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Why Cash Converters, Inghams, Lynas, & Stockland shares raced higher

racing higher

The S&P/ASX 200 index has fought back from a heavy morning decline and is just a fraction lower this afternoon. At the time of writing the benchmark index is down a few points at 6,646.1 points.

Four shares that have not let that hold them back are listed below. Here’s why they have raced higher:

The Cash Converters International Ltd (ASX: CCV) share price has rocketed 30% higher to 19.5 cents. Investors have been buying the company’s shares after it announced the settlement of the Lynch class action. This class action related largely to excessive brokerage fees that were charged to vulnerable Queensland customers between 2009 to 2013. Cash Converters has agreed to pay $42.5 million into a fund for distribution to members of the class action.

The Inghams Group Ltd (ASX: ING) share price is up 5.5% to $3.08. The poultry producer’s shares have started the week strongly thanks to a broker note out of Citi. This morning the broker upgraded its shares to a buy rating with a $3.40 price target. It made the move largely on valuation grounds after a period of share price weakness. It also sees value in its shares for income investors in this low interest rate environment.

The Lynas Corporation Ltd (ASX: LYC) share price is up 3% to $2.60 following the release of its first quarter update. During the quarter Lynas’ production was managed in line with the calendar year production limit applied by the Malaysian government. This led to NdPr production of 1,242 tonnes and total REO production of 3,926 tonnes. The rare earths producer finished the period with a closing cash balance of $119.1 million, up from $89.7 million at the end of the last quarter.

The Stockland Corporation Ltd (ASX: SGP) share price has raced almost 7% higher to $4.93. This morning Stockland released its first quarter update which revealed that it has started FY 2020 in a positive fashion. Management advised that it experienced an improvement in residential sales, an increase in comparable retail MAT growth, continued up-weighting in logistics, and progress in its commercial property development pipeline. It also revealed that it expects its distribution to be largely flat on last year’s 27.6 cents per security.

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*Returns as of February 15th 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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