Tag: Motley Fool

The Elders Ltd (ASX: ELD) share price is swimming against the down current today as it became the latest buy idea from a leading broker.

Shares in the agricultural goods and services group jumped 3% to $11.66 in the last hour of trade.

That’s an impressive rally given that the S&P/ASX 200 Index (Index:^AXJO) lost around 0.5%. Even its peers like the Nufarm Ltd (ASX: NUF) share price and Graincorp Ltd (ASX: GNC) are either in the red or just barely hanging on to breakeven.

Elders share price the latest “buy” idea

Investors could be getting excited about the Elders share price after UBS initiated coverage on its ASX shares with a “buy” recommendation.

“Elders is one of Australia’s largest agribusinesses providing a wide range of farming supplies and services,” said UBS.

“We view Elders as a high quality play on the improving Australian agriculture cycle.”

Strong earnings growth underpins bullish outlook

The broker is forecasting a 10% compound annual growth rate (CAGR) for Elder’s earnings before interest and tax (EBIT) over the next three years.

That’s the top of management’s guidance range as Elders looks to execute on its third “Eight-Point Plan”.

Under this plan, management is targeting EBIT growth of between 5% and 10%, and an average return on capital of 18% to FY23.

Tailwinds lifting the Elders share price

There are a few reasons why UBS believes Elders can hit a 10% growth target. This includes the Titan backwards integration benefits and $15 million of AIRR synergies.

Further, expectations of a bumper crop due to good rainfall and high soft commodity prices are additional tailwinds.

Strong earnings growth isn’t the only reason to be bullish on the Elders share price. The group could get an extra earnings kick from mergers and acquisitions (M&As).

M&A adds further upside

“M&A has been a key component of the Elders story, with the company having invested A$270mn over the past five years,” said UBS.

“Our M&A scenario analysis suggests there is 11-14% EBIT upside to our FY23 forecasts from the successful execution of potential M&A.”

The broker is assuming Elders pays around $30 million for a bolt-on acquisition in the fragmented Australian agriculture market.

UBS’ M&A target can be achieved if the acquisition is priced at 4-5 times enterprise value-to-EBIT (EV/EBIT).

ASX shares in the M&A spotlight

“We think acquisitions will seek to increase Elders’ supply chain capabilities or fill footprint gaps in high value agriculture areas the company is underrepresented in,” added the broker.

This is the season for M&As. You only need to look at recent headlines to see that takeovers are the flavour of the day. The attempted merger between Santos Ltd (ASX: STO) and Oil Search Ltd (ASX: OSH) is only one of the many recent examples.

Is the Elders share price cheap?

Meanwhile, it also helps that the Elders share price is cheap. Elders is trading around a FY22 EV/EBIT of 13x. This is a 35% discount to the ASX Small Industrials index when its average discount is 20%, according to UBS.

The broker’s 12-month price target on the Elders share price is $12.79 a share.

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

More reading

• Why BHP, HUB24, Qantas, & Santos shares are dropping today
• Here are 3 of the ASX 200’s most heavily traded shares on Tuesday
• Oil Search (ASX:OSH) share price jumps 6% after rejecting takeover bid
• ANZ’s (ASX:ANZ) $1.5bn buyback puts other ASX 200 banks under capital return spotlight
• ASX 200 midday update: Oil Search rejects Santos merger proposal, Afterpay rolls out Money app

Motley Fool contributor Brendon Lau owns shares of Elders Limited, Nufarm Limited, and Santos Limited. Connect with me on Twitter @brenlau.

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 Elders 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 EROAD Ltd (ASX: ERD) share price is ending its consecutive run of green days today following the opening of its Share Purchase Plan (SPP).

Established in 2000, EROAD is a technology, tolling and services provider based in Auckland, New Zealand. The company designs and manufactures in-vehicle hardware providing road charging, compliance and commercial services.

At market close, the transport technology company’s shares finished 2.21% down, to $6.20.

EROAD begins Share Purchase Plan offer

Investors are weighing down EROAD shares after the company’s latest announcement to the ASX.

According to its release, EROAD commenced a NZ$16.1 million (A$15.19 million) non-underwritten SPP.

The SPP follows the company’s NZ$64.4 million (A$60.77 million) placement to partly fund the acquisition of telematics provider Coretex. This consists of an upfront fee of NZ$157.7 million (A$148.71 million) and NZ$30.6 million (A$28.85 million) in contingent consideration payable in FY 2023.

EROAD management believes the takeover will be transformational, positioning it as a bigger player in the global telematics market.

The shares of the SPP will be issued at the lower of the price paid by investors in EROAD’s recent placement. This is NZ$5.58 (A$5.26) per new ordinary share.

The company stated that up to $30,000 worth of shares can be applied for. However, it may accept oversubscriptions or scale back applications at its discretion based on the result of the SPP.

Settlement of the shares from the SPP is expected to occur on 13 August 2021.

About the EROAD share price

Over the last 12 months, EROAD shares pushed higher to reach an all-time high of $6.51 yesterday. This brings the share price gain for the period to around 56% and almost 33% higher for 2021.

At today’s price, EROAD commands a market capitalisation of roughly $511 million, with approximately 81 million shares on its registry.

The post EROAD (ASX:ERD) share price slumps on opening of SPP appeared first on The Motley Fool Australia.

More reading

• EROAD (ASX:ERD) share price drives higher following transformational acquisition
• Why is the Eroad (ASX:ERD) share price halted 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. owns shares of and has recommended EROAD Limited. The Motley Fool Australia owns shares of and has recommended EROAD 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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Beach Energy Ltd (ASX: BPT) shares have spent all of Tuesday’s session so far in the red. At the time of writing, the Beach Energy share price is trading 2.15% lower at $1.25. Whilst the wider market is also trending lower, the S&P/ASX 200 Index (ASX: XJO) is currently only down by 0.41%

There has been no market-sensitive information released by the company today but let’s take a look at what it’s been up to lately that may be contributing to today’s negative share price action.

But first – what is Beach Energy?

Beach Energy is an Australian oil and natural gas producer that has projects dotted across Australia and New Zealand.

Since forming in 1961, it has grown to be a major purveyor of Australia’s east cost natural gas supplies.

Beach Energy has a market capitalisation of around $2.9 billion at the time of writing.

What has Beach Energy been up to lately?

The Beach Energy share price lost considerable momentum when the company provided its results for Q3 FY21.

In the report, Beach outlined its production had dropped 5% from the previous quarter and had declined 15% year on year.

The company also made major downgrades to its oil reserves, sparked by the dismantling of its Western Flank 2P oil reserve estimates.

From the review into Western Flank 2P, Beach recalibrated a net downgrade in reserves of 13.4 million barrels of oil.

The net downgrade totalled a ~5% write down in Beach Energy’s total reserves at its Western Flank 2P site.

As a result, the company withdrew guidance over the coming 5 years, whilst concurrently downgrading FY21 guidance by around 5% to 6.5%.

Investors immediately punished the company, wiping $900 million in market capitalisation off the company’s value on the day of the announcement.

Since the announcements were made on 29 April, the Beach Energy share price has plummeted around 26% into the red.

One might even venture to say, ‘life’s a beach‘ for the company lately.

Beach Energy share price snapshot

Beach Energy shares have declined by around 15% over the previous 12 months, spurred on by a 31% loss since 1 January this year.

In contrast, the ASX 200 has posted a year-to-date return of around 10%.

Beach Energy trades at a price-to-earnings (P/E) ratio of 8.3 at the time of writing.

The post Here’s why the Beach Energy (ASX:BPT) share price is in the red today appeared first on The Motley Fool Australia.

More reading

• What happened on the US stock market overnight and how could it impact ASX shares?
• ASX energy shares on watch after oil prices sink 8%
• 5 things to watch on the ASX 200 on Tuesday
• ASX energy shares in focus as OPEC+ strikes deal to lift oil production
• 5 things to watch on the ASX 200 on Tuesday

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.

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It’s one thing to receive a sizeable income stream from an ASX dividend share. And it’s another thing to see its share price thump the benchmark.

But it’s not all too often that you find an ASX dividend share doing both.

Which brings us to today’s market-thumping ASX dividend share, Australia and New Zealand Banking GrpLtd (ASX: ANZ).

How has ANZ performed?

Last month I penned an article detailing the 10 ASX dividend shares paying the highest yields.

ANZ came in at the low end of the top-10 list in terms of its dividend yield. But it’s the only company in the elite group that has beaten the returns of the S&P/ASX 200 Index (ASX: XJO) by more than 100%, both over the past 12 months and year-to-date.

First, let’s look at the dividends.

At the current price of $27.26 per share, ANZ pays a trailing dividend yield of 3.82%, fully franked. In the current low interest rate environment, where you’ll be pleased to get 0.6% off a term deposit, that’s pretty solid. And ANZ has already covered your tax burden. (That’s the franking bit.)

ANZ also has continued to make its 2 annual dividend payments throughout the COVID-19 crisis. The most recent interim payout of 70 cents per share was delivered to shareholders on 1 July.

But atop paying a regular income stream, one that made our top 10 ASX dividend share list, ANZ shareholders have also enjoyed some market-thrashing share price gains.

ANZ’s share price gains more than double the ASX 200

A common trap for investors seeking income from ASX dividend shares is focusing solely on the dividend yield.

While that yield is obviously important, it doesn’t tell the whole story. That’s because the payout ratio is directly related to the share price. Meaning a trailing dividend yield can look quite juicy if a company’s share price has taken a big fall.

If a company’s share price has been falling, it’s worth researching the matter to see if you’re likely to see more capital losses in the months ahead.

This certainly has not been the case with ANZ. This top-10 ASX dividend share has gained 49.2% over the past 12 months. By comparison, the ASX 200 has gained 20.8% since this time last year.

ANZ has continued to outperform in 2021. Year-to-date the share price is up by 18.1%, more than double the 8.4% gains posted by the ASX 200.

Homing in on today’s share price action, the ASX 200 is down 0.29% in afternoon trade while the ANZ share price is up 0.74%.

The company is stirring investor interest after announcing a $1.5 billion share buy-back.

The post Top-10 ASX dividend share delivers market-thumping share price gains appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, ANZ, JB Hi-Fi, & Zip shares are pushing higher
• ANZ’s (ASX:ANZ) $1.5bn buyback puts other ASX 200 banks under capital return spotlight
• What happened on the US stock market overnight and how could it impact ASX shares?
• ANZ (ASX:ANZ) share price on watch after announcing $1.5bn buy-back
• 5 things to watch on the ASX 200 on Tuesday

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

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decline. At the time of writing, the benchmark index is down 0.4% to 7,255.1 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

BHP Group Ltd (ASX: BHP)

The BHP share price is down 2.5% to $49.30. This follows the release of its fourth quarter and full year update. The mining giant reported full year iron ore production of 235.5Mt, petroleum production of 102.8MMboe, and copper production of 1,635.7kt. This was either in line or slightly ahead of its guidance. However, the market may be slightly underwhelmed with its guidance for FY 2022, which is for broadly flat production.

HUB24 Ltd (ASX: HUB)

The HUB24 share price has fallen 2% to $25.50. The investment platform provider’s shares are dropping despite reporting a record fourth quarter performance this morning. HUB24 revealed quarterly inflows of $3.9 billion for the period. This comprises $2.2 billion from its core platform, $1.4 billion from ClearView Wealth, and $300 million from Xplore Wealth.

Qantas Airways Limited (ASX: QAN)

The Qantas share price is down 2% to $4.55. This decline appears to have been driven by concerns over the spread of COVID-19 across Australia. Three states are now locked down, which is threatening to derail the domestic travel market recovery.

Santos Ltd (ASX: STO)

The Santos share price has dropped 4.5% to $6.51. This follows a sharp decline in oil prices overnight after OPEC revealed plans to progressively remove its production cuts by September 2022. In addition, this morning Santos revealed that Oil Search Ltd (ASX: OSH) rejected its merger proposal. Santos tabled an offer of $4.25 per share, which Oil Search did not believe offered appropriate value for shareholders. The Oil Search share price is charging higher on the news.

The post Why BHP, HUB24, Qantas, & Santos shares are dropping today appeared first on The Motley Fool Australia.

More reading

• Why the BHP (ASX:BHP) share price is down 4% this week
• Oil Search (ASX:OSH) share price jumps 6% after rejecting takeover bid
• ASX 200 midday update: Oil Search rejects Santos merger proposal, Afterpay rolls out Money app
• Hub24 (ASX:HUB) share price drops despite ‘record’ Q4 update
• Santos (ASX:STO) share price lower after Oil Search rejects merger proposal

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Hub24 Ltd. The Motley Fool Australia has recommended Hub24 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 S&P/ASX 200 Index (ASX: XJO) is having a pretty depressing day today. At the time of writing, the ASX 200 is down 0.38% to 7,258 points.

But let’s not wallow in our grief and instead check out some of the most actively traded ASX 200 shares today.

3 of the ASX 200’s most heavily traded shares today

Pilbara Minerals Ltd (ASX: PLS)

Lithium miner Pilbara Minerals is our first ASX 200  share worth checking out today. So far this Tuesday, a substantial 12.76 million shares have traded hands. This might be a consequence of the nasty fall Pilbara shares have taken today.

The Pilbara share price is currently down a hefty 2.68% to $1.45 a share after opening at $1.44 and rising as high as $1.50 earlier this morning.

It’s probably this volatility that is behind such a large number of shares being traded today. Even after today’s fall, Pilbara isn’t too far away from the company’s 52-week high of $1.60.

Telstra Corporation Ltd (ASX: TLS)

From PLS to TLS. ASX 200 telco Telstra is our second share today. So far, a substantial 15.75 million Telstra shares have changed hands today.

Just like Pilbara, there has been no major news or announcements out of the telco, so it’s likely that this high volume is the result of the Telstra share price performance today.

So far, Telstra has lost 0.93% this Tuesday, and is down to $3.72 a share. Even so, Telstra remains up 23% year to date.

Oil Search Ltd (ASX: OSH)

The title of our most traded ASX 200 share today goes to ASX energy company Oil Search. This oil driller has had a fantastic day, in contrast to the broader market.

At the time of writing, Oil Search shares are up a hefty 6.8% to $3.92 a share. This has elicited a whopping 30.85 million Oil Search shares to change owners today.

This big jump can be attributed to the news that was revealed this morning. Fellow energy company Santos Ltd (ASX: STO) put forward a confidential all-scrip merger proposal to Oil Search which would have seen Oil Search shareholders gain 0.589 in Santos shares for each Oil Search share owned.

Oil Search has rejected this offer, saying it did not offer compelling value for shareholders. Even so, investors are clearly still excited for what the future might bring.

The post Here are 3 of the ASX 200’s most heavily traded shares on Tuesday appeared first on The Motley Fool Australia.

More reading

• Lockdowns hurt, ASX falls, Wesfarmers climbs, and the Aussie set to fall? Scott Phillips on Nine’s Late News
• Oil Search (ASX:OSH) share price jumps 6% after rejecting takeover bid
• ANZ’s (ASX:ANZ) $1.5bn buyback puts other ASX 200 banks under capital return spotlight
• ASX 200 midday update: Oil Search rejects Santos merger proposal, Afterpay rolls out Money app
• Is this the beginning of a market crash for ASX shares? Experts say fear not

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

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Most weeks, Commonwealth Bank of Australia (ASX: CBA)’s brokerage platform CommSec tells us the most popular international shares (which are usually just US shares) that its ASX investors have been trading the previous week.

CommSec is one of the most widely used brokers in Australia. Because of this, this data can give us a valuable window into the US shares that ASX investors are finding enticing. So here are the top 10 US shares that CommSec-ers were buying and selling last week. This week’s data covers 12-16 July.

Nothing can keep GameStop down

1. GameStop Corp. (NYSE: GME) – representing 3.3% of total trades with an 89%/11% buy-to-sell ratio.
2. Apple Inc (NASDAQ: AAPL) – representing 3.2% of total trades with a 72%/28% buy-to-sell ratio.
3. Tesla Inc (NASDAQ: TSLA) – representing 2.9% of total trades with a 61%/39% buy-to-sell ratio.
4. AMC Entertainment Holdings Inc (NYSE: AMC) – representing 2.5% of total trades with a 65%/35% buy-to-sell ratio.
5. Virgin Galactic Holdings Inc (NYSE: SPCE) – representing 1.6% of total trades with a 49%/51% buy-to-sell ratio.
6. NVIDIA Corporation (NASDAQ: NVDA)
7. Microsoft Corporation (NASDAQ: MSFT)
8. Amazon.com, Inc. (NASDAQ: AMZN)
9. Nio Inc. (NYSE: NIO)
10. Alibaba Group Holding Ltd (NYSE: BABA)

What can we learn from these trades?

That the meme is strong for one. Yes, ‘meme stock’ king GameStop is back at the top of this pile, displacing the giant Apple as well as perennial ASX favourite Tesla. Even more interestingly, 89% of GameStop trades last week were in the ‘buy’ column.

This coincides with GameStop shares hitting their lowest level since May recently. Clearly, there are more than a few investors hoping for another one of those lucrative ‘pops’.

We see a less-enthusiastic commitment to other meme stocks like AMC, Nio and Virgin Galactic. Although, in saying that, Virgin Galactic investors appear to be more inclined to bail out than buy more, with 51% of trades in the ‘sell’ column.

Ever since Sir Richard’s successful space flight earlier this month, investors have been stampeding to the exits. Since 8 July (3 days before the flight), Virgin Galactic shares have lost more than 38% of their value. Imagine what would have happened if it wasn’t a successful flight!

We still see bubbling affection for the US big tech blue chips like Apple, Amazon and Microsoft. Apple in particular maintains a dominant position in this week’s numbers, even pipping Tesla with its 72% ‘buy’ bias.

This week’s report also marks the return of chipmaker NVIDIA after a few weeks’ absence. NVIDIA has been on an exceptional run lately, rising roughly 50% between 13 May and 6 July. That’s a pretty significant move from what is now a company with a market capitalisation of US$468 billion.

The post ASX investors were buying GameStop (NYSE:GME) shares last week appeared first on The Motley Fool Australia.

More reading

• Afterpay (ASX:APT) share price is higher despite the sharp ASX 200 selloff
• Why Apple stock was falling Monday
• Here’s our secret software ASX share that just keeps giving: analyst
• I’m investing for my kids. Any advice?
• Finally, some good news for the Afterpay (ASX:APT) share price

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alibaba Group Holding Ltd., Amazon, Apple, Microsoft, NIO Inc., Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Amazon, Apple, and Nvidia. 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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After making shareholders tear out their hair for a year, A2 Milk Company Ltd (ASX: A2M) shares have had a mini-revival the past month.

The dairy producer’s stocks have ascended almost 15% in the past month. But, even after that, investors have lost more than 64% since this time last year.

So, is this turnaround the start of a sustained comeback, or just false hope?

Shaw and Partners senior investment advisor Adam Dawes is a shareholder himself and has clients who bought in at higher than current prices. 

Unsurprisingly, he dearly hopes the recent uptick is the start of something special.

“It certainly has bottomed and now is starting to move up again, which I think is a positive,” he told Switzer TV Investing.

Dawes’ hope is not just blind faith. He presented 3 structural reasons why the A2 Milk share price could be significantly higher in the coming year or so.

More babies in China

A major business for A2 Milk is the sale of infant formula to the massive Chinese market.

And Dawes pointed out China recently scrapped its infamous One Child Policy.

“From 2025 and ongoing, there are going to be more children born in China,” he said.

“A2 Milk is going to fit nicely into that section, where you need powdered milk to feed your children.”

A2 Milk daigou channel is already rejuvenated

A lucrative sales channel for A2 Milk into China has been via the so-called daigou, who are private expatriate merchants who import into the Asian nation.

But with travel restrictions coming in last year to counter the COVID-19 pandemic, that channel was absolutely devastated.

It’s one of the big reasons A2 Milk’s stock price had tumbled so much.

But as coronavirus vaccines roll out around the globe, Dawes provided a very positive insight.

“Daigou proxy is actually up for the 4th month in a row,” he said.

“In other words, moving towards increasing the number of exports of powdered milk to China.”

Australian dollar vs Chinese Yuan

Currency differences are also starting to work in A2 Milk’s favour, according to Dawes.

“We have started to see the Aussie dollar starting to fall [versus] the Chinese yuan,” he said.

“I think that’s really positive for A2 Milk as well.”

Of course, if the Australian dollar is weaker, then A2 Milk products become more affordable for Chinese consumers.

The post 3 reasons to buy A2 Milk (ASX:A2M) shares right now appeared first on The Motley Fool Australia.

More reading

• Afterpay and Zip were among the most traded ASX shares last week
• These are the 10 most shorted ASX shares
• The A2 Milk (ASX:A2M) share price is up 17% in the last month, here’s why
• Why is the A2 Milk (ASX:A2M) share price down almost 3% on Thursday?
• Here’s why the A2 Milk (ASX:A2M) share price is down 64% in 12 months

Motley Fool contributor Tony Yoo 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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The Pro Medicus Limited (ASX: PME) share price continues its run into the green today.

Pro Medicus shares are changing hands at $59.60 apiece in afternoon trading, up 1.2% on the day.

Let’s take a look at the tailwinds behind the company’s share price.

But first, a quick recap on Pro Medicus

Pro Medicus is a provider of medical imaging software to clinics and hospitals.

Its footprint is in Australia, North America, and Europe, supplying radiology information and imaging systems to these markets.

At the time of writing, Pro Medicus has a market capitalisation of $6.1 billion.

What has Pro Medicus been up to lately?

Pro Medicus shares have set two all-time highs recently, including today, when prices reached an intraday high of $60.55.

The momentum behind the company’s share price has been gathering steam since the beginning of the year.

Back in January, the company announced it had signed a 7-year contract with Salt Lake City company Intermountain Healthcare.

According to Pro Medicus, the deal will yield a total of $40 million spread over the 7 years.

Following this, the company also announced that its US subsidiary Visage Imaging had confirmed a collaboration with the University of Vermont.

Under the agreement, Pro Medicus will install and roll out its systems in six hospitals under the University’s control.

Moreover, it was revealed back on 3 June that Pro Medicus entered into an agreement with the US research giant Mayo Clinic through Visage.

The focus of this deal is to develop and commercialise Pro Medicus’ artificial intelligence algorithm, the Visage AI Accelerator platform.

Since this fundamental momentum began in January, Pro Medicus shares have climbed 74% this year to date.

This has extended into the previous 5 trading sessions, in which the company has walked a further 3.5% into the green.

Therefore, while there has been no market sensitive information from the company since June, it stands to reason that investors continue to buy Pro Medicus shares on the back of these advancements in the company’s growth engine.

Pro Medicus share price snapshot

The Pro Medicus share price has posted an impressive return of 140% over the previous 12 months.

This has outpaced the S&P/ASX 200 Index (ASX: XJO)’s return of 21% over the same period.

The company also pays a 14 cents per share dividend, giving a current yield of 0.22%.

The post Why the Pro Medicus (ASX:PME) share price is up 3% in a week appeared first on The Motley Fool Australia.

More reading

• 3 reasons why Pro Medicus (ASX:PME) is a top class share
• These ASX 200 shares are the most tightly held by individual insiders
• Pro Medicus (ASX:PME) share price soars to all-time high
• How did the S&P/ASX All Technologies Index (XTX) perform in FY21?
• The 5 best ASX 200 healthcare shares of financial year 2021

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

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On Monday I looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

Endeavour Group Ltd (ASX: EDV)

According to a note out of Credit Suisse, its analysts have commenced coverage on this drinks company with an underperform rating and $5.86. The broker isn’t overly positive on Endeavour due to its capital intensity, regulatory risks from its gaming operations, and its inconsistent profits. And while its suspects that the company could have had a strong second half due to favourable trading conditions, it isn’t as positive on the future. This is due to declining alcohol consumption and its lack of a growth runway. The Endeavour share price is currently trading at $6.35.

Evolution Mining Ltd (ASX: EVN)

A note out of Macquarie reveals that its analysts have downgraded this gold miner’s shares to an underperform rating and trimmed their price target on them to $4.00. The broker made the move after Evolution’s quarterly update fell short of expectations. In addition to this, Macquarie was disappointed with its medium term outlook. It notes that Evolution’s costs and capex forecasts were much higher than it was expecting. The Evolution share price is fetching $4.20 today.

Rio Tinto Limited (ASX: RIO)

Analysts at UBS have retained their sell rating and $104.00 price target on this mining giant’s shares. According to the note, Rio Tinto underperformed the broker’s expectations during a challenging second quarter. And while it notes that the company is benefiting from very strong iron ore prices, it isn’t convinced this will last. UBS continues to forecast a sharp pullback in the price of the steel making ingredient as Chinese demand softens and supply increases. The Rio Tinto share price is currently trading at $124.46 on Tuesday.

The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the 3 most heavily traded ASX 200 shares this Monday
• Why Altium, Evolution, Oil Search, & SEEK shares are tumbling lower
• Evolution Mining (ASX:EVN) share price downgrade from four brokers
• ASX 200 Weekly Wrap: ASX shakes off lockdowns to rise higher

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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