey is due to exit as soon as a replacement is found, and longtime chief financial officer Stephen Doyle was shown the door in June.

On Monday, the company will report its 2021 financial year result.

$340 million of Nuix shares can be sold off

So what else is happening Monday that might further affect the Nuix share price?

All the insider-held shares that were held in escrow for the float will be released at 4:15pm.

According to the prospectus, 37.9% of the shares on issue are due to be released from trading restrictions.

That’s $340 million worth of stock held by Vawdrey, Doyle, and Macquarie Group Ltd (ASX: MQG), among others.

If they sell, Vawdrey and Doyle will walk away with $4.5 million and $2.4 million respectively.

Macquarie owns 30% of the company it bought into during its infancy as a privately owned business. The financial giant copped accusations that it had overhyped the IPO, but its defence always has been that it still owns many Nuix shares.

As of Monday afternoon, it will be free to do what it wants with those shares.

According to the Australian Financial Review, senator Deborah O’Neill called on the Australian Securities and Investments Commission (ASIC) to freeze the escrow.

“ASIC must be proactive and act to protect investors and not let those with serious questions to answer to walk away from this scandal with the loot.”

The Motley Fool has contacted the corporate regulator for comment.

The Nuix share price is up 4% on Friday afternoon.

The post Massive reason Nuix (ASX:NXL) share price will be in focus on Monday appeared first on The Motley Fool Australia.

More reading

• ASX 200 Weekly Wrap: Miners drag ASX back to earth
• The Macquarie Group (ASX:MQG) share price just hit an all-time high!
• Nuix (ASX:NXL) share price slides as Macquarie CEO acknowledges disappointment
• Macquarie (ASX:MQG) share price lower as Sydney Airport appears a no-go
• ASX 200 Weekly Wrap: New records just keep coming for the ASX 200

Motley Fool contributor Tony Yoo owns shares of Macquarie Group Limited. 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 Macquarie Group 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/3sQHFIF

The Pro Medicus Limited (ASX: PME) share price has been on fire in 2021. Shares in the Aussie health imaging IT provider have surged 78% higher this year – more than 12 times the gains in the S&P/ASX 200 Index (ASX: XJO).

Here’s why the Aussie healthcare technology company is surging higher this year.

Why the Pro Medicus share price is up 78% in 2021

Pro Medicus provides medical imaging software and services to a range of healthcare groups around the world. The healthcare informatics group has been steadily building in recent times and 2021 has proven to be a real breakout year.

It all started back in mid-January 2021. The Pro Medicus share price rocketed more than 38% in the space of one week after announcing a record-breaking deal with US-based healthcare group, Intermountain.

The deal, worth $40 million, was the latest in a string of deals with major US hospitals. Shares in the Aussie medical technology group soared on the news as Pro Medicus executed on its strategy to expand its US footprint.

Despite somewhat stagnating in Q2 2020, the Pro Medicus share price has been steadily climbing since May. Steady gains have been supported by new contract signings including an 8-year, $14 million deal with The University of Vermont.

The healthcare technology share is up 54.5% since 12 May after another strong surge after its recent FY21 results.

Pro Medicus reported a 19.5% jump in revenue to $67.9 million with underlying net profit after tax up 33.7% on FY20 to $42.6 million. The company also announced an 8 cents per share final dividend for shareholders after announcing a record number of new contracts during the year.

The Pro Medicus share price rocketed 15.7% higher following the release of its results. Despite dipping in Friday’s trade, shares in the healthcare imaging group remain up more than 78% for the year.

The post Here’s why the Pro Medicus (ASX:PME) share price is up 78% this year appeared first on The Motley Fool Australia.

More reading

• ASX 200 Weekly Wrap: Miners drag ASX back to earth
• 3 of the best ASX results from week three of reporting season
• These were the best performing ASX 200 shares last week
• Top brokers name 3 ASX shares to sell today
• Pro Medicus (ASX:PME) share price rockets 16% on earnings beat

Motley Fool contributor Ken Hall 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 Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus 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/3ylkjMs

The Jumbo Interactive Ltd (ASX: JIN) share price has spent the last two trading days firmly in the red.

In afternoon trade today, Jumbo shares are down 8.53% to $15.02. They also lost 8.5% yesterday, the same day the company reported its FY21 full-year results.

So what’s behind these latest moves for the Jumbo Interactive share price? Let’s dive in a little deeper to gain some insight.

A quick refresher on Jumbo Interactive

Jumbo Interactive is in the lottery business and has operations in Australia and Germany. It is recognised as a pioneer in Australian e-commerce after establishing one of the world’s first online shopping outlets.

Jumbo’s flagship service is Oz Lotteries, which is often abbreviated as Oz Lotto. This service has a turnover of more than $150 million in lottery ticket sales annually.

At the time of writing, Jumbo Interactive has a market capitalisation of $1.02 billion.

What’s pushing the Jumbo Interactive share price lower?

Shares in the digital lottery business are on the decline despite the company reporting a robust financial performance in its FY21 earnings on Thursday.

In its report, Jumbo recognised a 37% increase in total transaction value (TTV) to reach $487 million. As a result, revenue also gained 17% year-on-year and underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA)  grew 13% to just shy of $50 million.

This came through to net profit after tax (NPAT) of $28 million, a 7% increase from the year prior. In addition, the company also reported a total FY21 dividend of 36.5 cents per share.

Jumbo also announced its full acquisition of Stride Management Inc on 26 August, which saw the company pay $11.7 million in available cash on its balance sheet. The transaction gives Jumbo a “strategic foothold” in the Canadian charity lottery market, which it says has “significant growth potential”.

The transaction finalised on a net profit before tax (NBPT) multiple of 4.8 times, “based on forecast performance” for FY21.

Despite these seemingly positive points to the Jumbo Interactive share price, investors appear less than impressed by the lottery giant’s progress.

Jumbo shares have sunk 17% over the last two days from the closing price of $18.28 on 25 August. The last time the Jumbo share price was at these levels was back in mid-June.

There is no market-sensitive information out of the company today. Therefore, it stands to reason that investors may be selling Jumbo Interactive shares on the back of its FY21 earnings report and/or the acquisition announcement.

Jumbo Interactive share price snapshot

The Jumbo Interactive share price has had a choppy year to date, posting a return of just 8% since January 1.

Jumbo shares have also gained 15% over the last 12 months, and are 7% in the red over the last month.

These returns have lagged the S&P/ASX 200 index (ASX: XJO)’s return of about 25% over the past year.

The post Why the Jumbo Interactive (ASX:JIN) share price has plunged 17% in 2 days appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, Appen, Jumbo, & Link shares are sinking
• Jumbo Interactive (ASX:JIN) share price slides 8% despite record FY21 performance
• 3 ASX shares insiders are buying ahead of reporting season

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive 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/3DjEbTX

The Splitit Ltd (ASX: SPT) share price has continued its fall from grace today, losing another 3.12% at the time of writing to slide to 46 cents a share. That equals the company’s 52-week low.

So what’s gone so wrong for this former ASX high flyer?

After all, this is a company with a 52-week range of 46 cents and $1.93 a share. This means that in the space of under a year, Splitit has fallen more than 75%. That of course came after the Splitit share price rocketed more than 600% last year between March and August.

Splitit share price: good year gone bad

Well, Splitit’s recent woes seem to start with the company’s full-year earnings report for 2020 that was delivered back in February of this year. This company posted a 300% increase in gross revenues to US$8.4 million, as well as a 179% rise in Merchant Sales Volume (MSV) to US$246 million. However, it also widened its losses to US$25.47 million after posting a loss of US$21.47 million the previous year.

Splitit shares fell heavily as a result (4% on the day) and kept on falling.

By the time that Splitit updated the markets with a fourth quarter report in April, the shares were down almost 30%. And this quarterly report didn’t help Splitit either. The company told investors that it’s quarter-on-quarter revenues and MSV had actually fallen. In the week following the release of this report, the company gave up another 13% of its value.

There was a similar reaction to Splitit’s July quarterly update too.

Boost from Afterpay’s Square deal fades

The blockbuster announcement that Splitit’s fellow buy now, pay later (BNPL) provider Afterpay Ltd (ASX: APT) would be acquired by the US payments giant Square Inc (NYSE: SQ) earlier this month gave the Splitit share price a bit of a boost though.

Between 30 July (the last trading day before the announcement) and 4 August, Splitit shares rose a whopping 40% to 64 cents a share. This was probably on the back of hopes that Splitit itself might be a future M&A target. However, the weeks since seem to have dimmed that hope. Since 4 August, the Splitit share price has given up close to 30%.

And that brings us to today, as Splitit shares hit their 52-week low.

Who knows what the future might hold for this now embattled BNPL company. Perhaps we will have to wait until the company’s annual general meeting on 15 October to get another meaningful update as to how the company is faring.

At the current Splitit share price of 46 cents a share, the company has a market capitalisation of $223.77 million.

The post Why did the Splitit (ASX:SPT) share price just hit its 52-week low? appeared first on The Motley Fool Australia.

More reading

• Splitit (ASX:SPT) share price surges 20% on Wednesday
• The Zip (ASX:Z1P) share price is zooming higher once more
• Why the Splitit (ASX:SPT) share price is surging 7% today
• Splitit (ASX: SPT) share price wobbles after business update

Motley Fool contributor Sebastian Bowen owns shares of Square. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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/38f5PmX