Instead of spending years and millions of dollars trying to build a new business arm, companies with strong balance sheets can simply buy the innovators already nibbling at their market share. It's a shortcut to fresh customers, new technology, and faster earnings growth.

For investors, this dynamic makes ASX small caps an intriguing hunting ground. Businesses that have done the hard yards of establishing products and market share can suddenly find themselves the subject of takeover bids — often at hefty premiums.

M&A momentum builds

There's been no shortage of deal-making across the Australian market in 2025. Several small-to-mid cap names have already attracted corporate suitors, with takeover offers sparking sharp share price gains.

Let's look at three recent examples:

RPMGlobal Holdings Ltd (ASX: RUL)

Mining software specialist RPMGlobal has seen its shares surge more than 90% since April. The big move was driven by a non-binding takeover offer from US giant Caterpillar Inc (NYSE: CAT), pitched at $5.00 per share and valuing the company at more than $1 billion. With long-standing ties to Caterpillar and a strong recurring revenue base, RPM is a natural bolt-on candidate.

Tourism Holdings Ltd (ASX: THL)

Tourism Holdings, the world's largest RV rental operator, was catapulted 50% higher in June after receiving a conditional all-cash offer from BGH Capital and the Trouchet family interests. The consortium already secured a 19.99% stake, underlining its conviction. Investors saw firsthand how quickly takeover news can re-rate a small-cap stock.

Johns Lyng Group Ltd (ASX: JLG)

Insurance building services and restoration company Johns Lyng was quickly re-rated after takeover interest emerged. When Pacific Equity Partners (PEP) lodged its first indicative offer in May, the stock had been under pressure, with sentiment drifting lower. That gave the right buyer an opportune moment to step in.

Following the subsequent scheme implementation deed, the $4.00 per share offer represented a 77% premium to where the share price closed the day before the first bid became known. It's a reminder that when the fundamentals of a business are attractive it's not just individual investors who take notice, but also professional acquirers with deep pools of capital.

Thinking like an acquirer

When larger players hunt for growth, they look for qualities that make a smaller business more valuable in their hands than on its own. Investors can use the same lens.

The most attractive traits include:

• Clear synergies – the ability to slot into a bigger platform, cut costs, or accelerate sales.
  
• Scarcity value – assets, services, or expertise that are difficult or expensive to replicate.
  
• Supportive ownership – a register open to deals, often with founders still aligned to maximise value.
  
• Undervaluation – shares trading below intrinsic worth, giving acquirers room to pay a premium.
  
• Favourable backdrops – low funding costs, plenty of private equity capital, and strong sector demand.
  
  

For small-cap investors, the lesson is simple: focus on fundamentals, watch how management behaves, and be patient. If the market doesn't close the gap, an acquirer might.

Foolish takeaway

The current wave of M&A activity highlights how much value exists in the small end of the ASX. For investors, the challenge is spotting businesses with the hallmarks of tomorrow's targets: scalable, profitable, and positioned in industries where larger players need growth.

By focusing on the qualities acquirers prize, investors may uncover small caps capable of delivering outsized returns, whether through compounding growth or an eventual buyout.

The post Why ASX small caps are in the takeover spotlight appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising today:

IGO Ltd (ASX: IGO)

The IGO share price is up 1.5% to $4.59. This may have been driven by a broker note out of Macquarie this morning. According to the note, the broker has reaffirmed its outperform rating and $4.50 price target on this lithium miner's shares. It said: "Retain Outperform for both PLS and IGO, and we note increased share price volatility. We see IGO as a relative safe haven while PLS offers strong leverage to Li prices."

Johns Lyng Group Ltd (ASX: JLG)

The Johns Lyng share price is up 22% to $3.87. This morning, this insurance building and restoration services company accepted a $4.00 per share takeover offer from Pacific Equity Partners (PEP). This values Johns Lyng at approximately $1.1 billion. Commenting on the takeover agreement, Johns Lyng's chair, Peter Nash, said: "We are pleased that PEP has recognised the value of JLG's integrated building services operations across Australia, New Zealand and the United States. The Scheme is an attractive transaction that provides JLG Shareholders with the opportunity to receive cash at a material premium."

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas Rare Earths share price is up almost 19% to $9.84. This follows news that the US Defense Department will become the largest shareholder in rare earth miner MP Materials (NYSE: MP). According to CNBC, the government has agreed to buy US$400 million of its preferred stock. MP Materials is the owner of the only operational rare earth mine in the United States at Mountain Pass, California. Proceeds will reportedly be used to expand its rare earths processing capacity and magnet production.

Web Travel Group Ltd (ASX: WEB)

The Web Travel share price is up 3% to $4.76. This appears to have been driven by the release of a broker note out of Macquarie. This morning, the broker has retained its outperform rating and $6.19 price target on travel technology company's shares. This follows news that US travel volumes have been better than feared. In addition, it was pleased to see that hotel demand in Europe has been solid.

The post Why IGO, Johns Lyng, Lynas, and Web Travel shares are pushing higher today appeared first on The Motley Fool Australia.

That stock is Johns Lyng Group Ltd (ASX: JLG), which has seen its shares rise 23% to $3.92 this morning.

Why is this ASX 300 stock rocketing?

Investors have been bidding the insurance building and restoration services company's shares higher today after it revealed that it has accepted a takeover offer from Pacific Equity Partners (PEP).

According to the release, Johns Lyng has entered into a scheme implementation deed (SID) with Sherwood BidCo. It is an entity owned and controlled by funds managed and advised by PEP.

The SID will see PEP acquire 100% of the ordinary shares in the ASX 300 stock by way of a scheme of arrangement at a price of $4.00 per share.

Based on yesterday's close price of $3.18, this takeover offer represents a premium of 26%.

It is also a premium of 77% to its closing share price on 15 May 2025, which is the day prior to the receipt of PEP's first non-binding and indicative offer.

However, it is still a discount of approximately 35% to its 52-week high, which may be a big disappointment to some shareholders.

$1.1 billion deal

The ASX 300 stock notes that the scheme consideration values its equity at approximately $1.1 billion and implies an enterprise value (EV) of $1.3 billion.

It feels that this represents an attractive valuation for shareholders, including a transaction multiple of FY 2025 forecast EV/EBITDA of 10.3x.

The company's independent board committee (IBC) unanimously recommends that shareholders vote in favour of the scheme. This is in the absence of a superior proposal and subject to the independent expert's report.

Commenting on the takeover agreement, the company's chair, Peter Nash, said:

We are pleased that PEP has recognised the value of JLG's integrated building services operations across Australia, New Zealand and the United States. The Scheme is an attractive transaction that provides JLG Shareholders with the opportunity to receive cash at a material premium.

The IBC's unanimous recommendation was based on a thorough evaluation of a range of factors including JLG's intrinsic value under different scenarios and the potential medium-term share price without the Scheme, and taking into consideration JLG's underlying business performance over the last two years and current business momentum.

The post Guess which ASX 300 stock is rocketing 23% on $1.1b takeover deal appeared first on The Motley Fool Australia.

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

Betmakers Technology Group Ltd (ASX: BET)

The Betmakers share price is down 9% to 10.5 cents. This morning, the betting technology company announced the completion of a placement to sophisticated and institutional investors that raised $11.5 million. These funds were raised at a discount of 10 cents per share. The company advised: "Funds received from the Placement will be used to: Repay all outstanding debt; Fund content and access agreements, including payments in relation to New Jersey Fixed Odds; Fund the potential strategic acquisition of Las Vegas Dissemination Company, the only provider of pari-mutuel wagering services in Nevada; and Improve financial flexibility and working capital."

Cettire Ltd (ASX: CTT)

The Cettire share price is down 31% to 32 cents. Investors have been hitting the sell button today after the online luxury products retailer released a dismal trading update. Cettire revealed that its adjusted EBITDA is $0.5 million financial year to date. As a comparison, the company reported positive EBITDA of $12.1 million for the first half. And given that its EBITDA was negative $4.7 million during the third quarter, this suggests that Cettire has recorded a disappointing $6.9 million EBITDA loss for the first two months of the fourth quarter. Combined with its falling cash balance, investors appear concerned that Cettire could go the same way as rival Farfetch, which ended up in administration.

Johns Lyng Group Ltd (ASX: JLG)

The Johns Lyng share price is down 1.5% to $2.94. This appears to have been driven by profit taking following a strong gain on Wednesday. Investors were buying the building and restoration services company's shares after it received a non-binding takeover offer from Pacific Equity Partners (PEP). It has offered to acquire 100% of the issued shares of the company by way of a scheme of arrangement for an unspecified price. The company has granted due diligence to PEP.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan Energy share price is down 5% to $3.93. This appears to have driven by weakness in the lithium industry today. In addition, this morning, the lithium developer announced that its $196 million conditional debt commitment letter signed by the commercial bank group in December 2024 has been extended until September 2025. Vulcan's CFO, Felicity Gooding, commented: "The extension of the debt commitment letter will allow us to potentially include significant government funding in the financing package."

The post Why Betmakers, Cettire, Johns Lyng, and Vulcan shares are falling today appeared first on The Motley Fool Australia.

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

Fletcher Building Ltd (ASX: FBU)

The Fletcher Building share price is up 8.5% to $3.04. This morning, this building materials company revealed that following the announcement of its strategic review, it has received ongoing inbound inquiries from parties interested in its businesses. This includes its Construction Division. However, management notes that no decisions have been made to sell any of its businesses. It plans to make an announcement with details of the outcomes of the strategic review later this month at its Investor Day on 24 June.

Johns Lyng Group Ltd (ASX: JLG)

The Johns Lyng share price is up 19% to $3.02. Investors have been buying this building and restoration services company's shares after it confirmed the receipt of a takeover offer. Johns Lyng advised that last month it received a non-binding indicative proposal from Pacific Equity Partners (PEP) to acquire 100% of the issued shares of the company by way of a scheme of arrangement. The company has not revealed the value of the offer, but it has granted due diligence to PEP.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is up 5% to $1.42. This follows the announcement of a significant upgrade to the mineral resource at its 100%-owned Pilgangoora Operation in Western Australia. According to the release, its latest drilling efforts have delivered a 23% increase in contained lithium across its Measured, Indicated and Inferred resources. Importantly, this has been achieved with a higher average grade. Pilbara Minerals CEO, Dale Henderson, said: "The significant uplift in the Mineral Resource reaffirms our 100% owned Pilgangoora Operation as one of the world's largest and highest-quality hard rock lithium assets."

Zip Co Ltd (ASX: ZIP)

The Zip share price is up 15% to $2.68. This has been driven by the release of a guidance update from the buy now pay later provider. Zip revealed that it expects to deliver cash earnings before tax and depreciation (EBTDA) of at least $160 million for the full year. That's up from its prior guidance of at least $153 million. Zip's CEO, Cynthia Scott, said: "Zip's momentum has continued throughout May, particularly in the US where TTV has continued to grow above 40% year on year, reflecting the resilience of our business model and disciplined execution of our strategy."

The post Why Fletcher Building, Johns Lyng, Pilbara Minerals, and Zip shares are charging higher appeared first on The Motley Fool Australia.

At the time of writing, the ASX 300 share is up 18% to $3.01.

This compares favourably to a 0.5% gain by the S&P/ASX 300 index.

Why is this ASX 300 share rocketing?

Firstly, before covering its strong gain today, let's dig deeper into what Johns Lyng Group actually is.

It describes itself as an integrated building services group delivering building and restoration services across Australia and the US.

It notes that its core business is built on its ability to rebuild and restore a variety of properties and contents after damage by insured events including impact, weather, and fire events.

Investors have been buying this ASX 300 share today after it confirmed media speculation that it was a takeover target.

According to the release, almost a month ago Johns Lyng received a non-binding indicative offer proposal from Pacific Equity Partners (PEP), on behalf of funds it advises, to acquire 100% of the issued shares of the company by way of a scheme of arrangement.

It notes that certain members of its senior management team, including the ASX 300 share's largest shareholder, Scott Didier, managing director and CEO, are being offered the opportunity to receive scrip consideration to retain an interest in the business.

What's next?

An Independent Board Committee, comprising non-executive chair, Peter Nash, and non-executive directors, Peter Dixon, Alison Terry and Alexander Silver was formed following the receipt of the indicative proposal.

The Independent Board Committee has decided to grant PEP a period of exclusivity to facilitate its confirmatory due diligence process to enable it to put forward a binding offer.

This period of exclusivity expires on 11 July 2025, during which the customary fiduciary exception will not apply for the four weeks commencing 29 May.

What has been offered?

Unfortunately, the one thing missing from this announcement has been the value of the offer that PEP has made to take over the ASX 300 share. The company has only stated the following:

Shareholders do not need to take any action in relation to the Indicative Proposal. It should be noted that there is no certainty that the discussions with PEP will result in any transaction and no assurance is given that a transaction will proceed. Any such transaction would require approval by JLG's Independent Board Committee, and be subject to approval from the Foreign Investment Review Board and ultimately subject to approval from JLG's shareholders and the Court (among other conditions).

Investors will need to stay tuned and wait for PEP to make a binding offer to find out what is being tabled.

The post Guess which ASX 300 share just received a takeover offer appeared first on The Motley Fool Australia.

Johns Lyng shares closed at $2.54 each last Friday afternoon. And that's where they'll be staying today.

That's because this morning, just before market open, the building services company announced that its shares would be placed in a trading halt this Tuesday.

According to Johns Lyng, this trading halt was requested "following media speculation regarding a potential change of control transaction".

The company went on to tell investors that it "expects the trading halt will last until the earlier of the making an announcement to the ASX in relation to the potential transaction or the commencement of trading on Thursday, 12th June 2025".

That's all we know for sure for now, as Johns Lyng hasn't made any other share market announcements as of yet.

However, the "media speculation" that the company mentioned is undoubtedly an article in the Australian Financial Review (AFR) this morning.

Johns Lyng shares halted as takeover rumours swirl

This article alleges that Johns Lyng has received a takeover offer from Pacific Equity Partners (PEP). According to the report, "PEP started sniffing around the business last year and has in recent weeks secured exclusivity". According to the AFR, PEP is "well-entrenched in due diligence". Even so, there are no concrete developments yet that indicate a deal will eventuate.

The same report states that Johns Lyng was approached regarding a possible takeover three months ago by two other private equity firms – the USA's KKR and Sweden's EQT. KKR was reportedly "the closest to securing a deal", but ultimately couldn't quite square the circle.

Since the start of 2025, the Johns Lyng share price has been on a steep decline, dropping 33.3% since 1 January. The primary catalyst for this drop was the disappointing earnings guidance that Johns Lyng dropped back in February.

As we covered at the time, this revealed some pretty lacklustre numbers for the company's six months to 31 December 2024. But the real disappointment was Johns Lyng's revelation that it now expects to report $1.167 billion in revenues for the full 2025 financial year. That's a 5% drop from what the company previously expected.

Johns Lyng shares fell more than 30% on this announcement, and haven't recovered since.

But perhaps Johns Lyng shares' pain could be PEP's gain. We'll have to wait and see what the company announces later this week.

The post Johns Lyng Group shares enter trading halt. Is it a takeover target? appeared first on The Motley Fool Australia.

Measuring up

If you were able to hold your portfolio at least flat for the quarter, you outperformed almost all professional Australian fund managers.

Those heavily invested in Gold miners or gold-focused ETFs may have landed in this category.

The yellow metal has been a standout commodity this year. It recently climbed above US$3,500 after surging nearly 50% over the past year. Enthusiasm for gold has been widespread. Recently, it surpassed the Magnificent 7 as the most crowded Wall Street trade.

Consumer staples have also held up well in this environment. For the first quarter, supermarket giant Coles Group Ltd (ASX: COL) rose 5%. Meanwhile, Woolworths Group Ltd (ASX: WOW) declined 3%, outperforming the broader market.

Additionally, with ongoing geopolitical conflict, it's no surprise that global defence companies had a strong first quarter. Those invested in the Vaneck Global Defence ETF (ASX: DFND), which holds 68 companies with exposure to the defence industry, saw their investment rise 20% over the quarter.

How should you position your portfolio for this quarter?

Investors find themselves in a different position than they were at the start of the year. We are now several months into Donald Trump's second term, and many stocks are materially cheaper.

There are several ways investors can position their portfolios this quarter.

Firstly, they could seek out ASX companies that they believe have been oversold. Forager chief investment officer Steve Johnson has named Johns Lyng Group (ASX: JLG) and PWR Holdings (ASX: PWH) as his top stock picks in the technology sector. Both stocks are down more than 50% from their peaks.

Another option is to invest based on geography. An increasing number of institutional investors have recently been diversifying away from the US, which has been coined the 'Sell America' trade. ASX investors may wish to reduce or eliminate their exposure to US equities and instead focus on domestic equities only or diversify into European or Asian markets.

India has been touted as an alternative manufacturing hub to China, attracting investor interest. As the US-China trade war is far from settled, ASX investors may wish to take a closer look at the Betashares India Quality ETF (ASX: IIND), which tracks 30 high-quality Indian companies. IIND has started the quarter well, rising around 2%.

The post How did your first quarter performance compare to Australian fund managers? appeared first on The Motley Fool Australia.

At the time of writing, shares are trading at $2.13 a piece, but were as high as $9.00 a share back in 2022. 

For context, the S&P/ASX 200 Industrials (ASX:XNJ) is up 8.8% during that span.

So is this an opportunity for investors, or the new normal for this industrials company?

Reporting season pain 

A large portion of the 64% fall in Johns Lyng Group shares came in February after the company failed to impress investors with its financial results. 

According to the H1 FY25 report: 

• Revenue dropped 6.1% drop year over year.
• Business-as-usual (BaU) revenue increased by 9% to $534.3 million.
• Catastrophe insurance (CAT) revenue dropped 67.7% year over year.
• Pre-tax earnings for the first half saw a 15.4% decrease compared to last year.
• Net profit of $20.8 million, down from $31 million this time last year.

Johns Lyng also adjusted its guidance for 2025, reducing FY25 revenue guidance by 5%. 

Investors were quick to head for the hills following this news as the share price fell 32% following the release of this data. 

Glass half full 

For optimists looking for the positive in the recent HY FY25 report, Johns Lyng did extend major contracts in the US, and expand its trial with US insurer Brown & Brown Insurance (NYSE: BRO).

The company also completed a 87.5% acquisition stake in Keystone Group, which it says is "a leading Queensland-based provider of insurance building and restoration services".

Johns Lyng also cited weather conditions across Australia as another influence to its down first half of the year. 

According to the company, conditions resulted in fewer insurance claims and CAT-related work due to a reduced number of disaster claims.

However, the selloff saw Johns Lyng slip out of the S&P/ASX 200 Index (ASX: XJO) last month. 

Opportunity, upside or look elsewhere?

Investors will be in drastically different positions depending on whether they already own the stock or have been waiting to buy at a bargain. 

If you own positions in John Lyng, you have endured an awful 12 months. As my colleague Zach Bristow explained last month, a 60% drop requires a 150% rise just to get back to even. 

However, if you have been monitoring the stock over the last year, and you believe Johns Lyng has bottomed out, there is upside according to brokers. 

Bell Potter has a target price of $2.50, suggesting approximately a 17% upside. 

Others believe there is even more room for growth. 

Online brokerage platform Selfwealth has an average price target of $3.10, which suggests more than a 45% upside. 

This is aligned with analysts "buy" rating on TradingView and $3.12 one year price target (46.65% upside).

The post At a 5-year low, is this ASX industrials stock bargain of the year? appeared first on The Motley Fool Australia.

Shares in the insurance and building restoration business are priced at $2.54 apiece before the open on Wednesday, a far cry from their former highs of more than $9.20 in April 2022.

With the stock now trading at the same level it was in 2020, we have to ask: Can this ASX industrials stock turn things around? Let's dive in and see.

Why is this ASX industrial stock lower?

Industries tied to the broad insurance sector caught a bid in early 2023 as inflation spiked, and a series of natural disasters caused many policies to skyrocket. This was short-lived.

Weather conditions across Australia improved, leading to fewer insurance claims in 2024, particularly in disaster-related work for Johns Lyng.

As the ASX industrial stock reported in its H1 results, this caused a 68% drop in its catastrophe insurance revenue.

Project delays in NSW and the US further hindered its performance during the half. As a result, management tightened the guidance belt, projecting 5% lower revenues to $1.16 billion.

Shares are subsequently down sharply over the past year, and this is important. Why? Because a loss and a gain are not equal.

To break even from a 5% loss, you only need a 5% gain. But from 10%? You now need 11.1% just to break even.

A 60% loss means you need a 150% gain just to break even – not be in the green.

More recently, Johns Lyng was kicked out of the ASX 200 Index earlier this month.

As reported by my colleague James, the sharp declines over the past year mean the ASX industrial stock's market cap doesn't fit the index's criteria.

This has implications. Constituents of the index enjoy a 'momentum' effect as large Superannuation funds purchase ASX shares as part of their quarterly mandates.

These funds are typically restricted to ASX 200 shares, meaning Johns Lyng will no longer enjoy this passive-buying effect as the Super funds roll in member contributions.

What about the positives?

While it's been a tough period, Johns Lyng has taken several strategic actions to position itself for recovery.

One notable move was the acquisition of its 87.5% stake in Keystone Group. This is a Queensland-based provider of insurance building and restoration services.

Despite the narrowed guidance, the consensus of analyst estimates still rates the ASX industrial share a buy, according to CommSec.

Morgans is one on the bullish side. As we reported last year, the broker likes the Keystone acquisition, upgrading its pre-tax earnings forecasts by 7% as a result.

According to Tradingview, brokers see an average price target of $3.12 apiece. This signals a 23% upside potential from the ASX industrial stock's price before the open on Wednesday.

Foolish takeaway

This ASX industrial stock has suffered in the past 12 months, but it's not all doom and gloom. Brokers still rate it highly, and management hasn't sat on its laurels.

Only time will tell what happens from here. Regardless, Johns Lyng shares have a mountain to climb before recovering this 60% loss in the past year.

The post Down almost 60% in 1 year. Can this ASX industrial stock turnaround? appeared first on The Motley Fool Australia.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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

Johns Lyng Group Ltd (ASX: JLG)

The Johns Lyng share price is down 9% to $2.55. Investors have been selling this insurance building and restoration services company's shares after it was kicked out of the ASX 200 index. It is being removed at the next quarterly rebalance following a sharp decline over the past 12 months. This has taken it to a market capitalisation lower than what is required for a place in the benchmark index.

Qantas Airways Ltd (ASX: QAN)

The Qantas share price is down 2% to $9.73. This is despite there being no news out of the airline operator today. However, with its shares rocketing over the last 12 months and hitting new multi-year highs last week, it is possible that some investors are taking a bit of profit off the table. Though, it is worth noting that Goldman Sachs believes its shares can keep rising. Last week, the broker put a buy rating and $11.80 price target on the Flying Kangaroo's shares.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is down 4.5% to 22 cents. Investors have been selling this gold miner's shares after it downgraded its production guidance for FY 2025. Management now expects second half production of between 32,500 and 42,500 ounces at an all-in sustaining cost (AISC) of between A$3,400 and A$3,800 per ounce. This will mean full year production of 55,000 to 65,000 ounces at an AISC of A$3,900 to A$4,200 per ounce. This compares to its previous guidance of 65,000 to 75,000 ounces at an AISC of A$3,200 to A$3,600 per ounce. Management advised that the average mined grade is expected to be lower than was being targeted as a result of face positions not being achieved in time in two of the key mining locations.

Super Retail Group Ltd (ASX: SUL)

The Super Retail share price is down almost 3% to $13.40. This has been driven by the retail conglomerate's shares going ex-dividend this morning. Last month, the BCF, Macpac, Super Cheap Auto, and Rebel owner released its half year results and declared a fully franked 32 cents per share interim dividend. This will be paid to eligible shareholders next month on 15 April.

The post Why Johns Lyng, Qantas, St Barbara, and Super Retail shares are falling today appeared first on The Motley Fool Australia.

This latest update reveals that there will be no less than seven shares kicked out of the benchmark ASX 200 index later this month.

Let's now take a look at which shares are being removed and then what will be replacing them.

Saying goodbye to the ASX 200

There are seven ASX 200 shares that will be leaving the benchmark index when it rebalances on 24 March.

The first one is Audinate Group Ltd (ASX: AD8). Tough trading conditions have weighed heavily on this audio technology company's performance over the past 12 months. This has led to a 67% share price decline, cutting its market capitalisation to $625 million.

KFC restaurant operator Collins Foods Ltd (ASX: CKF) is another ASX 200 share getting the boot. Its shares are down 17% since this time last year, reducing its market capitalisation to $1 billion.

Charter Hall Social Infrastructure REIT (ASX: CQE) isn't trading too far away from a 52-week high. However, the social infrastructure focused property company's market capitalisation of just over $1 billion isn't enough to keep it in the benchmark index.

Coal miner Coronado Global Resources Inc (ASX: CRN) has sunk 60% over the past 12 months, pulling its market capitalisation down to $855 million.

Also being ejected from the ASX 200 are the shares of Johns Lyng Group Limited (ASX: JLG). This insurance building and restoration services company was sold off last month after disappointing with its half year results. Its shares are down 57% over the past 12 months, reducing its market capitalisation to $790 million.

Finally, travel and transport company Kelsian Group Ltd (ASX: KLS) and embattled casino operator Star Entertainment Group Ltd (ASX: SGR) complete the list after sinking approximately 47% and 80%, respectively, since this time last year.

The bad news for these ASX 200 shares is that selling pressure could now increase. That's because index funds that track the index will be forced to sell their shares. In addition, fund managers that have strict investment mandates may have to sell if they aren't permitted to invest outside the benchmark index.

Shares saying hello to the ASX shares

Replacing them in the ASX 200 are copper miner Capstone Copper Corp (ASX: CSC), data centre companies Digico Infrastructure REIT (ASX: DGT) and Macquarie Technology Group Ltd (ASX: MAQ), mining technology company Imdex Ltd (ASX: IMD), investigative analytics and intelligence software provider Nuix Ltd (ASX: NXL), gold miner Spartan Resources Ltd (ASX: SPR), and online furniture and homewares retailer Temple & Webster Group Ltd (ASX: TPW).

These companies could now experience an increase in demand for their shares as index funds buy in and they become available to fund managers with the aforementioned investment mandates.

The post 7 shares kicked out of the ASX 200 index (and 7 new additions) appeared first on The Motley Fool Australia.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Domino's Pizza Enterprises Ltd (ASX: DMP)

The Domino's Pizza share price is down 11% to $28.59. Investors have been selling the pizza chain operator's shares following the release of its half year results. Domino's reported a 2.9% decline in network sales to $2.08 billion and a 6.7% reduction in EBIT to $100.6 million. Despite this profit decline, the company maintained its dividend at 55.5 cents per share.

Johns Lyng Group Ltd (ASX: JLG)

The Johns Lyng share price is down 32% to $2.57. The catalyst for this has been the release of the insurance building and restoration services company's half year results. Johns Lyng reported a 6.1% decline in revenue to $573.1 million and a 15.2% decline in normalised EBITDA to $54.2 million. Management blamed this on "a challenging operating environment with benign weather conditions across Australia resulting in a reduced volume of insurance claims and CAT-related work." In light of this poor first half, the company has downgraded its FY 2025 guidance. It is guiding to revenue of $1.167 billion and EBITDA of $126.5 million. It was previously guiding to revenue of $1.228 billion and EBITDA of $132.5 million.

Polynovo Ltd (ASX: PNV)

The Polynovo share price is down 16% to $1.50. This medical device company's shares have fallen heavily this week following the release of its half year results. Polynovo reported a 28.1% increase in sales to a record of $54.1 million and a 23.9% increase in net profit after tax to $3.3 million. However, causing some alarm bells to ring was its $12.5 million operating cash outflow for the half. In addition, no guidance was provided for the full year.

Praemium Ltd (ASX: PPS)

The Praemium share price is down 11% to 77.5 cents. This morning, this investment platform provider released its half year results and revealed a 32% increase in revenue to $52.3 million and a 45% jump in net profit after tax to $5.8 million. Though, it also recorded an operating cash outflow of $5.2 million for the half. In other news, the company revealed that its CFO has resigned and will be leaving at the end of next week.

The post Why Domino's, Johns Lyng, Polynovo, and Praemium shares are dropping today appeared first on The Motley Fool Australia.

Shares in the insurance company are currently fetching $2.84 apiece at the time of writing, over 25% lower from the open.

Let's take a look at what the company posted.

Johns Lyng share price sinks on H1 FY25 numbers

Here are the key points from Johns Lyng's first-half results:

• Revenues came in at $573.1 million, a 6.1% drop year over year.
• Business-as-usual (BaU) revenue increased by 9% to $534.3 million.
• Catastrophe insurance (CAT) revenue dropped sharply, falling 67.7% year over year to $38.8 million.
• Pre-tax earnings for the first half tallied $54.2 million, a 15.4% decrease compared to last year.
• Net profit of $20.8 million, down from $31 million this time last year.
• Declared a fully franked interim dividend of 2.5 cents per share, a payout of around 49% of net profit.

What else happened in 1H25?

Johns Lyng said it was "a challenging operating environment" during the first half of FY25.

Weather conditions across Australia resulted in fewer insurance claims and CAT-related work due to a reduced number of disaster claims.

Thankfully, it wasn't all doom and gloom. The company extended major contracts in the US, while expanding its trial with US insurer Brown & Brown Insurance.

The company also completed several acquisitions, including an 87.5% stake in Keystone Group, which it says is "a leading Queensland-based provider of insurance building and restoration services".

But management said project delays both in New South Wales and in the US have "impacted performance".

Consequently, management has narrowed guidance for FY25.

So what's next?

Management has reduced expectations for this year and now expects FY25 revenue to total $1.167 billion, down 5% from previous guidance of $1.228 billion.

It also projects pre-tax earnings of approximately $126.5 million, a 4.5% reduction.

The company has also conducted a strategic review and is looking to "recalibrate its
overhead base and maintain financial discipline as conditions evolve."

What did management say?

CEO Scott Didier was positive on John Lyng's outlook despite the narrowed guidance, commenting:

JLG's strength lies in its diversified model, disciplined operations, and ability to adapt. Our expanded insurer partnerships, strategic acquisitions, and ongoing integration efforts position us for sustained growth across out strategic pillars.

JLG enters the second half with a strong foundation to navigate near-term challenges and sustain its established growth trajectory. Our engagement in recent flood and storm recovery efforts in Northern Queensland and New South Wales highlights the recurring but unpredictable nature of weather events, while our Disaster Management Australia business continues to expand its capabilities and secure new contracts, independent of CAT activity.

With a clear strategic path, JLG remains focused on delivering long-term value and growth.

Johns Lyng share price snapshot

The Johns Lyng share price is under pressure today as investors react to its H1 FY25 update and updated full-year guidance.

Over the past twelve months, the stock is down by around 60%.

The post Johns Lyng share price tanks 25% on narrowed FY25 guidance appeared first on The Motley Fool Australia.

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