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When a company director buys up 25,000 of their own company’s shares, it’s certainly an event to take note of. Yes, that’s what has happened this week with one ASX All Ords share. 

Race Oncology Ltd (ASX: RAC) is an All Ords healthcare share. Its Zantrene cancer drug is currently in development, which the company hopes will protect against several types of cancer:

Earlier this week, the company put out an ASX notice regarding director Dr Daniel Tillett. Tillett is an executive director at Race Oncology, as well as the company’s chief science officer.

This announcement declared that Tillett had acquired 25,550 shares over 11, 12 and 13 January in on-market purchases. At today’s share price of $2 (at the time of writing), those 25,550 shares would have a value of $51,100.

This latest purchase brings Tillett’s total holdings in Race Oncology to 13,685,282 fully-paid ordinary shares. That stake would have a value of $27.32 million right now.

Tillett also owns another 2,307,925 shares (worth another $4.6 million) that are under voluntary escrow until November 2023. In addition, he also owns 2 million options, exercisable at a price of $2.65 and which expire in November 2025.

Do All Ords investors like management buying shares?

So why does this matter to ordinary ASX investors? Well, shareholders usually like to see that the management team has significant skin in the game when it comes to the fortunes of the company they are running.

They tend to like it even more when said management team adds skin to said game. That is exactly what has happened this week with Tillett and his 25,550 new shares.

Shareholders of Race Oncology have also had a stellar run over the past few years. The company may be significantly down from its 2021 highs of close to $4 a share. But it was only back in 2019 that Race was a 5-cent penny stock. So longer-term investors have enjoyed returns of close to 4,000% in just a couple of years.

The post This ASX All Ords director has bought 25,000 of his company’s shares in a week appeared first on The Motley Fool Australia.

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More reading

• 3 ASX mining shares rocketing more than 18% on Thursday
• Should I buy Woodside shares in 2023?
• 3 ASX 200 companies brimming with cash right now
• 3 ASX All Ords shares getting hammered on disappointing results
• Why have 2 DroneShield directors sold off 10 million of their shares in the past fortnight?

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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It’s a sunny day on the ASX. The benchmark All Ordinaries Index (ASX: XAO) is gaining 0.51% at the time of writing. But that’s nothing compared to the surges being recorded by these ASX mining shares.

Let’s take a look at three ASX materials and resources stocks soaring as high as 18% on Thursday.

3 ASX mining shares taking to the skies today

First up, the Patriot Battery Metals Inc (ASX: PMT) share price is taking off today. It’s lifting 29% right now to trade at $1.13.

Its surge follows news the lithium developer has identified the highest-grade intercept yet at its Corvette Property in Quebec, Canada.

Drilling at the project returned 156.9m at 2.12% lithium oxide, including 25m at 5.04% lithium oxide or 5m at 6.36% lithium oxide.

Patriot Battery Metals floated on the ASX in early December following a $4.2 million initial public offering (IPO).

Joining the lithium share to post a whopper of a gain today is a slightly unusual mining company. The Minbos Resources Ltd (ASX: MNB) share price is up 18% right now, trading at 13 cents.

ASX market watchers are likely used to seeing mining companies digging for metals.

Minbos, on the other hand, is digging for phosphate rock – a key ingredient in some fertilisers.

It’s also building a plant to produce enhanced phosphate rock granules, which will become feed stock for fertiliser designed for the Angolan agricultural sector.

Today, the company announced the fertiliser plant and equipment were on their way to the African nation, with the first shipments having already arrived.

Additionally, it said initial construction activities at its Cácata phosphate deposit remained on target and within budget.

The final mining share posting a whopping gain today is Aruma Resources Ltd (ASX: AAJ). The stock is up 20.2% right now, trading at 9.5 cents.

Interestingly, there’s been no news from the tiny lithium hopeful to explain today’s rise.

The last time the market heard anything from the company was last week when it released a positive update on assay results from its Mt Deans Lithium-Rubidium Project.

The post 3 ASX mining shares rocketing more than 18% on Thursday appeared first on The Motley Fool Australia.

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More reading

• ‘Hard to find words’: Why this ASX lithium share is rocketing 22%
• Own ASX lithium shares? Here’s the latest lithium price forecast
• 2 tiny ASX lithium shares leaping over 20% on BIG news
• This under-the-radar ASX battery metals share is leaping 15% on Friday. Here’s why

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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The Woodside Energy Group Ltd (ASX: WDS) share price has charged higher in the last year, but is it still worth buying in 2023? Woodside shares have soared 44% in the last year.

In today’s trade, Woodside shares are falling 1.08% to $36.60 after the oil price fell overnight.

So what is the outlook for the Woodside share price in 2023?

What’s ahead?

Woodside is a global oil and gas producer. The price of oil and gas tends to weigh heavily on Woodside shares, given it can impact the company’s earnings.

A positive report out of UBS in January may signal good news for the oil price. The UBS chief investment office is tipping crude oil prices to rise in 2023. In fact, UBS believes oil to outperform coal in 2023:

Analysts said:

The energy problems of 2022—redirected Russian supply, chronic underinvestment in upstream capacity— are here to stay. And with demand recovering in China as well as in emerging markets overall, energy prices should continue to climb in 2023.

But unlike last year, when thermal coal replaced natural gas and crude oil as best performer, the UBS Chief Investment Office (CIO) expects oil to come out on top in 2023.

UBS is predicting brent crude oil to reach US$110 a barrel in 2023, and WTI oil to lift to US$107 a barrel.

Looking at the gas price, UBS is predicting natural gas to hit US$4.5 per MMBtu by mid-2023 and US$5 MMBtu by the year’s end. UBS said:

Overall, we expect natural gas demand (including net exports) to rise by about 1 billion cubic feet per day in 2023.

Natural gas is currently down 1.03% and fetching US$3.28 per MMBtu, Bloomberg Energy data shows. Meanwhile, the crude oil price is sliding 0.84% to US$84.27 a barrel, while WTI crude oil is priced at US$78.67 a barrel.

What else?

UBS is not the only analyst forecasting the oil price to rise. Goldman Sachs global head of commodities research Jeff Currie recently tipped oil to hit US$90 a barrel this quarter before lifting to US$95 a barrel in the June quarter amid China’s reopening.

Meanwhile, Citi analysts are tipping Woodside dividends to jump in FY23 and FY24. As my Foolish colleague James reported, the broker is predicting Woodside to pay a fully franked dividend of $3.47 per share in FY23 and $3.38 a share in FY24.

Citi has placed a $38.50 price target on Woodside shares and recommends it as a buy.

Woodside share price snapshot

The Woodside share price has climbed 3% year to date. In the last month, Woodside shares have climbed 3%.

Woodside has a market capitalisation of about $69 billion based on the current share price.

The post Should I buy Woodside shares in 2023? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Attention income investors! These 7 ASX 200 dividend shares are projecting yields of 7%+ in FY24
• Can Woodside shares deliver 9% yields for ASX income investors in 2023 and 2024?
• 5 things to watch on the ASX 200 on Monday
• Burning hot: The outlook for ASX 200 energy shares in 2023

Motley Fool contributor Monica O’Shea 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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There aren’t too many things more valuable than a stack of cash during rocky economic times. Surprisingly though, there are only 53 companies inside the S&P/ASX 200 Index (ASX: XJO) that are currently in a net cash position.

The prospects of a looming recession in 2023 are beginning to show. Overnight, one of the world’s biggest tech companies, Microsoft Corp (NASDAQ: MSFT), announced it was letting go of 10,000 employees in preparation for a challenging future.

If a recession were to materialise, having plenty of cash on hand (with minimal debt) could mean a company weathers the storm, whereas others with weaker balance sheets might not. It can also allow companies to be opportunistic — making strategic acquisitions and growing market share.

Here are three companies that are currently cashed up.

These ASX 200 shares are rolling in dough

Before we get underway, it is worth mentioning that there are ASX-listed companies with more net cash than those that will be highlighted below.

For example, CSL Limited (ASX: CSL) almost tops the list with $1,130 million in net cash, but it also has plenty of debt. The biotech giant held approximately 57% of its equity in debt at the end of June 2022.

The companies included below hold a large pile of net cash, but also a relatively low exposure to debt.

Magellan Financial Group Ltd (ASX: MFG)

You might be caught off guard by Magellan making an appearance in this list after its share price has fallen 47% over the past 12 months.

Despite the immense panic surrounding the fund managers’ declining funds under management (FUM), the company can attest to holding $420 million in net cash. To Magellan’s credit, the balance sheet remains debt free at this time.

However, the question is: Will the company’s fortress-like balance sheet remain intact as it tries to curb outflows? On 6 January, Magellan reported a further 10% decline in FUM to $45.3 billion. Shockingly, this is 60% less money being managed by the company compared to a year ago.

Lynas Rare Earths Ltd (ASX: LYC)

The next entrant to the ‘swimming in cash’ ensemble is the rare earths miner and refiner — Lynas Rare Earths. This ASX 200 company has also hit a rough patch for its share price — sliding 23% throughout the last year.

Nevertheless, a falling share price hasn’t stopped Lynas from raking in monster profits lately. In FY22, the company reported $540.8 million in earnings at a 59% net profit margin… mindblowing stuff! The rare earth bonanza has helped fortify the balance sheet with $779 million in net cash.

Lynas is slated to report its latest quarterly results on 30 January.

Whitehaven Coal Ltd (ASX: WHC)

Last but not least is the coal-producing Whitehaven Coal. Parading a mindboggling net cash holding of $1,169 million.

It’s a turnaround story if I’ve ever seen one. A year and a half ago, Whitehaven had $729 million of debt hanging over its head with just a smidgen of cash. Now, the company’s debt is less than $50 million and is almost insignificant compared to its cash holdings.

The monumental change has been the result of abnormally high profits due to record coal prices. Based on current forecasts, the earnings windfall for this ASX 200 share could be even larger in FY23.

The post 3 ASX 200 companies brimming with cash right now appeared first on The Motley Fool Australia.

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More reading

• Why is the Whitehaven share price flaming out today?
• 3 high-yield ASX shares I think are dividend traps right now
• Can ASX 200 coal shares really deliver dividend yields of over 10% in FY24?
• Attention income investors! These 7 ASX 200 dividend shares are projecting yields of 7%+ in FY24
• Burning hot: The outlook for ASX 200 energy shares in 2023

Motley Fool contributor Mitchell Lawler has positions in Lynas Rare Earths. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Microsoft. 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 All Ordinaries Index (ASX: XAO) is in the green today, up 43%. But investors are dumping these three ASX All Ords shares following the release of their quarterly results today.

Let’s take a look at the detail.

Praemium Ltd (ASX: PPS)

The Praemium share price is down 4.72% to 75.8 cents at the time of writing after falling as low as 73 cents this morning.

The ASX All Ords share opened at 75 cents following the release of its 1H FY23 results before the market began trading. This was a 6.25% fall on yesterday’s closing price.

Praemium provides administration software, investment platforms, and financial planning tools to the wealth management industry.

The company reported unaudited figures showing total funds under administration (FUA) increased by 6% to $42.7 billion over the six months ending 31 December 2022. However, there was a big dip in net inflows, down 53% to $1,016 million compared to the half-year ending 31 December 2021.

Praemium CEO Anthony Wamsteker said:

Investor sentiment has been very subdued in the wake of three successive previous quarters of negative markets and high volatility.

The Praemium share price is down 46% over the past 12 months.

Alumina Limited (ASX: AWC)

The Alumina share price is down 7.35% to $1.575 at the time of writing. The ASX All Ords share opened at $1.64 following the pre-open release of its joint venture partner’s 4Q 2022 results. This was a 3.5% fall on yesterday’s closing price.

Alumina has a 40% equity share of Alcoa World Alumina and Chemicals (AWAC), which owns substantial global bauxite reserves and operates alumina refineries.

Alcoa reported a substantial decline in adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) for its alumina segment over the December quarter. Alumina’s EBITDA was $27 million, down from $69 million in 3Q 2022.

Bauxite EBITDA was $24 million, an increase from $15 million in 3Q 2022.

This resulted in lower net distributions to Alumina at $4.5 million in the second half of 2022.

Alumina CEO Mike Ferraro hinted the board may not declare a final dividend for 2022 this earnings season. He blamed increased input costs and subdued alumina prices for the poor results.

Ferraro said:

Despite these near-term challenges, AWAC will benefit from an improvement in alumina prices. The re-opening of China, reduction in shipping costs, recent refinery curtailments, and smelter restarts in Europe and the Americas all provide support for alumina prices.

We note that the alumina price has increased since the start of 2023 to $360/t on 18 January 2023.

The Alumina share price is down 23% over the past 12 months.

Carnarvon Energy Ltd (ASX: CVN)

The Carnarvon share price is down 1.61% to 15.3 cents at the time of writing. The ASX All Ords share opened at 15.5 cents after the company released its December quarter activities and cash flow report before the market open. This was level with yesterday’s closing price.

Carnarvon Energy is an oil and gas exploration company. It reported that operating activities over the quarter cost $1.06 million. It reported a cash or cash equivalents balance of $97.9 million with 19.8 quarters of estimated funding available and no debt.

Managing director Adrian Cook said:

The Company remains very focused on delivering several key Dorado based workstreams, all of which are expected to generate substantial value for shareholders and be reflected in the Company’s share
price over time.

First, the Company’s key strategic priority is to reach a Final Investment Decision (FID) for the Dorado development. The Company is also focused on integrating the Pavo North oil discovery which successfully added an additional 43 million barrels resource.

Concurrently, the Company continues to assess the huge exploration upside potential in the Bedout Sub-basin which we plan to progressively capture. This work has identified combined prospective resources of over 1.5 billion barrels of oil equivalent within the top 20 prospects alone.

The Carnarvon Energy share price is down 51% over the past 12 months.

The post 3 ASX All Ords shares getting hammered on disappointing results appeared first on The Motley Fool Australia.

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More reading

• Why Alumina, Netwealth, Nickel Industries, and Paladin Energy shares are falling today
• Here are the top 10 ASX 200 shares today
• Here’s the next ASX All Ordinaries share I’m going to buy
• These were the 5 top-performing ASX All Ords shares of 2022
• Guess which ASX All Ords tech share is starting 2023 with a 6% gain

Motley Fool contributor Bronwyn Allen has positions in Alumina. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Praemium. The Motley Fool Australia has recommended Praemium. 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 DroneShield Ltd (ASX: DRO) share price has been on a ripper run lately. Therefore, it might be easy to assume two directors offloading notable stakes in the company did so to cash in gains. However, there’s more to the story.

The DroneShield share price is currently 32 cents. While that’s 4.5% lower than it was at Wednesday’s close, it’s also 78% higher than it was this time last month.

For comparison, the benchmark All Ordinaries Index (ASX: XAO) has lifted 0.4% today and 4.3% over the last 30 days.

So, why have CEO and managing director Oleg Vornik and chair Peter James sold millions of DroneShield shares in the last fortnight? Let’s take a look.

Why have DroneShield directors been offloading shares?

There was a selling spree among DroneShield directors earlier in January, with Vornik and James selling more than 10 million shares between them.

Vornik offloaded approximately 7.2 million shares for a total of around $1.9 million – representing an average price of around $26.38 apiece.

James, meanwhile, sold 3 million shares for a total of $796,690 – or approximately 26.56 cents apiece.

And that was a decent price compared to the stocks’ recent lows. If the pair made the sales in late December, they may have received just 17.5 cents per share.

But it wasn’t profit-taking that apparently led the directors to each offload a sizeable chunk of their stake in the company.

According to ASX statements detailing the sales, “a substantial part of the proceeds is towards meeting [Australian Taxation Office (ATO)] tax obligations associated with issue of DroneShield securities”.

If that sounds familiar, it’s probably because it is. Indeed, in June 2022 Vornik and James offloaded a combined 2.65 million stocks for 20.7 cents apiece for taxation reasons.

Following their latest sales, Vornik holds 8 million DroneShield shares – approximately 1.8% of the register – and James holds 6.3 million – or around 1.4% of the company, according to ASX data.

The stakes they sold this month represented 28% and 20% of their respective fully diluted stakes.

The post Why have 2 DroneShield directors sold off 10 million of their shares in the past fortnight? appeared first on The Motley Fool Australia.

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More reading

• Why has the DroneShield share price rocketed 69% in a month?
• Guess which ASX share is rocketing 25% on a record $11m government contract

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 positions in and has recommended DroneShield. The Motley Fool Australia has recommended DroneShield. 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 form and charging higher on Thursday. In afternoon trade, the benchmark index is up 0.5% to 7,431.9 points.

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

Alumina Limited (ASX: AWC)

The Alumina share price is down 7.5% to $1.57. This follows the release of a fourth quarter update. That update revealed that the AWAC joint venture struggled with “input cost pressures combined with subdued alumina prices.” As a result, the company’s net receipts from AWAC were just $4.5 million in the second half of 2022.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is down almost 10% to $12.58. This follows the release of a quarterly update from the investment platform provider. That update revealed a significant slowdown in net inflows. Netwealth’s net inflows of $2,087 million were down 42% on the prior corresponding period and 29% from the first quarter. This reflects “larger than usual outflows in the High Net Worth (HNW) investors and mid-market segment.

Nickel Industries Ltd (ASX: NIC)

The Nickel Industries share price is down 8% to $1.03. This morning the nickel producer announced the completion of a $264 million institutional placement. These funds were raised at $1.02 per new share, which represents a 9% discount to its last close price. The proceeds will be used for acquisitions.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is down over 6% to 73 cents. This follows the release of the uranium developer’s quarterly update. That update confirms that the company expects it to be another year until the Langer Heinrich Mine returns to production. Management is targeting the commencement of production during the first quarter of calendar year 2024.

The post Why Alumina, Netwealth, Nickel Industries, and Paladin Energy shares are falling today appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares making big moves following trading updates
• Here are the top 10 ASX 200 shares today
• Why is this ASX 200 mining share halted today?
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares 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 Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth 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 S&P/ASX 200 Index (ASX: XJO) is defying the weakness on Wall Street and pushing higher. In afternoon trade, the benchmark index is up 0.45% to 7,427.6 points.

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

Allkem Ltd (ASX: AKE)

The Allkem share price is up almost 3% to $12.59. This follows a positive response to the lithium miner’s quarterly update from brokers. For example, Bell Potter has retained its buy rating with a $19.36 price target. It was pleased with the record performance of the company’s Olaroz operation and notes that costs were lower than it was forecasting.

DGL Group Ltd (ASX: DGL)

The DGL share price is up 6% to $1.57. This morning, this diversified industrial company announced the acquisition of Nightingale Transport. Management believes the $18.2 million acquisition represents a strategic growth opportunity by expanding the company’s national logistics reach and enhancing its offerings to key industries in Australia.

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price is up 9% to $5.16. This follows the release of a trading update by the infection prevention company. Thanks to a strong first half, management has upgraded its FY 2023 revenue growth guidance to between 36% and 41% from 20% to 25%. It has, however, also lifted its operating costs growth guidance to 22% to 27% in FY 2023 instead of 15% to 18%.

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is up 3% to $125.44. This morning, Credit Suisse responded to Rio Tinto’s quarterly update by retaining its outperform rating with a $140.00 price target. Rio Tinto is the broker’s top pick among the giants due partly to the Oyu Tolgoi operation.

The post Why Allkem, DGL, Nanosonics, and Rio Tinto shares are pushing higher today appeared first on The Motley Fool Australia.

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More reading

• Nanosonics share price leaps 9% on booming earnings in the first half
• 3 ASX 200 shares making big moves following trading updates
• Here are 2 excellent high yield ASX dividend shares that experts rate as buys
• 5 things to watch on the ASX 200 on Thursday
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro has positions in Allkem. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dgl Group and Nanosonics. The Motley Fool Australia has positions in and has recommended Nanosonics. The Motley Fool Australia has recommended Dgl 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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Pilbara Minerals Ltd (ASX: PLS) shares have seen plenty of volatility over the past 12 months. After all the excitement, the Pilbara Minerals share price is up around 9% in the last year.

Sentiment about the ASX lithium share has changed significantly as investors try to figure out how much profit the industry could make in the short and long term.

As a resource business, the price of the commodity can have a big impact on profitability.

Mining costs don’t typically change much month to month, so if the price for the resource goes up, that extra revenue per tonne is largely extra profit, aside from paying more to the government.

How much profit could Pilbara Minerals shares generate in FY23?

Here’s why I think the ASX lithium share will likely announce a big profit increase.

Throughout 2022, Pilbara Minerals reported steadily-growing auction prices for small amounts of its production on the Battery Material Exchange (BMX) platform. In mid-November 2022, the company reported the sale of 5,000 dry metric tonnes (dmt) for US$7,805 per dmt, or US$8,575 per dmt on a CIF China, SC6.0 basis.

It also announced just before Christmas 2022 that it had significantly improved pricing outcomes with its major offtake customers. The revised offtake pricing applied for all shipments to major offtake customers and would equate to approximately US$6,300 per dmt (CIF China) on a SC6.0 basis.

After the strong price increase, Pilbara Minerals’ profit is projected to soar.

We’ve already heard during the three months to September 2022 that the company experienced a $783.7 million increase in its cash balance to $1.375 billion.

I think that knowing the profit expectations in per-share terms is the most important because it gives context to the Pilbara Minerals share price.

In FY23, Pilbara Minerals is projected to generate 75 cents of earnings per share (EPS), according to Commsec.

This puts the ASX lithium share at a forward price/earnings (p/e) ratio of under six.

It could also pay an annual dividend per share of 17 cents, translating into a grossed-up dividend yield of 6%.

Does this mean it’s great value?

While the company is expected to make a big profit in FY23, the profit is expected to reduce in FY24 and then again in FY25.

Using the current estimates on Commsec, the Pilbara Minerals share price is valued at 8x FY24’s estimated earnings and 10x FY25’s estimated earnings. I believe these numbers are still reasonable.

I think the ASX lithium share has a very promising future. FY23’s profit isn’t likely to be repeated, in the next few years at least, but the business is working on increasing its production and is becoming more involved with the lithium value chain process.

While it can’t control the lithium price, it’s doing the right things to grow its underlying profitability in the coming years, in my opinion.

After falling 20% over the past four months, I think the Pilbara Minerals share price is worth buying for the long-term demand for lithium as electric vehicle usage becomes more widespread.

The post How much profit will Pilbara Minerals shares make in 2023? appeared first on The Motley Fool Australia.

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• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Can Pilbara Minerals shares really deliver an 8% dividend yield in 2023?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why are ASX 200 lithium shares struggling on Monday?

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 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 Nanosonics Ltd (ASX: NAN) share price is making a major move to the upside on Thursday.

Shares in the infection prevention company are trading at $5.18, up a meaningful 9.3%. Earlier this morning, the share price reached a high of $5.42 — just 4 cents away from its 52-week high. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is a much smaller 0.28% above its previous close today.

The considerable Nanosonics share price jump follows the release of its FY23 first-half trading update this morning.

Growth gives the Nanosonics share price a boost

Here are the key takeaways from the ASX healthcare company‘s first half of FY23:

• Total revenue increased 35% year-on-year to $81.6 million
• Gross profit up 39% to $64.4 million
• Operating expenses increased 28% to $54.5 million
• Operating income before tax jumped 245% to $11.4 million
• Global installed base grew to around 31,120 units

The company’s revenue benefitted from a favourable foreign exchange rate, assisting in the 35% increase. On a constant currency basis, Nanosonics’ revenue jumped 27% compared to the prior corresponding period.

In addition, a transition to more direct sales and an expansion of its newer trophon2 base drove top-line growth.

What else happened in the first half?

It was an uneventful past six months for Nanononics in terms of announcements. The most notable was the company being issued an ASX price query in December as the Nanosonics share price slumped nearly 14% in a single session — to which no explanation was given.

However, the lack of news hasn’t hobbled the company’s shares. Over the past six months, the Nanosonics share price has climbed 26% higher.

What’s next?

A revised outlook for the full year accompanied the company’s trading update today. According to the release, Nanosonics now anticipates total revenue growth in FY23 to be between 36% and 41% compared to the previous guide of 20% to 25%.

Furthermore, the gross margin is now forecast to land between 77% and 79% — improving on the prior 75% to 76% range. Unfortunately, the improved metrics come at a higher operating expense growth of between 22% to 27% compared to the previous 15% to 18%.

The company will release its complete first-half results on 23 February.

Nanosonics share price snapshot

While the Nanosonics share price has enjoyed a sensational run over the past six months, it is barely in line with where it was a year ago. On a one-year comparison, Nanosonics is roughly 3% in the red still, despite the growth of the business.

What some investors may not know is that the healthcare company has an exceptional balance sheet. At the end of June 2022, Nanosonics held $94.5 million in cash and no debt.

The post Nanosonics share price leaps 9% on booming earnings in the first half appeared first on The Motley Fool Australia.

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• 3 ASX 200 shares making big moves following trading updates
• 3 ASX 200 shares boasting debt-free balance sheets
• Here are the top 10 ASX 200 shares today
• Here are the 10 most shorted ASX shares
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Mitchell Lawler 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 Nanosonics. The Motley Fool Australia has positions in and has recommended Nanosonics. 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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