Tag: Motley Fool

The Downer EDI Limited (ASX: DOW) share price is 4.42% higher in early afternoon trade following the release of the company’s full-year results for financial year 2021.

To the market’s delight, Downer this morning reported a profit for the financial year just been.

After closing yesterday’s session at $5.54, the Downer share price is currently $5.78.

Let’s take a closer look how Downer performed over the 12 months ended 30 June 2021.

The financial year that’s been for Downer

The Downer share price is responding well to the company’s full-year results.

Downer has reported an underlying net profit after tax and amortisation of $261.2 million ­– 21.4% more than it reported last year.

It also clocked in a statutory net profit after tax of $230 million. That’s a significant improvement from its previous financial year’s statutory net profit, which came in at a loss of $105.8 million.

The Downer share price is also likely being driven higher by its latest dividend.

The company has handed a 12 cent final dividend back to the holders of each of its shares. That brings its total dividends for the financial year to 21 cents. All dividends given to Downer’s shareholders during the 2021 financial year were fully franked.

Downer share price snapshot

Today’s 4.42% gain has helped boost recent performance on the ASX.

Shares in the company are now trading for 6% more than they were at the start of 2021. They’ve also gained 34% since this time last year.

For comparison, the S&P/ASX 200 Index (ASX:XJO) has gained 23% over the last 12 months.

The post The Downer (ASX:DOW) share price is driving 4% higher this afternoon appeared first on The Motley Fool Australia.

More reading

• ASX tech shares lagging the ASX 200 on Thursday
• ASX 200 midday update: Telstra, NAB, & QBE results
• The Downer (ASX:DOW) share price on watch after FY21 earnings
• 5 things to watch on the ASX 200 on Thursday
• Here are 3 of the most heavily traded ASX 200 shares today

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/3sbRJMk

The AGL Energy Limited (ASX: AGL) share price is in the red straight out of the blocks in early trade.

AGL shares are on the move down as the energy giant updated its dividend schedule as part of its FY21 earnings report.

Let’s investigate a little further.

AGL’s dividend

AGL has an extensive dividend history that dates back to 2003. It resumed payments in 2013 after an eight year pause.

AGL’s dividend has been quite growth-agnostic across the term of its distribution schedule.

To illustrate, in the period of 2003 – 2021, AGL grew its dividend at a compound annual growth rate (CAGR) of only 1.94%. Prior to the dividend haircuts in 2020 and 2021, the CAGR was 7.2%.

In a negative note for the AGL share price, AGL declared a full year dividend of 75 cents per share in its FY21 results, which is an approximate 23.5% down-step from the year prior.

In addition, it is both the interim and final dividend of 35 cents and 41 cents respectively, that came in behind the previous year’s payouts.

The down-step occurred on the backdrop of a 10% year on year decrease in revenue, coupled with a 33.5% slide in underlying profits, to $537 million.

Furthermore, this caps of a choppy year for AGL, after it announced plans to demerge into two standalone businesses earlier in the year.

This coincided with the suspension of its special dividend program, where it intended to pay 25% of underlying profits to shareholders over the coming periods.

What does this mean for investors and the AGL share price?

Back on 30 July, we calculated that AGL’s dividend was not enough to overcome the underperformance of its share price on the charts over the last 5 years.

AGL shareholders still realised a loss of 12.4% on their initial investment, if purchasing 1,000 AGL shares on 1 March 2015 and holding until 30 July, when factoring in the total return received in capital gains and dividends. Stripping the dividend out of the equation, the loss mushrooms to 52%.

Therefore, some might argue that AGL’s dividend has provided some downside coverage over the past 5 years.

Furthermore, The Motley Fool encourages investors to consider the notion of a “value trap” when investing in dividend-paying shares, in AGL’s case.

To illustrate, there is an inverse relationship between dividend yield and price. When price goes down, yield goes up, and vice versa.

AGL’s share price has tanked more than 61% over the past 5 years, whereas its dividend has increased over that time.

The apparent dividend yield on AGL shares, therefore, appears to be high, but investors must also consider that this may not be an accurate representation of the investment case, due to the underperforming share price.

Such is the case right now with AGL shares, which now trade on a dividend yield of roughly 9–10% after this morning’s update.

In addition, given that dividends do provide some downside cover to share price depreciation, the down-step is unlikely to please investors.

Therefore, it stands to reason that investors are selling AGL shares in droves on the back of its FY21 dividend and results. To illustrate, AGL shares are now exchanging hands at $7.29 apiece, a 4% dip into the red from the open.

Foolish takeaway

AGL is reigning in its dividend payout further, as per its FY21 results. This marks a further downstep in AGL’s distribution schedule, which has faced headwinds over the last two years.

The AGL share price has posted a loss of 57% over the last 12 months and 39% since January 1. This is well behind the S&P/ASX 200 Index (ASX: XJO)’s return of around 25% over the past year.

Finally, investors also need to consider the concept of a value trap in their due diligence for dividend paying shares.

The post AGL (ASX:AGL) dividend slashed. Share price down 3% on Thursday appeared first on The Motley Fool Australia.

More reading

• AGL (ASX:AGL) share price on watch following FY21 earnings
• 5 things to watch on the ASX 200 on Thursday
• How did the AGL (ASX:AGL) share price perform last earnings season?
• What can we learn from the AGL Energy (ASX:AGL) share price history?
• Could it be time to consider buying AGL (ASX:AGL) shares?

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

from The Motley Fool Australia https://ift.tt/3s8cWGT

The Rio Tinto Limited (ASX: RIO) share price has been the worst performer on the S&P/ASX 200 Index (ASX: XJO) on Thursday.

In afternoon trade, the mining giant’s shares are down 7% to $120.35.

Why is the Rio Tinto share price sinking?

The good news for shareholders is that the decline in the Rio Tinto share price has nothing to do with commodity prices or anything operational.

Rather, today’s decline has been driven almost entirely by the fact that the mining giant’s shares are trading ex-dividend today.

When a share trades ex-dividend, it means it is trading without the rights to an upcoming dividend payment.

As result, this morning the company’s share price dropped to reflect the fact that new buyers will not be receiving its upcoming dividend.

The Rio Tinto dividend

Eligible Rio Tinto shareholders can now look forward to receiving the company’s interim and special dividends next month on 23 September.

The mining giant is paying its shareholders fully franked dividends totalling 760.06 cents per share. This comprises an interim dividend of 509.42 cents per share and a special dividend of 250.64 cents per share.

As a comparison, the Rio Tinto share price has fallen 879 cents today. This means that 86% of this decline is attributable to the dividends that will be paid.

What about the rest?

The rest of the weakness in the Rio Tinto share price is likely to be due to profit taking from investors.

With Rio Tinto shares up strongly over the last 12 months, some investors may be cashing in now that they have locked in this bumper dividend.

Though, if analysts at Macquarie are on the money, it might be a little too soon to do that. At the end of last month the broker put an outperform rating and $162.00 price target on its shares. This implies potential upside of almost 35% over the next 12 months.

The post Why the Rio Tinto (ASX:RIO) share price is down 7% today appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Telstra, NAB, & QBE results
• Is the Rio Tinto (ASX:RIO) share price a buy right now?
• How does the Rio Tinto (ASX:RIO) dividend compare to the materials sector?
• ASX 200 shares could get boost on prediction that A$ will crash to US68c
• How is the Mineral Resources (ASX:MIN) share price holding up against the materials sector?

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/3Axh99W

The Andromeda Metals Ltd (ASX: ADN) share price is in the green after the company announced a new joint venture.

Andromeda has entered an agreement to join forces with an unlisted company, Peninsula Exploration to explore 4 tenements located near Andromeda’s Great White Kaolin Project.

The Andromeda share price is up 4.25% on the back of the news today. Shares in the mineral exploration company are currently swapping hands for 16 cents apiece.

Let’s take a closer look at Andromeda’s new partnership.

New joint venture

Andromeda’s new partnership will form the Eyre Kaolin Project Joint Venture.

Andromeda’s geology team expects the site to be prospective for halloysite, and kaolin clay has already been found there.

According to Andromeda, targets at the project have returned similar results to the Great White and Mount Hope Projects.

The Andromeda share price has a history of soaring on good news regarding the company’s kaolin ventures.

Peninsula Exploration already holds the exploration licences for 4 tenements covering a 2,799 sqm area on South Australia’s Eyre Peninsula.

Andromeda has agreed to pay Peninsula $20,000 to enter the joint venture. Over the next 12 months, the company will spend a further $140,000 on the project.

In the project’s first stage, if Andromeda spends $750,000, it will earn a 51% interest in the joint venture.

After the first stage, Andromeda could earn another 29% by spending an additional $2 million.

At that point, Peninsula can choose to swap its 20% holding for a 1.5% net profit royalty if the companies decide to mine the tenements.  

Andromeda share price snapshot

Today’s gains haven’t been enough to boost the Andromeda share price out of the red this year.

Andromeda shares are trading hands for 47.7% less than they were at the start of 2021.

However, the share price has grown by 224% since this time last year.

The company has a market capitalisation of almost $400 million. There are approximately 2.46 billion shares outstanding.

The post Andromeda (ASX:ADN) share price higher on new joint venture appeared first on The Motley Fool Australia.

More reading

• Andromeda (ASX:ADN) share price edges lower on board reshuffle
• Here’s why the Andromeda Metals (ASX:ADN) share price is jumping 13%

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/3sc92fT

The Transurban Group (ASX: TCL) share price is pushing higher on Thursday afternoon. This follows the toll road operator’s latest positive announcement regarding the Maryland Express Lanes Project.

At the time of writing, Transurban shares are fetching for $13.45, up 0.22%.

Maryland Express Lanes Project update

In a statement to the ASX, Transurban advised that the Accelerate Maryland Partners (AM Partners) has received approval for works on the Maryland Express Lanes Project.

The AM Partners is led by Transurban and Macquarie Capital as lead project developers and equity members.

The green light was given by the Maryland Board of Public Works over the Public-Private Partnership (PPP) agreement. The approval is for the first phase of the project in the Greater Washington area (United States).

Under the initial stage, it proposed that AM Partners will build approximately 60 kilometres of highway toll lanes. This will connect Northern Virginia with key business and residential centres in Maryland.

The next step in the predevelopment process will see AM Partners work with the Maryland Department of Transportation.

A final concession agreement and financial close is expected sometime in late 2022 on the first phase of the project.

Transurban CEO, Scott Charlton touched on the significant milestone, saying:

The Maryland Express Lanes Project is set to be one of the largest PPPs in the USA, and the delivery of Phase 1 will be our first partnership with the Maryland Department of Transportation.

The Maryland Express Lanes Project will address one of the region’s worst congestion points, the American Legion Bridge, and allow us to extend the benefits of our Express Lanes network to motorists travelling between Virginia and Maryland.

About the Transurban share price

Over the last 12 months, Transurban shares are relatively flat, down 2%. Year-to-date hasn’t fared much better, also down 1%. The company’s share price is sitting just below the middle of its 52-week range of $12.36 and $15.64.

Transurban commands a market capitalisation of roughly $36.8 billion, making it the 15th largest company on the ASX.

The post Why the Transurban (ASX:TCL) share price is edging higher today appeared first on The Motley Fool Australia.

More reading

• 2 quality ASX shares for a retirement portfolio
• Why Aurizon, Brainchip, Ramelius, & Transurban shares are dropping
• Suncorp share price surges. Transurban falls. Scott Phillips on Nine’s Late News
• The ASX reporting wrap-up: Suncorp, Transurban, ELMO
• Transurban (ASX:TCL) share price slumps amid latest West Gate Tunnel drama

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/2Xpqcvz

The Fatfish Group Ltd (ASX: FFG) share price is rocketing today, up 7% in early afternoon trade, having earlier posted gains of 19%.

At the time of writing, the Fatfish share price is trading in the green at 6.2 cents apiece.

Below we look at the news out today from the ASX tech share.

What did Fatfish announce?

Fatfish’s share price is surging after the company reported fresh monthly and quarterly sales records at its insurtech (insurance and technology) investee company Fatberry.

Fatfish, along with its Swedish-listed subsidiary Abelco Investment Group, together own 61% of Fatberry.

According to today’s release, sales increased 36.7% from May to June, hitting $569,599 in monthly gross sales in June.

Total sales for the first half of 2021 of $1,977,391 represent a record high for Fatberry.

The Fatfish share price also may be getting a boost from its report that Fatberry’s quarter-on-quarter average sales growth over the past 4 quarters is at 478% per quarter.

What did management say?

Commenting on the results, Fatberry CEO John Tan said:

Fatberry is riding on a very strong growth momentum. We are breaking our own records every quarter and growth is seen continuously in all operational measurements, from visitor counts on our website to overall sales performance.

The company has equipped itself with the right business model, stellar team and technology to drive this exponential growth for quite a while more.

Fatberry’s current insurance products cover vehicles, motorbikes, personal accident and travel insurance. The company plans to launch a new insurance product category before the end of September.

Fatfish share price snapshot

The Fatfish share price has been a standout performer over the past 12 months, gaining 530%. By comparison the All Ordinaries Index (ASX: XAO) is up 26% over that same time.

Year-to-date, Fatfish’s share price has continued to outperform, up 58% in 2021.

Fatfish and its Swedish subsidiary, Abelco, operate from innovation hubs in Singapore, Kuala Lumpur and Stockholm.

The post Why the Fatfish (ASX:FFG) share price is storming 7% higher today appeared first on The Motley Fool Australia.

More reading

• Why this small-cap ASX share can follow $6 billion rival
• Alexium (ASX:AJX) share price rockets 34% on sales update
• When was the best day on the Zip (ASX:Z1P) share price chart in 2021?
• Why the DroneShield (ASX:DRO) share price is soaring 7% today
• Why the Adacel (ASX:ADA) share price is rocketing 39% today

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/2XkOaYJ

What if you knew of a small-cap ASX share that was doing all the right things that its bigger rival did years ago?

If you could see how it could grow as big as the larger competitor, would you be tempted to buy in?

NovaPort Capital analyst Tim Binsted is certainly excited when he’s fishing for small-cap “tiddlers that can grow into tomorrow’s whales”.

And he reckons he’s just caught one.

“Laboratory and environmental services business HRL Holdings Ltd (ASX: HRL) is capitalised at just over $55 million and the journey of ASX-listed peer ALS Ltd (ASX: ALQ) — capitalised at more than $6 billion — gives some indication of the market opportunity.”

A small-cap that’s already profitable

A major upside of HRL, according to Binsted, is that it’s in the black already.

“Unlike many early-stage businesses, HRL is already profitable,” he said on the NovaPort blog.

“This meets a key criterion that NovaPort Capital looks for in emerging companies: cashflows that can fund growth without the downside risk associated with many high-growth, high cash-burn businesses.”

Binsted showed a comparison of underlying earnings margins of HRL and its competitors, which showed it ranked 3rd in a field of 9.

“HRL generates margins that are very healthy when judged against a peer set of much larger businesses.”

The business also has “a strong balance sheet with negligible debt”, according to Binsted.

3 paths to growth

Binsted’s team thinks HRL’s testing capabilities in food and water quality and environmental hazards put it in an excellent position for growth.

There are 3 ways that it could grow:

• Investment in existing operations (new tests, equipment upgrade, new regions)
• Bolt-on acquisitions to expand services or customer demographics
• ‘Transformational’ acquisition for rapid expansion

According to Binsted, HRL is pursuing all 3 avenues.

“The recent acquisition of Water Testing Hawkes Bay in New Zealand, while small, demonstrates the capacity to continually expand the group’s testing lines,” he said.

“HRL is also investing in a joint venture with Milk Test NZ called Food Lab that has just commenced trading and will begin with a focus on the NZ dairy industry.”

HRL leadership estimate Food Lab’s addressable market is about NZ$40 million, to be fought over with 2 main competitors.

“Snaring a third of this market would be material given HRL’s current revenues of around $35 million.”

As for that massive transformational takeover, the chair of HRL is a man named Greg Kilmister.

“Kilmister was the chief executive of ALS Limited and took the business from a market cap of less than $400 million to more than $3 billion,” said Binsted.

“That’s the kind of steady hand that provides comfort in any big strategic moves or tough patches.”

HRL has a clear plan

Binsted was impressed that HRL presented a very precise 3-year plan for growth during its recent financial year 2021 results announcement.

“This will require reinvestment, but we are willing to back management to use shareholder capital wisely and drive value-accretive growth.”

The company has a software arm called Octfolio which Binsted’s team thinks has tremendous potential.

“Octfolio’s hazardous materials, workplace safety, and field management software generates just under $1 million in revenue. At that size, it has proof of concept and customer validation but is immaterial to earnings and valuation,” the analyst said.

“With a re-energised sales focus, Octfolio could become a significant, and high value, revenue stream. Its current contribution is not valued by the market, so the upside is large relative to any downside.”

Small-cap risk

Of course, Binsted reminded investors that no ASX share is a sure thing.

“Growth is not a right and markets are competitive. There are no guarantees that HRL’s organic investment drive will bear fruit,” he said.

“It is also possible that the share price will suffer near-term as the growth initiatives crimp current earnings ahead of any potential revenue growth.”

HRL currently operates in “a comfortable niche”, but desperately needs economies of scale to elevate to the next level.

“Failure to get to scale or a misguided acquisition in the quest to bulk up are 2 further risks to our investment thesis.”

The post Why this small-cap ASX share can follow $6 billion rival appeared first on The Motley Fool Australia.

More reading

• Why the ALS (ASX:ALQ) share price is charging higher today

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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/3lXrSXc

The Alexium International Group Ltd (ASX: AJX) share price is surging on Thursday after the company released a sales update.

At the time of writing, Alexium shares are up 34.72% to 9.7 cents. However, they are currently in a pause in trading, pending a further announcement.

The company is a producer of advanced cooling and fire-resistant textiles. It focuses on consumer market segments such as bedding, clothing and sporting goods.

What did Alexium announce?

Last year, Alexium rebranded its proprietary biobased and biodegradable phase change materials (PCM) as BioCool.

According to today’s announcement, BioCool has made strong progress in adoption and sales.

Alexium said BioCool product sales have risen to 48% of the company’s total product sales for mattresses, including textile and foam applications.

Alexium Vice President Chris Crawford said of the progress: “Market reception to our BioCool product line has been very positive, and we are encouraged by the rapid adoption from our current customers.”

The positive sales update has seen strong buying activity and a rise in the Alexium share price. It has rallied from a 7.7 cents open to 9.7 cents at the time of writing.

What’s next for Alexium?

Alexium is targeting a number of initiatives to drive revenue growth this year.

The company said initial sales have been focused on the textiles market and migrating existing bedding textile customers to BioCool products.

The company believes the “demonstrable all-round superior characteristics” of BioCool products will make it an attractive proposition for other textile applications including foam bedding applications.

About the Alexium share price

Alexium has a market capitalisation of just $46 million.

The micro cap logged some significant gains in the past month, lifting 30% on 23 July from 4.9 cents to 6.4 cents.

Alexium shares are surging on Thursday, on the back of approximately 16.35 million shares changing hands by lunchtime.

This compares to the company’s 10-day average volume of approximately 5.52 million.

The post Alexium (ASX:AJX) share price rockets 34% on sales update appeared first on The Motley Fool Australia.

More reading

• Here’s why the Alexium (ASX:AJX) share price surged 9% today

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/3fRX1ra

The Zip Co Ltd (ASX: Z1P) share price hasn’t exactly made a reputation for itself as a ‘steady’ stock.

Just take Zip shares’ 52-week range. Over the past 12 months, the buy now, pay later (BNPL) company has traded at a share price of between $4.96 and $14.53. That’s a difference of almost 200%.

As it stands today, the Zip share price is currently up 0.77% to $7.88.

But when was Zip’s best day for shareholders in 2021 so far?

Zip-a-Dee-Doo-Dah

The best day (actually, two days) for the Zip Co share price in 2021 was back on 15 and 16 February. The price soared by more than 13% on 15 February at one point. And by more than 16% on 16 February.

That was the date Zip’s current 52-week (and all-time) high of $14.53 a share was hit. In the month to 16 February, the Zip share price ended up putting on an incredible 148%.

The speed of this run-up actually prompted the ASX to issue a speeding ticket to Zip at the time. Zip was forced to tell the ASX that it wasn’t aware of any reason why its shares were so ‘in demand’ over the preceding few days.

As you might have gathered, this incredible run was not to last. The Zip share price fall ended up being just as steep as its climb.

Between 16 February and 30 March, Zip went on to lose roughly half of its share price value. By May, the shares had fallen back under $7.00 a share.

Over the rest of the year to date, Zip has been far more muted, more or less trading in the $6.50-$8.00 range.

Although saying that, Zip has been on another run recently, rising almost 20% in August so far.

Could the Zip share price be a buy today?

As my Fool colleague James covered earlier this week, one broker who thinks there is still some gas left in the tank with Zip shares is Citi.

Citi retained its ‘buy’ rating on Zip this month and kept its $8.90 price target. This implies a potential upside of 13% from current pricing.

As James covered at the time, Citi listed the recent news that Zip’s BNPL rival Afterpay Ltd (ASX: APT) is working on a merger with the US payments giant Square Inc (NYSE: SQ) as a positive for Zip shares.

It noted that it raises the potential takeover appeal of Zip, even though it also thinks competition in the BNPL space is heating up.

At the current Zip Co share price, the company has a market capitalisation of $4.44 billion.

The post When was the best day on the Zip (ASX:Z1P) share price chart in 2021? appeared first on The Motley Fool Australia.

More reading

• Up 20% in 10 days: Can the Zip (ASX:Z1P) share price keep rising?
• Afterpay and Zip were among the most traded ASX shares last week
• Here are the 10 top moving ASX shares on Monday
• How did the Zip (ASX:Z1P) share price respond last earnings season?
• These are the 10 most shorted ASX shares

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, Square, and ZIPCOLTD FPO. 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/3iFDmfU

The DroneShield Ltd (ASX: DRO) share price is flying higher today following a positive release by the drone technology company.

During early afternoon trade, DroneShield shares are up 7.32% to 22 cents. In comparison, the All Ordinaries Index (ASX: XAO) is marginally up 0.1% to 7,864 points.

What did DroneShield announce?

Investors appear upbeat about the company’s prospects, sending DroneShield shares higher.

According to its release, DroneShield said that it had received a $1.1 million grant award from the Australian government. The cash payment is recognised as a research and development tax incentive for its activities undertaken in 2020.

DroneShield CEO, Oleg Vornik touched on the award, saying:

DroneShield appreciates the substantial support it receives from the Australian Government at Federal and State level. We are a high-tech defence and homeland security business, employing over 30 engineers in Australia presently, and rapidly growing. This grant reflects the world-class cutting-edge R&D work done here in Australia.

The company noted that the grant will be reflected in the cash receipts for its third-quarter report. This is expected to be released sometime in October 2021.

Quick take on DroneShield

A global leader in drone security technology, DroneShield designs and develops detection systems that use specialised technology to protect people, organisations and critical infrastructure from drones.

Its multi-layered drone countermeasures include detection and disruption products which are much needed in the current environment.

DroneShield share price snapshot

It has been a positive 12 months for DroneShield shareholders, with the company’s shares up 60%. However, during this time, the DroneShield share price has been volatile, moving between 13 cents and 25 cents.

Recently, its shares were trading for as little as 15 cents in early July and are now 22 cents. This reflects a gain of almost 50% in the space of just over a month.

DroneShield presides a market capitalisation of roughly $87.7 million, with approximately 400 million shares on its registry.

The post Why the DroneShield (ASX:DRO) share price is soaring 7% today appeared first on The Motley Fool Australia.

More reading

• Why the Adacel (ASX:ADA) share price is rocketing 39% today
• The Crown (ASX: CWN) share price lifts after last-ditch licence push
• ASX tech shares lagging the ASX 200 on Thursday
• The Creso Pharma (ASX:CPH) share price is frozen today. Here’s why
• Here’s why the Antipa Minerals (ASX:AZY) share price is moving higher 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 recommended DroneShield Ltd. The Motley Fool Australia has recommended DroneShield 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/3CQuBI6