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It’s looking like a very happy end to the trading week indeed for the S&P/ASX 200 Index (ASX: XJO) so far this Friday. After rising every single session over the week so far, the ASX 200 is on track to make it five out of five today. At present, the Index has recorded a gain of 0.82%, lifting it back above 7,180 points. 

What a way to start the weekend (touch wood). But time now to turn to the ASX 200 shares that are currently topping the share market’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Friday

Pilbara Minerals Ltd (ASX: PLS)

First up we have ASX 200 lithium miner and producer Pilbara Minerals. This Friday has had a hefty 20.02 million Pilbara shares swap hands as it currently stands. We haven’t heard anything out of Pilbara either today. However, we have had some love from ASX brokers that could be contributing to this volume.

As my Fool colleague covered this afternoon, ASX broker Citi has given Pilbara shares a buy rating and a price target of $4.60. But investors don’t seem inspired and have sent the Pilbara share price down by 0.5% so far to $3.97 a share. Maybe it’s this combination that has resulted in so many shares flying around.

Mirvac Group (ASX: MGR)

Next up today is the ASX 200 real estate investment trust (REIT) Mirvac Group. This Friday has seen a sizeable 21.17 million Mirvac units find a new home over the trading day thus far. This is a rather interesting case to look at. There hasn’t been much in the way of fresh news or announcements out for a while from this REIT.

So we must conclude that this volume is a result of the unit price movements of the trust itself. Mirvac has had a pretty positive day. The REIT opened at $2.09 per unit after closing at $2.07 yesterday and has gone as high as $2.10 this session. At present, Mirvac is asking $2.08 a unit, up 0.48% for the day so far.

Sayona Mining Ltd (ASX: SYA)

Our third, final and most traded ASX 200 share this Friday is another lithium stock in Sayona Mining. This session has seen a whopping 35.9 million Sayona shares find a new ASX home so far. This is another interesting case.

This morning, Sayona shares rocketed up as high as 22 cents each (up nearly 4%) after the company announced that its North American Lithium project has been restarted.

But investors seem to have gotten a major case of cold feet since, with Sayona shares now down by a nasty 2.44% at 20 cents apiece. This volatility is almost certainly behind this elevated trading volume on display here.

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

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More reading

• Brokers name 3 ASX shares to buy now
• Why is the Sayona Mining share price having such a stellar end to the week?
• Piedmont Lithium share price surges 6% on ‘exciting milestone’
• ‘Sky-high demand’: 2 ASX 200 mining shares that could head to the moon
• Don’t stress! The stock market is ‘a long way from a crisis’

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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ASX 200 lithium shares had a dream run over 2021 and 2022 as commodity prices soared in line with the rapidly rising global uptake of electric vehicles (EVs).

The price of lithium carbonate went from about US$5,800 per tonne in late 2020 to US$86,000 per tonne in November 2022. But then the party was over, with lithium tumbling since then to US$35,500 today.

Over this time frame, pretty much all ASX 200 lithium shares have done well. But one more so than all the others. In fact, it became a 10-bagger in just two short years.

A 10-bagger is a company whose share price has grown in value 10 times over.

And, the future of this particular lithium stock is still looking bright after the company officially transitioned from being an explorer (when all you do is spend money) to a producer (when you actually start selling your product and generating revenue) just a few months ago.

The 10-bagger ASX 200 lithium share is…

Core Lithium Ltd (ASX: CXO).

The Core Lithium share price has gone from 8 cents on 4 December 2020 to 87 cents today.

So, the lithium stock is now worth more than 10 times its value just over two years ago.

It’s a 990% gain if you prefer percentage terms.

Let’s compare this performance with other ASX 200 lithium shares over the same time frame.

• Pilbara Minerals Ltd (ASX: PLS) share price up 462% from 71 cents then to $3.99 now
• Allkem Ltd (ASX: AKE) share price up 204% from $3.97 then to $12.08 now
• IGO Ltd (ASX: IGO) share price up 153% from $5.04 then to $12.79 now
• Mineral Resources Ltd (ASX: MIN) share price up 133% from $34.56 then to $80.79 now.

Core Lithium has actually traded at a much higher price than where it is today.

The Core Lithium share price hit a peak of $1.88 in November 2022.

So, at that point Core Lithium had achieved a 2,250% gain in less than two years. And it still hadn’t made a cent from lithium sales yet!

The dubious prize of the most shorted lithium share

Could this gigantic gain explain why Core Lithium is the most shorted ASX 200 lithium share today?

From the data above, we can see some disproportionate market exuberance over ASX 200 lithium shares compared to its peers.

To clarify, short selling is where professional traders try to profit from a fall in the share price. They borrow the shares and sell them with the intention of buying them back later, when they fall, to make a profit.

About 10% of Core Lithium’s outstanding shares are currently shorted.

This is up from 1.7% this time last year when the stock was trading lower than where it is today — in the low 80-cent range.

So why do the pros think this ASX 200 lithium share is overvalued?

Where is Core Lithium at in its development?

Core Lithium is a small-cap ASX 200 lithium share with a market capitalisation of $1.6 billion.

In its 1H FY23 results released this month, Core Lithium reported a $9.2 million loss.

The company sent its first shipment of lithium — worth about $20 million — to China in January. This was Core Lithium’s first revenue event.

As my Fool colleague Brooke recovered, the company achieved its first spodumene concentrate production in late February.

In early March, drilling results led to a more than doubling of the mineral resource estimate at the BP33 deposit within the broader flagship Finniss Lithium Project.

Then came a milestone sales agreement last week.

What do the experts say about the Core Lithium share price?

Well, earlier this month, Macquarie was optimistic on the Core Lithium share price. It maintained an outperform rating on the ASX 200 lithium share with an upgraded 12-month price target of $1.50.

The price target upgrade came after Core Lithium upgraded its resource estimate for Finniss.

Goldman Sachs retained its sell rating and a 90-cent share price target following the same news.

It said BP33’s upgrade only boosted the Finniss project’s total mineral resource estimate by between 20% to 30%. It also noted that more than half of the extra resources are more than 400 metres deep.

The broker said:

A significant increase to the updated resource base remains required to underpin fundamental valuation, in our view, where new developments are unlikely to come online in time to benefit from the current pricing environment.

The post Which ASX 200 lithium share has been a 10-bagger in two years? appeared first on The Motley Fool Australia.

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More reading

• Attention lithium investors: This ASX 200 mining billionaire says Australia could become a battery chemical manufacturing powerhouse
• Short interest in Core Lithium shares is growing. Is this a red flag?
• Which ASX lithium shares could be at risk of a short attack?
• Is the lithium price now on the way back up?
• Why the outlook for ASX lithium shares could be ‘very favourable’

Motley Fool contributor Bronwyn Allen has positions in Allkem, Core Lithium, and Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Accent Group Ltd (ASX: AX1)

According to a note out of Goldman Sachs, its analysts have retained their buy rating on this footwear focused retailer’s shares with an improved price target of $3.10. The broker believes that the market is underestimating the company’s full earnings potential. It highlights that this comprises an attractive distribution business, a set of vertically owned brands, and a portfolio of strong retail banners. Importantly, it continues to believe Accent is well protected from a potential slowdown in discretionary spend given its exposure to a younger consumer and performance footwear. The Accent share price is trading at $2.34 this afternoon.

Allkem Ltd (ASX: AKE)

A note out of Morgans reveals that its analysts have retained their add rating on this lithium miner’s shares with a slightly trimmed price target of $15.10. The broker believes that Allkem could be an attractive takeover target in the lithium industry. This is due to its cheap valuation and significant lithium resource. The Allkem share price is fetching $11.96 today.

Pilbara Minerals Ltd (ASX: PLS)

Analysts at Citi have retained their buy rating on this lithium miner’s shares with a modestly reduced price target of $4.60. This follows news that the company’s board has approved the expansion of its spodumene production to 1 million tonnes per annum. And while the costs are more than it was expecting, it isn’t overly surprised in the current inflationary environment. The Pilbara Minerals share price is trading at $3.98 this afternoon.

The post Brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

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More reading

• ‘Sky-high demand’: 2 ASX 200 mining shares that could head to the moon
• 7 ASX dividend shares you can buy for under $10
• 5 things to watch on the ASX 200 on Friday
• Attention lithium investors: This ASX 200 mining billionaire says Australia could become a battery chemical manufacturing powerhouse
• Here are the 3 most heavily traded ASX 200 shares on Thursday

Motley Fool contributor James Mickleboro has positions in Allkem. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Wesfarmers Ltd (ASX: WES) share price has performed well in March 2023, rising by 4% over the month at the time of writing. That compares to a fall of around 1% in the past month for the S&P/ASX 200 Index (ASX: XJO).

The ASX 200 is made up of a number of businesses including BHP Group Ltd (ASX: BHP), CSL Limited (ASX: CSL) and numerous ASX bank shares.

What happened to the ASX 200?

With banks playing such a large role in the ASX 200, any worries about the banking sector can have a sizeable hit on the ASX 200.

At the time of writing, the banks are showing a sizeable decline over the last month, including the Commonwealth Bank of Australia (ASX: CBA) share price being down 2.6%, the National Australia Bank Ltd (ASX: NAB) sliding being down 8%, the Westpac Banking Corp (ASX: WBC) share price dropping 3.5%, the ANZ Group Holdings Ltd (ASX: ANZ) share price being down 7% and the Macquarie Group Ltd (ASX: MQG) share price falling 7.4%.

Combined, the ASX 200 banks had a bad month amid the difficulties for the banking sector in the US and Europe.

Silicon Valley Bank (SVB) collapsed, though depositors were saved and now First Citizens is buying the venture capitalist-focused bank.

Investment bank Credit Suisse was saved by UBS amid concerns about its operations.

While the bank share prices suffered over the month, ASX 200 banks have been telling investors that they are well-capitalised and can get through any difficulties.

Did anything specific impact the Wesfarmers share price?

The company may have seen some volatility amid the worries about contagion from the banking worries.

However, Wesfarmers isn’t a bank, so may not have been impacted as much.

Plus, the Wesfarmers share price continues to recover from the lows seen in 2022.

It didn’t announce anything that was market sensitive to investors this month, the FY23 half-year result was released last month. The business also went ex-dividend last month, so that wasn’t an impact on the Wesfarmers share price either.

But, the company did provide a presentation for its chemicals, energy and fertilisers (WesCEF) business where it outlined its portfolio of “complementary businesses” with “clear competitive advantages”.

Wesfarmers pointed out that these businesses have achieved “market-leading performance”, with “continuous productivity improvements”.

It also pointed out that it has a track record of “successful expansion through incremental investment with significant further opportunities providing a pipeline for growth”.

WesCEF also has “major project and chemical processing experience that can be leveraged into emerging sectors” such as lithium. The company is currently working on the Mt Holland lithium project.

Wesfarmers share price snapshot

Since the start of 2023, the business has risen by around 10%.

The post Why did the Wesfarmers share price outperform the ASX 200 in March? appeared first on The Motley Fool Australia.

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More reading

• 2 high quality blue chip ASX 200 shares named as buys by analysts
• $1,600 annual dividend income from a $20,000 ASX share portfolio? Here’s how
• How to make passive income for life with just $5 a day
• Is time running out to buy high-yield ASX dividend shares?
• The whopper Wesfarmers dividend is being paid today. Here’s what you need to know

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has recommended Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The AMP Ltd (ASX: AMP) share price is in the red as the company prepares for shareholders to reject its remuneration report at today’s annual general meeting (AGM).  

Investors appear to have hit back at management on the back of a tumultuous February for the stock. It tumbled 23% last month amid the release of the company’s full-year earnings.

The company’s chair Debra Hazelton also addressed concerns over the rollout of the promised $1.1 billion capital return and how AMP Super votes on climate resolutions in a speech published to the ASX.

The AMP share price is $1.072 at the time of writing, 0.74% lower than its previous close.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is rising 0.71%.

Let’s take a closer look at what the company’s chair told investors at its AGM.

AMP share price falls amid AGM

The AMP share price is underperforming after Hazelton acknowledged expectations its remuneration report will face a “disappointing” first strike.

A first strike will be called if upwards of 25% of the company’s shareholders vote ‘no’ to its bonuses. AMP expects to take the hit based on votes cast prior to today’s meeting. Hazelton said:

While we have already made significant changes to our remuneration framework over the past 12
months based on comprehensive engagement with investors, proxy advisors, remuneration experts
and regulators – we remain keen to understand and respond to feedback.

Such feedback pointed to the board’s decision to award a bonus higher than the scorecard outcome and concerns about undisclosed short-term incentives. Hazelton stated AMP is continuously working to improve disclosures and remuneration was allocated “holistically” based on the 2022 scorecard and other factors.

Though, she admitted the stock’s February falls “may have coloured shareholders’ views of management’s performance”.

On that note, she dubbed the AMP share price’s recent performance “extremely disappointing” but said, while the company’s leaders are mindful of day-to-day gains and falls, they remain focused on the long term.

Over time, the company’s stock should rise on the execution of its strategy and commitments, according to the chair.

One such commitment is its $1.1 billion capital return, which it plans to fast-track in response to shareholder angst.

Investors were asked to vote to allow another 500 million AMP shares to be bought back over the coming year.

She also clarified how AMP Super votes are decided by third-party fund managers. However, in a move that “indicates how important AMP regards climate risk”, it recently moved to direct managers to vote on the topic of climate risks for select energy, materials, and utility companies, where possible.

Meanwhile, the ASX 200 chair looked back at prior challenges facing the company. Hazelton reportedly responded to an aggrieved shareholder saying, as per the Australian Financial Review:

The [Hayne] royal commission upended AMP’s business model.

It had an enormous effect – almost existential.

The AMP share price remains around 80% lower than it was prior to the 2018 royal commission.

The post AMP share price slips amid expected first strike on remuneration appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Sunk $3,000 into AMP shares 5 years ago? Here’s how much passive income you’ve realised
• Are AMP shares set to become a dividend machine?
• If I had bought $5,000 AMP shares a week ago, here’s how much I’d have now!
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Brooke Cooper 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 Scott Phillips.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a positive note. At the time of writing, the benchmark index is up 0.75% to 7,175.5.

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

Block Inc (ASX: SQ2)

The Block share price is up 3.5% to $102.41. This follows a strong night for the payments company’s NYSE listed shares. Bargain hunters appear to have been taking advantage of recent share price weakness caused by a short seller attack.

Novonix Ltd (ASX: NVX)

The Novonix share price is up 11% to $1.29. This morning, this battery materials company announced a joint venture agreement with TAQAT in the Middle East and North Africa (MENA) region. The two parties will develop and produce anode materials for electric vehicle and energy storage system batteries. A facility will be constructed in Saudi Arabia as part of the agreement.

Piedmont Lithium Inc (ASX: PLL)

The Piedmont Lithium share price is up 4% to 88 cents. This morning, this lithium developer revealed that the US$80 million restart of its North American Lithium (NAL) project has been completed on time and on budget. Commercial spodumene concentrate production is now underway at the Canada-based project, with shipments expected to commence in the third quarter.

Syrah Resources Ltd (ASX: SYR)

The Syrah share price is up 8% to $1.82. Yesterday, this graphite producer released a mineral resource update for the Balama project. This update went down well with analysts at Macquarie. In response, the broker has retained its outperform rating and $2.30 price target on the company’s shares. This implies potential upside of 26% for investors over the next 12 months even after today’s strong gain.

The post Why Block, Novonix, Piedmont Lithium, and Syrah shares are racing higher appeared first on The Motley Fool Australia.

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More reading

• Why is the Sayona Mining share price having such a stellar end to the week?
• Piedmont Lithium share price surges 6% on ‘exciting milestone’
• ‘Very excited’: Why the Novonix share price is leaping 14% on Friday
• Why Appen, Regis Resources, Syrah, and Zip shares are charging higher today
• Leading brokers name 3 ASX shares to buy today

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 positions in and has recommended Block. The Motley Fool Australia has positions in and has recommended Block. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Lake Resources NL (ASX: LKE) share price is trading 2.1% lower at lunchtime on Friday at 46 cents.

What a shocker of a month for this ASX lithium share, which has slid 27% over the period.

By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.75% today and down 1.2% for the month.

Why is the Lake Resources share price drowning?

A bearish outlook for lithium prices is one challenge, but that’s universal to all ASX lithium shares.

What’s unique to Lake Resources is a recent $3.9 million insider sell-down and an ongoing short attack.

As my Fool colleague James reported on Monday, Lake Resources non-executive chairman, Stu Crow, sold 7.92 million shares on-market between 17 March and 23 March.

Crow received a total consideration of $3.89 million, meaning he sold for an average price of 49.16 cents per share.

A large-scale insider sell-off tends to make investors nervous. The company sought to allay fears by issuing a statement saying the sale was made “under advice to meet personal financial obligations”.

Lake said Crow was a founding shareholder and remained one of Lake’s biggest private investors.

It said he still owned 10 million shares and had no intention of selling any more in the foreseeable future.

Lake Resources has also been grappling with an ongoing short attack by a United States short-selling activist group called J Capital. They don’t believe Lake Resources can deliver on its targets.

Is this ASX lithium share now cheap enough to buy?

Well, if you have faith in top brokerage firm Bell Potter, then the answer is a “hell, yes”.

Bell Potter thinks the Lake Resources share price could grow five-fold in the next 12 months.

The broker has a speculative buy rating on the lithium share with a price target of $2.52.

Note that the rating is speculative, though. This is Bell Potter’s way of acknowledging there are risks.

Here’s something that’s also interesting to note.

Six months ago, Lake Resources had 10.13% of its stock shorted.

This basically means a decent number of pro traders expected the stock price to fall, so they shorted it.

Since then, the Lake Resources share price has fallen by 49.9%.

Today, 6.09% of the capital is shorted, which demonstrates a 40% reduction in short positioning on the lithium stock.

What else is going on with Lake Resources?

In its half-year accounts lodged with the ASX on 15 March, Lake Resources revealed a 1H FY23 loss of $13.46 million, up from a loss of $4.62 million in 1H FY22.

Of course, you have to take this with a grain of salt. Lake is still building its mining assets and therefore not producing any lithium to sell yet.

Lake Resources has cash and cash equivalents totalling $133 million and its liabilities total about $8 million.

Looking ahead, Lake Resources expects to complete its definitive feasibility study for producing 50,000 tonnes of lithium carbonate per year by the middle of 2023.

The post Down 27% in a month, is the Lake Resources share price finally cheap enough to buy? appeared first on The Motley Fool Australia.

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More reading

• Why Appen, Harvey Norman, Healthco, and Lake shares are dropping today
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Why Lake Resources, Latitude, Synlait, and Woodside shares are falling today
• Lake Resources share price plummets 12% following $3.9m insider sell-off

Motley Fool contributor Bronwyn Allen 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 Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a decent gain. In afternoon trade, the benchmark index is up 0.7% to 7,172.3 points.

Four ASX shares that have failed to climb with the market today are listed below. Here’s why they are dropping:

Appen Ltd (ASX: APX)

The Appen share price is down 6.5% to $2.84. This may have been driven by profit taking from investors after the artificial intelligence data services company’s surged higher. In fact, even after this sizeable decline, the Appen share price is up 22% since the start of the month.

Harvey Norman Holdings Limited (ASX: HVN)

The Harvey Norman share price is down over 3% to $3.60. This has been driven by the retail giant’s shares going ex-dividend this morning. Eligible shareholders can now look forward to receiving this fully franked 13 cents per share interim dividend in their bank accounts in a little over a month on 1 May.

Healthco Healthcare and Wellness REIT (ASX: HCW)

The Healthco share price is down 6% to $1.34. The catalyst for this has been the property company completing an institutional placement and entitlement offer. The company raised approximately $208 million at $1.35 per new share. It will now raise a further $112 million via an underwritten retail entitlement offer.

Lake Resources N.L. (ASX: LKE)

The Lake Resources share price is down almost 4% to 45.2 cents. This lithium developer continues to underperform its peers and is now down almost 28% month to date. That’s despite the rest of the industry hurtling higher this week following some major M&A news. One short seller has been targeting Lake due to doubts over its DLE technology.

The post Why Appen, Harvey Norman, Healthco, and Lake shares are dropping today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen and Harvey Norman. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Westpac Banking Corp (ASX: WBC) share price is on course to end the week on a mildly positive note.

At the time of writing, the banking giant’s shares are up 0.25% to $21.75.

However, despite this, the Westpac share price remains down almost 7% since the start of the year.

Investors may now be wondering if this is a buying opportunity. Here are three reasons I think buying Westpac shares is a no-brainer.

Strong capital position

A lot of the weakness in the Westpac share price this year has been driven by the banking crisis.

While seeing banks go out of business is always unnerving, it is worth noting that Westpac and the rest of the big four are among the most liquid in the world.

As I mentioned here last week, Westpac has a CET1 ratio of 11.13%, a net stable funding ratio (NSFR) of 139%, and a liquidity coverage ratio (LCR) of 122%. These are all comfortably ahead of requirements.

I believe this makes the recent pullback an overreaction and an opportunity for investors to pick up shares at a discount.

Cost cutting

Another reason I am bullish on the Westpac share price is its cost-cutting plans.

Australia’s oldest bank is aiming to reduce its cost base to $8.6 billion by FY 2024. This compares to its ‘ongoing’ cost base of $9.1 billion in FY 2021.

This is particularly positive in the current inflationary environment, which has seen many other companies (including other big four banks) reporting sizeable increases in their costs.

For example, last month, Commonwealth Bank of Australia (ASX: CBA) reported a 5% or $283 million increase in its first-half operating costs to $5.77 billion.

Together with the benefits of rising interest rates, Westpac’s lower cost base should be a boost to its bottom line and, ultimately, its dividends. Speaking of which, this leads us to the third reason to be bullish.

The Westpac dividend yield

One positive from falling share prices is that the potential dividend yields on offer become more attractive.

For example, Goldman Sachs expects Westpac’s earnings growth to underpin fully franked dividends per share of $1.47 in FY 2023, $1.56 in FY 2024, and then $1.65 in FY 2025.

Based on the latest Westpac share price, this will mean monster yields of 6.75%, 7.2%, and 7.6%, respectively.

And with Goldman having a conviction buy rating and a $27.74 price target on its shares, there’s also potential for some big capital gains as well.

The post Does the Westpac share price fall make it a no-brainer buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In afternoon trade, the Commonwealth Bank of Australia (ASX: CBA) share price is on course to end the month on a positive note.

At the time of writing, the shares of Australia’s largest bank are up 0.5% to $98.22.

However, unless something spectacular happens between now and the market close, this won’t stop its shares from recording a disappointing monthly decline.

As things stand, the CBA share price is on track to post a 2.3% decline in March.

Why is the CBA share price under pressure this month?

Investors have been selling down the CBA share price this month due to concerns that rising interest rates were causing a global banking crisis.

This followed the collapse of Silicon Valley Bank and Signature Bank in the United States, as well as Credit Suisse in Europe.

It wasn’t just CBA shares that came under pressure. The rest of the big four banks and particularly the regional players were sold off in March.

Bank of Queensland Ltd (ASX: BOQ) and Bendigo and Adelaide Bank Ltd (ASX: BEN) shares are down 8% and 10%, respectively, month to date. This appears to indicate that the market is far more concerned over their prospects than those of CBA.

Which should not be surprising at all given the strength of CBA’s capital position and liquidity.

As I mentioned here, CBA is arguably the safest ASX bank share thanks to its CET1 ratio of 11.4%, liquidity coverage ratio (LCR) of 131%, and net stable funding ratio (NSFR) of 129%. These are all significantly higher than requirements.

All in all, in light of this, it wouldn’t be surprising to see the CBA share price rebound in April if banking crisis concerns ease and investors return to the sector.

The post Why did the CBA share price tumble in March? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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