Tag: Motley Fool

It certainly was a positive week for the S&P/ASX 200 Index (ASX: XJO). The benchmark index was in fine form and climbed 149.2 points or 2.1% to end the period at 7,179.5 points.

Unfortunately, not all shares climbed higher with the market last week. Here’s why these were the worst performers on the ASX 200 over the five days:

Costa Group Holdings Ltd (ASX: CGC)

The Costa share price was the worst performer on the ASX 200 last week with a decline of 23.7%. Investors were selling the horticulture company’s shares following the release of its annual general meeting update. That update revealed that it is only expecting its first half performance to be marginally ahead of the prior corresponding period. This is being driven by weakness in its domestic operations and currency headwinds. One broker that was very disappointed with the update was Morgans. It notes that the deterioration in produce business profitability raises questions around how much Costa benefited from the pandemic-driven surge in food consumption a year earlier.

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

The Fisher & Paykel Healthcare share price was out of form and sank 12% over the five days. The catalyst for this was the medical device company’s full year results. Although Fisher & Paykel Healthcare reported a 56% increase in operating revenue to NZ$1.97 billion and an 82% jump in net profit after tax to NZ$524 million, its outlook appears to have spooked investors. Management warned that things were too uncertain to provide guidance. Analysts at Citi believe the company’s inability to forecast FY 2022 earnings means there will be a wide range of predictions for how much its profit falls after the pandemic-led boost to hospital equipment sales fades.

CSR Limited (ASX: CSR)

The CSR share price was a poor performer and fell 6.5% last week. The majority of this decline came on Friday after the building materials company’s shares went ex-dividend. Eligible CSR shareholders can now look forward to receiving its fully franked 24 cents per share final dividend in their bank accounts on 2 July.

Resolute Mining Limited (ASX: RSG)

The Resolute share price was out of form and tumbled 5.6% over the five days. This was despite other gold miners pushing higher last week and driving the S&P/ASX All Ords Gold index to a 2% weekly gain. However, prior to this week, the Resolute share price was up an impressive 26% month to date. This could have led to some profit taking from investors.

More reading

• ASX 200 surges to new record, Fortescue drops, Inghams flies higher
• A2 Milk (ASX:A2M) shares are up 4% today. Has a bottom been found?
• These 3 shares are this week’s biggest fallers of the ASX 200
• Sell ASX 200 shares in May and go away? Not a good idea in 2021
• Why BetMakers, CSR, EOS, & Fisher & Paykel Healthcare are tumbling

The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2SEZgoR

A few ASX shares have been upgrading their FY21 guidance after experiencing stronger profit growth than expected.

It’s coming up to reporting season. Businesses are getting a clearer picture of where their results will be. If that is materially different to what the market is expecting, then (in theory) they’re meant to tell investors.

These two ASX shares recently upgraded profit expectations:

Airtasker Ltd (ASX: ART)

Airtasker is one of Australia’s leading outsourcing businesses. A few weeks ago the business upgraded its forecast after the IPO.

It reported a strong third quarter of FY21 that was ahead of the prospectus assumptions. Management said that the business is confident it will exceed its prospectus forecasts and upgraded its expectations for gross merchandise volume (GMV) and revenue.

Including IPO costs, Airtasker generated $484,000 of positive operating cashflow in the FY21 third quarter. Excluding IPO costs, positive cashflow was $2.1 million.

GMV and revenue for the third quarter represented 57.9% and 59.7% of the FY21 second half forecast.

The ASX share is now expecting FY21 GMV to be in the range of $148 million to $152 million, instead of the $143.7 million forecast in the prospectus.

FY21 revenue is expected to be between $25.5 million to $26 million, up from $24.5 million.

Airtasker also recently announced the acquisition of Zaarly for $3.4 million to accelerate its expansion into the US. It comes with around 600,000 registered users and over 900 verified service providers.

To fund that acquisition, it is raising $20.7 million and it will also further invest into international growth markets – namely UK and US city markets.

Inghams Group Ltd (ASX: ING)

Chicken business Inghams also came to the market this week to say that its FY21 profit is likely to be better than the market consensus seems to suggest.

Statutory earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to come in between $438 million to $448 million. Meanwhile, statutory net profit after tax (NPAT) is expected to be between $80 million to $87 million.

The ASX share said that it’s deriving benefits from operational efficiencies implemented throughout the year.

There has also been an improvement in general trading conditions as the impact of COVID-19 restrictions have decreased over the last six months, although that doesn’t take into account the seven-day lockdown has just started in Victoria on 27 May 2021.

There was also the receipt of a research and development tax credit relating to a prior financial year.

The poultry business said it will release its FY21 full year result to the market on 20 August 2021.

More reading

• ASX 200 surges to new record, Fortescue drops, Inghams flies higher
• Why Inghams, Latitude, Rio Tinto, & Tabcorp shares are charging higher
• Why the Inghams (ASX:ING) share price is racing 10% higher
• ASX 200 rises, TechnologyOne up, Airtasker jumps
• Why the Airtasker (ASX:ART) share price jumped 21% today

The post These 2 growing ASX shares have upgraded guidance appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2SzJ4Fy

Shares in Nuix Ltd (ASX: NXL) came under pressure again today after the software company ended its consultancy agreement with its co-founder and former chair, Dr Tony Castagna.

At market close, the Nuix share price was down 5.07%, trading at $3.37.

The news comes days after the Australian Federal Police (AFP) confirmed it had begun a probe into the company and Castagna.

The AFP is investigating an options package Castagna supposedly acquired in 2005, although it hasn’t announced any further details.

The AFP’s inquiry follows a mountain of bad press from Nine Entertainment Co Holdings Ltd (ASX: NEC) publications The Sydney Morning Herald, The Age, and the Australian Financial Review.

As The Motley Fool Australia reported last Friday, the Nuix share price took a hit last week on the back of the claims made as a result of a joint investigation by the publications.

Nuix has now announced it has cancelled its consultancy agreement with Castagna. Let’s take a closer look.

No more Castagna

Today, the board of Nuix announced it has stepped further away from its controversial co-founder, former chair, and now former consultant.

In its announcement, the Nuix board stated:

Dr Castagna has been a significant part of Nuix’s success since its inception and we thank him for his long and important service to the company.

According to the 3 Nine Entertainment publications, Castagna was hired by Macquarie Group Ltd (ASX: MQG) in 1998. He is said to have later been asked to manage Nuix – of which Macquarie is a significant investor. Thus, Castagna is said to have been involved with Nuix since its early days.

Castagna was charged with money laundering and tax evasion in 2018 but was acquitted the following year.

Despite his acquittal, the publications have levelled a number of accusations at Castagna over the past fortnight.

Firstly, the publications claimed Castagna left the Nuix board the day its ASX float prospectus was released. This might have meant many Nuix investors wouldn’t have known of Castagna’s involvement with the company.

The publications also reported on the options package currently being investigated by the AFP.

They claim Nuix issued 300,000 options, priced at 1 cent each, to an entity controlled by Castagna in 2005.

The options were said to have been cashed out for $80 million at Nuix’s float.

According to the publications, aside from a record of their creation in 2005, there was no mention of the options within Nuix’s records until 2011.

The publications have reported the AFP is questioning whether the options were created in 2011 and backdated to 2005.

Nuix share price snapshot

Despite experiencing near-constant volatility, the Nuix share price has fallen just 1.44% since this time two weeks ago.

The company has not had an easy run on the ASX. Since its initial public offering (IPO) in early December – when it was hailed as the next market darling – the Nuix share price has fallen 57.24%.

The company has a market capitalisation of around $1.1 billion, with approximately 317 million shares outstanding.  

More reading

• Another Nuix (ASX:NXL) crisis: Federal Police called in
• Why Carbon Revolution, Fisher & Paykel, Nuix, & Paradigm are tumbling lower
• Why the Nuix (AX:NXL) share price is pushing higher today
• The week that’s been for the Nuix (ASX:NXL) share price
• Nuix (ASX:NXL) share price slips 7% on looming legal action

The post Why the Nuix (ASX:NXL) share price tumbled 5% today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2RQLek8

If you’re wanting to boost your portfolio with a growth share or two, then you may want to consider the ones listed below.

Here’s why these ASX growth shares have been rated as buys:

Breville Group Ltd (ASX: BRG)

Breville could be a good option for growth investors. This appliance manufacturer has grown its sales by a compound annual growth rate (CAGR) of 12.4% over the last five years. This has underpinned an incredible average 30% per annum return over the same period.

The good news is that Breville appears well-placed to continue this positive sales growth over the next five years. This is thanks to a combination of growing demand, acquisitions, and its international expansion.

One broker that is very positive on the company and is confident in its long term growth prospects is UBS. The broker currently has a buy rating and $35.70 price target on its shares.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another ASX growth to look at is Domino’s. Like Breville, this pizza chain operator has been growing its top line at a consistently strong rate over the last five years. During the period, Domino’s sales have grown by a CAGR of 24.6% per annum.

Positively, this solid form has continued in FY 2021. During the first half, Domino’s generated sales of $1.84 billion and an underlying net profit after tax of $96.2 million. This was up 16.5% and 32.8%, respectively, over the prior corresponding period.

The good news is that more strong growth is expected in the second half. In fact, management said it expects its performance to be even stronger.

Looking further ahead, the company is aiming to double the size of its network over the next decade in its existing markets. It is also looking for acquisitions and could expand into new territories in the future. Combined with its same store sales growth targets, this should be supportive of further strong sales growth over the remainder of the 2020s.

Morgans is a fan of Domino’s. It currently has an add rating and $119.00 price target on its shares.

More reading

• Dragontail Systems (ASX:DTS) share price soars on Yum! Brands buyout
• 2 ASX shares that could be top buy and hold options
• Here’s why the Domino’s (ASX:DMP) share price is sizzling hot today
• Why Corp Travel, Domino’s, Kogan, & Zip shares are storming higher
• 2 stellar ASX growth shares rated as buys

The post 2 ASX growth shares analysts are tipping as buys appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3yD7AWO

If you’re wanting to bolster your portfolio with some dividend shares, then the two listed below could be worth considering.

Here’s what you need to know about these ASX dividend shares:

BWP Trust (ASX: BWP)

The first ASX dividend share to look at is BWP Trust. It is a commercial property company with a focus on warehouses.

The vast majority of its properties are leased to hardware giant Bunnings Warehouse. In fact, BWP is the largest owner of Bunnings properties, with a total of 68 warehouses leased to the retailer.

This has proven to a hugely successful move. With demand for home improvement products growing strongly and government stimulus supporting the industry, Bunnings continues to grow its sales at a solid rate, allowing BWP to collect its rent as normal during the pandemic.

This strong form has also allowed the BWP board to reaffirm its plans to pay a full year distribution of ~18.3 cents per share in FY 2021. Based on the current BWP share price of $4.24, this equates to a generous 4.3% dividend yield.

Integral Diagnostics Ltd (ASX: IDX)

Another ASX dividend share to consider is Integral Diagnostics. It is a medical imaging service provider that operates from a total of 72 radiology clinics across Australia.

Integral Diagnostics has been a strong performer in FY 2021 despite the pandemic. During the six months ended 31 December, the company reported a 29.5% increase in revenue to $170.7 million and a 61.1% jump in net profit after tax to $23.2 million.

While its shares don’t provide the largest dividend yield you’ll find on the Australian share market, it is growing each year and has been tipped to continue doing so. 

For example, analysts at Goldman Sachs are expecting dividends per share of 11.4 cents, 13.9 cents, and 15.4 cents over the next three years. This will mean yields of 2.4%, 2.9%, and 3.2%, respectively.

More reading

• 2 ASX dividend shares with generous yields
• 2 growing ASX dividend shares for income investors
• How to turn $20k into $200,000 with ASX shares
• These ASX dividend shares offer generous fully franked yields
• 2 ASX dividend shares with 4%+ yields

The post 2 quality ASX dividend shares for income investors appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2TpJCyj

In good news for buy now, pay later (BNPL) operators such as Sezzle Inc (ASX: SZL), the Reserve Bank of Australia (RBA) has ruled out forcing them to allow merchants to pass on fees when customers use their services. At least for the time being.

The news could be music to the ears of investors in popular BNPL companies, like Sezzle, Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P), who may be concerned over increased regulation of the sector.

Let’s take a closer look at today’s news from the RBA.

Background

As Motley Fool reported in March, The RBA has been considering banning the common practice of BNPL providers preventing vendors from passing on any of their merchant fees to the end customer. BNPL operators can charge comparatively high merchant fees that can be up to 8x as much as those charged by credit or debit cards.

But, unlike with credit cards, under their agreements with the BNPL service providers, merchants cannot pass on any of these costs to consumers. So it would seem that today’s RBA decision allows providers like Sezzle and its cohorts to keep costs as low as possible for end customers who pay on time, without impacting their bottom lines.

The RBA said back in March, and reaffirmed today, it believes the rules may stymie “competition and efficiency in the payments system.” However, the RBA conceded today further regulation would have the possibility of aiding competition by allowing new companies to come in and be attractive to consumers.

In December 2020, RBA Governor Dr Philip Lowe said on the issue:

“…BNPL operators in Australia have not yet reached the point where it is clear that the costs arising from the no-surcharge rule outweigh potential benefits in terms of innovation.”

Based on today’s decision, it would appear the RBA still believes this is the case, at least for the time being.

BNPL won’t face more regulation for now

In making its decision to maintain the status quo, the RBA says it:

…sought to strike a balance between a regulatory environment that encourages innovation by supporting the ability of newer providers of payment services to compete with more established providers (such as card schemes) and providing newer players with an unfair competitive advantage in the medium term.

It added that there is no “public interest case” for forcing BNPL providers to allow merchant surcharging. The central bank, however, explicitly did not rule out making such rules in the future.

“…a public policy case could emerge in the future if BNPL continues to grow strongly and becomes an even more prominent part of the retail payments landscape,” the RBA said.

“The Board will therefore keep this policy issue under review in light of market developments.”

According to the RBA, less than 1% of “the number and value of consumer transactions” in Australia are currently made using BNPL services.

If the RBA was to regulate the removal of the ‘no surcharge’ rule, research by the Bank suggests around 50% of consumers would switch to an alternative form of payment. According to the RBA, 10% of consumers stated they would cancel the purchase.

For the time being, at least, it seems companies like Sezzle, Afterpay and Zip can breathe a regulatory sigh of relief.

BNPL share prices unfazed

Despite the apparent positive news from the RBA today, BNPL shares had a pretty lacklustre day on the ASX. Sezzle shares ended the day flat at $7.42 each. They have, however, risen by around 266% over the past 12 months.

Meanwhile, the Afterpay share price ended Friday’s session 1.14% lower at $93.93 and Zip closed the day 0.28% down at $7.19.

The market capitalisations of Afterpay, Zip, and Sezzle are $27.3 billion, $3.98 billion, and $765 million, respectively.

More reading

• This BNPL just saw stronger UK growth than Afterpay (ASX:APT)
• 5 things to watch on the ASX 200 on Friday
• Top brokers name 3 ASX shares to sell today
• Why did ASX tech shares like Afterpay (ASX:APT) have such a good day?
• ASX 200 up 0.2%: CBA share price cracks $100, ALS result impresses

The post RBA delivers win for BNPL providers like Sezzle (ASX:SZL) appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3yIsUdy

The Qantas Airways Limited (ASX: QAN) share price flew more than 2.5% higher today, despite the current cluster of COVID-19 cases in Melbourne.

Shares in Australia’s major airline have been relatively flat for the year, down 2.14% year-to-date. However, various initiatives and market conditions could be aligning to see the Qantas share price fly higher. Let’s take a look.

What’s fuelling the Qantas share price?

Qantas is flirting with various incentives to maintain current levels of demand for domestic travel, according to a report in The Australian today. This includes the airline possibly offering free frequent flyer points to individuals who have received the COVID-19 vaccine.

Qantas customer officer Stephanie Tully was quoted in the article as saying that the airline viewed Australia’s vaccine rollout as “key” to keeping domestic borders open and eventually safely resuming international travel.

More on Qantas and its outlook

Last week, Qantas released a group market update that grabbed the attention of investors.

According to the update, Qantas noted that strong domestic travel and freight demand are helping the airliner recover from the impacts of COVID-19. As a result, Qantas expects to have positive statuary free cash flow for the second half of FY21 if current trading conditions persist.

Qantas also noted high levels of liquidity with total funds of $4 billion, including cash of $2.4 billion and $1.6 billion of undrawn debt facilities.

In addition to strong domestic demand, Qantas also cited aggressive cost-cutting for its recovery. Qantas revealed that it was making significant progress with its target of at least $1 billion in annual cost reductions by FY23. The airline noted that $600 million of cost reductions were expected to be delivered this financial year.

Qantas also flagged further redundancies for international cabin crew. In addition, it has applied for a 2-year wage freeze on the next round of enterprise agreements to cut costs by $1 billion a year.

For FY21, Qantas expects to deliver a statutory loss in excess of $2 billion. In addition, the airliner expects underlying earnings before interest, tax, depreciation and amortisation (EBITDA) in the range of $400 million to $450 million.

More reading

• Qantas among ASX travel shares hit by Victorian COVID-19 outbreak
• Leading brokers name 3 ASX shares to sell today
• Brokers name 3 ASX shares to buy now
• Is the Flight Centre (ASX:FLT) share price good value?
• 5 things to watch on the ASX 200 on Friday

The post Why the Qantas (ASX:QAN) share price flew a little higher today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3fPLzLN

The S&P/ASX 200 Index (ASX: XJO) hit a new record today, it ended up 1.2% to 7,180 points.

Here are some of the highlights from the ASX:

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price ended the day lower by 0.7% after giving investors an update.

Fortescue gave an Iron Bridge update saying that it’s on track to deliver 22 million tonnes per annum of high grade 67% Fe magnetite concentrate product with first production by December 2022.

The miner has made an investment to provide an enhanced product range and increase production and shipping capacity to meet strong customer demand.

Fortescue has revised its capital estimate to US$3.3 billion to US$3.5 billion, with FMG Iron Bridge Ltd’s share being US$2.5 billion to US$2.7 billion.

The joint venture has incurred capital expenditure of US$1.5 billion as at 30 April 20021, with FMG Iron Bridge’s investment being US$1.3 billion.

Fortescue said that the 67% Fe content low impurity concentrate product is anticipated to receive a premium to the Platts 65% Fe CFR Index.

The miner believes it will have a competitive cost structure with the life of mine C1 cost estimate being US$33 to US$38 per wet metric tonne (wmt) and sustaining capital expenditure of US$5 to US$7 per wmt.

Inghams Group Ltd (ASX: ING)

The Inghams share price went up around 8% after saying to investors that it expects to beat the market’s profit expectations for FY21.

Inghams said that it’s deriving benefits from operational efficiencies implemented throughout the year.

There has also been an improvement in general trading conditions as the impact of COVID-19 restrictions have decreased over the last six months, although that excludes the seven-day lockdown has just started in Victoria.

The ASX 200 share said it also received a research and development tax credit relating to a prior financial year.

Statutory earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to come in between $438 million to $448 million. Statutory net profit after tax (NPAT) is expected to be between $80 million to $87 million.

To enable comparison to pre AASB 16 figures, Inghams said underlying EBITDA is expected to be between $203 million to $213 million and underlying NPAT is expected to be between $96 million to $103 million.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price was one of the best performers in the ASX 200 today, going up more than 4%, after confirming it has received a takeover offer for its PEXA shares from KKR.

The proposal represents an enterprise value for 100% of PEXA at $3 billion plus cash on the balance sheet as at the date of settlement. At 31 March 2021 the cash balance was $126 million.

KKR said the offer is open and can be accepted until 5pm on 30 May 2021. Domain Holdings Australia Ltd (ASX: DHG) is expected to partner with KKR.

The Link board is now considering the proposal. No decision has been made yet. Both the trade sale process and exploration of the viability of an IPO continue to proceed.

More reading

• A2 Milk (ASX:A2M) shares are up 4% today. Has a bottom been found?
• These 3 shares are this week’s biggest fallers of the ASX 200
• Sell ASX 200 shares in May and go away? Not a good idea in 2021
• Breaking! ASX 200 hits another record share market high
• 2 top ASX 200 shares that might be buys today

The post ASX 200 surges to new record, Fortescue drops, Inghams flies higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3wCjA9g

If small caps are too high on the risk scale for your tastes, then you might be better off looking at the mid cap space. These companies are lower down the risk scale but still have the potential to generate strong returns for investors in the future.

Two mid cap ASX shares that could be worth considering are listed below. Here’s what you need to know about them:

IDP Education Ltd (ASX: IEL)

The first mid cap ASX share to look at is IDP Education. It is a leading provider of international student placement and English language testing services.

While the lack of international travel and lockdowns have impacted IDP Education notably over the last 12 months, it is bouncing back quickly. In February, management advised that testing volumes in December were broadly in line with those experienced in the final month of 2019 prior to the pandemic.

Since then, a flare up of COVID-19 cases in key markets has derailed its recovery somewhat and could weigh on its second half performance. However, it looks well-placed to rebound again once trading conditions return to normal thanks to pent-up demand. 

Another positive for the company is that the pandemic has lessened competition. This could mean IDP Education comes out of the crisis in an even stronger market position. This bodes well for its growth in the coming years.

Analysts at Morgans are positive on the company, particularly given the pent-up demand for its services. It expects this to lead to solid earnings growth over the coming years once trading conditions return to normal. Morgans has an add rating and $28.48 price target on its shares. This compares to the latest IDP Education share price of $22.50.

Nearmap Ltd (ASX: NEA)

Another mid cap ASX share to consider buying is Nearmap. This leading aerial imagery technology and location data company’s platform allows users to undertake site visits from the comfort of their home or workplace. This provides significant time and cost savings for users.

Demand for its offering has been growing in the ANZ and North American markets in recent years and looks set to continue doing so. As a result, management is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

And while a patent infringement notice is likely to weigh on sentiment in the near term, the part of its offering under scrutiny only applies to 25% of its North American revenue. Another positive is that the news hasn’t impacted recent sales in the key market. 

Morgan Stanley remains positive on the company despite its legal issues. It has an overweight rating and $3.20 price target on the company’s shares. This compares to the latest Nearmap share price of $1.83.

More reading

• Brokers name 3 ASX shares to buy now
• Broker tips Nearmap (ASX:NEA) share price to climb 77%
• 2 ASX 200 blue chip shares that might be the best to buy
• The Nearmap (ASX:NEA) share price is down 15% this month
• Why Zip (ASX:Z1P) and these ASX growth shares are highly rated

The post 2 ASX mid cap growth shares rated highly appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3yDL6Fj

I like to keep an eye on substantial shareholder notices. This is because these notices give you an idea of which shares large investors, asset managers, and investment funds are buying or selling.

Two notices that have caught my eye are summarised below. Here’s what these fund managers have been buying:

Cleanaway Waste Management Ltd (ASX: CWY)

According to an initial substantial holder notice, Challenger Ltd (ASX: CGF) has been building a position in this waste management company in 2021.

The notice reveals that Challenger has been buying shares since 19 January and recently took its holding to 105,183,013 shares on 19 May. This is the equivalent of a 5.11% stake in Cleanaway.

Given that its buy price on 19 May was broadly in line with where the Cleanaway share price trades today, its analysts appear to still see a lot of value at current levels.

One broker that might agree is Macquarie Group Ltd (ASX: MQG). Its analysts currently have an outperform rating and $3.00 price target on the company’s shares. This compares to the latest Cleanaway share price of $2.77.

EML Payments Ltd (ASX: EML)

A notice of change of interests of substantial holder reveals that Commonwealth Bank of Australia (ASX: CBA) has been taking advantage of recent weakness in the EML Payments share price to increase its position.

The release shows that Commonwealth Bank (via its subsidiaries) picked up approximately 4.3 million shares over the last couple of weeks. This has increased its stake to 26,374,609 shares, which equates to a 7.3% interest. This is up from 6.1% previously.

The EML Payments share price has lost a third of its value since 15 May due to concerns over its European operations. Judging by its purchases, Commonwealth Bank appears to see this as a buying opportunity.

Analysts at UBS would agree. Last week they reaffirmed their buy rating but trimmed their price target to $5.30. The EML Payments share price ended the week at $3.42.

More reading

• Breaking! ASX 200 hits another record share market high
• 2 ASX 200 shares that could be reliable picks for dividends
• 5 things to watch on the ASX 200 on Friday
• ASX 200 flat: Costa crashes & Fisher & Paykel Healthcare tumbles
• Commonwealth Bank (ASX:CBA) share price higher on digital banking update

The post Fund managers ar buying EML Payments (ASX:EML) and this ASX share appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3i6ulMS