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The Next Science Ltd (ASX: NXS) share price is out of form and sinking lower on Tuesday.

At the time of writing, the medical device company’s shares are down 6.5% to $1.40.

However, despite this decline, the Next Science share price is still up 16% since the start of the year.

Why is the Next Science share price sinking today?

Investors have been selling Next Science shares today following the release of its first quarter update.

For the three months ended 31 March, the company reported unaudited revenue of US$2.2 million. This is almost five times greater than the US$0.45 million it recorded in the prior corresponding period.

However, it is down slightly from US$2.3 million during the fourth quarter of FY 2020. It could be this lack of quarter on quarter growth that is weighing on the Next Science share price today.

Management notes that the US healthcare market continued to be impacted by the high presence of COVID-19 during the quarter. This was particularly the case in January, when the impact on surgery numbers was heavier than the previous four months.

Nevertheless, despite the COVID conditions, its SurgX product continues to attract surgeon interest and support in the market.

What about cash receipts?

Next Science’s cash receipts were strong during the half. They came in at US$3.4 million for the three months. Though, with the company reporting cash receipts of only US$0.28 million in the fourth quarter on revenue of US$2.3 million, it appears as though there may have been a bit of lag in receipts.

This ultimately led to the company only burning through US$0.2 million of cash during the quarter, which left Next Science with a cash balance of US$15.1 million.

Next Science’s Managing Director, Judith Mitchell, said: “I am pleased to report that our Q4 FY20 run rate has continued and cash receipts for the quarter were also strong and we continue to see progress with the review of XPerience with the FDA.”

More reading

• Why the Starpharma (ASX:SPL) share price is up 27% in 2021
• Is it time for ASX gold shares to make a comeback?
• Why the NAB (ASX:NAB) share price could push higher from here
• Is it time to get your hopes up for the A2 Milk (ASX: A2M) share price?
• The Walkabout Resources (ASX:WKT) share price is rocketing today, up 44%

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 Nexus Energy Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the Next Science (ASX:NXS) share price is sinking 6% lower appeared first on The Motley Fool Australia.

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While the Starpharma Holdings Limited (ASX: SPL) share price is having a reasonable day today – up 0.77%, it’s done very well so far in 2021.

At the time of writing, shares in the pharmaceutical company are trading for $1.96 cents each. While that’s only slightly up on yesterday’s close, it’s up 26.95% since the beginning of the year and almost 120% over the last 12 months. In fact, in February, the Starpharma share price hit an all-time record of $2.52. For comparison, the S&P/ASX 200 Index (ASX: XJO) has increased 4.36% year to date.

Let’s take a closer look at developments that have impacted the Starpharma share price in 2021.

What’s affected the Starpharma share price in 2021?

The biggest factor impacting the Starpharma share price in 2021 has been its Viraleze COVID-19 nasal spray. The product, which was launched in January, has been clinically shown to kill 99.99% of COVID-19 virus loads in a person.

After launching in January, the European Union approved the product for use in its jurisdiction in February. When the company announced the news, CEO Dr Jackie Fairley said at the time:

We know from consumer research conducted with the Boston Consulting Group, that VIRALEZE has strong appeal for European consumers across all age groups. The spray is easy to use and convenient – and works rapidly, without being absorbed into the bloodstream. If you are about to walk into the supermarket, you would use it. The same is true for public transport, elevators, planes, bars and restaurants.

Obtaining the CE Mark for the spray led to the Starpharma share price hitting its record high.

One month later, the company told shareholders it would distribute the spray in the UK through LloydsPharamcy. Despite what was seemingly positive news, the share price fell that day. One explanation as to why is that investors had already factored in widespread distribution of the product after EU approval, including in the UK.

Non-COVID announcements

While the Viraleze spray was the most attention-grabbing product launch announced in 2021 by Starpharma, it was not the only one.

In February, the company announced it was expanding clinical trials on an anti-cancer treatment developed with AstraZeneca PLC (LSE: AZN). In March, Starpharma declared to the market its breast cancer treatment, DEP HER2-lutetium, had achieved “positive” results.

As well, the company posted its half-year results for FY21 in February. Starpharma lost $10.4 million for the 6 months ending 31 December. The loss was 78% greater than the prior corresponding period (pcp). The pharmaceutical company attributed the large decline to an even steeper fall in revenue. For the period, operating income was only $638,000, which was down 89% on the pcp. The Starpharma share price edged slightly lower following the update.

More reading

• Why the Starpharma (ASX:SPL) share price is tumbling lower today
• Starpharma (ASX:SPL) share price pushes higher on COVID-19 nasal spray update
• Why the Starpharma (ASX:SPL) share price is charging higher today

Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings 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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ASX gold shares have been spiralling lower after gold prices topped in December 2020. With ASX gold shares recently bouncing off short-term lows, is it time for a comeback? 

What’s been driving ASX gold shares lower? 

Gold prices surged from US$1,200 to US$2,075 between May 2019 and August 2020. Similar to how soaring iron ore prices have propped up iron ore miners such as Fortescue Metals Group Ltd (ASX: FMG) and BHP Group Ltd (ASX: BHP), a higher gold price drove many ASX gold mining shares into all-time record territory. 

However, unlike iron ore, which has remained at elevated levels, gold has slumped roughly 15%. Down from US$2,075 to US$1,750 in recent months. 

To add further insult to injury, the soaring Australian dollar means that gold is even weaker when converted back to local currency. 

Why operational excellence is key 

Between late 2012 and early 2016, gold prices slumped from US$1,800 to US$1,050. 

During this period, Evolution Mining Ltd (ASX: EVN) increased its total gold production. This went from 346,979 ounces at a cash cost of A$771 per ounce to 803,476 ounces at an all-in sustained cost of A$1,014 per ounce. While its share price might’ve gone nowhere during this period, the company more than doubled its output. Furthermore, creating a runway for shareholder value when gold prices picked up. 

This might bring smaller ASX gold shares such as Bellevue Gold Ltd (ASX: BGL), Perseus Mining Limited (ASX: PRU), and Ramelius Resources Limited (ASX: RMS) into the picture. In particular, as gold producers are coming off of a lower production base and greater development upside.

Perseus, for example, is forecasting a 33% increase in gold production from 137,386 ounces in 1H21 to 182,500 ounces in 2H21. This is purely driven by the contribution of a new gold mine. 

What are brokers thinking about ASX gold shares? 

Back in March, Citi believed that gold prices had peaked in this cycle. It subsequently downgraded its gold price forecasts by 5% in 2021 to US$1,800/oz. However, the long term gold price remains unchanged at US$1,400/oz. 

The broker believes that key picks in the gold sector are ones positioned to generate cash through the next cycle. 

From an operational perspective, Credit Suisse prefers Evolution Mining. This is due to its low costs, strong free cash flow generation, and a positive production outlook. It believes Evolution shares come out ahead when it comes to quality, risk, value, and growth. 

Despite its preference for Evolution, the broker did acknowledge that its peers Newcrest and Northern Star offered more upside on a higher gold price scenario. 

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why are the big ASX mining share prices slipping today?
• ASX 200 Weekly Wrap: ASX sees 7,000 points once more
• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week

Motley Fool contributor Kerry Sun 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 National Australia Bank Ltd. (ASX: NAB) share price is having an interesting trading day today so far. At the time of writing, NAB shares are up 0.13% to $26.86 a share. Earlier in the trading day, NAB traded as high as $26.95 and as low as $26.69. Perhaps the market can’t quite decide what it wants today. 

Either way, it’s not a bad level for NAB to be at right now. At the current share price, NAB is just a touch below its 52-week high of $27.10 a share. And a long way from its 52-week low of $15.

As my Fool colleague Tristan Harrison pointed out yesterday, a lot has been going right for this ASX banking share. The banks’ financial position is strong, seeing as NAB has plenty of cash around. The Australian economy is also rebounding well, which is especially beneficial for a bank.

But according to a report in the Australian Financial Review (AFR), there could be further upside in the wings for NAB, as well as the other ASX banks.

An ASX banking tailwind for NAB?

According to the AFR report, David Cassidy, head of Australian equity strategy at Wilsons Advisory, believes that the ASX banks like NAB are set to enjoy another 6 months of share price appreciation. That would equate to another 15% upside to the current share prices of the ASX banks.

Mr Cassidy bases this prediction on a few factors. Firstly, what turned out to be over-provision that the banks undertook in response to the pandemic last year is set to wind down. That should allow banks like NAB to lend out more capital. That will be assisted by faster economic growth, which Mr Cassidy predicts will result in earnings upgrades. In turn, that should lead to higher dividend payouts. 

Reportedly, Cassidy is still wary of the Commonwealth Bank of Australia (ASX: CBA) share price on its current valuation and price-to-book ratio. But Cassidy tells the AFR that Wilsons is ‘overweight’ NAB. As well as Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group Ltd (ASX: ANZ). Despite long-term issues, he sees a “more normalised price-to-book valuation being achieved, powered by what looks like a convincing cyclical recovery story” for these banks. 

NAB shareholders will certainly be hoping Mr Cassidy is right.

More reading

• Why the Commonwealth Bank (ASX:CBA) share price could soar 15%
• ANZ (ASX:ANZ) share price dips as bank focuses on AI automation
• Why NAB (ASX:NAB) and other bank shares are on watch today
• Can the CBA (ASX:CBA) share price break above $90?
• Is the NAB (ASX:NAB) share price a COVID recovery buy?

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The longstanding market darling status of the A2 Milk Company Ltd (ASX: A2M) share price is likely causing many investors to feel frustrated and trapped. 

The company’s history of strong earnings growth has made its shares look like good value. Previously at $16 back in September 2020, at $14 levels in November 2020, and $10 levels in January. Now, here we are, at $8 in April. 

As the A2 Milk share price continues to grind lower, Bell Potter has emerged with a report on Tuesday upgrading its shares from hold to buy. At the time of writing, the A2 Milk share price is trading at $8.24, up 4.17%. 

Why there could be long-term value in the A2 Milk share price 

Bell Potter has taken a more positive view on the A2 Milk share price. This is due to the belief that issues causing its recent downgrade cycle are reversing. 

The report first highlights A2’s move to materially scale back its Australian infant milk formula (IMF) deliveries to address excess stock.

It notes that exports from Synlait Milk Ltd (ASX: SM1) to Australia were down 72% in the past 6 months since September 2020, relative to the 6 months to August 2020. Bell Potter said that “inventory infill appears to have materially contracted, addressing one element of the inventory build”.

In terms of Australian exports to China, the report highlights two sequential monthly gains in finished infant formula exports since the December 2020 lows. Interestingly, the broker did not expect an uplift to occur so early on, calling this an early sign of life. 

A2 has increasingly pointed to its China-labelled infant nutrition growth to compensate for challenging daigou channels. In its half-year results, it noted that its offline distribution footprint had expanded to 22,000 stores, up from ~19,100 at the end of 2H20. Its rapid offline expansion has translated to a 2.4% market share in China. That is up from 2.0% at the end of FY20.

Bell Potter believes its offline distribution points are approaching the ~30,000 mark in March. While this may represent a significant uplift on 1H21, it is still below leading Chinese infant brands H&H and Feihe. These have a respective ~80,000 and ~110,000 stores.

The broker believes the uplift in offline stores will attempt to mitigate the headwinds of declining births in China, which is down approximately 15% year-on-year in 2020. 

Share price finally receives an upgrade 

The report upgraded the A2 Milk share price from hold to buy with a $9.50 12-month target price. With the A2 Milk share price currently trading at $8.30, this represents an upside of 14%. 

More reading

• Why Brickworks, Imugene, Platinum, & Synlait shares are dropping today
• Synlait (ASX:SM1) share price on watch after sudden CEO exit
• Why the Bubs (ASX:BUB) share price is up 5% today
• Pivoting from infant formula, what’s next for the Jatcorp (ASX:JAT) share price?
• Is there more pain ahead for the a2 Milk (ASX:A2M) share price?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and 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 Walkabout Resources (ASX: WKT) share price is shooting up today after the company announced a US$20 million project debt facility.

The debt facility secured with CRDB Bank of Tanzania was the final step needed before beginning construction on the Lindi Jumbo Graphite Project.

At the time of writing, the Walkabout Resources share price is trading at 26 cents, up a monster 44% from yesterday’s closing price of 18 cents.

Let’s look closer at the company’s announcement this morning.

Lindi Jumbo Graphite Mine

Securing the debt facility was the final hurdle before construction of the Lindi Jumbo Graphite Project could begin. The Lindi Jumbo is owned by Walkabout’s wholly-owned subsidiary, Lindi Jumbo Limited.

The company said Lindi Jumbo’s high-grade resource outcropping at the surface was the highest reserve grade of any undeveloped graphite project in Africa.

Lindi Jumbo will cost an estimated US$32 million. Thus, the debt facility has provided the company with 62.5% of the project’s costs.

According to this morning’s release, the mine is the first non-Chinese mine to receive debt funding.

As a result of securing debt funding from CRDB Bank of Tanzania, Lindi Jumbo has stopped its negotiations with Afreximbank.

 Commentary from management

Walkabout Resources managing director Allan Mulligan said the company was delighted about the new finance facility. 

We were very keen to meet not just the requirements of local content but the spirit as well and the CRDB facility accomplishes this. We have persisted with negotiating this funding facility for more than a year.

The relationship benefits Tanzania in growing its services sector and benefits our company, as the cost of funding reduces significantly in terms of sovereign risk premiums.

The provision of this significant debt package for Lindi unlocks the final milestone in project development and construction efforts at the mine site can commence as soon as formal documents have been executed. The project has assessed any potential COVID delays and we have introduced suitable travel and safety systems to mitigate risk.

Walkabout Resources share price snapshot

The Walkabout Resources share price has been flourishing on the ASX, with today’s news giving it another boost. It’s currently up by 85.7% year to date and has increased 100% over the last 12 months.

Walkabout Resources has a market capitalisation of around $62 million, with approximately 349 million shares outstanding.

More reading

• Is it time to get your hopes up for the A2 Milk (ASX: A2M) share price?
• Why is the Aldoro (ASX:ARN) share price rising today?
• Is the Bank of Queensland (ASX:BOQ) share price in the buy zone ahead of its results?
• Why the Commonwealth Bank (ASX:CBA) share price could soar 15%
• Why the Smartpay (ASX:SMP) share price is up 30% in 2021

Motley Fool contributor Brooke Cooper 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 Aldoro Resources Ltd (ASX: ARN) share price is rising today after the miner completed its Fixed-Loop Electromagnetic (FLTEM) surveys at Narndee, confirming more bedrock conductors.

The Aldoro share price is up 4.48% to 35 cents per share.

Aldoro is an exploration company established to explore and develop gold and nickel mineral properties. Its projects include Ryans Find, Kalgarin, Cathedrals and Leinster, and other mineral projects, including Narndee. 

What Aldoro’s market update said

Aldoro’s FLTEM survey has been completed, with data being processed for its final report, which is expected in mid-April. Investors are getting in early, though, sending the Aldoro share price rising today.

Two high confidence walk-up, drill-ready targets have been confirmed, with another target confirmed as a very discrete bedrock conductor. 

The explorer will now conduct Moving Loop Electromagnetic (MLTEM) surveying over high-priority targets coincident with topographic highs to attain a clearer result. A site visit is also planned for field mapping (identifying gossans) and follow-up geochemical surveys.

Several of Aldoro’s targets are situated on pronounced bedrock highs, leading to some anomalous results.

The latter target produced a bedrock conductor near the surface for this broad anomaly, which was interpreted as clays/weathered materials.

A site visit and mapping and sampling exercise of these topographical highs will determine the degree of weathering to establish the presence, if any, of clays that may have led to spurious FLTEM readings.

Aldoro share price snapshot

Aldoro has a very small market capitalisation of just $24 million, and the Aldoro share price has been volatile. However, it’s still risen overall from just 8 cents in November last year to its current high.

It previously reached 33 cents in February this year but had crashed down to 19 cents by March, explaining the company’s cautious approach when it comes to anomalous findings in Narndee.

The Aldoro share price is also up 191.6% over the past 12 months, beating the basic materials sector. 

More reading

• Is the Bank of Queensland (ASX:BOQ) share price in the buy zone ahead of its results?
• Why the Commonwealth Bank (ASX:CBA) share price could soar 15%
• Why the Smartpay (ASX:SMP) share price is up 30% in 2021
• Could this business update drive the Tesserent (ASX:TNT) share price higher?
• Big brokers think these 5 ASX shares can outperform the market

Motley Fool contributor Lucas Radbourne-Pugh 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 Bank of Queensland Limited (ASX: BOQ) share price will be one to watch closely this week.

The regional bank is due to hand in its eagerly anticipated half year results on Thursday morning.

What is the market expecting from Bank of Queensland?

The market is expecting a strong half year result from Bank of Queensland. This is particularly the case given solid updates from some of the big four banks earlier this year.

According to a note out of Goldman Sachs, its analysts are expecting the bank to report cash earnings of $164 million. This will be an increase of 9% over the prior corresponding period.

The broker expects this to allow the Bank of Queensland board to declare a fully franked interim dividend of 17 cents per share.

Based on the current Bank of Queensland share price of $8.93, this implies a 3.8% dividend yield if you annualise it.

What else did Goldman say?

Goldman Sachs is expecting a higher net interest margin (NIM) and sees upside risk to the metric.

It commented: “BOQ management expects NIM to be up c.3bps on 2H20 and slightly positive overall in FY21. This is consistent with what we currently forecast.”

“In addition to this, we see potential for near term funding cost tailwinds given the current level of deposit repricing already announced (with room for further repricing) and BOQ’s ability to drawdown on its remaining allotment of Term Funding Facility (TFF),” it added.

The broker is also expecting Bank of Queensland to deliver above system lending during the half.

It explained: “Housing loan growth should be above system with BOQ expecting 1H21 annualised housing loan growth of 5%, and slightly negative to flat business loan growth (GSe FY21E: BOQ housing +6.5% vs. system at +4.0% and BOQ business +0.6% vs. system at +1.6%). We will be interested in management commentary around the sustainability of this better than system growth.”

And finally, Goldman Sachs is forecasting low bad debts and sees potential for a reversal in impairments. This follows reversals by Australia and New Zealand Banking GrpLtd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC).

It said: “Our current forecast for 1H21E BDDs is at 10bp of total loans, consistent with what BOQ pre-announced. In light of the continued improvement in asset quality, coupled with recent industry trends (ANZ and WBC reported 1Q21 BDD contributions of A$150 mn and A$501 mn respectively), we will be particularly interested on whether BOQ follows this trend, or whether it takes a more conservative approach given the recent roll off of government support packages.”

Is the Bank of Queensland share price in the buy zone?

Although the Bank of Queensland share price is up 19% so far in 2021, partly due to excitement around its acquisition of ME Bank, the broker still sees value in it.

According to the note, its analysts have a buy rating and $9.68 price target on its shares. Based on the current Bank of Queensland share price, this implies potential upside of almost 8.5% excluding dividends. If you include them, the potential return stretches to over 12%.

This could make it worth considering if you don’t already have exposure to the sector.

More reading

• This broker expects great things from Bank of Queensland’s (ASX:BOQ) results next week
• Is CBA (ASX:CBA) the best bank for dividends in 2021
• Why the Bank of Queensland (ASX:BOQ) share price is under pressure today
• Wilson Asset Management thinks these 2 ASX shares are a buy

Motley Fool contributor James Mickleboro 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 Commonwealth Bank of Australia (ASX: CBA) share price is trending higher in early afternoon trade, up 0.42%.

But this could be just the tip of the share-price-gains iceberg for CBA and the rest of the big four banks over the coming six months.

Could the banking giant’s value surge over the next 6 months?

The Commonwealth Bank share price is in the spotlight today, along with the wider ASX banking sector.

This comes following a price forecast from David Cassidy, head of Australian equity strategy at Wilsons Advisory. Cassidy forecasts that the ASX banks could see significant more share price upside over the coming six months as investors continue to rotate into beaten-down value shares.

As the Australian Financial Review reports, Cassidy believes that, if this scenario remains in play, bank shares could gain 15% from their current levels, for a 20% annual gain.

Atop the rapid economic recovery underway in Australia, which should lead to earnings upgrades and higher dividend yields, Cassidy believes banks have “over-provided for the risks of COVID-19” and that “these provisions will likely be wound back in the next year”.

Although Wilsons is “avoiding Commonwealth Bank of Australia on relative valuation grounds”, Cassidy is bullish on the banking sector, saying:

The worst is behind the banks from a regulatory perspective… We believe there is still more runway for the banks, with an improved economic and regulatory backdrop than pre-COVID-19.

Cassidy added, “Over the next 6 months, investors will be asking more from bank management teams around strategic initiatives to grow earnings in a post-COVID-19, post-royal commission environment.”

Commonwealth Bank share price snapshot

The Commonwealth Bank share price is up by around 38% over the past 12 months, outpacing the 27% gain posted by the S&P/ASX 200 Index (ASX: XJO).

Year to date, CBA shares have gained around 4%. The ASX 200 listed bank pays a dividend yield of 2.9%, fully franked.

More reading

• Can the CBA (ASX:CBA) share price break above $90?
• ASX 200 Weekly Wrap: ASX sees 7,000 points once more
• The Afterpay (ASX:APT) share price is up almost 20% this month
• 6 reasons CSL (ASX:CSL) shares are struggling
• This broker thinks the Afterpay (ASX:APT) share price is a buy in April

Motley Fool contributor Bernd Struben 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 Smartpay Holdings Ltd (ASX: SMP) share price is not having a great day today. At the time of writing, Smartpay shares are down 1.14% to 87 cents a share.

On the surface, that move doesn’t look great for Smartpay shares. But if we zoom out, the picture gets a whole lot rosier. Smartpay shares are still up almost 30% year to date. They are also up more than 97% over the past 12 months. And with a 52-week range of 28-98 cents per share, Smartpay is definitely still in the upper echelons of this range. 

So what has gone so well for this payments company over the past 3-and-a-half months?

Smartpay share price pays off

Well, there hasn’t been too much to talk about with Smartpay in recent months. We haven’t had any meaningful announcements of consequence for the company since 12 March. And that was a notice from S&P Global that Smartpay would be joining the S&P/ASX All Technology Index (ASX: XTX), effective 22 March. This does have the potential to be a growth catalyst for the Smartpay share price, seeing as ASX tech shares are an area that is attracting more and more attention these days. The ASX exchange-traded fund (ETF) that tracks the XTX Index – the BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC) – is an increasingly popular ETF that now has more than $200 million in net assets. It has also appreciated more than 83% over the past 12 months, which doesn’t hurt either.

Remember, part of every dollar that gets invested with this ETF goes into Smartpay shares. So that’s certainly a tailwind for the Smartpay share price.

But we could still be seeing the aftershocks of a very well-received quarterly trading update that the company released back in January. As we reported at the time, this trading update saw the Smartpay share price reach its current 52-week (and all-time) high soon after. 

And for good reason. The update told investors that revenues were up 18% quarter-on-quarter and 24% over the prior corresponding quarter to NZ$9.2 million. Perhaps most impressively, Australian revenues grew 35% over the previous quarter’s numbers, and 75% against the prior corresponding quarter. 

Those are objectively strong numbers and have almost certainly done the lion’s share of the legwork when it comes to the Smartpay shares’ 2021 performance thus far. 

Those factors are likely to be behind the Smartpay share price’s 28% gain in 2021 so far. At the current share price, Smartpay has a market capitalisation of $204.25 million.

More reading

• Could this business update drive the Tesserent (ASX:TNT) share price higher?
• Big brokers think these 5 ASX shares can outperform the market
• What’s with the Crown (ASX:CWN) share price today?
• Leading brokers name 3 ASX shares to sell today
• Why focus could soon shift to dividend upgrades for the Telstra (ASX:TLS) share price

Motley Fool contributor Sebastian Bowen 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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