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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The iPhone 6 series was a landmark device for Apple (NASDAQ: AAPL) when it was launched in September of 2014, as it marked the company’s transition toward bigger screens. The iPhone 6 and the bigger iPhone 6 Plus were runaway hits among consumers: Apple sold 10 million units of the devices in just three days of their launch.

The sales momentum of the iPhone 6 models spilled over into 2015. In the first quarter of that year, Apple’s iPhone sales surged 41% year over year to 74.5 million units, beating Wall Street’s estimates of 67 million by a wide margin. Apple ended up shipping a record 231 million units in 2015, a number that it hasn’t matched since. It is also worth noting the 478% Apple stock has soared since the iPhone 6 models went on sale in September 2014. But I think that Apple investors can expect a rerun of this impressive stock price rally in the coming years. Let’s see why.

AAPL data by YCharts

Understanding the 2014 Apple upgrade cycle

Market research firm Counterpoint Research rightly points out that the iPhone 6 triggered Apple’s first volume supercycle as consumers shifted to larger-screen devices. The first iPhone, launched in 2007, had a screen size of 3.5 inches. Apple stuck to a 3.5-inch screen till the iPhone 4S was released in 2011, before moving to a 4-inch configuration for the iPhone 5 and the iPhone 5S in 2012 and 2013, respectively.

Apple consumers got a taste of bigger screens for the first time with the iPhone 6. While the standard device had a 4.7-inch screen, the Plus model was even bigger at 5.5 inches. Not surprisingly, Apple consumers upgraded in droves, as large-screen phones were all the rage at that time. The company had been selling relatively smaller phones for over seven years by the time the iPhone 6 arrived, so it had a huge installed base that was raring to upgrade.

Apple’s iPhone installed base stood at 500 million in June 2014, so the tremendous sales growth triggered by the iPhone 6 models was a given. The launch of the iPhone 12 has kicked off another upgrade cycle for Apple, though on a much bigger scale.

The iPhone 12 supercycle is all set to eclipse the last one

Unlike the last iPhone supercycle, which was led by a change in the form factor of smartphones, the current one is being driven by the arrival of 5G wireless technology. Telecom carriers around the globe are rolling out 5G networks at a rapid pace, and that’s encouraging customers to buy devices to take advantage of the fast speeds offered by the new wireless standard.

To put it simply, the current upgrade cycle is being driven by necessity. You can stick to an older phone with a small screen if that’s a personal preference, but faster speeds are something consumers will always like to have. That helps explain why a Counterpoint Research study in 2019 found that consumers were willing to spend 20% more on 5G smartphones.

All of this explains why the iPhone 12 is moving the needle in a big way for Apple. The device has sold 100 million units within just the seven months since it launched, mirroring the initial sales trajectory of the iPhone 6. The iPhone 12 models may have moved more units and exceeded the iPhone 6’s initial performance had Apple not been hamstrung by the global chip shortage, which hindered production during the lucrative holiday season.

However, investors shouldn’t forget that this is just the beginning of the latest upgrade cycle. Counterpoint Research points out that the iPhone 12’s installed base stood at 16% in the first quarter of 2021, which means that 84% of Apple’s customers have yet to upgrade to a 5G smartphone. That’s a huge number, as Apple CEO Tim Cook disclosed in January this year that there are more than 1 billion iPhones in use globally.

That means there are more than 800 million iPhone users in an upgrade window, which is way bigger than the company’s installed base in 2014. It is also worth noting that the 5G iPhones are driving Apple’s average selling price higher. So Apple isn’t just poised to record impressive volume growth in the coming years, it may also have some wiggle room to push its prices up.

Analysts expect Apple to ship as many as 250 million iPhones this year, followed by at least 226 million units next fiscal year. That would still leave room for growth in 5G smartphone shipments considering the huge iPhone installed base. Throw in the improved pricing, and it isn’t surprising to see that analysts expect Apple’s earnings to grow at nearly 18% a year for the next half-decade, a big jump over the 8% annual growth seen in the last five years. And don’t forget that Apple’s margins are getting a nice shot in the arm thanks to the growing influence of its services business.

Apple seems to be sitting on much stronger catalysts right now than it was nearly seven years ago, which is why it is likely to remain a top growth stock and potential multibagger, even after so many years of terrific gains.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Here’s why Apple stock has room to run higher appeared first on The Motley Fool Australia.

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Harsh Chauhan has no position in any of the companies mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Mach7 Technologies Ltd (ASX: M7T) share price is pushing higher on Monday despite the broad market weakness.

At the time of writing, the enterprise imaging platform provider’s shares are up 1.5% to 99 cents.

Why is the Mach7 share price rising?

The catalyst for the rise in the Mach7 share price on Monday has been the announcement of a major new contract win.

According to the release, the company has licensed its eUnity universal viewing solution to Advocate Aurora Health (AAH). It is an integrated healthcare network headquartered in Milwaukee, Wisconsin. AAH is one of the 10 largest not-for-profit integrated health systems in the United States, comprising 28 hospitals, 500 outpatient locations, and 68 Walgreen’s clinics across the states of Wisconsin and Illinois.

Contract win

The two parties have signed an initial five-year deal valued at $4.3 million. This includes a software license fee, professional services, and a five-year support term. From this, Mach7 expects to recognise $1.5 million to $1.7 million in FY 2022, with the remainder being recognised evenly from FY 2023 through to FY 2027.

In addition, the contract provides for volume expansion pricing and the ability for AAH to extend the initial term at agreed pricing.

The company notes that AAH currently uses the Mach7 Vendor Neutral Archive (VNA) for storage and image data management. This agreement will extend its product presence at AAH with the Mach7 eUnity Viewer, which will serve as a universal viewer for multiple departments across the AAH network.

Furthermore, the eUnity viewer will be deployed as a full diagnostic viewer and serve a back-up PACS solution for downtime occurrences. This includes planned maintenance and unplanned events.

Mach7’s CEO, Mike Lampron, commented: “I am delighted that AAH continues to expand its partnership with Mach7 to execute their enterprise imaging strategy. With the Mach7 VNA already installed, the eUnity viewing solution will give AAH the ability to access and view any image, anywhere, and serves as another great example of the additional value Mach7 can bring to our customers through the acquisition of Client Outlook. This contract is a great start to the new financial year and is a continuation of the strong sales momentum we saw in FY21.”

Shareholders will no doubt be pleased with the news, as the Mach7 share price was in dire need of a boost.

Despite today’s gain, the Mach7 share price is still down 18.5% since the start of the year.

The post Why the Mach7 (ASX:M7T) share price is pushing higher on Monday 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. owns shares of and has recommended MACH7 FPO. The Motley Fool Australia has recommended MACH7 FPO. 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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Xero Limited (ASX: XRO) has a number of attractive features going for it, making it a quality ASX share.

What does Xero do?

The company is a technology business that aims to provide “beautiful” cloud-based accounting software that connects people with the right numbers anytime, anywhere, on any device.

Xero says that for accountants and bookkeepers, Xero helps build a trusted relationship with small businesses through online collaboration.

It aims to provide really effective tools and information to help business owners and accountants do what they want to, quicker, and get more valuable insights into the business.

But these are a few reasons why the business could continue to do well:

Very high profit margins

Xero has a very high gross profit margin percentage. In FY21 that margin had increased to 86%, up from 85.2%.

When the gross profit margin is that high, it means a large majority of new revenue can fall straight to the next profit line of the accounts.

At the moment, Xero is heavily investing for growth, so that high gross profit margin isn’t translating into significant profit (for its size).

But FY21 still showed a lot of scalability. Whilst operating revenue grew 18% to $848.8 million, free cashflow went up 110% to $56.9 million.

The half-year result particularly showed how much profit can increase when Xero isn’t spending so much on growth. HY21 operating revenue went up $71.2 million and free cashflow increased $49.4 million – that suggests a very good margin. Earnings before interest, tax, depreciation and amortisation (EBITDA) also saw significant growth. 

Even stronger ecosystem

Xero has a very strong platform for subscribers. Not only does it have an excellent core product for users, but it allows subscribers to link up with external software providers to improve what subscribers can do with their Xero numbers and their business.

The business has been busy making acquisitions to improve its global offering for subscribers. Three of the latest deals have been Planday, Tickstar and Waddle.

It offers much more than a bookkeeping system. Xero has the tools and connections that no other accounting software provider has. That can improve subscriber loyalty and decrease churn.

Xero said in the FY21 result that growing awareness among small businesses of the benefit of digital tools and cloud technologies contributed to lower churn and a 38% increase in total lifetime value to $7.65 billion.

Focus on investing growth is leading to results

Xero itself says that it will continue to focus on growing its global small business platform and maintain a preference for reinvesting cash generated, subject to investment criteria and market conditions, to drive long-term shareholder value.

This heavy focus on growth is helping the business increase in size quickly. In FY21, its total subscribers increased by 20% to 2.74 million. Within that, there was a 22% increase in Australian subscribers to 1.1 million, a 17% rise in UK subscribers to 720,000 and 40% growth of ‘rest of the world’ subscribers to 175,000.

Xero CEO Steve Vamos said:

The past year has brought home to many people in small business the need to understand in real-time their financial position and how it may change. The value and importance our customers place on their subscription and connection to the broader Xero community is increasing.

Looking ahead we believe small business will be a major driver of economic recovery in a post-pandemic world. Small businesses make up more than 90% of businesses in the markets Xero operated in, and represents a significant contribution to economic activity, jobs and the community.

The post 3 reasons why Xero (ASX:XRO) is a quality ASX share appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 Xero. The Motley Fool Australia owns shares of and has recommended Xero. 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 Data#3 Limited (ASX: DTL) share price is lower in early morning trading despite a positive update on its FY21 result.

At the time of writing, the business technology solutions company’s shares are fetching $5.37 a share, down 4.79%.

How did Data#3 perform for the 2021 financial year?

Investors are pushing Data#3 shares lower during the morning after digesting the company’s latest announcement.

According to its statement, Data#3 advised it expects to report another record full-year result for FY21.

Unconsolidated Net Profit After Tax (NPAT) is estimated to be roughly $36.8 million, reflecting an 8% increase on FY20 ($34.1 million).

This is despite industry-wide product delivery delays impacting the business, in particular during the second half of FY21.

The company has dealt with a global computer chip shortage at a time when demand has spiked earlier than anticipated.

Consequently, Data#3 has encountered a larger product backlog order at year’s end. This is forecast to lead to a profit of around $3 million which will be realised in FY22.

Traditionally, the company sees demand for its devices jump during the fourth quarter of each year. However, supply constraints for a number of products are predicted to continue in the new financial year.

Data#3 revealed its audited full-year results for the 2021 financial year will be released on 19 August. In addition, management noted it will maintain its dividend payout ratio to shareholders as in previous years.

About the Data#3 share price

During the last 12 months, Data#3 shares have climbed around 10% higher but remain flat for 2021.

The company’s share price hit a 52-week high of $7.30 last October before plummeting on its Annual General Meeting (AGM) release. Since then, Data#3 shares have moved in circles, currently in the middle of its 52-week range.

At today’s price, Data#3 has a market capitalisation of roughly $868 million, with 153 million shares on its registry.

The post Why the Data#3 (ASX:DTL) share price is down 5% this morning 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 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 SEEK Limited (ASX: SEK) share price has come under pressure on Monday morning.

At the time of writing, the job listings giant’s shares are down 5.5% to $29.81.

Why is the SEEK share price under pressure?

The weakness in the SEEK share price appears to have been driven by a broker note out of Goldman Sachs this morning.

According to the note, the broker has downgraded SEEK’s shares to a sell rating but with an improved price target of $30.80.

This price target implies potential downside of 2.5% from its last close price.

What did Goldman say?

Goldman Sachs has been looking at the industry and has adjusted its earnings estimates to reflect strong macro tailwinds.

And while the broker believes SEEK will outperform its guidance in FY 2021, with EBITDA of $498 million compared to its guidance of ~$480 million, it feels the market is too optimistic on the future.

Goldman also has concerns with its valuation and believes it screens unfavourably due to domestic and global peer valuations, historical multiples, and its preference for value shares over growth.

The broker explained: “SEEK is delivering robust near-term earnings momentum, benefiting from the strong post-covid employment recovery and tightness in the labour market, which looks likely to continue into FY22E. However, when considering Visible Alpha consensus earnings, we believe that FY23E forecasts are overly optimistic. When combined with elevated trading multiples and the ongoing value vs. growth trade (with our strategists preferring value), we downgrade SEEK to Sell.”

What would make the broker more positive?

Goldman acknowledges that there are several upside risks to its bearish view on the SEEK share price.

This includes stronger than expected yield tailwinds from its introduction of dynamic pricing and the labour market staying tighter for longer. It also notes that its strategic review could provide greater valuation support, as could greater than expected margin improvement across the Asia-Pacific business.

But until it sees sign of these or the SEEK share price pulls back to a more attractive level, Goldman is sticking with its sell rating.

The post SEEK (ASX:SEK) share price sinks 5% after broker downgrade appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns shares of SEEK 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 has recommended SEEK 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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June witnessed a euphoric surge in the Commonwealth Bank of Australia (ASX: CBA) share price. CBA shares hit $100 for the first time and marked a new all-time high of $106.57.

Fast forward to today, the CBA share price has tumbled 5% in the last month, closing at $98.19 last Friday.

Why the CBA share price is struggling to hold record highs

Interest rate concerns

The CBA share price plummeted 7.41% from $105.91 to $98.08 between Friday 18 June and Monday 21 June.

During this time the broader market experienced a sharp sell-off, headlined by cyclical and value sectors including financials, energy and utilities.

The sell-off was driven by concerns that interest rate hikes might occur sooner than expected.

In the United States, the Federal Reserve said it was likely to begin increasing interest rates by 2023 instead of 2024.

Back at home, Westpac Banking Corp (ASX: WBC) predicts that the Australian economy might be ready for its first interest rate hike in more than a decade.

Westpac thinks the RBA could be raising interest rates by the first quarter of 2023.

This prediction came about on 21 June, when the CBA share price tanked 5.43% to $98.06.

Lockdown jitters

The last month has seen a resurgence of COVID-19 cases around Australia. Stubbornly high COVID cases reported each day has extended Greater Sydney’s lockdown to 30 July. Meanwhile, Victoria is in a five-day snap lockdown.

The Australian reported that Sydney’s lockdown has “smashed consumer confidence in the country’s biggest city, with worse to come.”

The report quoted Westpac chief economist Bill Evans who said, “confidence in Sydney and New South Wales could fall significantly further if lockdown measures are unsuccessful or slow to act in containing the outbreak.”

In addition, the report flagged concerns that the Sydney lockdown could send Australia’s economic growth backwards in the September quarter.

Another 111 new cases in Sydney on Saturday may weigh on sentiment for both the CBA share price and the broader market.

What about the property market?

The red hot Australian property market and surging lending figures is likely another factor supporting the bullish performance of the CBA share price.

Earlier this month, CoreLogic released a comprehensive overview of how the housing market performs during lockdowns.

The report said that: “Transaction activity slows markedly through lockdown periods, however a ‘catch up’ in home purchases has been evident as restrictions ease.”

In addition, CoreLogic Head of Research for Australia, Eliza Owen observed:

A big part of why the housing market didn’t see further value declines was the enormous income support packages provided to households, the role of JobKeeper in maintaining employment relationships, low mortgage rates and mortgage repayment deferrals. 

In the event of another extended lockdown, the future of housing demand and supply becomes much less certain if that same government and institutional support is not there.

The post The CBA (ASX:CBA) share price is down 5% in the past month, here’s why 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 share price of ASX junior mining company Neometals Ltd (ASX:NMT) has been on an absolute tear so far in 2021. After starting the year valued under 30 cents, shares in Neometals have surged close to 100% higher, and are now trading at $0.58. Let’s take a look at some of the reasons why investors might be getting excited about Neometals.

Company background

After starting out life as more of a pureplay lithium miner, Neometals has used its industry expertise to transform itself into a diversified materials company. It now operates projects at various stages in the minerals value chain, from exploration through to production and refinement. The company’s aim is to create sustainable, low-risk, long-term projects centred around innovations in energy storage and electronic vehicles.

Neometals now has three core, wholly-owned projects: a lithium-ion battery recycling plant, a lithium refinery project, and a titanium and vanadium project in Barrambie, Western Australia. In addition, Neometals also owns a long-term lithium and nickel exploration project called Mt Edwards, also located in WA. And it is pursuing other research and development initiatives, mostly focused on lithium production and refinement.

Demerger news

Neometals has released a flurry of announcements recently – mostly concerned with its Mt Edwards exploration project.

At the beginning of July, Neometals announced its intention to demerge its Mt Edwards nickel assets. This came shortly after Neometals reported significant estimation upgrades across multiple of its nickel resources at Mt Edwards.

The spinoff would create a new standalone company called Widgie Nickel Limited – named for the Widgiemooltha township in WA where the Mt Edwards project is located – which would then also seek to be listed on the ASX. Under the plan, existing Neometals shareholders would be offered free shares in the new entity and would then have the option to participate in a subsequent capital raise.  

Speaking at the time of the announcement, Neometals’ Managing Director, Chris Reed, stated that the demerger plan offered “shareholders the opportunity to realise the inherent long-term value of this exciting development story in a discrete, nickel focussed corporate vehicle.”

Other recent news

Another notable development – announced at the beginning of June – was the sale of Neometals’ offtake rights for lithium spodumene concentrate produced by the Mt Marion Lithium Project. Neometals agreed to sell the rights back to Reed Industrial Minerals, the company that currently owns the Mt Marion Project, for $30 million. The cash injection meant that the value of Neometals’ cash, receivables and investments increased beyond $100 million.  

How has the Neometals share price responded?

The Neometals share price has jumped almost 20% higher since the beginning of July and is now within touching distance of the 52-week high price of $0.59 it reached in early May. However, despite the gains already made so far this year, continuing developments at the company’s Mt Edwards Project still make the Neometals share price one to watch over the next few months.

The post The Neometals (ASX:NMT) share price has almost doubled in 2021 appeared first on The Motley Fool Australia.

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Motley Fool contributor Rhys Brock owns shares of Neometals 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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Some ASX 200 real estate companies have been struggling through recent COVID-19 restrictions and lockdowns, and this is being reflected in their share prices.

The S&P/ASX 200 Real Estate Index (ASX: XRE) has fallen 1.45% over the last 30 days. However, real estate shares focused on commercial and retail space have seen share price drops of around 8%.

Restrictions faced by numerous parts of Australia over the past month have likely spurred the ASX 200 real estate giants’ falls. Let’s take a look.

30 days of lockdowns

Most of Australia’s states and territories have faced restrictions or lockdowns over the past month, and it’s weighing on some ASX 200 real estate shares.

Right now, the New South Wales Government is doubling down on COVID-19 restrictions in Sydney. The city and surrounding regions have been in a soft lockdown for the past 3 weeks in an attempt to curb the spread of the delta variant.

From today, non-essential retail and construction in greater Sydney have been halted. Residents of some suburbs have also been banned from leaving their immediate area for work.

Meanwhile, Melbourne has been in lockdown since Thursday after removalists from Sydney spurred an outbreak of the delta variant in the city.

And it’s not just the lockdown of Australia’s biggest cities putting pressure on some ASX 200 real estate shares.

Much of Queensland, Darwin, Alice Springs, and Perth have each entered and exited lockdowns in the last month.

The ASX 200 real estate shares hit hard

The Vicinity Centres (ASX: VCX) share price has dropped 8.46% over the past month, sitting at $1.52 at the time of writing. The ASX 200 company is a real estate investment trust (REIT). It primarily focuses on owning and managing Australian shopping centres.

Fellow ASX 200 REIT Scentre Group (ASX: SCG) has seen its share price fall 8.39% to currently trade at $2.62. Scentre is the owner and operator of Westfield shopping centres.

Finally, the Stockland Corporation Ltd (ASX: SGP) share price has plunged 7.38% since this time last month. Shares in the company are now going for $4.39. The ASX 200 company derives the majority of its income from commercial property, most of which is retail property.

The post ASX 200 real estate shares sink 8% in a month as lockdown woes persist 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 Stockland Corp Ltd (ASX: SGP) share price could be a mover on Monday after the company announced an acquisition to expand its land lease communities business.

What might drive the Stockland share price today

Stockland’s retirement living portfolio might receive a boost after entering a binding agreement to acquire Queensland based Halcyon Group’s land lease communities business.

Many retirement and over-50s communities operate under land lease structures where people own their own homes but not the land they are built on.

The acquisition will include 3,800 sites across 13 land lease communities, six of which are established land lease communities with four in development and three projects in planning.

The Halcyon acquisition will bring onboard over 2,500 new customers in addition to a Halcyon team of more than 100 people.

Stockland will be forking out $620 million plus transaction costs for the acquisition.

According to the announcement, 100% of the acquisition price and associated costs will be funded from existing liquidity.

In addition, the acquisition price will be paid in two equal tranches. The first $310 million will be paid upon completion of the transaction in mid-August 2021. While the second tranche will be deferred until July 2022.

What did management say?

Stockland Managing Director and CEO Tarun Gupta commented:

This acquisition is in line with our stated strategy to grow our land lease communities and will increase the size of our portfolio to 7,800 sites. Land lease communities deliver attractive returns as the demand for high quality, affordable housing solutions grows. This demand is driven by Australia’s aging population and baby boomers reaching retirement age.

About the Stockland share price

The Stockland share price has been a slow mover in 2021, nudging just 2.57% higher year-to-date compared to the S&P/ASX 200 Index (ASX: XJO) which has rallied 9.93%.

On a more positive note, on 23 June, Stockland announced a lift in final dividend to 13.3 cents compared to 10.6 cents in 2020.

With a FY21 full-year distribution of 24.6 cents, this represents a dividend yield of approximately 5.6% at current prices.

The post Stockland (ASX:SGP) share price on watch after acquisition 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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Audinate Group Ltd (ASX: AD8) shares have jumped almost 25% higher over the last month (to $10.03, as at the time of writing). This recent increase puts the performance of the Audinate share price firmly in the green so far this year, up a little over 20% in total.

And, just to cap it all off, Audinate shares even set a new all-time high price of $10.29 last week.

Let’s take a look at what the ASX audio technology company has been up to lately.

Company background

Audinate develops technology to simplify complex digital audio connection networks. The company is focused on the professional audiovisual (AV) industry, providing digital sound technology to support radio stations, recording studios, and even professional sports stadiums.

Audinate’s flagship product is called Dante. It is designed to replace all the various connections used by legacy audio networks – like all the heavy cords used to connect microphones, amplifiers and speakers – with a computer network that sends out AV data over lightweight ethernet cables.

By digitising traditionally analogue audio connections, Dante creates a simple to set up and easily scalable AV solution for industry professionals.

What has got the Audinate share price racing higher?

The Audinate share price was among those hardest hit by COVID-19 lockdowns last year. With the live music industry effectively on indefinite hiatus and many international sports leagues either cancelled or postponed, it was assumed that demand for Dante would dry up. The Audinate share price went into freefall, tumbling as low as $3.13 by March 2020.

Then, as expected, in April 2020 Audinate withdraw its FY20 growth commentary in response to the escalating COVID-19 crisis. The company stated that “government decisions have the potential to delay projects and reduce the near-term demand for Audinate’s technology.”

In the end, FY20 revenue increased by 7% year on year, to $30.3 million, although the uplift was almost entirely due to favourable movements in foreign exchange rates. Audinate invoices its customers in US dollars, and in USD-terms, revenues only increased marginally year on year, from US$20.3 million to US$20.4 million. The Audinate share price fell by around 7% on the day of the update.

However, things slowly began turning around from there. In a trading update provided last October, Audinate stated that sales momentum had been recovering, with revenues increasing each month throughout the first quarter of FY21.

Then, in its first-half FY21 results, Audinate reported that revenues had returned to their pre-COVID levels. The company brought in US$11.1 million in revenues over the first half of FY21, the exact same amount it generated in the first half of FY20, and a 19% increase over the US$9.3 million it reported for the second half of FY20.

But the real cherry on top of Audinate’s recovery came just last week when the company reported that unaudited revenues for FY21 had come in at US$25 million, a year-on-year increase of 23%. Commenting on the update, Audinate co-founder and CEO Aidan Williams said Audinate was “well placed to return to US$ revenue growth in the historical range and consistent with current market expectations for FY22.”

Investors responded positively to the company’s recovery story, with the Audinate share price climbing almost 8% higher on the day of the announcement. With its fortunes so closely tied to a post-COVID economic and social recovery, Audinate will be a fascinating company to watch over the next few months.

The post Here’s why the Audinate (ASX:AD8) share price is up 25% in a month appeared first on The Motley Fool Australia.

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Motley Fool contributor Rhys Brock owns shares of AUDINATEGL FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AUDINATEGL FPO. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO. 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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