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The Oil Search Ltd (ASX: OSH) share price has been struggling recently despite the price of oil increasing.

After hitting a low of US$68.62 10 days ago, the price of Brent Crude Oil is currently US$74.70 per barrel.

The WTI Crude Oil price has followed a similar trajectory, hitting US$66.42 on 19 July before rebounding to trade for US$72.35 per barrel today.

Oil Search’s shares originally gained alongside oil. They increased 11% between 19 July and 22 July.

However, they’ve fallen 4.66% since. The Oil Search share price is currently $3.89, 0.77% lower than yesterday’s close.

Let’s take a look at what might be driving oil prices up, and what’s likely weighing on Oil Search.

What’s up with Oil Search?

The Oil Search share price is dropping despite good news for oil prices.

According to reporting by Reuters, the United States’ crude oil inventories are falling faster than was predicted.

The publication states crude inventories fell by 4.1 million barrels over the course of last week, with some analysts believing OPEC+’s agreement to increase supply won’t cut it.

Additionally, Reuters reported that the increasing numbers of COVID-19 cases worldwide have hampered oil production, while long-term recovery from the pandemic will likely increase demand.

All this is putting upwards pressure on the price of oil.

At the same time the oil price is rising, Oil Search is facing uncertainty.

First off, the company has seemingly entered a bidding war with Santos.

Santos Ltd (ASX: STO) sent Oil Search a merger offer late last month. The merger offer went public last week when Oil Search rejected it.

The Oil Search share price gained 3.5% on the back of the merger’s rejection.

 Now, it looks like the companies will begin fighting in the hopes that Santos can offer a price Oil Search deems worthwhile. In fact, earlier this week, Oil Search’s interim CEO Peter Fredricson said that the company wants “more carats in the diamond ring”.

And all the while, Oil Search is without a long-term leader after its former managing director Dr Keiran Wulff walked out on 19 July.

According to the company, its board had faced problems with Wulff’s behaviour. Wulff was also said to have left due to health issues.

The Oil Search share price increased substantially on the day of Wulff’s departure. It closed 6.2% higher than the session prior.

Oil Search share price snapshot

Oil Search is in the ASX green by the skin of its teeth.

Right now, it’s 3.3% higher than it was at the start of 2021. It has also gained 29.8% since this time last year.

The post Oil Search (ASX:OSH) share price struggles despite rising oil price appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• Santos (ASX:STO) share price backtracks despite upbeat drilling results
• Own Santos (ASX:STO) shares? What to look out for this reporting season
• ASX 200 midday update: BlueScope & OZ Minerals updates impress

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 Brainchip Holdings Ltd (ASX: BRN) share price is in the red today.

At the time of writing, shares in the artificial intelligence (AI) developer are trading for 45 cents each – down 2.15%. The All Ordinaries Index (ASX: XAO) is up 0.5% while the S&P/ASX All Technologies Index (ASX: XTX) is 2.12% higher.

The price fall comes after the company released its update for the June quarter.

Let’s take a closer look.

Company profile

Brainchip shares are some of the most popular on the ASX, regularly making the list for traded shares in the week. That’s despite the fact the company has a market capitalisation of less than $1 billion.

According to Brainchip, the company is “a global technology company that is producing a ground-breaking neuromorphic processor that brings artificial intelligence to the edge in a way that is beyond the capabilities of other products”.

Why the Brainchip share price is down

In a statement to the ASX, Brainchip gave an update on its cash position and activities during the last quarter. Overall, the company experienced a cash outflow of US$2.3 million for a total cash position of US$17.7 million.

The main contributor to this position was a US$900,000 drop in customer receipts, a payment of US$2.25 million to a supplier, and more employees at the company. Brainchip collected a net inflow of US$733,000 from financing and equity options being exercised.

Investors may not be impressed with these numbers, judging by the fall in the Brainchip share price.

During the quarter, the company also made a number of announcements. These included:

• The replacement of a member of the board.
• An additional expert to its scientific advisory board.
• The holding of its AGM.
• The upgrading of its shares on the OTC market based in New York, NY.

Brainchip share price snapshot

Over the past 12 months, the Brainchip share price has increased 172%. Year-to-date, its value has appreciated only 7%.

In December 2020, Brainchip shares rocketed 57% in a single day after announcing a partnership with NASA.

The Brainchip record high is 97 cents per share, which is more than double its current share price.

The post Why the Brainchip (ASX:BRN) share price is falling today appeared first on The Motley Fool Australia.

More reading

• Here are the 5 best performing ASX tech shares from FY21

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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COVID-19 cases in Sydney are still rising and Australia’s largest city is immersed in lockdown for a further month at least.

There is fervent discussion in the media and no doubt among family and friends about whether the federal and NSW governments are taking the right course.

It is enough to get you pretty depressed about life, especially if you’re in Sydney.

“The Delta variant of coronavirus responsible for much of the recent surge in cases is 2 to 3 times more transmissible than the original version with a shorter incubation period,” AMP Capital chief economist Shane Oliver said on the company blog.

“Partly reflecting this, after more than 4 weeks in lockdown, the number of new cases in NSW has continued to trend up — albeit being very low by global standards.”

But despite this gloom, OIiver reckons ASX share investors should keep their heads up.

“There remains light at the end of the tunnel,” he said.

“There is a danger in over emphasising [the Delta threat] as we remain of the view that the economic recovery globally and in Australia will continue as lockdowns end in the short term.”

Here are 5 reasons why he thinks this is so.

Lockdowns still work against Delta

Despite NSW’s struggles so far, eventually it will win out.

“This is being seen in various Asian countries and in Australia, with Victoria, Queensland, WA & SA all managing Delta outbreaks with short lockdowns and able to reopen again without getting everyone vaccinated,” said Oliver.

“While it may take longer in NSW because it started later, new cases are not exploding despite the Delta variant. In fact, the rate of increase is slower than seen in the Victorian wave from mid-last year. This suggests the NSW lockdown is helping.”

Plus NSW has the advantage of a partially vaccinated population, unlike when Victoria battled the second wave last year.

Vaccines do work

Various countries with higher vaccination rates have started removing restrictions.

According to Oliver, this re-opening has seen coronavirus cases rise but with a far lower rate of hospitalisations and deaths.

“This is clear in the UK – which has also seen new cases fall in the last week,” he said.

“The success of the vaccines can also be seen in the US with per capita new cases and hospitalisations in the top quartile of vaccinated states up to 25% below that in the bottom quartile of unvaccinated states.”

Economy and ASX shares recover quickly once lockdowns end

Oliver suggested that the experience from the last 18 months shows that economic activity rebounds rapidly due to pent-up demand, once restrictions are lifted.

Government support during lockdowns also contributes to this.

“We are starting to see this in Europe where confidence and business conditions have rebounded above that in Australia and the US thanks to its reopening (after a double dip recession in the December and March quarters),” he said.

“It has been seen repeatedly in Australia after the numerous lockdowns, including the 3 to 4-month Victorian lockdown last year.”

ASX shares could benefit from further fiscal and monetary support

The threat of the Delta strain will re-apply pressure on governments and central banks to not take their feet off the pedal in boosting their economies.

“Pressure for more stimulus (back to JobKeeper) is… ramping up in Australia and it will likely see the RBA delay its decision to reduce bond buying,” said Oliver.

“It will increase pressure in the US to pass president Biden’s $4 trillion 8-year American Jobs and Families Plans and will help keep the [Federal Reserve] dovish.”

Lockdowns might be history soon

Perhaps spooked by Delta’s ferocity, Australians are getting jabbed at a faster rate than before.

“Last week was the first with over 1 million vaccinations. At the rate of 1 million vaccines a week, Australia will hit 60% vaccinated by around year-end and 80% by mid-March,” said Oliver.

“If we ramp it up to 1.5 million doses a week as global vaccine production ramps up, it will be 60% by mid-November and 80% by early January.”

The economist’s opinion is that once the 80% threshold is reached, a change of strategy against the virus could be considered.

“Beyond around 80% fully vaccinated, we should (new mutations aside) be able to start to live with coronavirus in the community without overwhelming the health care system, and keeping deaths down,” Oliver said.

“This is the only way to end the snap lockdowns in a way that does not risk Australians’ health and the economy. Because as we saw last year, countries that were lax in controlling coronavirus and allowed deaths to surge saw a bigger hit to their economies.”

The post 5 reasons why ASX share investors should be optimistic appeared first on The Motley Fool Australia.

More reading

• Has the record breaking Rio Tinto (ASX:RIO) share price hit its peak?
• Why is the A2 Milk (ASX:A2M) share price up 5% on Thursday?
• ASX 200 midday update: Rio Tinto charges higher, IRESS rockets, Macquarie update
• PayPal (NASDAQ:PYPL) share price falls on profit decline
• Magnis Energy (ASX:MNS) share price remains in trading halt

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.

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The Rio Tinto Limited (ASX: RIO) share price hit a record high on its bumper profit and record dividend but some are questioning if this is as good as it gets for our largest iron ore miner.

The Rio Tinto share price jumped 2.6% to $135.67 in morning trade. In comparison, the S&P/ASX 200 Index (Index:^AXJO) added 0.4%.

Hopes that Rio Tinto’s peers will follow its lead in delivering super dividends is driving the sector higher. The BHP Group Ltd (ASX: BHP) share price gained 1.9% to $53.48 and the Fortescue Metals Group Limited (ASX: FMG) share price added 1.4% to $26.17 at the time of writing.

The many records broken by Rio Tinto

ASX miners are a group that have it all. They have stellar profits and the dividend crown jewels to match.

Rio Tinto is the first to show its wares. It produced a record US$12.2 billion first half underlying profit and broke another record with a US$5.61 per share dividend.

But there are cracks appearing just under its breathtaking consensus-beating results, reported the Australian Financial Review.

Not all good news for the Rio Tinto share price

For one, its main profit engine (being its iron ore division) is sputtering. If not for the gravity-defying iron ore price that is hovering over US$200 a tonne, the Rio Tinto share price would probably be in a nosedive.

The miner looks to be struggling to hit its calendar 2021 full year guidance of 325 million to 340 million tonnes. Shipments in the June quarter fell 12%, according to the AFR.

You can blame bad weather, labour shortages and COVID-19 lockdowns, but that still leaves a slight sour aftertaste.

Other potential risks to the record high Rio Tinto share price

Costs inflation is shaping up to be a problem too. That’s in part linked to the lack of workers but higher fuel prices and other operating expenses are putting a squeeze on profits. This issue won’t be confined to just the Rio Tinto share price, of course.

Further, Rio Tinto doesn’t seem to have good control over its mine plans. The AFR noted that the miner shocked the market in 2019 by vaguely referring to planning issues at its Brockman Hub in the Pilbara. These issues don’t seem to have been fully addressed as yet.

And who can forget the disastrous Juukan Gorge debacle that claimed the scalp of its former chief executive, Jean-Sébastien Jacques.

The clock is also ticking on how long Rio Tinto and friends can keep counting on China to buy everything they can dig up. China is determined to wean itself off Aussie products and is developing a mega mine in West Africa. Experts reckon the mine could start producing in a few years.

Needing a new viable growth strategy

In the meantime, the jury’s still out on Rio Tinto’s diversification strategy. Aluminium has yet to hit its straps, while the miner’s ambitious Oyu Tolgoi copper mine is plagued by issues.

Rio Tinto is trying aggressively to expand into lithium to ride on the electric car revolution. But questions remain, especially when BHP warned that the lithium market is too small and competitive to make a sufficient return.

That’s the problem with being an industry gorilla. Teasing out new growth avenues is so much more of a challenge.

The post Has the record breaking Rio Tinto (ASX:RIO) share price hit its peak? appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Rio Tinto charges higher, IRESS rockets, Macquarie update
• Fortescue (ASX:FMG) share price rallies 3% to record high after quarterly results
• Woodside (ASX:WPL) share price rises as rumours swirl over BHP deal
• BHP (ASX:BHP) share price on watch amid news all petroleum assets to go
• Yes, share markets are high. But don’t sell

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, Fortescue Metals Group Limited, and Rio Tinto Ltd. 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 A2 Milk Company Ltd (ASX: A2M) share price is on fire today. A2 shares are currently up 4.87% at the time of writing to $6.25 a share. This move comes after A2’s nasty falls this week.

Since Monday morning, A2 shares were down more than 13% as of yesterday morning. Even after today’s rise, A2 Milk shares are still down more than 7% since Monday morning.

Before this week though, A2 shares looked as though they were riding an enthusiastic recovery after sinking as low as $5.04 back in May. In fact, between 18 May and 19 July, this company had risen about 40% from those lows.

So what’s going on with A2 Milk today?

A2 Milk share price stages recovery

Well, it’s not entirely clear what has sparked this dramatic recovery in the A2 share price this morning. The S&P/ASX 200 Index (ASX: XJO) is up today, but by 0.47% to 7,414 points at the time of writing. Probably not enough to spark a rally of this size in A2 shares on its own.

One possible catalyst could be a market announcement A2 released just after the close of trading yesterday. This announcement outlined some large purchases (as well as some sales) of A2 shares by a series of institutional investors.

These included Commonwealth Bank of Australia (ASX: CBA) and Colonial First State, as well as Citibank Hong Kong, Avanteous Investments, Northern Trust Company and bank/broker UBS. It seems that in these cases, CBA was acting on behalf of the other entities.

The total number of all of these owners’ in A2 Milk shares amounts to 5.02% of all A2 Milk shares outstanding, so there is market-moving potential with this announcement.

Where to next for A2 Milk?

One broker who thinks there is a little milk left in the tank for A2, even after today’s rise, is investment bank Goldman Sachs. Goldman currently has a ‘neutral’ rating on A2 Milk shares, with a 12-month share price target of $6.96. That implies a potential upside of just over 11% on today’s pricing.

However, not all brokers are quite as bullish. As my Fool colleague Tristan reported earlier this week, brokers Citi and Credit Suisse both have ‘sell’ ratings on A2 shares presently, with share price targets of $6.05 and $5.50 a share respectively.

There’s no doubt as to which broker shareholders would prefer is right here!

At the current A2 Milk Company share price, the company has a market capitalisation of $4.43 billion.

The post Why is the A2 Milk (ASX:A2M) share price up 5% on Thursday? appeared first on The Motley Fool Australia.

More reading

• These ASX 200 shares were flying around the share market today
• Why a2 Milk, Aurelia Metals, Dubber, & Freelancer shares are sinking
• A2 Milk (ASX:A2M) share price slides 3% in morning trade
• ASX 200 midday update: BlueScope & OZ Minerals updates impress
• Lynas share price soars, BHP and Rio on watch, A2 on the naughty list. Scott Phillips on Nine’s Late News

Motley Fool contributor Sebastian Bowen owns shares of A2 Milk. 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 A2 Milk. 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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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is on course to record a solid gain. The benchmark index is currently up 0.4% to 7,407.6 points.

Here’s what is happening on the ASX 200 today:

Market reacts positively to Rio Tinto half year update

The Rio Tinto Limited (ASX: RIO) share price is storming higher today after the market responded positively to its half year results. The mining giant reported a 156% increase in underlying earnings to US$12.2 million and a 262% jump in its free cash flow to US$10,181 million. This allowed the Rio Tinto Board to declare a massive US$5.61 per share interim dividend. Strong demand and pricing drove the stellar growth.

IRESS shares jump on takeover approach

The IRESS Ltd (ASX: IRE) share price is rocketing higher today after confirming the receipt of another takeover approach earlier this month. The release explains that EQT Fund Management returned with a confidential, unsolicited, non-binding and indicative proposal to acquire IRESS via a scheme of arrangement at a price of between $15.30 and $15.50 cash per share. This represents a 22.3% to 23.9% premium to the IRESS share price at yesterday’s close. Last month IRESS rejected a $14.80 per share proposal.

Macquarie Q1 update

The Macquarie Group Ltd (ASX: MQG) share price is trading largely flat at lunch after a solid first quarter update was offset by plans to lower its dividend payout ratio. Macquarie revealed that its operating businesses delivered a net profit that was significantly up on the first quarter of the prior corresponding period. However, the company intends to reduce its annual dividend payout policy range to 50% to 70%. This is to allow additional flexibility to support business growth and compares to its previous target range of 60% to 80%.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the IRESS share price by some distance with a 12% gain. This follows the receipt of EQT’s takeover approach. The worst performer has been the Resolute Mining Limited (ASX: RSG) share price with a 7% gain following the release of a disappointing second quarter update. That update revealed weaker production and higher costs.

The post ASX 200 midday update: Rio Tinto charges higher, IRESS rockets, Macquarie update appeared first on The Motley Fool Australia.

More reading

• IRESS (ASX:IRE) share price rockets 16% on new takeover proposal
• Macquarie (ASX:MQG) share price lower after Q1 and dividend update
• Yes, share markets are high. But don’t sell
• 5 things to watch on the ASX 200 on Thursday
• Rio Tinto (ASX:RIO) share price on watch after declaring US$9.1bn dividend

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 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.

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The Paypal Holdings Inc (NASDAQ: PYPL) share price has seen better days after the company released its second-quarter results.

Shares in the online payments company are moving to the downside following the result. At the time of writing, the PayPal share price is down 5.3% to US$286.00 in after-hours trade.

Not a good surprise for the PayPal share price

There were two sides to PayPal’s second-quarter results this morning. Unfortunately, it appears the general market consensus is to focus on the negative one.

On the positive side of the coin, PayPal beat analyst estimates with adjusted earnings per share of US$1.15, versus US$1.12 expected. The company onboarded an additional 11.4 million net new active accounts, taking total active accounts to 403 million.

More accounts helped PayPal achieve a 17% year-over-year (YoY) increase in revenue to US$6.24 billion. Additionally, the company lifted its total payment volume by 40% to $311 billion.

Commenting on this performance, president and CEO Dan Schulman said:

On the heels of a record year, we continued to drive strong results in the second quarter, reflecting some of the best performance in our history. Our platform now supports 403 million active accounts, with an annualised TPV run rate of approximately US$1.25 trillion. Clearly PayPal has evolved as an essential service in the emerging digital economy.

On the flip side, revenue came in softer than analysts were anticipating. Another negative for the PayPal share price was earnings per share (EPS) declining by 23% YoY to US$1.00. This was followed up with disappointing guidance for the next quarter.

PayPal expects diluted EPS for Q3 to come in at US$0.68, compared to US$0.86 in the prior year.

Continued push into BNPL

In regards to strategic initiatives, PayPal expanded its buy now, pay later (BNPL) offerings across international markets, including Australia.

The company’s Pay in 4 offering launched on Aussie shores during the quarter, putting a dent in the share prices of local competitors such as Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P). However, the US payments giant revealed this month that it would not be charging late payment fees.

The post PayPal (NASDAQ:PYPL) share price falls on profit decline appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, Nickel Mines, Nitro, & St Barbara shares are sinking
• The Afterpay (ASX:APT) share price is down 16% in a month. Here’s why
• World’s largest fund manager says ASX volatility a great buying opportunity
• Could it be time to consider buying Afterpay (ASX:APT) shares?
• ASX 200 Weekly Wrap: Just like that… ASX back to record highs

Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, PayPal Holdings, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended PayPal Holdings. 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 in Magnis Energy Technologies Ltd (ASX: MNS) will be wondering why the company’s share price remains frozen.

Shares in the lithium-ion battery producer have been in a trading halt since Tuesday.

Earlier today, Magnis provided an update on the status of its securities.

Let’s take a look at what the company had to say.

Magnis Energy share price enters voluntary suspension

In a market announcement released earlier today, Magnis provided an update on the status of the company’s shares.

According to the update, Magnis has requested a voluntary suspension be granted for securities in the company.

The announcement cited that a voluntary suspension has been requested as a result of Magnis not being able to finalise the outcome of its proposed capital raise.

Magnis also provided shareholders on the length of its voluntary suspension.

Shares in the company will remain suspended until Friday, 30 July 2021 or when the company makes an announcement regarding its proposed capital raise.

Recap of Magnis Energy trading halt

As noted previously, shares in Magnis were placed in a trading halt earlier this week.

The company’s securities were slated to recommence trading today.

Magnis did not provide further information on how much the company was looking to raise or where funds would be directed.

More on Magnis Energy

Magnis is an Australia-based producer of lithium-ion battery cells. The company has three core areas of operations: battery technologies, gigafactories and graphite.

The company has a partnership interest in Charge CCCV, a US intellectual property company with patented discoveries in lithium-ion batteries.

Most recently, Magnis produced its first full-sized lithium-ion battery at its New York plant. The company highlighted the battery cells were produced with commercial grade components from a fully defined supply chain.

If the proposed capital raise goes ahead, it will be the second time this year that Magnis has raised equity.

Earlier this year, the company raised $34 million via a share placement. Funds from the equity raise were used to fast-track the development of the company’s New York plant.

Shares in the lithium-ion battery manufacturer closed at 27 cents before entering a trading halt on Tuesday.

Overall, the Magnis share price has soared more than 40% since the start of the year.  

The post Magnis Energy (ASX:MNS) share price remains in trading halt appeared first on The Motley Fool Australia.

More reading

• Here’s why the Magnis (ASX:MNS) share price is halted

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

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The Evolution Mining Ltd (ASX: EVN) share price is edging higher during early morning trade. This comes after the gold miner provided investors with its Share Purchase Plan (SPP) information booklet today.

At the time of writing, Evolution shares are fetching $4.22 apiece, up 0.60%.

Evolution begins SPP offer

Investors appear upbeat on the company’s latest update to the ASX, sending Evolution shares slightly higher.

According to its release, Evolution advised it has opened its Share Purchase Plan (SPP) to all eligible shareholders. This comes after the company completed a $400 million institutional placement last week.

The SPP aims to raise an additional $50 million through the issue of new fully-paid ordinary shares.

Evolution notes that investors can apply for a minimum of $2,500 to a maximum of $30,000 worth of shares. However, it might accept oversubscriptions or scale back applications at its discretion based on the result of the SPP.

Shareholders will be able to purchase the shares at the institutional placement price of $3.85 per share or at a 2.5% discount to Evolution’s five-day volume-weighted average share price at the closing date of 20 August.

Recently, the funds that Evolution received from the institutional placement were put towards the acquisition of several strategic assets. They included the following:

• 100% interest in the Kundana Operations
• 51% interest in the East Kundana Joint Venture
• 100% interest in certain tenements comprising the Carbine Project
• 75% interest in the West Kundana Joint Venture

Monies collected from the SPP will be used for general corporate purposes.

The shares from the SPP are expected to be issued to participating shareholders on or around 27 August 2021.

About the Evolution share price

Over the past 12 months, the Evolution share price has been a mixed bag, moving sporadically across its 52-week range. The company’s shares are down almost 30% since this time last year, and 2021 losses currently sit at 20%.

Based on today’s price, Evolution commands a market capitalisation of $7.14 billion, with approximately 1.8 billion shares outstanding.

The post Evolution (ASX:EVN) share price rises on opening of Share Purchase Plan appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 Weekly Wrap: Just like that… ASX back to record highs
• These were the worst performing ASX 200 shares last week

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

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The Tesserent Ltd (ASX: TNT) share price is gaining today following the company’s release of its quarterly activities and cash flow report.

For the quarter ended 30 June 2021, Tesserent reported record earnings before interest, taxes, depreciation, and amortisation (EBIDTA), revenue, and customer receipts.

Right now, the Tesserent share price is 29.5 cents, 5.36% higher than its previous closing price.

Let’s take a closer look at what the cyber security provider was up to over the fourth quarter of the 2021 financial year.

What’s driving the Tesserent share price?

Financials

The Tesserent share price is gaining today after the company reported an EBITDA of $3.8 million for the quarter just been. That represents a 125.5% quarter-on-quarter increase.

Its turnover was $38.2 million, with $20.8 million of that having occured during June.

Tesserent reported it received $33.5 million worth of customer receipts over the quarter – 53% more than it did the previous quarter.

All this combined to see the company report a positive cash flow of $5.3 million.

Tesserent stated it expects its strong performance to continue into financial year 2022.  The company had $14.86 million of cash in the bank at the end of June.

Activities

The company’s intent to grow through acquisitions and investments appears to be working, despite the Tesserent share price not always reacting favourably.

In April, Tesserenet acquired Secure Logic. Then, it invested strategically in TrustGrid and AttackBound.

Additionally, the company launched the Tesserent Academy over the fourth quarter. The academy works to address skill shortages in the cyber security industry.  

Tesserent share price snapshot

Despite today’s uptick, Tesserent hasn’t been doing too well on the ASX in 2021.

It has fallen 15% year to date. However, it’s currently 40% higher than it was at this time last year.

The company has a market capitalisation of around $299 million, with approximately 1 billion shares outstanding.  

The post Tesserent (ASX:TNT) share price soars after record-breaking quarter appeared first on The Motley Fool Australia.

More reading

• ASX 200 companies take heed: Telstra (ASX:TLS) boss says Australia faces ‘unprecedented’ cyber threat
• Why the Tesserent (ASX:TNT) share price has leapt 40% in a month

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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