Tag: Motley Fool

The National Australia Bank Ltd (ASX: NAB) share price has climbed more than 10% in the past three months. After this sizeable increase, is the ASX bank share still worth banking on?

There’s a lot for investors to take in at the moment – inflation is rampant. Central banks are increasing interest rates to try to get things under control.

Higher interest rates are typically good news for banks because they can charge more for their loans while not increasing interest rates for savers by as much. This can lead to a higher profit margin for banks, measured as the net interest margin (NIM).

Is the NAB share price still a buy?

The broker Citi certainly thinks so, according to reporting by The Australian.

While NAB may be up over the past three months, the NAB share price currently shows a decline of 2.5% in the four weeks since 18 August 2022.

Citi’s Brendan Sproules upgraded NAB to a buy, saying the bank was seeing “strong business lending momentum”.

He believes that banks will benefit from a stronger NIM. He added that FY23 marked “a distinct shift in the tide” for banks after the pandemic:

Banks are now sitting on an excess liquidity build the size of which has not been seen in history, with central banks set to embark on their quickest and largest tightening seen in over 30 years.

This should generate a material initial return on that abundant liquidity sending FY23 NIMs sharply higher by about 30bps.

However, 2024-25 is likely to see this excess liquidity evaporate, particularly as the term funding facility is repaid, accelerating deposit competition, sending funding costs higher, and possibly ongoing mortgage competition, all pulling NIMs back.

Citi increased its price target for the NAB share price to $32.75. The current price of $30.34 implies a possible rise of close to 8%.

Valuation

The price/earnings (p/e) ratio isn’t everything, but it can give insights into the valuation of a business and enable comparison between companies.

Using Citi’s estimates, NAB shares are valued at 14x FY22’s estimated earnings and under 12x FY23’s estimated earnings.

The dividend may be important to investors, so let’s look at the expected income.

For FY22, the bank expects a grossed-up dividend yield of 7.1%, with the FY23 grossed-up dividend yield a predicted 8.75%.

The post The NAB share price has gained 10% in 3 months. Too late to buy? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Which ASX 200 bank share will win the great tech battle?
• Why has the NAB share price tanked 3% today?
• Macquarie shares bear the brunt of bank sell-off amid inflation bomb
• Why is NAB investing in this Aussie payments start-up?
• Billions in liabilities could be set to hit CBA and other ASX banks: expert

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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.

from The Motley Fool Australia https://ift.tt/rBDwetq

The Santos Ltd (ASX: STO) share price is on the nose today as speculation of a potential share buyback wasn’t enough to offset the fall in the oil price.

The Brent crude price tumbled 3.7% to US$90.65 a barrel on renewed worries of a recession hurting demand.

If there was a silver lining for Santos shareholders, it’s the prediction by Macquarie Group Ltd (ASX: MQG) that it will launch an extra US$500 million ($747 million) share buyback.

Santos share price slips on oil slide

But buyers are scarce on Friday following falls on Wall Street and the drop in oil prices. The Santos share price lost 2% to $7.80 when the S&P/ASX 200 Index (ASX: XJO) fell 0.8% in early trade.

Other ASX energy shares are also under pressure. The Woodside Energy Group Ltd (ASX: WDS) share price and Beach Energy Ltd (ASX: BPT) share price have lost around 2% as well, at the time of writing.

At least Santos is flush with cash from the sale of its 5% stake in the PNG LNG project. The broker estimates that the company could reap US$1.3 billion from the transaction.

Santos’ current share buyback running out of puff

The cash will come in handy as Santos’ current on-market share buyback could be close to running out of steam.

Macquarie noted:

STO has now bought back ~US$80m of its shares on market since 30-Aug (post its result 17-Aug), representing 45% of the remaining buyback program that was outlined at the results (and 72% of the overall enlarged US$350m buyback).

On certain days post-result, STO has purchased as many as 2.5m shares (~A$20m) — even assuming a slower pace, the program could be exhausted within weeks.

Santos share buyback a balancing act

If Santos doesn’t undertake a new buyback or some other capital return, pro-forma gearing could fall to under 10% by year end, according to the broker. Gearing was 22.5% at the August result.

But Santos will need to keep some of its powder dry. It will need to cough up some serious cash for its growth projects. These include Alaska, Barossa/Darwin and Moomba CCS, which could add up to around US$3 billion, said Macquarie.

Of course, volatile energy prices also pose another risk to the Santos share price. It should be noted though that Santos is more exposed to gas than oil and the outlook for gas is brighter due to the Russia-Ukraine war.

Share price snapshot

The Santos share price has rallied around 22% over the past 12 months when the ASX 200 fell 9%.

Despite the outperformance of Santos, Macquarie rates the shares as outperform (meaning a buy). The broker’s 12-month price target on Santos is $10.60 a share.

The sale of a 5% interest in PNG LNG will lower Santos’ stake in the project to around 45%. Exxon Mobil Corp operates PNG LNG on behalf of five co-venture partners and supplies gas to Asian customers.

The post ASX 200 oil giant Santos tipped to unleash US$500m share buyback appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Here’s why the Santos share price is rebounding on Thursday
• 5 things to watch on the ASX 200 on Thursday
• Why is the Santos share price escaping relatively unscathed today?
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Brendon Lau has positions in Macquarie Group Limited, Santos Limited, and Woodside Petroleum Ltd. 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 Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/ASxVYeJ

Westpac Banking Corp (ASX: WBC) shares are bucking the broader selling trade today, up 0.4% in early morning trade.

The S&P/ASX 200 Index (ASX: XJO) bank closed yesterday trading for $21.54 and is currently trading for $21.63 apiece.

That’s the latest price action for you.

Now, what’s all this about Westpac shares exiting money managing?

What’s happening with the bank’s wealth management segment?

Westpac’s wealth management arm, which includes its Panorama platform, was put on the auction block in an ongoing process to streamline the bank’s business model. Final bids were due on or before 22 August.

It’s not the first business segment that Westpac shares are spinning off.

In August 2021, Westpac divested its life insurance business to TAL for $900 million.

And in May this year, Westpac sold its superannuation operations to Mercer Australia.

As for its wealth management arm, as The Motley Fool reported on 30 August, media rumours had it that AMP Ltd (ASX: AMP) may have lobbed the winning bid, beating out a lesser offer from Colonial First State.

But that looks to have gone astray.

According to The Australian, citing unnamed sources, AMP apparently will not move ahead with the acquisition, leaving the ball in Colonial First State’s court.

Colonial First State purportedly offered somewhere in the range of $400 million to $600 million for the business, well below the $700 million that had earlier been expected, before markets entered a volatile downturn.

Morgan Stanley is advising Westpac on the sale of its wealth management division.

Stay tuned.

How have Westpac shares been tracking?

Westpac shares have been among the better performers in 2022, both among the bank’s peers and when compared to the wider basket of blue-chip shares.

Year-to-date the Westpac share price is flat. While that may not sound awe inspiring, bear in mind Westpac shares also pay a 5.7% trailing dividend yield.

And for context, the ASX 200 is down 10% so far in 2022, while the S&P/ASX 200 Financials Index (ASX: XFJ) is down 8%.

The post Could Westpac shares soon be saying bon voyage to money managing? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Which ASX 200 bank share will win the great tech battle?
• Westpac share price lifts amid latest competitive push
• Macquarie shares bear the brunt of bank sell-off amid inflation bomb
• Down 16% in a year, can the Westpac share price become a successful turnaround story?
• What will the Westpac dividend be in 2023?

Motley Fool contributor Bernd Struben 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 recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/aJIliV9

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is on the home straight heading towards the weekend, and it’s out in front of the broader S&P/ASX 200 Index (ASX: XJO).

The smallest of the big four bank has managed to record a gain for the week so far despite the market’s suffering.

Right now, the ANZ share price is trading at $23.75, 0.04% higher than its previous close and 3% above where it finished last week.

Meanwhile, the ASX 200 has dumped 0.72% today and 1.46% so far this week.

So, what’s been buoying the banking favourite amid the market’s misery? Let’s take a look.

Why is ANZ’s stock outperforming the ASX 200 this week?

The ANZ share price is outperforming so far this week as the ASX 200 struggles to recover following a Wednesday sell-off.

While ANZ shares weren’t lucky enough to escape Wednesday’s carnage, they’ve managed to post a notable rebound since.

The bank’s stock plummeted 2.3% that day – only a slightly better performance than that of the ASX 200, which tumbled 2.58%. However, it bounced 3.4% yesterday despite the bank’s silence and it’s back in the green today.

The ASX 200’s downfall was spurred by an even worse hit to Wall Street, which recorded its worst session in more than two years on Tuesday. The plunge was driven by the latest US inflation data.

The nation’s CPI surprised investors by lifting 0.1% last month and 8.3% over the year to August.

The ANZ share price’s rebound might have had something to do with an exciting milestone surpassed by its ANZ Plus offering.

After launching in July, the platform reached $500 million in funds under management earlier this week.

ANZ Plus now boasts 40,000 customers, with thousands more joining every week, and it’s setting its sights on an even bigger horizon. Managing director of design and delivery for ANZx, Peter Dalton, said:

We are working hard to expand the offering and functionality of ANZ Plus with lots in the pipeline for the next 12 months.

We’re also offering a competitive interest rate to help our savers reach their goals faster.

From today, the ANZ Plus Save rate will be upped to 3% for balances under $250,000.

ANZ share price snapshot

While the ANZ share price has outperformed this week, its longer-term performance hasn’t been nearly as exciting.

The banking favourite has fallen 15% year to date and 15% over the last 12 months.

For comparison, the ASX 200 has dumped 10% since the start of 2022 and 9% since this time last year.

The post Why has the ANZ share price been outperforming the ASX 200 this week? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Which ASX 200 bank share will win the great tech battle?
• Why has the NAB share price tanked 3% today?
• Macquarie shares bear the brunt of bank sell-off amid inflation bomb
• Why did Macquarie just upgrade its target for the ANZ share price?

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.

from The Motley Fool Australia https://ift.tt/DJ2aM4N

The Zip Co Ltd (ASX: ZIP) share price has come under pressure on Friday.

In morning trade, the buy now pay later (BNPL) provider’s shares are down 3% to 83.5 cents.

Why is the Zip share price falling today?

There have been a couple of catalysts for the weakness in the Zip share price this morning.

The first is broad weakness in the tech sector today following a poor night of trade on the NASDAQ index.

The tech-focused index lost 1.4% of its value during yesterday’s session. In response, the S&P ASX All Technology index is down 0.8% at the time of writing.

What else?

Also potentially putting pressure on the Zip share price this morning is news that the BNPL industry could be facing increased regulatory scrutiny in the United States.

Overnight, the U.S. Consumer Financial Protection Bureau (CFPB) revealed that it plans to subject BNPL lenders to the same vigorous oversight as credit card companies.

CFPB Director Rohit Chopra commented:

Buy Now, Pay Later is a rapidly growing type of loan that serves as a close substitute for credit cards. We will be working to ensure that borrowers have similar protections, regardless of whether they use a credit card or a Buy Now, Pay Later loan.

The CFPB also took aim at the way BNPL companies are harvesting customer data. It said:

Many Buy Now, Pay Later lenders are shifting their business models toward proprietary app usage, which allows them to build a valuable digital profile of each user’s shopping preferences and behavior. The practice of harvesting and monetizing consumer data across the payments and lending ecosystems may threaten consumers’ privacy, security, and autonomy. It also may lead to a consolidation of market power in the hands of a few large tech platforms who own the largest volume of consumer data, and reduce long-term innovation, choice, and price competition.

In light of the above, the CFPB intends to identify potential interpretive guidance or rules to issue with the goal of ensuring that BNPL lenders adhere to many of the baseline protections that are already established for credit cards.

The post Why is the Zip share price ending the week in the red? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Look who just landed more than $2 million worth of Zip shares
• Why is the Zip share price plummeting 7% on Wall Street woes
• Why are ASX 200 shares tumbling like dominos on Wednesday?
• Here are the top 10 ASX 200 shares today
• Why this fundie reckons the Zip share price is a falling knife

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 ZIPCOLTD FPO. 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.

from The Motley Fool Australia https://ift.tt/MBIbhUV

Headed by Steve Johnson, Forager Funds aims to invest in undervalued businesses, holding them within a concentrated portfolio, for the long term.

Since inception in October 2009, the Forager Australian Shares Fund (ASX: FOR) has handily out-performed its benchmark, gaining 9.25% per annum versus 7.79% for the All Ordinaries Total Accumulation Index (ASX: XAOA).

In its August 2022 monthly update, the fund says that although most of corporate Australia is on high alert – with expectations high inflation, higher interest rates and falling house prices must eventually curtail consumer spending – there is no sign of a consumer strike just yet.

“While there is a justifiably high level of concern, record low unemployment, increasing wages and high levels of savings from the past few years are allowing Australian consumers to keep spending.”

“We are not expecting that to continue but the amount of pessimism baked into share prices back in June provided shareholders with a lot of room for profits to fall.”

The fund goes on to call out two ASX shares that are susceptible to an economic slowdown, yet which still trade at very attractive prices.

Forager notes motorcycle and accessories retailer MotorCycle Holdings Ltd (ASX: MTO) is exposed to the most discretionary part of consumer spending, with its most profitable business being the sales of Ducati and Harley-Davidson motorbikes, typically optional purchases.

The fund says that although the MotorCycle Holdings share price is up more than 30% from its June lows, the roughly six times profit multiple it trades at today, and 8% fully-franked dividend yield, should prove attractive for long-term investors.

While share prices in the advertising sector were “absolutely walloped” in anticipation of a slowdown in economic activity, Forager notes the recent earnings season hasn’t shown much evidence of a slowdown, with industry data suggesting August and September will be strong.

Forager says that although the Seven West Media Ltd (ASX: SWM) share price has risen over 50% from its June lows, the shares are trading at around four times last year’s profits, “a level you would normally associate with a Russian telecommunications company”.

The post Leading value fund Forager names two ASX shares trading at dirt cheap prices appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ‘A very good deal’: Expert names 2 ASX shares to buy for CHEAP now
• Seven West share price lifts on new record AFL deal
• Broker names 2 small cap ASX shares to buy in September

Motley Fool contributor Bruce Jackson 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.

from The Motley Fool Australia https://ift.tt/Ib8Oc4E

It’s been an eventful week for ASX dividend investors, and not just because of the wipeout we saw on Wednesday.

Numerous companies in the S&P/ASX 300 Index (ASX: XKO) have seen their shares turn ex-dividend this week. And many others have started delivering dividend payments to shareholders’ accounts.

On Monday, two more ASX 300 shares will be taking away entitlements to their upcoming dividend payments. 

In other words, investors will need to hold shares in these companies by the time the market closes today in order to be eligible to receive their latest dividends.

Let’s check out these two ASX 300 shares going ex-dividend on Monday.

Qube Holdings Ltd (ASX: QUB)

Today will be the final day to get your hands on the latest dividend from this ASX 300 logistics company.

Qube recently handed in its FY22 results, declaring a final ordinary dividend of 3.3 cents along with a special dividend of 0.7 cents. These dividends are fully franked and will be paid on 18 October.

Qube’s special dividend was fuelled by the $1.7 billion sale of its interests in the Moorebank Logistics Park, along with the company’s positive earnings outlook.

In FY22, Qube achieved solid revenue and earnings growth through both organic and acquisitive avenues. Underlying revenue leapt 27% to $2.6 billion while underlying net profit after tax (NPAT) jumped 30% to $186 million.

These results were helped by higher volumes across most of the company’s core markets, including containers, grain, steel, most mining bulk commodities, and general cargo.

Across the financial year, Qube declared total dividends of 7 cents, fully franked, up 17% from 6 cents in FY21.

The company also returned a further $400 million to shareholders through an off-market share buyback. 

Based on current prices, Qube shares are spinning up a trailing dividend yield of 2.5%. With the benefit of franking credits, this yield bumps up to 3.5%.

Service Stream Limited (ASX: SSM)

Service Stream is the other ASX 300 share going ex-dividend on Monday. 

The network services business released its FY22 results last month, resuming dividend payments by declaring a fully franked final dividend of 1 cent. It will be paid on 5 October.

In what Service Stream described as a “transformational year”, the company delivered total revenue of $1.6 billion, up 95%, amidst a challenging operating environment.

While undoubtedly eye-catching at first glance, this near-doubling in revenue was driven by the acquisition of Lendlease Services. 

Last year, Lendlease Group (ASX: LLC) sold its services business to Service Stream for $310 million. The acquisition was completed on 1 November 2021, so Service Stream’s FY22 results include 8 months’ contribution from the deal.

Excluding Lendlease Services, Service Stream grew its legacy revenue by 3% across the year to $827 million.

Across the group, earnings before interest, tax, depreciation, and amortisation (EBITDA) from operations lifted 14% to $91 million. However, adjusted NPAT went backwards, falling 19% to $31 million.

Nonetheless, the ASX 300 share said its strong post-acquisition operating and cash flow results supported a resumption in dividends.

Prior to this, the last time Service Stream paid a dividend was in the first half of FY21. 

Service Stream shares are currently sitting on a trailing dividend yield of 1.3%, which grosses up to 1.9% including franking credits.

The post These ASX 300 shares are trading ex-dividend on Monday appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ‘Incredibly cheap’: Fundie reveals 3 ASX shares he’d buy right now
• Here are the top 10 ASX 200 shares today
• Qube share price bounces 6% as dividend delights
• Why Credit Corp, Endeavour, Kogan, and Service Stream shares are dropping
• Service Stream share price crashes 19% on ‘challenging’ FY22

Motley Fool contributor Cathryn Goh 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.

from The Motley Fool Australia https://ift.tt/So80YN3

Australian rich lister and chair and founder of S&PASX 300 Index (ASX: XKO) packaging company Pact Group Holdings Ltd (ASX: PGH) Raphael Geminder has been on a spending spree this month. The billionaire has forked out more than $9.3 million to indirectly buy additional shares in the company on the market.

Assumably, Geminder has been taking advantage of recent weakness in the Pact Group share price.

The ASX 300 and All Ordinaries Index (ASX: XAO) constituent has dumped nearly 25% of its value since this time last month. The Pact Group share price last traded at $1.65.

For context, the ASX 300 and the All Ords have each dropped close to 3% in that time.

Let’s take a closer look at the ASX 300 insider’s latest purchases and the company’s shares’ recent suffering.

ASX 300 insider forks out $9m on company’s shares

Geminder is seemingly confident in the future of the Pact Group share price, indirectly investing an additional $9.3 million to buy an extra 5.7 million of the company’s shares.

That represents an average price of around $1.64 for each share bought across six transactions.

Indeed, the parcel of shares attributed to the billionaire grew every trading day between 6 September and 13 September, according to ASX disclosures.

Germinder-led investment firm Kin Group was behind the buying.

Germinder, who is reported to have a net wealth of $1.45 billion – placing him at number 92 on the Australia Financial Review’s 2022 Rich List – now backs approximately 166.67 million shares in the ASX 300 company, representing a 48% stake.

The buying spree comes after the Pact Group share price plummeted on the back of the company’s full-year earnings.

The ASX 300 company’s share price plunged 9% after it revealed its after-tax profits had tumbled 25% to $70 million in financial year 2022.

It also took a knife to its annual dividend payout, slashing it 55% to 5 cents per share.

The post Guess which rich lister has loaded up on $9m of their ASX 300 company’s shares this month appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 ASX All Ordinaries shares trading ex-dividend tomorrow
• ASX reporting season weekly wrap: Winners and losers
• Pact Group share price tumbles on 25% profit decline and halved dividends in FY22

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.

from The Motley Fool Australia https://ift.tt/T1Cl5PO

The CSL Limited (ASX: CSL) share price is in the red for 2022. Should investors now view it as an opportunity?

As one of the ASX’s largest businesses, what happens to CSL can have a sizeable impact on the S&P/ASX 200 Index (ASX: XJO).

Despite the business benefiting from a strong performance from its vaccine business in FY22 (with 13% revenue growth), it actually saw its net profit after tax (NPAT) fall to $2.25 billion, a fall of 6% in constant currency terms.

What went wrong?

One of CSL’s biggest ever profits is not exactly a disaster. But, with the tailwinds that the healthcare industry has (such as ageing demographics), investors may have been hoping for a positive year considering the revenue increased by 3%.

Management said the profit was at the top end of its guidance, but that its performance was as expected in a difficult global environment.

Part of the equation was that there was “significant growth” in its research and development spending. While it’s a cost in the short term, it can unlock future profit generation.

The company noted that in FY21, its plasma collections were impacted by the pandemic, which limited its sales of core plasma therapies in FY22, given the “long-term nature” of its manufacturing cycle.

It also said that as the 2022 financial year progressed, it grew collections significantly, though at a higher cost. Collections grew by 24%, which it expects will “underpin strong sales growth in its core plasma products.”

How will the CSL share price turn around?

Management is confident that things are going to be better in FY23. The CSL CEO and managing director Paul Perreault said:

We have continued to invest in all facets of our business and I am very encouraged by the improved momentum we are seeing in our core Ig franchise.

The strong growth we have seen in plasma collections is anticipated to continue as COVID recedes and underpin strong future sales growth in our core plasma therapies. The current higher cost of plasma is also expected to prevail into FY23.

We anticipate our influenza business, CSL Seqirus, to deliver another strong year driven by demand for its differentiated products.

CSL’s net profit after tax for FY23 is anticipated to be approximately $2.4 billion to $2.5 billion at constant currency, returning to strong sustainable growth.

Fund manager believes in the future

Some experts are still backing the CSL share price in their portfolios. For example, Wilson Asset Management analyst Anna Milne on a recent webinar, according to Livewire, made the following comments about CSL when talking about three ASX shares:

All three of these names are the highest quality names in their respective sectors.

CSL is arguably one of the highest quality names on the ASX, given its defensive earnings profile over the coming decade.

…their turnarounds are just starting to happen. When companies have been through tough periods and they’re coming out of them, it’s the perfect recipe for us. You have the earnings upside, and then you also have the sentiment. So that’s positive for both valuation and earnings, which translates to higher share prices.

Another reason to be positive about CSL is the new Rika device, which is more comfortable for patients to extract plasma and quicker for staff to use.

CSL share price snapshot

CSL shares have fallen 4% since 8 September 2022.

The post The CSL share price has gone backwards in 2022. Could a turnaround be ‘just starting to happen’? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ASX 200 better buy: Cochlear or CSL shares?
• The CSL share price dips as the ASX 200 dives on Wednesday
• Can the CSL share price regain its 52-week high in 2022?
• Experts name 2 blue chip ASX shares to buy that Warren Buffett would love
• The CSL dividend just got updated. How much will you be getting?

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 Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/LTpSo9F

Attention Whitehaven Coal Ltd (ASX: WHC) shareholders! You might want to check your bank account today.

The day has come for the ASX 200 coal miner to pay out its biggest-ever final dividend in the company’s history.

A fully franked dividend of 40 cents per share should have landed if you scooped up Whitehaven shares before the ex-dividend date.

But if you missed out on buying its shares before 1 September, there’s nothing to fret about.

The company’s shares touched a record high of $8.96 yesterday, up 12% since the start of this month.

Let’s take a look below at the details regarding the Whitehaven dividend.

Whitehaven dividend leaves the coal mine

What a year it has been for Whitehaven’s books.

The company reported record numbers across key metrics in its full-year results for the 2022 financial year.

Revenue jumped 216% year-on-year (YoY) to $4.92 billion following unprecedented global demand for coal.

On the bottom line, Whitehaven booked a net profit after tax (NPAT) of $1.95 billion compared to a $543.9 million loss in FY21.

Nonetheless, the biggest win for shareholders came from the board’s decision to significantly ramp up the final dividend.

This takes the full-year dividend to 48 cents per share, representing a 52% increase on the prior corresponding year.

In addition, the company is continuing to increase shareholder value by completing its $550 million share buyback programme.

And Whitehaven is likely to ask shareholders for another round of buybacks at this year’s annual shareholder meeting next month.

Indeed, this could bode well for the share price over the medium term.

Based on yesterday’s closing price of $8.87, Whitehaven has a trailing dividend yield of 5.41%.

Whitehaven share price snapshot

Energy prices, in particular coal has soared to record levels this year which has created significant tailwinds for Whitehaven.

The company’s shares are up 240% in 2022 and could go further if coal prices continue to steam ahead.

Whitehaven is ASX’s second biggest pure-play coal producer with a market capitalisation of approximately $8.11 billion.

Yancoal Australia Ltd (ASX: YAL) is in first place, valued slightly ahead at $8.65 billion.

The post Own Whitehaven shares? Here’s some good news on your dividends appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Why are ASX 200 coal shares breaking records yet again?
• Whitehaven share price rallies to new all-time high on Thursday
• Why Clover, Select Harvests, Whitehaven Coal, and Woodside shares are storming higher
• How this fundie is beating the ASX 300 without fossil fuels

Motley Fool contributor Aaron Teboneras 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.

from The Motley Fool Australia https://ift.tt/droQilD