Tag: Motley Fool

The Centuria Capital Group (ASX: CNI) share price is gaining in morning trade, up 3%. This comes after the company revealed it’s set to be included in the S&P/ASX 200 Index (ASX: XJO).

Yesterday S&P Dow Jones Indices announced it was removing Bingo Industries Ltd (XASX: BIN) from the ASX 200. Subject to meeting the final conditions, Bingo will be acquired by Recycle and Resource Operations.

Next Friday, 16 July, Centuria shares will take Bingo’s place and join the ASX 200.

The real estate funds manager has $16.8 billion of assets under management (AUM). These cover 6 different asset classes in debt and equity markets, namely: office, industrial, Daily Needs Retail (DNR), Large Format Retail (LFR), healthcare and agriculture.

Breaking it down Centuria shares cover:

• $5.4 billion of listed funds
• $10.5 billion of unlisted funds
• $900 million in its investment bonds business

What management said about the ASX 200 inclusion

Commenting on Centuria’s shares pending inclusion in the ASX 200, John McBain, Centuria Joint CEO said:

It’s pleasing to be included in the S&P/ASX 200 Index and we believe this is reflective of our transformational growth in recent years. Our growth strategy has included corporate acquisitions as well as direct real estate acquisitions. Our corporate acquisitions this year alone include a 50% interest in real estate debt fund provider, Bass Capital, and the merging with a $5 billion AUM real estate fund manager, Primewest.

Jason Huljich, Centuria Joint CEO added, “We have been very active over the past 12 months with over $1billion in industrial acquisitions… In addition, we have a strong $1.6 billion development pipeline which is helping create stock for new fund creation.”

Centuria Industrial REIT (ASX: CIP) was included on the ASX 200 in June 2020, while the Centuria Office REIT (ASX: COF) is included in the S&P/ASX 300 Index (ASX: XKO).

What’s been going on with the Centuria share price?

The Centuria share price reached all-time highs on Monday, closing the day at $2.97 per share.

Over the past 12 months, Centuria shares have gained 72%, or more than 3 times the gains posted by the ASX 200 over that same time. Year-to-date, Centuria has continued to outperform, up 15% so far in 2021.

The post Why the Centuria (ASX:CNI) share price is pushing higher today appeared first on The Motley Fool Australia.

More reading

• The Centuria Capital (ASX:CNI) share price reaches new all-time high
• These ASX insiders are buying up more shares in their companies
• Here’s why the Centuria (ASX:CNI) share price is gaining

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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Macquarie Group Ltd (ASX: MQG) has been in the spotlight lately with its numerous takeover bids. However, the Macquarie share price has been stagnant since mid-April this year.

For Prime Value Asset Management, the investment bank was one of the biggest detractors in its Opportunities Fund for the month of May.

Despite the recent underwhelming performance, the fund manager thinks there are good times ahead for the Macquarie share price.

Keeping the spice alive with Macquarie

Firstly, to give some background… Prime Value is a boutique Australian investment manager that has been around since 1998. The firm manages a range of funds, from Australian equities to alternative assets.

Macquarie holds a top spot in the fund manager’s opportunities fund. This fund seeks to create long-term wealth through investing in companies led by strong management teams that will benefit from compounding growth over a number of years.

In the fund’s May update, Macquarie shares were pointed out as a laggard in the fund. The Macquarie share price slipped 5.3% during the month. This followed the company reporting its results for FY21.

Prime Value outlined that it considers the investment bank to be executing well… “There were few flags in their latest updates that give rise to concerns over their business operations.”

Furthermore, the Melbourne-based fund manager said:

What keeps us excited about Macquarie Group, six years after we originally invested in the company? Macquarie has become very adaptable and established a track record of exploiting numerous opportunities across global capital markets. The group is a leader in alternative and infrastructure investments.

‘Going green’ thematic

Beyond being a quality investment group, Prime Value pointed out the bank’s positioning in the renewable energy space.

For a fun fact, Macquarie Group has invested roughly $60 billion in renewables since 2010. It appears that the renewable inflows aren’t stopping any time soon either. In February, Macquarie closed the books on $2.97 billion to fund wind and solar projects.

“… we think this is a sustainable trend that will not reverse anytime soon,” Prime Value said.  

Macquarie share price snapshot

The Macquarie Group share price has delivered shareholders S&P/ASX 200 Index (ASX: XJO) over the last year. With a return of 29.2% in the past 12 months, the investment bank has beat the index by roughly 7% before dividends.

Correspondingly, the company’s market capitalisation has climbed to $57.7 billion. This is above the pre-pandemic levels witnessed.

The post Why this leading fund manager is backing better times ahead for the Macquarie (ASX:MQG) share price appeared first on The Motley Fool Australia.

More reading

• Macquarie (ASX:MQG) share price up amid news of rival bid for Sydney Airport
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• ASX 200 rises, Macquarie up, Rural Funds launches capital raising
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• Is the Macquarie (ASX:MQG) share price a buy for dividends?

Motley Fool contributor Mitchell Lawler owns shares of Macquarie Group 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 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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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.

What happened

Thursday’s bear market was ugly, with many stocks dropping notably. Amazon (NASDAQ: AMZN), however, wasn’t one of them. Its shares were trading up by over 1% in contrast to a declining S&P 500 index; a new video-streaming content deal appears to be a key reason.

So what

Amazon’s deal is with Comcast‘s (NASDAQ: CMCSA) Hollywood heavyweight Universal. Under the terms of the multiyear arrangement, Amazon Prime Video — the company’s streaming service — will offer recent live-action Universal movie releases after their premieres on Peacock (Comcast’s own streamer).

Amazon will be able to screen the Universal movies eight months after their opening days in cinemas, for a duration of 10 months. This is to follow the Peacock debut of those films, which will occur four months after opening day.

Additionally, Amazon has secured the rights to screen Universal releases from this year and last year on its IMDb TV, the free-of-charge streamer connected to its popular IMDb film and TV portal.

The financial terms of the deal were not disclosed.

Now what

Every streaming video operator wants to be Netflix in terms of gotta-see-it content and prominence. Amazon Prime Video isn’t there yet, with a library that is quite scattershot and offers few recent marquee titles included in its base subscription.

Having recent, big-budget movies and franchises like F9 (the latest installment in the seemingly eternal Fast & Furious cars-and-crime series) will garner Prime Video/IMDb TV new attention and publicity. Perhaps it’ll even help draw significant new viewership to the for-pay Prime Video.

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

The post Why Amazon was outpacing the market on Thursday appeared first on The Motley Fool Australia.

More reading

• What will Amazon (NASDAQ:AMZN) look like in a post-Bezos world?
• A turning point: Jeff Bezos steps down as Amazon (NASDAQ:AMZN) CEO
• Amazon’s biggest threat in e-commerce
• Wondering which US shares Aussies bought last quarter? Here’s the answer
• FANG+ ETF (ASX:FANG) tumbles 10% on ex-dividend day

Eric Volkman has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon and Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Comcast and has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon and Netflix. 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 Objective Corporation Limited (ASX: OCL) share price is defying the broader ASX market fall today. This comes after the information technology software and services company provided a trading update.

At the time of writing, Objective shares are up 2.66% to a record high of $18.17. In comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.2% higher to 7,341 points.

Let’s take a look at how the company travelled during the 2021 financial year.

How did Objective perform in FY21?

Investors are pushing Objective shares higher as investors took the time to digest the company’s latest results.

According to its release, Objective reported growth across all metrics based on unaudited management accounts.

For the financial year ending 30 June, revenue climbed by 36% to $95.1 million ($70 million in FY20). Annual Recurring Revenue (ARR) also lifted by 31% over the prior corresponding period to $74.2 million. This represents 73% of the total revenue achieved.

Both figures above increased due to the company’s continued investment in innovation, delivering important product releases for customers. Objective spent a record $23 million in research and development (R&D), accounting for 24% of FY21 revenue.

Earnings before interest, tax, depreciation and amortisation (EBITDA) surged by 49% to $25.6 million ($17.2 million in FY20). In addition, Net Profit After Tax (NPAT) moved 45% higher to $16 million. Objective stated that this was driven by strong organic growth and earnings accretive corporate development.

The company declared a healthy cash balance of $48.4 million at the end of the period. This includes the $18.4 million Itree acquisition earlier this month, and the $6.6 million in dividend payments during September 2020.

FY22 outlook

Looking towards the near future, Objective CEO, Tony Walls commented on the company’s FY22 outlook. He said:

In FY2022 we expect the momentum of our business to drive a continued material lift in revenue and profitability.

Our investment in innovation will deliver important product releases for customers including Objective Blind, Objective Nexus (cloud native ECM), Objective ECM 11 and Objective RegWorks iQ which, in addition to further investment in our existing product suite, will underpin new customer acquisition across all business lines and expansion opportunities for existing customers.

In addition to these significant organic growth opportunities, we will continue to actively seek acquisitions that offer additional product or market reach capabilities, where these can be acquired at reasonable valuations.

About the Objective share price

Investors would be wrapped with the Objective share price accelerating to an all-time high today. This reflects a gain of over 100% over the past 12 months and up 50% for the 2021 calendar year alone.

At today’s price, Objective has a market capitalisation of roughly $1.6 billion, with more than 94 million shares on issue.

The post Why the Objective (ASX:OCL) share price is racing to an all-time high today appeared first on The Motley Fool Australia.

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• 4 ASX shares to gain exposure to international market growth: fund manager

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 Objective Corporation Limited. 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 NEXTDC Ltd (ASX: NXT) share price is under pressure on Friday morning. At the time of writing, the data centre operator’s shares are down 2.5% to $12.10.

This decline means the NEXTDC share price is now in negative territory for the year.

Why is the NEXTDC share price trading lower?

Today’s pullback in the NEXTDC share price appears to have been driven by broad weakness in the tech sector on Friday.

It isn’t just NEXTDC that is under pressure. The likes of Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) are also recording notable declines this morning. This has led to the S&P/ASX All Technology Index (ASX: XTX) falling a disappointing 2.1% in early trade.

Today’s weakness seems to be in response to a poor night of trade on the tech-heavy Nasdaq index on Thursday. The famous index tumbled 0.7% overnight amid concerns over the global economic recovery.

Is this a buying opportunity?

Analysts at Goldman Sachs are likely to believe the weakness in the NEXTDC share price is a buying opportunity.

Late last month the broker put a conviction buy rating and $14.80 price target on the company’s shares. Based on the latest NEXTDC share price, this implies potential upside of 22% over the next 12 months.

Goldman believes NEXTDC is the most compelling growth story it has under coverage on the ASX.

Its analysts commented: “We remain high-conviction on the growth profile ahead, forecasting +37MW contract wins across FY22-23E (=65% conversion of options). Combined with recent share price underperformance, this gives an attractive growth adjusted valuation. We reiterate our Buy (on CL) on NXT, the most compelling growth story in our coverage. Catalysts: (1) FY21 results, incl. FY22 guidance (GS +2% vs. consensus EBITDA); (2) Any JV or M&A announcements in 1H22; and (3) Further contract wins.”

The post Why the NEXTDC (ASX:NXT) share price is falling on Friday appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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.

After a choppy start to the week, Thursday was a difficult day for the stock market. Once again, though, after seeing extremely large declines to start the day, markets rebounded to cut their losses by the end of the session. Declines for the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) were all less than 1% by the close.

Index	Percentage Change	Point Change
Dow	(0.75%)	(260)
S&P 500	(0.86%)	(36)
Nasdaq Composite	(0.72%)	(105

Data source: Yahoo! Finance.

Shares of Tesla (NASDAQ: TSLA) were up a bit more than 1% on Thursday, as investors seemed generally pleased with the fact that the electric-auto manufacturer delivered roughly 33,000 vehicles from its production facilities in China during June and came out with a cheaper version of its Model Y SUV for Chinese consumers. Yet what’s getting more attention than you might expect is that the stock appears ready to go through what’s called a “death cross” — with plenty of ominous overtones.

Below, we’ll look more closely at what a death cross is and why even those investors who typically don’t pay any attention to technical analysis of the stock market should pay attention.

The basics of the death cross

Technical analysts pay close attention to the price behavior of stocks, and one common metric involves moving averages of past prices. By taking closing prices over a certain number of days, volatility gets smoothed out, giving a better sense of the general direction in which a stock is moving.

To determine relatively long-term trends of stocks, technical analysis often turns to the 200-day moving average of closing stock prices. For traders interested in short-term swings, the 50-day moving average is a popular gauge.

Some investors using technical analysis pay close attention when these two moving averages cross each other. When the 50-day moving average moves above the 200-day, then a so-called “golden cross” occurs, which many see as having bullish implications. When the 50-day moves below the 200-day, however, the result is a death cross, and that’s often seen as bearish.

Barring a quick jump of roughly $100 per share for the stock, Tesla is about to undergo a death cross for the first time in a couple years. That has some technical analysts nervous about the stock’s future prospects.

Should you really care?

If you’re wondering what all this has to do with Tesla’s actual EV business, the answer is absolutely nothing. For investors who focus solely on company fundamentals when deciding whether to make an investment, chart patterns have very little impact on long-term stock performance.

However, it can be useful for investors to be aware of technical-analysis issues, even if they don’t really believe in them. Enough investors do follow technical analysis, so in some cases, it becomes a self-fulfilling prophecy in the short run.

If you’re looking to make a new investment in Tesla — or you’re thinking about trimming a position you already have — then knowing that investors are more likely than not to react negatively when the death cross occurs can be helpful. If you’re looking to sell, you might choose to do so sooner rather than later. If you’re looking to buy, waiting for a death-cross-related downturn could allow you to purchase more shares with the same amount of money.

Most importantly, just knowing what other investors are looking at can help you understand — and likely dismiss — any short-term volatility the future might bring. For those who see Tesla as a fundamentally strong business with huge growth opportunities, any downturn could be an opportunity to invest more in the EV giant.

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

The post As markets fall, here’s how a Tesla death cross might actually matter appeared first on The Motley Fool Australia.

More reading

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Dan Caplinger 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 Tesla. 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.

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

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The Rural Funds Group (ASX: RFF) share price has returned from its trading halt and is tumbling lower.

At the time of writing, the agricultural-focused property company’s shares are down 4% to $2.50.

Why was the Rural Funds share price halted?

The Rural Funds share price was halted on Thursday so that the company could undertake the institutional component of its fully underwritten 1 for 8.4 accelerated pro-rata non-renounceable entitlement offer.

This morning the company announced the successful completion of the institutional entitlement offer, raising $30 million at $2.47 per new share. This represents a 5% discount to the Rural Funds share price prior to the halt.

Rural Funds will now push ahead with the retail component of the entitlement offer, which is aiming to raise a further approximately $70 million. This takes the total size of the entitlement offer to approximately $100 million. These funds will be raised at the same price as the institutional component of the offer.

Why is Rural Funds raising funds?

Rural Funds advised that it is raising these funds to provide capital for a number of activities. This includes the development of 1,000 hectares of macadamia orchards, the acquisition of cattle properties to be leased to corporate lessees, and the acquisition of up to 8,338 ML of water entitlements for $38.4 million. The latter will be leased to a private farming company for five years.

Management certainly appears confident that these activities will create value for shareholders. So much so, it is putting its money where its mouth is.

Managing Director David Bryant collectively holds approximately 4.5% of the existing units in Rural Funds and has committed to take up a minimum of $1.5 million from the equity raising.

In addition, Chairman Guy Paynter and Director’s Michael Carroll and Julian Widdup hold 0.6% of existing units and have committed to take up their entitlement in full, amounting to approximately $0.6 million.

The post Why the Rural Funds (ASX:RFF) share price is down 4% appeared first on The Motley Fool Australia.

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• ASX 200 rises, Macquarie up, Rural Funds launches capital raising
• Why is the Rural Funds (ASX:RFF) share price halted?
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• Here are 3 ASX shares going ex-dividend next week

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 RURALFUNDS STAPLED. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Wesfarmers Ltd (ASX: WES) share price has gone up around 30% over the last year. Profit has been growing. But what might happen next?

A year ago Wesfarmers was being impacted by the effects of COVID-19. That included large amounts of demand for DIY projects from Bunnings as well as items from Officeworks for learning, working and being entertained at home.

Growth continued into the first half of FY21.

FY21 half-year result refresher

In the report, Wesfarmers told investors about its underlying performance, being the continuing operations excluding significant items.

Continuing revenue rose 16.6% to $17.8 billion. The continuing earnings before interest and tax (EBIT) grew 25.2% to $2.2 billion.

Continuing net profit after tax (NPAT) rose 25.5% to $1.4 billion and continuing earnings per share (EPS) went up 25.5% to 125 cents.

The two biggest drivers of Wesfarmers earnings are Bunnings and Kmart Group. Though it does have plenty of other businesses. 

In the first six months of FY21, Bunnings grew underlying earnings before tax (EBT) (excluding significant items) by 35.8% to $1.275 billion, whilst Kmart Group’s went up 42% to $487 million. Total divisional underlying EBT rose 33.4% to $2.06 billion.

Wesfarmers also showed that Bunnings’ return on capital was 76.6%.

Since the release of the HY21 result, the Wesfarmers share price has gone up 9%.

Lithium plans

Just before the HY21 report release, the company announced the joint approval for the Mt Holland lithium project and committed initial funding.

An updated definitive feasibility study showed greater certainty regarding the project’s engineering design and capital and operating costs as well as an increase in concentrator and refinery production from 45,000 tonnes per annum to approximately 50,000 tonnes per annum of battery grade lithium hydroxide.

The updated study also included increased flexibility to provide for a second phase of the project to expand production capacity at Mt Holland and the Kwinana refinery.

What’s happening recently to the Wesfarmers share price and the profit?

Since the start of June, the stock has gone up by 6.7%.

On 3 June 2021, Wesfarmers provided a strategy briefing day.

In that update it provided a run down of the focus of each business, but it also outlined recent trading performance.

It said that the group’s retail businesses began to cycle the impacts of COVID-19 in the prior year from mid-March, leading to significant volatility in monthly sales growth results.

On a two-year basis, all of the retail businesses have continued to deliver strong sales growth.

Wesfarmers said customer demand has remained resilient, but year on year growth has generally moderated and been negative in some months for some businesses, due to elevated activity in the prior year. Online growth has also moderated as store traffic grew.

However, the industrials businesses have been seeing good operating performances and pleasing trading, according to management.

Broker Wesfarmers share price target

The price target from Morgans is $56.08 and the broker rates it as a hold.

According to Morgans, the business is valued at 28x FY21’s estimated earnings.

But Citi rates the Wesfarmers share price as a sell with a price target of $45.

The post Where to next for the Wesfarmers (ASX:WES) share price? 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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Audinate Group Ltd (ASX: AD8) share price is on course for a strong finish to the week.

In morning trade, the audio over IP networking solution provider’s shares are up 6% to $9.15.

This leaves the Audinate share price trading within touching distance of its record high.

Why is the Audinate share price charging higher?

The catalyst for the rise in the Audinate share price has been the release of an update on its performance in FY 2021.

According to the release, the company achieved revenue of US$25 million in FY 2021. This was an increase of 23% from the US$20.4 million it achieved a year earlier.

This follows an extremely strong fourth quarter performance, which saw the company’s revenue increase 74% over the prior corresponding period.

Supply chain concerns

Possibly holding the Audinate share price back a touch today was management’s commentary on the supply chain.

It warned that uncertainties in the global supply of chips and electronic components continue to be a near-term risk for both Audinate and its Original Equipment Manufacturer (OEM) customers.

Nevertheless, Audinate was able to meet customer demand for chips and modules over the past few months despite minor impacts from a COVID-related shut-down of its contract manufacturer’s plant in Malaysia and some under-delivery of raw materials from suppliers.

It also notes that that increasing component lead times and requests by chip manufacturers for demand visibility up to 12 months out have resulted in a record backlog of committed sales orders for FY 2022.

Management commentary

Audinate’s Co-founder and CEO, Aidan Williams, commented: “We are pleased with the FY21 revenue performance and the resilience of the business in the face of COVID related challenges over the last 15 months. The recent launch of the first Dante video products manufactured by our customers was another substantial milestone and market feedback has been encouraging. While Audinate and our manufacturing customers have successfully navigated supply chain challenges to date, we expect continued uncertainty throughout the remainder of CY21.”

Commenting on its outlook, Williams said: “The strong finish to the year, together with the record backlog of sales orders, means that Audinate is well placed to return to US$ revenue growth in the historical range and consistent with current market expectations in FY22.”

The post Audinate (ASX:AD8) share price jumps 6% on FY 2021 update 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 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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The Woolworths Group Ltd (ASX: WOW) share price finished the day yesterday up 1.74%, closing at $38.55 per share.

Following a 1.94% gain on Wednesday, Woolies is trading at all-time highs.

In fact, the Woolworth share price is now 4.7% above where it was trading before COVID-19 torpedoed global markets. On 21 February 2020, Woolies closed at $36.81, at the time also a new record.

What now?

Some leading analysts believe the Woolworths share price may have be getting a little dear.

Credit Suisse, for example, downgraded Woolies to “underperform”. In a note, the broker pointed out Woolies is at a price to earnings (P/E) ratio of 30 times of its estimated 2022 financial year earnings.

Goldman Sachs, noting Woolies decision to divest its liquor and gaming business – now Endeavour Group Ltd (ASX: EDV) – also downgraded it to “neutral” with a price target of $36.80 per share. That’s about 4.6% below the current Woolworths share price.

Brad Banducci, Woolies’ CEO, likely has some different ideas about his company’s future value. As my Foolish colleague Mitchell Lawler wrote, Banducci plans “to generate additional revenue streams by building out the company’s retail, supply chain and rewards segments”.

Woolies already has a lengthy track record of doing so, including major expansions of its e-commerce platforms.

How has Woolworth’s share price moved this year?

The Woolworth’s share price is up 13.8% year-to-date. That handily outpaces the 9.8% gains posted by the S&P/ASX 200 Index (ASX: XJO).

At the current share price, Woolies has a market cap of $48 billion. The company pays a dividend yield of 2.7%, fully franked.

The post Where to next for the Woolworths (ASX:WOW) share price? appeared first on The Motley Fool Australia.

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• Here’s what leading brokers say about the Woolworths (ASX:WOW) share price in July
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