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Resource Development Group Ltd (ASX: RDG) shares were riding a wave of optimism today after the company announced a significant increase in its mineral resource estimate. By Thursday’s market close, the Resource Development share price was trading 14.29% higher at 4.8 cents.

What boosted Resource Development shares?

The Resource Development share price jumped by around 40% to an intraday high of 5.9 cents following the company’s latest announcement.

Resource Development advised that its wholly-owned Lucky Bay Garnet project, which is located between the coastal towns of Kalbarri and Port Gregory in Western Australia, reported an increase of mineral resource tonnage of 1,808% from 23Mt to 438.8Mt. Its total mineral resource of garnet increased an incredible 1,520% from 1Mt to 16.2Mt.

The company further advised that 86% of mineral resource tonnage (379.5Mt) has been classified as indicated and measured. This means the company has undergone enough sampling to have a high degree of confidence in the grade, quantity, and physical characteristics of the mineral. 

What’s the significance of the Lucky Bay project?

Resource Development acquired Lucky Bay in February 2021. According to the company, the location — 580km from Perth — shares a common border with the world’s largest supplier of high-quality alluvial garnet.

The company clarified that high-quality alluvial garnet products are used in the abrasive blasting and waterjet cutting markets. Resource Development believes there are opportunities to supply the coarse-grade version of the product, which it says is undersupplied.

What did management say?

Resource Development Group managing director Andrew Ellison is confident in progressing the business to project development studies. He said:

This significant Mineral Resource upgrade is an outstanding result and confirms the upside potential we identified when RDG first evaluated the potential at Lucky Bay. With 86% of the Mineral Resource in the Measured and Indicated categories, we can proceed with project development studies with a high level of confidence.

First production is being targeted for early 2022.

Resource Development share price snapshot

Despite today’s gains, the Resource Development share price has fallen by almost 6% so far this year. It has, however, gained around 55% over the past 12 months.

Based on the current share price, the company has a market capitalisation of around $135 million.

The post Why the Resource Development (ASX:RDG) share price climbed 14% today appeared first on The Motley Fool Australia.

More reading

• Sezzle (ASX:SZL) share price jumps 5.2% during intraday trade
• Westpac (ASX:WBC) share price slides despite asset sale update
• The 5 worst performing shares of the ASX 200 in FY21 revealed
• Why the Sovereign Metals (ASX:SVM) share price spiked today
• Here are the 3 most traded ASX 200 shares on the market today

Motley Fool contributor Frank Tzimas 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 Sezzle Inc (ASX: SZL) share price finished in the green today, climbing 2.27% from the market open.

Shares in the buy now, pay later provider leapt 5.2% to reach an intraday high of $9.26 just before 1pm, before pulling back to end the day at $9.01.

Let’s take a look at some of the price action today.

Sezzle and Barstool Sports partnership

In a statement on 29 June, the company announced it had entered into a partnership with United States hospitality and entertainment company Barstool Sports.

Under the agreement, Sezzle will undertake marketing promotions to Barstool audiences.

Sezzle chief executive officer Charlie Youakim said Barstool Sports is “a brand that epitomises consumerism of the new generation”, and Sezzle is a company that promotes “product innovation that reaches the needs of young shoppers”.

Youakim also mentioned that “Barstool Sports provides a bridge to millions of brand-loyal consumers looking to redefine payments”.

Also speaking about the agreement, Barstool CRO Deirdre Lester said:

We chose Sezzle because they are not simply a payments company but a marketing organisation that speaks the language of our fans.

They provide a highly rated payments solution for our e-commerce business as well as reaching fans across several of our marquee brands and shows.

Sezzle share price snapshot

The Sezzle share price has posted a gain of around 46% since 1 January, which has outpaced the S&P/ASX 200 Index (ASX: XJO) return of 10% over the same period.

Over the previous month, Sezzle shares have gained about 20%. However, they are in the red by almost 1% over the past 5 trading days.

At its current share price, Sezzle has a market capitalisation of $932 million, and the share price is trading off its 52-week high of $11.99.

The 52-week range for Sezzle shares is $4.02 – $11.99.

The post Sezzle (ASX:SZL) share price jumps 5.2% during intraday trade appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Sezzle Inc. The Motley Fool Australia has recommended Sezzle Inc. 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 Westpac Banking Corp (ASX: WBC) share price has started the new financial year in a disappointing fashion despite the release of an asset sale update.

The banking giant’s shares ended the day with a 0.6% decline to $25.65.

What did Westpac announce?

This morning Australia’s oldest bank announced the completion of the sale of the Westpac General Insurance Limited and Westpac General Insurance Services Limited businesses to insurance giant Allianz.

According to the release, the company has received $725 million for the businesses and the two parties have also entered into an exclusive 20-year agreement for the distribution of general insurance products to Westpac’s customers.

The release advises that a further payment of $25 million is expected to be received by Westpac this calendar year, subject to integration milestones. Further contingent payments over the next five years are expected, in addition to ongoing payments under the distribution agreement.

What now?

Westpac revealed that it expects to report a gain on sale of approximately $61 million, subject to the finalisation of completion adjustments and separation costs. This gain on sale will be included in Westpac’s FY 2021 results and classified as a notable item.

In the meantime, the sale has added approximately 12 basis points to Westpac’s common equity Tier 1 capital ratio.

Why did Westpac sell the businesses?

When the deal was first announced in December, Westpac advised that it was part of its strategy to build a simpler, stronger bank.

Westpac Chief Executive Officer, Peter King, explained: “This transaction is another step in simplifying our business while continuing to help customers with their general insurance needs. General Insurance products are important for many Australians and we are pleased to be entering a long-term partnership with a global insurance expert to continue to help customers protect the things they value.”

Despite today’s weakness, the Westpac share price is up over 30% since the start of the year.

The post Westpac (ASX:WBC) share price slides despite asset sale update appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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 one of the most popular indices in Australia. It tracks the performance of the top 200 companies listed on the Australian Securities Exchange and provides a benchmark for investors looking to invest in shares of companies that are listed on it. However, not all ASX shares perform equally – some do better than others.

While it may not be crucial over the long term, reflecting on the performance over a financial year can help investors assess the quality of their investments.

We have compiled the 5 worst-performing shares of FY21, based on their share price return during that period. Prepare yourself, this one ain’t pretty…

ASX 200 shares that destroyed wealth in FY21

When it just hasn’t been your day, your week, your month, or even your financial year, it’s unpleasant. And these 5 companies had a particularly unfortunate time of it in FY21.

Now not every investment is a winner (unless you’re a wizard), which demonstrates the importance of diversification. But hopefully, a bit of diversification has helped most investors avoid having had too much exposure to any one of the following ASX 200 shares.

St Barbara Ltd (ASX: SBM)

St Barbara is an ASX-listed gold mining company with operations in Australia, Canada, and Papua New Guinea. The miner estimated it had 12 million ounces of mineral resources, including ore reserves of 6 million ounces of contained gold at 30 June 2020.

Falling production and increasing all-in sustaining costs (AISC) weighed on the St Barbara share price during the last financial year. In April, quarterly production had reportedly dropped 8.2% to 82,303 ounces compared to the December quarter.

Since then, the miner has suffered a tragic fatality at its Simberi operations, discovered tailing pipeline failure, and withdrawn its full-year guidance.

Unsurprisingly, these events have been met with selling pressure. Tallying up the damage, this ASX 200 share fell 48% in FY21.

AGL Energy Limited (ASX: AGL)

The $5 billion energy giant that is AGL has endured a continuation of its multi-year selloff. Unfortunately for investors, the increase in generation from solar and wind alternatives has pushed wholesale electricity prices lower. At the same time, AGL’s operating costs have been inflated by maintenance and repairs.

Furthermore, the energy provider’s plans for a demerger have some analysts unimpressed. Analysts over at UBS retained their sell rating expecting material headwinds for the company ahead. So much so, it suspects the company could report a 42% earnings decline in FY 2022. 

The ASX 200 energy share plummeted from $17.18 on 1 July 2020 to just $8.22 on 30 June 2021. Therefore, the company’s share price fell 52% over the course of FY21.

Regis Resources Limited (ASX: RRL)

Moving onto the third poorest performer on the list. Regis Resources is an Australian gold miner operating mines in Western Australia. While other commodities and resources have been performing strongly, gold has slid 8% in Australian dollar terms over the past year.

Additionally, shareholders were diluted by roughly 48% in the past year. Most of this dilution was a result of Regis issuing approximately 241 million new shares to raise $650 million. These funds were put towards acquiring a 30% holding in the Tropicana Gold Project.

These impacts combined pushed the Regis Resources share price down 57% in FY21.

Appen Ltd (ASX: APX)

Data annotation technology company Appen spices up the worst performers for FY21. Despite the S&P/ASX All Technology Index (ASX: XTX) climbing 37% during the financial year, the WAAAX stock member bucked the trend with a 60% decline.

In December, Appen issued a guidance downgrade. Due to a sluggish fourth quarter, the company revealed that it expected underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) for its 2020 fiscal year to be between $106 million and $109 million. This was a drop from the original guidance of between $125 million and $130 million.

Furthermore, the disappointment spilled over to the quarterly rebalancing where Appen found itself thrown out of the ASX 100.

Things for the artificial intelligence annotator have been fairly quiet since its annual general meeting back in May. During the meeting, shareholders voted against the remuneration report, giving the company its first strike.

A2 Milk Company Ltd (ASX: A2M)

Lastly, the pièce de résistance of poor performers in FY21 — none other than the former ASX darling A2 Milk. The A1 protein absent milk producer has suffered during international travel restrictions. Namely the company’s once-booming infant formula segment.

The last trading conditions have been tough, and there was a surplus of inventory. In the end, NZ$103 million to NZ$113 million in inventory will need to be written off (that’s going to be quite a lot of tins). This led the company’s management team to downgrade their guidance for FY21 for the fourth time.

For these reasons, this once shining ASX 200 share dulled in the financial year. By the end of it, the A2 Milk share price slashed 68% off.

The post The 5 worst performing shares of the ASX 200 in FY21 revealed appeared first on The Motley Fool Australia.

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• Meet the best performing ASX 200 shares of FY21. Are yours on the list?

Motley Fool contributor Mitchell Lawler owns shares of Appen Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Sovereign Metals Limited (ASX: SVM) share price struggled to hold onto its gains today after surging 11.6% higher this morning to 71.5 cents. At market close, shares in the rutile explorer were sitting at 65 cents, up only 1.56%.

The company announced a broker briefing presentation this morning, which might have influenced the rally this morning.

What was announced?

The Sovereign Metals share price enjoyed a strong rally this morning after the explorer advised it has in its possession a “company making asset” in the Kasiya rutile deposit in Malawi.

Previously, on 9 June, Sovereign Metals released a maiden resource estimate for Kasiya, with assay results revealing 644 million tonnes at 1.01% rutile, including 137 metric tonnes at 1.41% rutile.

The positive announcement witnessed the Sovereign Metals share price surge 13% on the day to a record close of 77 cents.

According to today’s presentation, the company is accelerating its work programs in order to meet key short-term objectives at Kasiya.

This includes aggressive drilling programs to drive additional resource growth and extensions, as well as a scoping study, which is expected to be completed in late 2021.

While the Kasiya deposit is still in an exploration phase, the company highlighted Malawi as a “stable, transparent jurisdiction” with “operation-ready infrastructure”.

In addition, Sovereign Metals has a memorandum of understanding in place with rail and port operators to, in the future, export to global rutile markets.

Sovereign Metals share price rallies in 2021

The Sovereign Metals share price has rallied by more than 75% year to date.

The company believes there is “the perfect storm” to support rutile prices in both the short, medium and long term.

It pointed to factors including, a “resurgence in demand for titanium pigment and from the welding sector” as well as “strong market fundamentals driving a robust long-term price”.

The post Why the Sovereign Metals (ASX:SVM) share price spiked today appeared first on The Motley Fool Australia.

More reading

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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 S&P/ASX 200 Index (ASX: XJO) didn’t have a great day today, finishing down 0.40% to 7,280 points.

Let’s check out the most traded ASX 200 shares on the market today.

The 3 most traded ASX 200 shares today

Nuix Ltd (ASX: NXL)

Coming in at third place is embattled ASX 200 tech share Nuix, with just over 8 million shares traded today.

This is probably the result of the Nuix share price performance so far.

Nuix shares closed at $2.33, up a hefty 5.43% today. This is a rebound from yesterday when the company lost more than 13% and hit yet another all-time low of $1.26.

The news that prompted this slide seemed to be allegations that one of Nuix’s former executives engaged in insider trading offences. Evidently, at least some investors thought yesterday’s low presented a buying opportunity today.

Boral Limited (ASX: BLD)

Construction materials company, Boral is another ASX 200 share that was popular on the ASX today.

Almost 13.5 million shares changed owners today. This is despite the Boral share price rising just 0.14% to $7.36.

However, the company did hit a new 52-week high of $7.40 in intraday trading yesterday.

Boral is the subject of a takeover bid by Seven Group Holdings Ltd (ASX: SVW).

Telstra Corporation Ltd (ASX: TLS)

The king of the ASX 200 today was once again ASX telco, Telstra with 48.7 million shares traded by the closing bell.

There is no major news out of the company today. However, Telstra was the talk of the town yesterday when it announced that it would be selling half of its mobile towers business for $2.8 billion.

The Telstra share price responded enthusiastically, shooting up 4.6% yesterday to a new 52-week high of $3.76.

Today, Telstra finished flat at $3.76, after hitting another new 52-week high of $3.79 earlier in the afternoon.

The post Here are the 3 most traded ASX 200 shares on the market today appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Wesfarmers Ltd (ASX: WES) share price delivered a solid 6.70% gain last month.

Shares in the diversified conglomerate hit an all-time record high of $59.60 just before the finish line on 30 June.

Let’s take a look at what drove the Wesfarmers share price to yet another record high.

Strategy briefing day

Wesfarmers’ strategy briefing day presentation on 23 June was its first price-sensitive announcement since the February reporting season.

The presentation brought to our attention a number of initiatives the company believes will provide a meaningful return to its shareholders.

More broadly speaking, this included a focus on developing a market-leading data and digital ecosystem, in order to improve a customer’s shopping experience and make shopping across its businesses more convenient.

The company said it expects to make an incremental investment of ~$100 million across group and divisional initiatives to develop this ecosystem.

Unfortunately, Wesfarmers flagged that its retail business is cycling through tough comparables against 2020 figures, resulting in “significant volatility in monthly sales growth results”.

Wesfarmers said that customer demand has remained strong, but due to increased activity in the previous year, year-on-year growth has slowed and in some cases turned negative for some businesses.

The Wesfarmers share price edged 1.02% lower to $58.12 on the day of the announcement.

Are lockdowns good for the Wesfarmers share price?

Australian COVID-19 cases made a resurgence in late-June, headlined by a growing cluster in New South Wales.

The resulting new lockdown measures and border travel restrictions saw high profile ASX shares often considered as ‘COVID-19’ winners make a comeback.

ASX e-commerce shares were the main beneficiaries with Kogan.com Ltd (ASX: KGN), Redbubble Ltd (ASX: RBL) and Temple & Webster Group Ltd (ASX: TPW) logging strong gains on Monday 28 June.

While some COVID-19 winners have given back Monday’s gains, the Wesfarmers share price has held up relatively well.

Between 28 to 30 June, Wesfarmers shares added 2.4% to close at $59.10.

By the market’s close on the first day of the new financial year, the Wesfarmers share price was trading 0.8% lower for the day at $58.63.

The weakness today was broadly in line with the S&P/ASX 200 Index (ASX: XJO), which slipped 0.65% to 7,265.60.

Don’t forget about Wesfarmers’ dividends

Wesfarmers shares are expected to continue growing their dividends according to Macquarie. The broker forecasts fully franked dividends of $1.74 per share in FY21 and $1.76 per share in FY22.

With the Wesfarmers share price currently fetching $58.63, this implies a yield of 3.00% in FY22.

The post Why the Wesfarmers (ASX:WES) share price hit an all-time high in June 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. owns shares of and has recommended Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd, Macquarie Group Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Hub24 (ASX: HUB) shares lost ground today, finishing the day 4.28% down at $27.29.

The fall came despite the company not releasing any market-sensitive news that could impact the price.

Hub24’s investment and superannuation platform offers a range of investment options, providing transaction and reporting solutions for all types of investors.

What has happened with the Hub24 share price today?

Investors have been unloading the fintech company’s shares today, pushing the trading range from $28.51 – $26.40.

The Hub24 share price hit a new 52-week high of $29.05 on 18 June, and was one of the best-performing ASX shares that week.

Today’s trading volume of 178,576 shares is below the average-volume-at-time (AVAT) of 228,978 shares changing hands over the last 20 days.

Hub24 shares have also traded down over the previous 5 days, posting a loss of 2.78% over this time period. However, the share price is in the green by 1.7% over the past month.

What has Hub24 been up to lately?

There have been no major market announcements from the company in June 2021.

On 10 May 2021, the company said it had completed its joint venture transaction with ClearView Wealth Ltd (ASX: CVW), launching an investor directed portfolio service and additional retirement products.

Speaking about the launch, HUB24’s managing director Andrew Alcock commented:

HUB24’s capability to seamlessly deliver large-scale transitions has once again been proven. The teams across HUB24 and ClearView have been working together to achieve this for ClearView’s customers following the launch of the white label last year. We look forward to continuing to work with ClearView on product development initiatives going forward.

Hub24 share price snapshot

Hub24 shares haves posted a 12-month gain of about 165%, outpacing the S&P/ASX 200 (ASX:XJO) return of 22% over this same time frame.

Since January 1, Hub24’s share price has more than doubled the S&P/ASX 200’s year-to-date return of around 10%, posting a 28% rise.

At the current share price, Hub24 has a market capitalisation of $1.8 billion, and trades at a price-to-earnings ratio of 212.

The post The Hub24 (ASX:HUB) share price took a hit today appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Hub24 Ltd. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The IDP Education Ltd (ASX: IEL) share price will be one to watch on Friday.

This follows the announcement of a major acquisition by the language testing and student placement company after the market close today.

What did IDP Education announce?

This afternoon IDP Education announced that it has entered into a binding agreement to acquire 100% of the British Council’s Indian International English Language Testing System (BC IELTS India) operations for 130 million pounds on a debt free, cash free basis. The company will fund the acquisition from existing cash and debt.

According to the release, IDP Education and the British Council currently both administer IELTS tests in India, operating parallel pan-Indian distribution networks. However, this transaction will bring BC IELTS India operations under IDP Education ownership, establishing a single network that provides the foundation for IELTS to build on its leadership position in India.

Post transaction, IDP Education will be the sole distributor of IELTS in the key Indian market. This is a big positive given that India is the largest IELTS market globally by volume and has exhibited one of the highest country growth rates in recent years. It achieved annual volume growth of approximately 21% between calendar years 2010 and 2019 (prior to the impact of COVID-19).

Management also highlights that IELTS, and the high stakes English language testing industry in India more broadly, benefits from several supportive structural growth drivers. These include strong population growth, a relatively young demographic, a high propensity to study abroad, and high levels of demand for migration to English speaking countries.

What impact will this have on IDP Education?

The release explains that the transaction is estimated to be approximately 13% earnings per share accretive (pre-synergies) on a pro forma calendar year 2019 basis.

It also sees scope for material combination benefits, with estimated run-rate synergies of A$6 million to A$8 million expected to be delivered within 24 months of completion.

IDP Education’s CEO, Andrew Barkla, said: “While the pandemic prompted both the British Council and IDP to adapt operations in light of the changing environment, it also presented us with opportunities for new ways of working and innovation.”

“With the combined team of IELTS experts from IDP and the British Council, a strong strategy and a clear purpose, we are ready to take this next step forward in India,” he added.

Trading update

Also potentially giving the IDP Education share price a boost on Friday will be management’s positive update on current trading.

It advised that trading conditions have improved in recent weeks, with the progressive lifting of restrictions allowing IDP Education to recommence testing in most Indian states. Approximately 95% of installed capacity was available at the end of June.

And as was evidenced during the “first wave” in India last year, management expects that IELTS volumes will rebound as restrictions are removed. Positively, it continues to experience strong forward bookings and has been working with test takers to reschedule tests that were cancelled due to the recent restrictions.

The post IDP Education (ASX:IEL) share price on watch after announcing major acquisition appeared first on The Motley Fool Australia.

More reading

• 3 high quality ASX growth shares analysts love
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• Why has IDP Education (ASX:IEL) share price risen 33% in the last 12 months?

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 Idp Education Pty Ltd. 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 Nuix Ltd (ASX: NXL) share price was one of the worst performers on the S&P/ASX 200 Index (ASX: XJO) for a second month in a row in June.

The investigative analytics and intelligence software provider’s shares followed up a 33% decline in May with a disappointing 20% decline in June.

This means the Nuix share price is now down 73% since the start of the year.

Why did the Nuix share price crash lower in June?

Investors were heading to the exits in their droves last month following yet another series of disappointing developments.

The first actually happened on 31 May but continued to hang over the company in the early stages of June. That development was yet another downgrade to its guidance.

Nuix revealed that it is now expecting pro forma revenue of $173 million to $182 million in FY 2021. This compares to its 21 April guidance of $180 million to $185 million. Similarly, it is now forecasting annualised contract value (ACV) in the range of $165 million to $172 million. This is down from its previous guidance of $168 million to $177 million.

Management blamed this on the timing of the closure of some upsell opportunities and new potential customers. In addition, it notes that there remains uncertainty in relation to both the structure and timing of deals with a small number of large customers.

What else weighed on its shares?

Also weighing on the Nuix share price was the exit of several executives and news of police raids on its offices. Those police raids later led to a criminal investigation into insider trading allegations by its departed chief financial officer Stephen Doyle.

The court papers show that Doyle and his brother are accused of trading Nuix shares with knowledge of inside information over January and February this year. This was before the Nuix share price crashed lower following its shock guidance downgrade.

Nuix chair, Jeffrey Bleich, said: “We are genuinely disturbed by the allegations concerning Mr Doyle and will fully assist ASIC in getting to the bottom of that matter.”

The post Why the Nuix (ASX:NXL) share price crashed 20% lower in June appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares in June
• Here are 3 of the most active ASX 200 shares today
• Why AGL, Collins Foods, Kogan, & Nuix shares are tumbling lower
• ASX 200 up 0.5%: Telstra asset sale, AGL demerger, Nuix crashes again
• Former Nuix (ASX:NXL) executive accused of insider trading

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 recommended Nuix Pty Ltd. 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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