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The Appen Ltd (ASX: APX) share price is sliding this Thursday morning. This comes after the artificial intelligence data services company announced an update to its board.

At the time of writing, the Appen share price is trading for $12.10, down 1.87%.

Appen updates it board

The Appen share price could be on the move today as investors will be digesting the latest update from the company.

According to the release, Appen advised that Richard Freudenstein assumes the role of independent non-executive director effective today. In addition, Mr Freudenstein will succeed Chris Vonwiller’s position as chair on 28 October.

Mr Vonwiller held the title of chair for a period of 12 years and notably was CEO for the company from 1999 to 2010.

Mr Freudenstein brings a wealth of experience to the Appen board. Currently, he is a director for Coles Group Ltd (ASX: COL), REA Group Limited (ASX: REA), and Cricket Australia.

Previously, Mr Freudenstein served as chair for REA Group, as well as director of Ten Network, Foxtel, and Astro Malaysia. He has held the roles of CEO at Foxtel, News Digital Media and The Australian, and was chief operating officer (COO) at British Sky Broadcasting.

Appen outgoing chair, Mr Vonwiller touched on the succession, saying:

Richard is an experienced director and Chairman of large public companies and brings extensive governance expertise to the Board. His experience as a CEO and COO in the fast-evolving media industry also mean he is ideally placed to provide leadership for the next phase of Appen’s development.

We are now working closely to ensure an orderly transition and I am confident that Richard will help to drive the company’s future growth.

Mr Freudenstein went on to add:

Artificial intelligence is transforming the products and services we use every day and Appen plays a unique role in ensuring that AI works for all users in the real world.

Chris has been instrumental in Appen’s success since it was founded 25 years ago by him and his wife, Dr Julie Vonwiller. Under his stewardship, Appen has delivered extraordinary growth and has transformed from an Australia-based language data services provider to a global product led provider of AI data and solutions.

Lastly, William Pulver will retire from the board as non-executive director on 25 August, after being in the role for 11 years. His position will be succeeded as chair of the Nomination and Remuneration Committee by the independent non-executive director, Steve Hasker.

Appen share price summary

It’s been a tough 12 months for Appen shareholders, with the company’s share price falling 65%, and down 50% year-to-date. Appen has a price-to-earnings (P/E) ratio of 30.77, and a trailing dividend yield of 0.80%.

Appen commands a market capitalisation of around $1.5 billion, with approximately 123 million shares on its books.

The post Appen (ASX:APX) share price slides following board renewal appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras owns shares of Appen Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd and COLESGROUP DEF SET. The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The GrainCorp Ltd (ASX: GNC) share price has been a very strong performer on Thursday morning.

In early trade, the integrated grain and edible oils company’s shares are up 12% to a multi-year high of $6.12.

Why is the GrainCorp share price rising today?

Investors have been bidding the GrainCorp share price higher following the release of an update on its guidance for FY 2021.

As you might have guessed from the positive reaction, this update has seen the company upgrade its profit expectations for the year.

According to the release, GrainCorp now expects its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to be in the range of $310 million to $330 million.

This is up from its previous guidance of $255 million to $285 million and is a material increase on FY 2020’s underlying EBITDA of $108 million.

Positively for shareholders and the GrainCorp share price, it is a similarly positive story on the bottom line. Management now expects its underlying net profit after tax to be in the range of $125 million to $140 million.

This is up from its previous guidance range of $80 million to $105 million. It also compares very favourably to a $16 million loss in FY 2020.

Though, management has warned that this upgraded earnings guidance remains subject to several market variables. These include the timing of grain exports, the strength of the new crop, and prevailing weather conditions.

What is driving this outperformance?

The company revealed that this strong performance is being driven by heightened demand for Australian grain. This has bolstered an already outstanding year for the agribusiness segment.

GrainCorp’s Managing Director & CEO, Robert Spurway, commented: “We are pleased to upgrade our FY21 earnings guidance, which reflects the strong performance of our east coast Australian (ECA) grains business, following the bumper 2020/21 harvest.”

“Post-harvest winter receivals and higher summer receivals, coupled with a favourable outlook for the upcoming winter crop, have supported strong export volumes, forward contracted sales and supply chain margins.”

“We’re seeing excellent demand for high quality Australian grain, particularly with recent weather related crop production challenges in the northern hemisphere, and July delivered our biggest month of contracted sales on record,” he added.

What’s next?

Mr Spurway also confirmed that GrainCorp is preparing for the upcoming winter harvest with a strong maintenance and capital investment program. He advised that the total FY 2021 capex was expected to be approximately $55 million. This includes approximately $50 million of sustaining capex.

While the latter is ahead of its target, it is due to the additional storage capacity and other upgrades to the ECA network being made in preparation for another large crop in FY 2022.

The GrainCorp share price is now up 45% since the start of the year.

The post GrainCorp (ASX:GNC) share price jumps 12% on guidance upgrade appeared first on The Motley Fool Australia.

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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.

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The share price of ASX workplace technology company Damstra Holdings Ltd (ASX: DTC) has been on an absolute tear recently. In just the last month alone, Damstra shares have skyrocketed almost 50% higher (to $1.20, as at the time of writing). So, what is behind this sudden rally in the Damstra Holdings share price?

Company Background

First, a quick look at what Damstra actually does – because it’s actually quite interesting.

Damstra operates in a fairly niche industry. It develops tailored workplace management solutions for corporate clients operating in specialised fields like mining, construction and utilities. These sorts of workplaces often have very specific safety, compliance and regulatory standards they need to meet in order to remain operational. Damstra partners with these clients to develop the systems and processes required for them to exceed the unique demands of their industries.

For example, Damstra recently worked with a mining company to fully digitise its safety compliance forms, delivering a bespoke technology solution that ended up saving the company $1 million a year.

Recent news

The Damstra share price really took off following the release of the company’s fourth-quarter FY21 activities report on 22 July. In it, Damstra reported record quarterly revenues of $9.1 million, a massive jump of 75% over the prior comparative period. The company also brought in record cash receipts during the June quarter, amounting close to $10 million.

Commenting on the results, Damstra CEO Christian Damstra hinted that Damstra had a strong sales pipeline and that further growth could still be on the way. He stated that Damstra remains “in productive contractual negotiations with several potentially material clients in the United Kingdom and North America, all recognised leaders in their respective fields and each with more than 10,000 users.”

Recent moves in the Damstra Holdings share price

Although the recent gains in the Damstra Holdings share price have been great news for shareholders, it’s worth pointing out that it comes at the end of a pretty rough period for Damstra shares.

After surging to a new all-time high price of $2.44 last October, Damstra shares shed close to 70% of their value. Just prior to the company releasing its quarterly activities report, the Damstra share price had plunged to a new 52-week low of just $0.75.

It’s important to keep this context in mind because even despite the recent surge, the Damstra Holdings share price is still down over 20% this year. Investors may still be concerned about the impacts of continued lockdowns in Australia, as well as the resurgence of the delta strain of COVID-19 internationally. However, the announcement of major infrastructure projects in the US could also create possible tailwinds for Damstra.

All these competing factors make Damstra a really interesting company to watch, particularly over the short term. And all eyes will be on the Damstra Holdings share price when the company reports its full-year FY21 results to the market on 26 August.

The post The Damstra Holdings (ASX:DTC) share price is up 50% in a month! appeared first on The Motley Fool Australia.

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Motley Fool contributor Rhys Brock owns shares of Damstra Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Damstra Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Damstra 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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The AGL Energy Limited (ASX: AGL) share price will be one to watch when trading resumes on Thursday. That’s after the company released its full-year results for FY21 this morning.

At close of trade yesterday, the AGL share price was trading at $7.60 – up 2.15%. The S&P/ASX 200 Index (ASX: XJO) ended yesterday 0.29% higher, for comparison.

Let’s take a closer look at what the energy producer reported.

AGL share price in focus with 34% drop in underlying profits

Investors will be keenly watching the AGL share price this morning after the company reported the following key results:

• Revenue decreased 10.0% on the prior corresponding period (pcp) to $10.9 billion.
• Underlying profits fell 33.5% to $537 million on the pcp.
• Underlying earnings per share (EPS) dropped 31.6% to 86.2 cents.
• Net operating cash outflow before significant items was $870 million – a 35% drop.
• Full year dividend of 75 cents per share (41 cents interim + 35 cents final). This is down 23.5% on the pcp for a yield of 9.87% on the current AGL share price.

What happened in FY21 for AGL?

On the last day of the financial year, AGL announced plans to demerge into two businesses, both listed on the ASX. Accel Energy would focus on low-carbon energy production while AGL Australia’s remit will pertain to multiple energy products as well as energy trading, storage, and supply. The AGL share price slumped on this news.

In June, AGL announced the suspension of its special dividend program, in which it planned to pay 25% of underlying profits over the next 2 years.

Finally, there were multiple updates relating to the company’s current and proposed work sites, including Crib Point, Loy Yang, the Portland smelter, and Liddell.

What did management say?

AGL Energy managing director and CEO Graeme Hunt said:

Our FY21 result reflects a challenging year for AGL Energy as we realised the impact of lower wholesale electricity prices, reduced electricity generation output at peak periods, and the roll-off of legacy supply contracts in Wholesale Gas.

Although wholesale electricity prices have rallied in recent months, our result reflected the impact over the past two years of increasing generation supply and lower demand arising from the COVID-19 pandemic and milder weather.

What’s next for AGL?

As stated, AGL will demerge its business into two entities. It expects this process to be completed by the fourth quarter of this financial year.

AGL also says it will be “continuing” its self-proclaimed “leadership role in the energy transition”. The company is committing to publishing decarbonisation targets and climate roadmaps in the near future.

AGL share price snapshot

Over the last 12 months, the AGL share price has fallen 55.3%. Year to date, it is down 37.3%.

AGL Energy has a market capitalisation of around $4.7 billion.

The post AGL (ASX:AGL) share price on watch following FY21 earnings appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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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Investors will be watching the Downer Ltd (ASX: DOW) share price upon market open on Thursday.

This is on the back of the integrated services provider reporting its full-year results to the ASX this morning.

Downer share price on watch after swinging to net profit

• Underlying net profit after tax and amortisation up 21.4% year on year to $261.2 million
• Revenue down 8.8% to $12,234.2 million
• Statutory earnings before interest, tax, and amortisation increased by $371 million to $401 million
• Statutory net profit after tax of $230 million, up from a loss of $105.8 million
• Earnings per share (EPS) of 25.4 cents per share, up from a loss of 26.1 cents per share
• Unfranked final dividend of 12 cents per share, taking full year dividend to 21 cents per share unfranked

What happened in FY21 for Downer

The Downer share price will be in focus this morning after the $3.89 billion company reported its anticipated FY21 results.

On the top line, the company generated $12,234.2 million in group revenue during the 12-month period. This was 8.8% lower year on year and driven by the completion of projects and continued wind-down of nbn contracts. For instance, rollingstock services revenue were lower due to the completion of the Waratah bogie overhaul. Likewise, utilities revenue decreased 21.6% to $581.7 million with nbn contracts drying up.

Additionally, the bottom line benefitted by a 10% decrease to $1,241.7 million in total expenses when excluding one-offs. The lower costs were primarily driven by a reduction in employee benefits following the disposal of businesses, contract completions, and benefits following FY20 restructuring.

Notably, the profitable result was helped along by $447.8 million in cash proceeds from business disposals. This included the divestment of its laundry business, along with the sale of its open-cut mining business, underground mining services, and tyre management business. This refocusing of the company was met with optimism, as the Downer share price moved higher.

On the injury front, Downers’ lost time injury frequency rate (LTIFR) decreased to 0.99 from 1.08. Similarly, the total recordable frequency rate fell to 2.60 from 3.10 per million hours worked.

What did management say?

Commenting on the result, Downer chief executive officer Grant Fenn said:

Our focus on critical urban services has meant that demand has remained strong throughout the
year, resulting in a very resilient performance. I want to acknowledge the effort of
our people as we have continued delivering for our customers.

Underlying earnings were up 21.4% and our cash performance was excellent. If we adjust for
cash outflows from individually significant items recognised as expenses last year, our cash
conversion was 101%. Without that adjustment, it was 92%. Either way, it is a terrific result.

What’s next for Downer and its share price?

Positively, Downer outlined that it has $35.4 billion worth of work-in-hand. Additionally, 90% of that work is in the form of government contracts in Australia and New Zealand. This compares to only 56% of work-in-hand being government-backed contracts five years ago.

Furthermore, the company noted it expects its core urban services business to grow in FY22 on the top and bottom lines. However, Downer failed to given any more granular detail, citing COVID-19 as the reason.

The Downer share price has performed slightly better than the S&P/ASX 200 Index (ASX: XJO) over the past 12 months. Specifically, the contractor has delivered a 28.8% return while the benchmark gained 23.7%.

The post The Downer (ASX:DOW) share price on watch after FY21 earnings appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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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It’s been a tough year so far for shareholders of ASX space and defence company Electro Optic Systems Holdings Limited (ASX: EOS). The company’s share price has plunged almost 30% in 2021 – to just $4.20, as at the time of writing. This means that Electro Optic Systems shares are now almost 40% below the 52-week high price of $6.92 they set all the way back in November of last year.

Company background

EOS specialises in electro-optic technologies – machinery and other applications that convert light rays into electronic signals. This type of technology supports clients operating in the space, defence and communications sectors. Electro-optic technologies can assist with a diverse range of highly technical and complex scenarios, like satellite tracking, missile defence and even military combat.

What is behind the Electro Optic Systems share price decline?

The reality is that the Electro Optic Systems share price woes stretch back a lot further than just the last 12 months. Prior to the COVID-19 market crash in March 2020, EOS shares were valued above $10 a share – well over twice their current price.

But when COVID struck the Electro Optics Systems share price dropped off a cliff. After looking set to cross $11 for the first time in their history, EOS shares plunged more than 65% in the space of just 6 weeks, dipping below $3.70.

It was pretty apparent why. In its activity report for the quarter ended 31 March 2020, EOS revealed that the coronavirus pandemic had caused disruptions at several points along the company’s product delivery chain.

Given the highly specialised nature of Electro Optic System’s products, many require significant checking, installation and testing by trained professionals – all prior to being accepted by the customer. Lockdowns in many jurisdictions, as well as government-imposed travel restrictions, prevented EOS from performing these crucial steps in its delivery chain.

This all led to the company being forced to massively downgrade its revenue guidance for 2020 – from year-on-year growth of 70% to just 25%. In the end, its total revenues fell short of even that target, increasing 15% to $190.2 million.

What else was in the company’s financials?

EOS, which reports based on a year ending 31 December, released its FY20 results at the end of February. It was a bad result across the board for EOS, with the big drop in revenues translating to an overall net loss after tax of almost $26 million for the year. By comparison, the year before, EOS reported a net profit of almost $18 million.

According to EOS, short-term profitability tanked because the company couldn’t deliver its products to its customers, meaning the majority of its revenues were being delayed to 2021. However, it was still racking up expenses.

For its part, Electro Optics Systems believes it can rebound swiftly as the effects of the pandemic ease globally. According to a presentation given at the company’s Annual General Meeting in late May, EOS expects revenues for 2021 to be between $235 million and $245 million, potentially representing year-on-year growth of close to 30%.

Recent movements in the Electro Optics Systems share price

For a moment there, it almost looked as though the Electro Optics Systems share price was staging a recovery in June. The company’s optimistic revenue guidance, combined with news that its cash receipts were finally beginning to accelerate, sparked a brief rally in the Electro Optics Systems share price.

However, renewed lockdowns and global fears around the spread of the delta strain of coronavirus may be again weighing on the Electro Optics Systems share price – particularly given the impacts COVID has had on its delivery chains. This puts an incredible amount of focus on the company’s first-half FY21 results, to be released to the market on 30 August. EOS will be hoping it can reassure investors that the worst of the pandemic is finally behind it.

The post Here’s why the Electro Optic Systems (ASX:EOS) share price is 40% lower than its 52-week high appeared first on The Motley Fool Australia.

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Motley Fool contributor Rhys Brock owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings 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 BHP Group Ltd (ASX: BHP) share price has been a strong performer this year.

Since the start of the year, the mining giant’s shares have risen 22%.

Is the BHP share price still good value?

Given how strong the BHP share price has performed in 2021, investors may be wondering if it is still good value.

Investors may also be wondering how you would begin to value a company like BHP.

Unfortunately, using the traditional price to earnings (PE) ratio is not recommended when valuing a mining share. So, if you’re judging the value of BHP share price purely on this ratio, you may want to reconsider things.

How do you value BHP?

Luckily for investors, the team at Goldman Sachs has provided a breakdown on how it values the mining giant.

Goldman uses an equal blend of its net asset value (NAV) and its next 12-month (NTM) EBITDA estimate to value the Big Australian.

In respect to its NAV, Goldman estimates that BHP’s operations have a NAV of US$179 billion. This equates to US$35.50 per share or approximately A$48.70 per share.

Whereas the company’s NTM EBITDA is estimated by the broker to be US$51 billion. Goldman then applies a 5x EV/EBITDA multiple to this, giving BHP an enterprise value of US$251.3 billion. The broker then subtracts its debt estimate of US$5.9 billion, giving it an equity value of US$254.4 billion or A$66.7 per share.

The final step sees Goldman equally blend its NAV per share of $48.70 with its equity value per share of $66.70, which leads to a valuation and BHP share price target of $57.70.

Are BHP shares in the buy zone?

With the BHP share price currently fetching $52.52, Goldman believes it is in the buy zone.

It recently commented: “Undervalued vs. historical multiple at peak earnings: On an EV/EBITDA basis 1-2yr multiples for BHP look strong at 4x, below the 4.5-5x level in 2011 when earnings last peaked, yet BHP’s balance sheet and FCF are much stronger now.”

The post How do you value the BHP (ASX:BHP) share price? appeared first on The Motley Fool Australia.

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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.

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S&P/ASX 200 Index (ASX: XJO) bank shares may see their future competition dwindle as the Australian Prudential Regulatory Authority (APRA) tightens its controls on new banking licences.

Under APRA’s new rules, new authorised deposit-taking institutions (banks) will have to jump through additional hoops before gaining the regulator’s favour.

This could see the ASX 200 banks with less competition on their block in the future, particularly from neobanks.  

Neobanks are banks that purely exist online. Think, Douugh Ltd (ASX: DOU) and the recently collapsed Xinja.

Let’s take a look at the new rules.

ASX 200 banks in focus on higher hurdles for new kids

ASX 200 bank shares may be in the spotlight today while their potential competitors feel the blues.

Following Xinja’s failure, APRA now requires new banks on the block to provide both deposit and income-generating products.

Of course, Xinja famously offered deposit only options to its customers, negating to launch any real income-generating products. Xinja’s banking licence barely made it past its first birthday before the former bank threw in the towel.

Not much has changed for established banks, like those on the ASX 200. However, APRA now calls on all banks to have response plans in place to navigate tough times. Banks are also required to plan for how they’d exit the banking business if they flopped.

New banks will also have to keep a generous capital conservation buffer – a certain amount tucked away in case of a rainy day. As well as a limit on how much cash they can mind for their customers.

From now on, APRA will provide 3 types of banking licences:

• The first is a 2-year restricted licence, allowing a new bank to get on its feet while planning how it would pay back its customers if it all goes wrong.

  Restricted banks have a $2 million deposit limit and must have $3 million of ongoing capital and $1 million in a resolution reserve.  

  If a new bank has a good amount of cash in its coffers and a history of running a successful banking-related business, it can skip this licence.

• The next is a new licence. Banks that hold a new licence have higher capital requirements they must meet.

• And finally, existing banks like those on the ASX 200 can pretty much continue working as normal. Though, that doesn’t mean APRA won’t be looking over their shoulder!

The post ASX 200 bank shares rejoice. Life just got tougher for new neobanks appeared first on The Motley Fool Australia.

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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.

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The National Australia Bank Ltd (ASX: NAB) share price could be a mover on Thursday after the company released its third-quarter trading update.

How did NAB perform in the third quarter?

The NAB share price will be in focus today after the bank reported an unaudited statutory net profit of $1.65 billion and unaudited cash earnings of $1.70 billion for the June quarter.

NAB’s revenue fell 1% as declines in Markets & Treasury (M&T) income outweighed higher volumes and margins in its lending businesses.

The M&T division experienced limited trading opportunities, impacted by current global monetary policy settings.

Excluding M&T, the group’s revenue would have increased by 1.9%.

The bank’s net interest margin (NIM) was broadly stable, reflecting lower deposit and funding costs, partly offset by the impact of low-interest rates and home lending competition.

NAB’s expenses fell 1% for the quarter with productivity benefits outweighing the bank’s technology and investment spend.

The company chose to compare today’s figures against FY21 first-half quarterly averages, which reflect a 1% increase in cash earnings and a 1% decrease in cash earnings before tax and credit impairment charges.

Management commentary

NAB Chief Executive Officer, Ross McEwan was pleased with the quarter, saying:

Our performance this quarter is encouraging. Cash earnings rose 10.3% compared with 3Q last year, supported by significantly better credit impairment outcomes.

Particularly pleasing is the strong momentum across our business. In Australia, lousing lending rose 2% and SME business lending grew 4.3%, both outpacing system in recent months. Our New Zealand business also delivered robust growth with lending up 2.7%. These outcomes are a result of the decisions and investments we are making, which are having a positive impact for customers and colleagues.

We have a clear focus on where and how we will continue to grow. The exit of MLC Wealth is now complete, and the acquisitions of 86 400 and Citigroup’s Australian consumer business will help accelerate our growth strategy.

Despite the near-term uncertainty and challenges for the Australian economy in the wake of recent lockdowns, McEwan remains confident in the long term:

However, we remain optimistic about the long-term outlook for Australia and New Zealand. The strong economic momentum leading into this period, ongoing government support and customers’ relatively healthy starting positions give us confidence that once restrictions are eased, the economy will again bounce back.

NAB share price snapshot

The NAB share price has rallied 18.75% year to date and is up 48.9% in the last 12-months.

However, NAB shares have struggled to make a meaningful move above their pre-COVID highs of about $27.40.

The post NAB (ASX:NAB) share price on watch following June quarter update appeared first on The Motley Fool Australia.

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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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The Wesfarmers Ltd (ASX: WES) share price has been on the move, soaring 9% over the past month alone. This comes despite no price sensitive news being released by the retail conglomerate since late July.

After Wednesday’s market close, Wesfarmers shares finished the day slightly down 0.31% to $63.56. It’s worth noting that its shares reached an all-time high of $64.10 on Monday.

What’s driving Wesfarmers shares into uncharted territory?

The Wesfarmers share price has been attracting a number of investors to its registry since March 2020.

When COVID-19 arrived within our shores, Australians began to panic-buy in supermarkets, hardware stores and other retail outlets. The surge in spending led to bumper profits for Wesfarmers, which recorded strong sales and earnings growth across its businesses.

Fast-forward to today, half of Australia is again in lockdown, particularly with no end in sight for New South Wales. This has led consumers to again splurge on DIY projects from Bunnings, as well as business supplies from Officeworks.

Recently, Wesfarmers put forward a $687 million offer to acquire 100% of Australian Pharmaceutical Industries Ltd (ASX: API). The retail conglomerate is seeking to further diversify its growing portfolio with entry into the pharmaceutical market. However, this offer has since been rejected by the API board, indicating that the proposal undervalued the business.

Only time will tell if Wesfarmers will increase its offer to API shareholders. If successful in its takeover, this would expand the company’s presence into new markets.

Wesfarmers is scheduled to report its FY21 full-year results on Friday 27 August 2021.

Wesfarmers share price snapshot

No doubt, investors will be happy with how the Wesfarmers share price has tracked over the last 12 months, up 35%. The company has a price-to-earnings (P/E) ratio of 38.46, and a trailing dividend yield of 2.58%.

Wesfarmers commands a market capitalisation of roughly $72 billion, making it the 7th largest company on the ASX.

The post Here’s why the Wesfarmers (ASX:WES) share price is up 9% in a month appeared first on The Motley Fool Australia.

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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 Wesfarmers 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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