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The S&P/ASX 200 Index (ASX: XJO) is back on form and charging higher on Wednesday. In afternoon trade, the benchmark index is up 0.75% to 7,315.4 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are charging higher:

Afterpay Ltd (ASX: APT)

The Afterpay share price is up 4% to $119.51. This appears to have been driven by a solid night of trade on the tech-heavy Nasdaq index following the softening of bond yields. It isn’t just the Afterpay share price pushing higher. The S&P/ASX All Technology Index (ASX: XTX) is up a sizeable 2.3% at the time of writing.

Challenger Ltd (ASX: CGF)

The Challenger share price has jumped 8% to $5.93. Investors have been buying the annuities company’s shares after it announced a new major shareholder. This follows the signing of an agreement by US-based retirement services company Athene to acquire a 15% minority interest in Challenger from Caledonia (Private) Investments. Athene paid $6.00 per share, which represents a premium of 9.7% to Challenger’s last close price.

Mydeal.ComAu Pty Ltd (ASX: MYD)

The MyDeal share price is up 7% to 68.5 cents. Investors have been buying the ecommerce company’s shares following the release of its full year sales update. According to the release, MyDeal achieved gross sales of $218.1 million for the 12 months ended 30 June. This represents a 111.1% increase over the prior corresponding period. Management advised that this was driven by an 83.1% increase in customer numbers to 894,225.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is up 3% to $1.90. This appears to have been driven by a rise in the gold price overnight. This follows the easing of bond yields on Tuesday night, which has given the precious metal and gold miners a boost. At the time of writing, the S&P/ASX All Ords Gold index is up 1.35%.

The post Why Afterpay, Challenger, MyDeal, & St Barbara shares are charging higher appeared first on The Motley Fool Australia.

More reading

• Here’s what leading brokers are saying about the Afterpay (ASX:APT) share price in July 2021
• ASX 200 up 0.55%: Challenger jumps, Nanosonics sinks
• Challenger (ASX:CGF) share price jumps 14% on Athene/Apollo news
• Why the MyDeal (ASX:MYD) share price is jumping 20% today
• Got Sezzle (ASX:SZL) shares? What’s in store for FY22?

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 AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Challenger 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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Three of Australia’s big-name ASX travel shares are in the red today after the New South Wales Government announced the Sydney lockdown would be extended for another 7 days.

At the time of writing, shares in Qantas Airways Limited (ASX: QAN), Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB) are trading between 1.02% and 0.38% lower. The slide comes against the backdrop of a rising market, with the S&P/ASX 200 Index (ASX: XJO) currently 0.64% higher.

Media outlets including the ABC reported late last night that the government would extend the current, city-wide stay-at-home orders until 6pm on Friday, 16 July. This was confirmed by NSW Premier Gladys Berejiklian in a press conference this morning.

The continuing restrictions come after NSW recorded 27 COVID-19 cases in the 24 hours up to 8pm last night. It’s the 15th consecutive day of double-digit case numbers in the state.

Lockdown impacts on the travel industry

The 3 ASX travel shares also tumbled after the harbour city’s stay-at-home was first ordered almost two weeks ago and restrictions across the country widened. Qantas and Webjet fell more than 4% after the lockdown news, with Flight Centre sliding more than 3%.

Currently, every state and territory in Australia, as well as New Zealand, has some form of restriction on travellers from Sydney entering their jurisdictions.

It’s worth noting that the initial lockdown came at the beginning of school holidays in NSW – a time that usually sees a surge in travel demand as families look to escape the winter cold or embrace it with trips to the snow. The forthcoming extended restrictions will coincide with the first week of school, possibly resulting in a less severe impact on travel companies.

With the latest rise in COVID cases – together with Australia’s sluggish vaccine rollout – it appears ASX travel shares investors will continue to have to deal with unpredictable times.

ASX travel shares snapshot

In March 2020, when the initial stages of the pandemic sent the ASX market head into freefall, the travel sector was hit especially hard. Many shares, including Qantas and Flight Centre, still have not returned to their pre-coronavirus levels.

However, over the past 12 months, all 3 ASX travel shares have regained ground – ranging from a 33% upswing for Qantas to a 56% improvement for Webjet. Flight Centre shares are up 43% over the last 52 weeks.

The post ASX travel shares slip as Sydney lockdown extends for another week appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted shares on the ASX
• Flight Centre (ASX:FLT) share price continues to climb today
• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• Webjet (ASX:WEB) share price jumps on new four-step COVID-19 plan
• 3 worst ASX travel shares of financial year 2021

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 Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Tabcorp Holdings Ltd (ASX: TAH) demerger/spin-off saga has taken another turn this week.

The events come after Tabcorp chair Steven Gregg stated on Monday the company would rather spin off its struggling wagering division rather than accepting the offers from bidders currently at the table.

At the time of writing, Tabcorp shares are down 1.2% on the day, having started the morning in the green.

Let’s take a look at what has unfolded since the last update.

To demerge, or not to demerge? That is the question

After careful review, the Tabcorp board decided on a demerger and sales of operations. The board also chose not to divest its wagering and media arm, including its TAB segment and Sky Racing media networks.

Despite bidders Entain and Apollo Global Management each putting down hefty $3.5 billion competing offers, Gregg and the Tabcorp board ultimately want the suitors to bear more of the financial risk in the transaction.

Gregg also cited reasons for the lack of certainty on completing either transaction due to the plethora of mandated, regulatory checkpoints that must be adhered to in order to finalise the sale.

A sale would have meant more red tape, more third-party approvals and changes to the legislature in NSW, all factors that would have extended the time and uncertainty around the situation, Gregg said.

The demerger ultimately spawns two Sydney businesses, known separately as Lotteries & KenoCo and Wagering & GamingCo.

Tabcorp has said it remains open to revised offers from bidders but, until then, the lotteries demerger is expected to be completed by midway next year.

Analysts at Credit Suisse believe Entain has the pricing power to overcome the regulatory red tape and that Tabcorp’s decision may create further uncertainty:

Tabcorp stated that it would like to see more certainty and more value in the proposals…so, the demerger phrasing, by suggesting inadequacy of value, ironically added uncertainty.

In a release on Monday, bookmaking giant Entain stated that their offer:

…would have delivered superior outcomes for shareholders, customers employees and the wider industry.

Entain sees no reason to proceed with the sale at a higher valuation and Apollo Management is also considering its position.

Tabcorp share price summary

At the time of writing, the Tabcorp share price has dipped 5.7% into the red, extending a 5% loss over the last 1 month.

However, Tabcorp shares are up 25% this year-to-date, building on a 12-month return of 47% at the time of writing.

At the current share price, Tabcorp has a market capitalisation of $10.8 billion. The company also pays a 15 cents per share dividend, fully-franked, giving a dividend yield of 1.54%.

The Tabcorp share price is trading off its 52-week high of $5.30 and shares have slipped from $5.20 at Friday’s close to the current trading price of $4.87.

The post Here’s the latest on the Tabcorp (ASX:TAH) demerger/spin-off battle appeared first on The Motley Fool Australia.

More reading

• The 3 ASX shares that top brokers just upgraded to “buy”
• Why Australian Ethical, Clinuvel, Liontown Resources, & Tabcorp shares are dropping
• Why A2 Milk, Airtasker, BetMakers, & Sydney Airport shares are storming higher
• Why the BetMakers (ASX:BET) share price is up 5% at lunchtime
• ASX 200 up 0.1%: Sydney Airport takeover, Tabcorp demerger, a2 Milk jumps

The author Zach Bristow holds 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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The S&P/ASX 200 Index (ASX: XJO) is having a decent day on the markets today. At the time of writing, the ASX 200 is currently up 0.65% to 7,309 points. One ASX 200 share that’s pulling more than its weight today is the A2 Milk Company Ltd (ASX: A2M) share price. A2 Milk shares are presently up a very robust 4.19% to $6.97 a share.

This latest gain is just another positive move in what has been a top month or two. Remember, A2 shares hit a multi-year low of $5.04 back in mid-May. After today’s move, the company is now up more than 35% from those lows. In saying that, the company is still very much in the red if we zoom out further than that. This time last year, A2 was a $20 share, and is still down almost 65% from those highs today.

A2 Milk share price recovers further

But that’s too depressing to discuss any further! So what’s going on with A2 Milk today that might prompt such a decisive move upwards? Well, it’s not due to any company announcements or updates today, so let’s take that out of the equation. A2 hasn’t given investors any news since its Monday announcement that the New Zealand Overseas Investment Office had given the green light for the company’s proposed acquisition of a 75% interest in Mataura Valley Milk. But it might be this announcement that is continuing to see investors hit the buy button on A2 shares. After all, the A2 share price is up 5.7% since Monday morning.

But we’ve also seen A2 getting some love from brokers and fund managers as well in recent days. Just yesterday, my Fool colleague Tony reported on how Watermark Funds Management chief investment officer Justin Braitling singled out A2 shares as “a strong buy”. And last week, my Fool colleague James looked at Bell Potter’s latest ‘buy’ recommendation for A2, complete with a 12-month price target of $8.50. This may also be contributing to A2 shares’ success today.

At the current share price, A2 Milk Company has a market capitalisation of $4.97 billion, and a price-to-earnings (P/E) ratio of 16.67.

The post Why the A2 Milk (ASX:A2M) share price is up more than 3% today appeared first on The Motley Fool Australia.

More reading

• ASX 200 up 0.55%: Challenger jumps, Nanosonics sinks
• 5 things to watch on the ASX 200 on Wednesday
• 2 ASX 200 shares that could be buys for dividends
• 5 worst-performing ASX 200 healthcare shares of FY21
• Forget CBA! Here are the 5 best performing ASX bank shares of FY21

Motley Fool contributor Sebastian Bowen owns shares in 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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Afterpay Ltd (ASX: APT) has been underwhelming for shareholders in 2021, with the Afterpay share price slipping 2.7% so far this year

In light of this, it’s no surprise that investors will be interested to know what analysts think the Afterpay share price is going to do next.

What are leading brokers saying about the Afterpay share price?

Currently, the Afterpay share price is wearing a $115 price tag, but some leading brokers think there could be an upside to the buy now, pay later (BNPL) provider.

For example, analysts over at Ord Minnett have retained their buy rating and $150 price target on the payment company’s shares. That would indicate a potential upside of 30% according to the broker.

Ord Minnett is bullish on the Afterpay share price following the company expanding its pay anywhere offering in the United States to 12 of the country’s biggest retailers. This includes the likes of Amazon.com, Inc. (NASDAQ: AMZN), Dell Technologies Inc (NYSE: DELL), Nike Inc (NYSE: NKE), and Target Corporation (NYSE: TGT). Collectively these 12 retailers account for almost half of all online retail volume in the market.

Another broker’s take on Afterpay

Not all brokers are on the same page of the Afterpay share price book though. A note out from UBS writes a much redder story.

The broker holds a sell rating with a price target of $42. This would suggest a potential downside of nearly 64%.

While the analysts conferred the recent pay anywhere offering is a positive move, they still consider Afterpay shares to be considerably overvalued at current levels.

Somewhere in between

Finally, analysts over at Macquarie recently provided their 2 cents worth on where the Afterpay share price could be going next.

The broker retained an outperform rating, envisaging further catalysts beyond the US affiliate program which could drive a re-rating. These included the company’s money management app, Afterpay Money, set to launch in Q1 2022; a new reward scheme, the roll-out across the European Union, and offshore investments.

As a result, the broker increased its FY22-23 revenue estimates by 2% to 6% and raised its own price target from $120 to $140 a share.

Macquarie analysts conceded that while the company’s shares no longer look “cheap” compared to peers in the BNPL space, they don’t look expensive either.

The post Here’s what leading brokers are saying about the Afterpay (ASX:APT) share price in July 2021 appeared first on The Motley Fool Australia.

More reading

• ASX 200 up 0.55%: Challenger jumps, Nanosonics sinks
• Got Sezzle (ASX:SZL) shares? What’s in store for FY22?
• Here are the 5 best performing ASX 200 tech shares from FY21
• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• Top brokers name 3 ASX shares to sell next week

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO and Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Amazon, and Nike. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 owns shares of and has recommended AFTERPAY T FPO and Macquarie Group Limited. The Motley Fool Australia has recommended Amazon and Nike. 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 BWX Ltd (ASX: BWX) share price is in the red this morning.

Shares in the natural skincare company are trading lower following an announcement earlier today.

Let’s take a look at what BWX announced and why investors are jumping out.  

BWX finalises strategic partnership with Chemist Warehouse

Earlier today, BWX confirmed its strategic partnership with Chemist Warehouse Group.

The company announced that a second tranche of BWX shares was issued to Chemist Warehouse Group. A total of 881,613 shares were issued in connection with a 5-year equity-linked strategic partnership.

More on the strategic partnership with Chemist Warehouse

The strategic partnership with Chemist Warehouse is not news to BWX shareholders.

Earlier this year, BWX announced a strategic partnership with Chemist Warehouse Group. Under the agreement, BWX will become a platinum supplier to Chemist Warehouse.

The 5-year commercial partnership will see the entire range of BWX products (Sukin, Andalou, Mineral Fusion and private-label brand Life Basics) available through the Chemist Warehouse online store.

In addition, BWX’s brands will have an increased presence in Chemist Warehouse stores with expanded shelf space for its natural products.

The company’s management highlighted the partnership is expected to result in positive earnings-per-share (EPS) growth.

In return, Chemist Warehouse will gain an initial equity stake of 0.6% in BWX. The holding is subject to increase to 2.4% of the BWX share capital, based on an agreement of performance targets.

BWX issued the first tranche of shares in March, equating to 881,613 shares.   

Snapshot of the BWX share price

The BWX share price has performed relatively strongly in 2021, currently trading more than 19% higher year to date.

Shares in the natural wellness and beauty company have been fuelled by a strong half-year report and acquisition of Flora and Fauna.

The BWX share price hit a 52-week-high of $5.63 in mid-June and has consolidated lower since then.

Following today’s announcement, the BWX share price tumbled more than 3% lower, hitting an intra-day low of $4.78. At the time of writing, shares in BWX have recovered and are slightly lower for the day, trading at around $4.88.

The post BWX (ASX:BWX) shares slide on strategic acquisition appeared first on The Motley Fool Australia.

More reading

• Why BWX, IPH, Novatti, & QBE shares are dropping
• BWX (ASX:BWX) share price drops after completing acquisition

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BWX 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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At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) has overcome a soft start and is charging higher. The benchmark index is currently up 0.55% to 7,302 points.

Here’s what is happening on the market today:

Challenger shares jump on investment news

The Challenger Ltd (ASX: CGF) share price is racing higher today after announcing a new major shareholder. According to the release, leading US-based retirement services company Athene has agreed to acquire a 15% minority interest in Challenger from Caledonia (Private) Investments. Athene paid $6.00 per share, which represents a premium of 9.7% to Challenger’s last close price. It sees attractive long-term opportunities in partnering with and supporting Challenger’s continued growth.

Nanosonics shares sink on broker downgrade

The Nanosonics Ltd (ASX: NAN) share price is sinking on Wednesday after being the subject of a bearish broker note out of Goldman Sachs. According to the note, the broker has downgraded the infection prevention company’s shares to a sell rating and cut the price target on them to $4.93. Goldman made the move after reducing its earnings estimates on the belief that the growth recovery may be shallower than its previous expectations. It also warned that there could be competitive risks from new technologies.

Tech shares storm higher

A number of tech shares are recording strong gains on Wednesday following a positive night of trade on the tech-focused Nasdaq index. The likes of Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) are trading notably higher, helping to drive the S&P/ASX All Technology Index (ASX: XTX) up a sizeable 2.3% at lunch.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the Challenger share price with a 10% gain. This follows news that Athene has acquired a 15% stake in the annuities company. The worst performer has been the Nanosonics share price with a 6% decline following its broker downgrade. After which, the next worst performer is the Oil Search Ltd (ASX: OSH) share price with a decline of over 3%. This follows a sharp pullback in oil prices overnight.

The post ASX 200 up 0.55%: Challenger jumps, Nanosonics sinks appeared first on The Motley Fool Australia.

More reading

• Challenger (ASX:CGF) share price jumps 14% on Athene/Apollo news
• Nanosonics (ASX:NAN) share price sinks 7% on broker downgrade
• Why Zip (ASX:Z1P) and this ASX growth share could be buys
• 5 things to watch on the ASX 200 on Wednesday
• 2 ASX 200 shares that could be buys for dividends

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 AFTERPAY T FPO, Nanosonics Limited, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, Challenger Limited, and Nanosonics 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 Cimic Group Ltd (ASX: CIM) share price is climbing during late morning trade.

This follows the engineering company’s announcement that its 50%-owned subsidiary Ventia has been awarded a government contract.

At the time of writing, Cimic shares are fetching $19.88, up 0.51%.

Details of the contract

In today’s statement, Cimic advised that the South Australian government has selected Ventia for a facilities management contract.

The Across Government Facilities Management Arrangement (AGFMA) is focused on the maintenance, management and improvement of government-owned facilities. This includes building assets that underpin essential community services such as schools, hospitals, and police stations.

Ventia is expecting to receive roughly $300 million annual revenue from the deal. The AGFMA will run over an initial period of 5 years and 7 months, with potentially three 2-year extensions.

Transition activities for the contract are scheduled to begin in July with operations commencing in December this year.

Ventia group CEO Dean Banks touched on the award, saying:

South Australians rely on the essential services delivered at more than 3,500 Government locations across the state and Ventia is pleased to support the government of South Australia with the delivery of facility management services to the community, 7 days a week, 365 days a year.

Ventia’s group executive of defence and social infrastructure Derek Osborn added:

Ventia is looking forward to partnering with local small to medium businesses to help us deliver these services, keeping investment and employment in South Australia.

Ventia is also passionate about providing apprenticeships in various trades, as well as ensuring our employment opportunities focus on delivering a diverse and inclusive workforce.

More on Ventia and the Cimic share price

Ventia is a 50/50 investment partnership between Cimic and funds managed by affiliates of Apollo Global Management.

Ventia is a leading essential and infrastructure services provider in Australia and New Zealand, operating across 400 locations.

The subsidiary operates in a variety of sectors including transport, telecommunications, utilities, defence, water, energy, resources, and social infrastructure.

The Cimic share price has lost more than 15% over the last 12 months and is down 18% in 2021.

The post Why the Cimic (ASX:CIM) share price is in positive territory today appeared first on The Motley Fool Australia.

More reading

• Why the Cimic (ASX:CIM) share price is edging higher 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. 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 S&P/ASX 200 Index (ASX: XJO) is having a pretty decent start to this Wednesday’s trading session. At the time of writing, the ASX 200 is up 0.33% so far today to 7,285 points. But there’s one ASX company out there doing far better than that today. The Xero Limited (ASX: XRO) share price has had its Weetbix this morning, and is currently up 2.70% to $135.75 a share.

Investors will no doubt be pleased with this initial move today. After a couple of years of neck-turning growth, Xero has been somewhat stuck in the mud in 2021 so far. Remember, this is a company that was up roughly 80% in 2020, and before that, around 90% over 2019. But in 2021 so far, Xero shares are down a touch over 8% year to date. Not exactly what investors have come to expect from this cloud accounting software provider.

But enough dwelling on the past. So what’s going on with the Xero share price today?

Xero share price on the move

Unfortunately, it’s not exactly clear. There are no official news or announcements out of Xero today. Well, apart from some paperwork outlining how some of Xero’s restricted stock units have lapsed. But that’s hardly market moving stuff by conventional wisdom.

Another factor at play here could be broker bullishness on Xero. As my Fool colleague James reported on Monday, investment bank broker Goldman Sachs is currently rating Xero shares as a ‘buy’, with a 12-month price target of $151 a share for Xero. That implies a potential future upside of 11.6%, even after today’s gains. It’s possible that this optimism is feeding into the Xero share price gains today.

Finally, it’s worth noting that ASX tech shares across the board are enjoying healthy rises today. The S&P/ASX All Technology Index (ASX: XTX) is currently up a robust 2.26%, with major ASX tech shares like Afterpay Ltd (ASX: APT), Zip Co Ltd (ASX: Z1P) and WiseTech Global Ltd (ASX: WTC) all enjoying gains of more than 2% today so far.

At the current Xero share price, the company has a market capitalisation of $20.18 billion and a price-to-earnings (P/E) ratio of 1,059.6.

The post The Xero (ASX:XRO) share price is up 3% today. What’s going on? appeared first on The Motley Fool Australia.

More reading

• 2 exciting ASX tech shares tipped as buys
• 2 top ASX 200 shares that might be buys today
• Here are the 5 best performing ASX 200 tech shares from FY21
• 5 things to watch on the ASX 200 on Monday
• 2 quality blue chip ASX 200 shares for investors in July

Motley Fool contributor Sebastian Bowen 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 AFTERPAY T FPO, WiseTech Global, Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, WiseTech Global, and 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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Lark Distilling Co Ltd (ASX: LRK) shares have started this morning’s session with a bang after the company released its investor presentation to the market late yesterday. At the time of writing, the Lark share price is soaring 21.91% higher to $3.95.

At one point during early morning trade, Lark shares had jumped by almost 26% to a new all-time high of $4.08 before partially retreating.

Let’s take a closer look at what’s behind the company’s share price movement today.

Investor presentation shows fuel in the growth engine

Investors are driving up the Lark share price this morning after the company released its 10-page investor summary. The update briefly outlined sales performance for the quarter, but also provided guidance on the value of Lark Distilling’s whisky which is still maturing.

Quoting from the numbers, Lark had a total of 1,093,073 litres of whisky “under maturation”, which constitutes a 54% growth year on year.

Further, the company also achieved an average net sales value of $216/litre, 55% more than the $139/litre earned at the same time last year.

Consequently, the company stated the value of its whisky under maturation for the end of FY21 was over $236 million, up 139% from the year previous.

Lark provided FY22 guidance that called for a 55% year-on-year growth schedule, assuming a value of whisky under maturation of $388.8 million at the end of FY22.

The market seems to have welcomed these results from the company, with the Lark share price shooting to new all-time highs.

Lark shares have jumped on positive financial reports in the past, with the share price hitting a 52-week high back in March following the release of the company’s half-year accounts.

Lark share price snapshot

Today’s gains extend an impressive run for Lark shares this year to date. Since 1 January, the Lark share price has returned more than 160%, outpacing the almost 11% returns of the S&P/ASX 200 Index (ASX: XJO) over this time.

Lark shares have a 12-month return of almost 300%, again outpacing the broad index’s return of ~21% for this time period.

Over the previous 1 month, the Lark share price has remained in the green by ~33%, and has climbed by around 22% in the previous 5 trading sessions.

At the current market price, Lark Distilling has a market capitalisation of around $245 million. Its shares have a 52-week range of 96.5 cents to $4.08, hitting their 52-week high this morning.

The post Why the Lark (ASX:LRK) share price just jumped 26% to a new all-time high appeared first on The Motley Fool Australia.

More reading

• Butn (ASX:BTN) share price edges higher following IPO
• CBA (ASX:CBA) economists expect inflation sooner than RBA
• Challenger (ASX:CGF) share price jumps 14% on Athene/Apollo news
• Why eBay gained 15% in June
• Why the CleanSpace (ASX:CSX) share price is freefalling 23% today

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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