Hipages Group Holdings Ltd (ASX: HPG)

The share price of trade sales lead generator, Hipages, has dropped almost 20% over the last year to $0.84 at market close on Tuesday. Its primary service is connecting customers to tradespeople, a business that can be sensitive to interest rate hikes and weakened consumer spending. This might be driving some of the subdued investor sentiment. Also, it does not have a strong defensive moat with some investors concerned that it may be swamped by AI or generalist marketplaces.

But this is a business with strong underlying fundamentals. Even though revenue growth slowed in the first half of 2026, it has expanded its EBITDA margin, showing good operating leverage and discipline. A strong balance sheet with significant cash holdings further de-risks the investment.

Despite potential consumer spending concerns, Australians spent some $53.8 billion on renovations in FY25, the highest spend since 2022, suggesting the market for trades remains strong. Ongoing trade shortages may also fuel consumer demand for some time to come. The key for Hipages will be ensuring that it can continue to attract quality tradespeople in this climate. 

For me, at current prices, Hipages is a real contender. It's a quality business with a good balance sheet in a market where demand continues to grow.

OFX Group Ltd (ASX: OFX)

Australian international payments provider, OFX, has seen share price falls of more than 50% over the last year, closing at $0.58 on Tuesday. Investors had high expectations of this business a few years ago and although its results have been relatively solid, it seems investors have been wanting more. Weakening sentiment across the broader tech sector may also be driving the drop.

OFX is a profitable business with low debt and a global customer network, spanning APAC, North America, Europe and the Middle East. In its last full year results, it reported a 5.5% decline in net operating income and its growth has slowed of late, but its scalable business model remains attractive.

In early February 2026, it announced a strategic review, which could include a potential sale, with management reiterating it believes the business to be undervalued at the current share price.

And I tend to agree. Despite some decline in recent results, OFX has been performing in the longer term and has several potential avenues for growth. It's clearly at a crossroads and the outcome of the strategic review will be interesting, but I think now is the time to move for investors seeking a bargain.

Adore Beauty Group Ltd (ASX: ABY)

Specialty beauty e-commerce and retailer, Adore Beauty has had a tough ride on the share market, dropping some 50% in the last 12 months to $0.42 at market close on Tuesday. However, it continues to deliver positive, if small, revenue growth. That said, net profit has declined sharply (69.9%), which is likely why investor sentiment continues to weaken.

However, at current prices, I think it's worth considering because its revenue is rising, its brand equity is intact, and there are some positive indicators amongst the challenges:

• It has an established brand that has shown it can ride out challenging market conditions
• It's underlying EBITDA for HY26 was up 14.5% on the prior corresponding period, meaning it can generate operating leverage
• Customer growth remains solid
• It appears to be demonstrating disciplined inventory management, critical in such a fast-moving category

It's also worth noting that its profitability decline is likely largely driven by the step up in its omni-channel rollout, with the group opening 10 new stores since July.

This one might be a little more speculative and it's certainly a turnaround play — it will need to recover its margins. But if you are looking for something with hidden potential at the bargain end of the market, Adore Beauty is one to consider.

The post 3 quality ASX stocks under $1 a share appeared first on The Motley Fool Australia.

The company, in a statement lodged with the ASX on Thursday, said it had started a "strategic review to explore a range of organic and inorganic options seeking to maximise value for shareholders''.

The company went on to say:

As a pioneer of cross border payments, OFX has regularly been in discussion with industry participants about the shape of the industry, trends and opportunities, including inorganic opportunities. OFX's acquisition of Firma originated from such dialogue. Recently, OFX has received an increasing level of inbound inorganic interest. The Board has determined that it is in the best interests of shareholders to comprehensively consider any approaches through a structured review process, and compare them to OFX's organic growth opportunities.

We're worth more, board says

The company said the board did not believe the value of OFX was reflected in the current share price, "noting OFX's robust and well established global operating infrastructure, strong cash generation and growth prospects through execution of its 2.0 strategy that plays into a very large potential global total addressable market''.

The company added:

OFX has appointed Goldman Sachs Australia as its financial advisor in relation to the Strategic Review to support the Board and management team in assessing the value that could be created under various strategic options, including a potential sale. OFX will seek to carry out the Strategic Review in an efficient manner that minimises operational distraction from the continued execution of the OFX 2.0 strategy.

The company also provided a trading update for the current quarter to date, saying revenue for the quarter was expected to be 11.5% lower at $29.4 million, compared with the same period last year.

Exec on the move

The company also announced on Thursday that its Chief Financial Officer, Selena Verth, was leaving after more than eight years with the group.

The company said:

A search for a new CFO has commenced and Ms Verth will remain with OFX until 30 June 2026 to support the continued execution of the 2.0 strategy, as well as the Strategic Review process and an effective handover.

OFX Group shares were 13.5% higher in afternoon trade at 54.5 cents. The shares are well down on their 12-month high of $1.47 and not far off their low for the period of 46 cents.

The company was valued at $111.2 million at Wednesday's close.

The post OFX shares jump as it says it's officially on the market appeared first on The Motley Fool Australia.

Meanwhile, experts reveal what they think investors should do with these three ASX 300 financial shares.

Own any of these 3 ASX 300 financial shares?

Two of these ASX stocks have been on a tear, whilst the other has struggled over the past 12 months.

Market analysts provide their insights.

OFX Group (ASX: OFX) 

OFX is a global provider of international payments and foreign exchange services.

The OFX Group share price is 84 cents, up 0.6% today and down 59% over the past 12 months.

OFX shares have fallen heavily since the company published its full-year FY25 results on 20 May.

On The Bull this week, Jonathan Tacadena from MPC Markets presented his view of this ASX 300 financial share.

He has a sell rating on OFX shares, and explains:

Revenue of $221.9 million in full year 2025 was down 3.4 per cent on the prior corresponding.

Net operating income of $214.9 million was down 5.5 per cent.

In our view, the company needs to produce improving results to attract investors in fiercely competitive sectors.

Until there are meaningful signs of a recovery, we believe investors can achieve better returns elsewhere.

OFX issued a 1Q FY26 trading update on 24 July. It reported $34.1 million in revenue, down 2.6% on 1Q FY25.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is $175.63, up 0.4% today and up 41% over the past 12 months.

This ASX 300 financial share has been on a tear since November 2023. However, it appears CBA's strong run is starting to fade.

Michael Gable from Fairmont Equities has a hold rating on CBA shares.

Gable says:

We turned bullish on CBA in early 2024 as it broke above a major resistance level and started to rally.

We remained bullish until recently when the share price chart finally showed signs of weakness.

This also coincides with long held investor concerns around CBA's valuation.

While we didn't sell CBA on valuation grounds and rode it higher in the past 18 months, a topping signal on the chart is a sign to finally exit this position, in our view.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price is $8.70, up 0.81% today and up 25% over the past 12 months.

John Athanasiou from Red Leaf has a sell rating on this ASX 300 financial share.

On The Bull last week, Athanasiou said:

IAG's strong rally to a recent high means much of its positive outlook is already priced into the share price.

For investors seeking value or growth, it may be time to take profits and seek better opportunities elsewhere.

The post Brokers reveal what to do with these 3 ASX 300 financial shares appeared first on The Motley Fool Australia.

In this article, we discuss four ASX 200 financial shares and some expert opinions on them.

ASX 200 financial shares: 2 buys

Pinnacle Investment Management Group Ltd (ASX: PNI)

Courtesy of The Bull, Damien Nguyen from Morgans reckons Pinnacle Investment Management shares are a buy.

"Investors can buy at a reasonable price for a stock offering a bright outlook," says the analyst.

The Pinnacle Investment Management share price closed at $20.63 yesterday, down 0.67%.

Nguyen says:

PNI offers leveraged exposure to increasing growing demand for active funds management through its unique multi-affiliate model. 

The company holds stakes in a range of high performing boutique managers, providing diversified and scalable earnings.

Strong recent fund inflows amid a consistent investment performance are driving growth in funds under management.

Generation Development Group Ltd (ASX: GDG)

Nguyen is also positive about Generation Development Group shares.

Generation Development Group specialises in offering tax-effective investment solutions.

Nguyen sees the Federal Government's proposal to raise taxes on superannuation investment earnings over $3 million as a potential tailwind.

The analyst comments:

GDG operates in Australia's wealth management sector, particularly through its subsidiary Generation Life, which is a market leader in investment bonds in terms of inflows.

Investment bonds offer compelling tax benefits and, after superannuation, are considered the next best option for minimising tax. 

The potential introduction of higher tax rates on superannuation balances above $3 million could lead to a further increase in demand for investment bonds issued by Generation Life, which, in turn, may lead to further upside for GDG's share price.

The Generation Development share price closed at $5.70 yesterday, down 0.87%.

ASX 200 financial shares: The sells…

OFX Group Ltd (ASX: OFX)

Michael Gable of Fairmont Equities has a sell rating on OFX, a global provider of international payments and foreign exchange services.

Gable explains:

Its recent fiscal year 2025 result was disappointing, with earnings lower than what the market expected.

Underlying net profit after tax of $27.7 million was down 18.2 per cent on the prior corresponding period. Net operating income (NOI) of $214.9 million was down 5.5 per cent.

The company didn't provide NOI guidance in fiscal year 2026 in light of global economic uncertainty.

It expects underlying EBITDA margins to be lower in fiscal years 2026 and 2027.

The ASX 200 financial share has fallen from $1.31 on 19 May to a closing value of 74.5 cents yesterday.

Gable concludes: "I can't identify a catalyst at this point that will lead to a share price recovery – at least in the short term."

Commonwealth Bank of Australia (ASX: CBA) 

Nguyen has a sell rating on CBA shares, pointing out that the ASX 200's largest stock is trading at a big premium to peers.

The CBA share price reset its record high again on Wednesday when it reached $183.19 per share.

Nguyen says:

Shifting economic conditions, including potential interest rate cuts, could impact profitability. 

We're concerned the bank's high valuation leaves little room for disappointment, and could make it vulnerable to market corrections. 

For investors who have enjoyed strong returns, now may be a good time to lock in gains and reduce exposure.

The CBA share price closed at $180.53 yesterday, down 0.48%.

The post 2 buys and 2 sells in the ASX 200 financials sector: analysts 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:

Kogan.com Ltd (ASX: KGN)

The Kogan share price is down 8% to $4.15. Investors have been selling this ecommerce company's shares following the release of another disappointing trading update. For the first four months of the second half of FY 2025, Kogan posted a 0.7% decline in revenue, a 37.5% decline in adjusted EBITDA to $6.8 million, and a 63.7% decline in adjusted EBIT to $2.5 million. Following today's decline, Kogan's shares are now down 32% since the start of the year.

Monash IVF Group Ltd (ASX: MVF)

The Monash IVF share price is down 11.5% to 75.2 cents. This morning, this fertility treatment company downgraded its guidance for FY 2025. It now expects its underlying net profit after tax to be approximately $27.5 million for the year. This is down from its previous guidance range of $30 million to $31 million. Management said: "The revised guidance reflects the Company's assessment of softer market and operating conditions in March 2025 that worsened in April 2025 across all of the Company's geographic markets."

OFX Group Ltd (ASX: OFX)

The OFX share price is down over 30% to 91 cents. This money transfer and foreign exchange provider's shares have been hammered following the release of its full year results this morning. OFX Group posted a 0.9% decline in turnover to $38.1 billion, a 3.4% reduction in revenue to $221.9 million, and an 18.2% fall in underlying net profit to $27.7 million. It also warned: "In light of the global economic uncertainty, OFX Group is not providing NOI guidance for FY26."

ResMed Inc. (ASX: RMD)

The ResMed share price is down 4% to $37.36. This appears to have been driven by news that Apnimed's oral pill for obstructive sleep apnoea (OSA), AD109, has met its primary endpoint in a phase III trial. Apnimed's CEO, Larry Miller, said: "The positive results from our Phase 3 SynAIRgy trial bring us closer to realizing our vision of offering a simple, safe, and effective oral drug — one that is grounded in science, driven by unmet need, and centered on people with OSA."

The post Why Kogan, Monash IVF, OFX, and ResMed shares are falling today 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:

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is up 14% to $1.48. This morning, this defence and space systems company announced that it has won a major counter-drone contract. EOS revealed that it has secured a new order for Remote Weapon Systems worth 31 million euros (A$53 million). The company notes that the order is from a European naval systems integration business and is for its flagship "Slinger" Counter-Drone Remote Weapon System (RWS), and the systems will be configured for naval deployment.

Gorilla Gold Mines Ltd (ASX: GG8)

The Gorilla Gold Mines share price is up 7.5% to 53.2 cents. This follows the release of an update from the gold explorer relating to the Lakeview Prospect in Kalgoorlie, Western Australia. According to the release, the first hole drilled into a parallel structure at Lakeview has intercepted high grade gold mineralisation on a newly identified parallel east-west oriented structure. This is 200 metres north of the main mineralised trend. CEO Charles Hughes commented: "What a great first hole into the parallel "Jambo" structure at Lakeview!"

Lendlease Group (ASX: LLC)

The Lendlease share price is up over 1% to $5.59. Investors have been buying the property developer's shares after it officially signed a joint venture agreement with the Crown Estate in the United Kingdom. Lendlease CEO, Tony Lombardo, said: "This partnership will create an industry leading alliance that is expected to unlock value within our high-quality UK development portfolio, while accelerating the release of capital for the Group. With our expertise in delivering city shaping urban regeneration projects, the joint venture aims to deliver positive outcomes for our securityholders, communities and partners."

OFX Group Ltd (ASX: OFX)

The OFX Group share price is up a sizeable 16% to $1.31. This is despite there being no news out of the international payments and foreign exchange provider this morning. However, there will be news coming shortly. In response to its shares shooting higher, they have been paused from trade pending the release of an announcement. Whatever the cause, Wilsons is likely to be supportive of the buying. Earlier this month, the broker put an overweight rating and $2.11 price target on its shares.

The post Why EOS, Gorilla Gold, Lendlease, and OFX shares are charging higher today appeared first on The Motley Fool Australia.

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

Brickworks Limited (ASX: BKW)

The Brickworks share price is up 3% to $27.00. This appears to have been driven by a bullish broker note out of Bell Potter this morning. According to the note, the broker has upgraded the building products company's shares to a buy rating (from hold) with an improved price target of $32.00 (from $31.00). Bell Potter believes recent share price weakness has created a buying opportunity for investors. It said: "We view the pullback in share price as an opportunity to get BMats and Property at or close to the bottom of the cycle. We upgrade our rating to Buy with a PT of $32.00ps."

James Hardie Industries plc (ASX: JHX)

The James Hardie share price is up over 7% to $53.97. This follows the release of the building materials company's second quarter update this morning. James Hardie revealed a 4% decline in net sales to US$961 million and an 8% decline in adjusted EBITDA to US$263 million. Looking ahead, James Hardie CFO, Rachel Wilson, was cautiously optimistic. She said: "Despite greater market headwinds than we anticipated in our original outlook, we remain well-positioned to deliver volumes within our original guidance range. Our Hardie Operating System initiatives, together with efforts to rationalize and prioritize expenses enable us to achieve even better profitability than we initially anticipated. We are therefore reaffirming the low end of our volume guidance range and raising the low end of both our North America EBIT Margin and Adjusted Net Income ranges."

Megaport Ltd (ASX: MP1)

The Megaport share price is up 4% to $8.42. Investors have been buying this network as a service company's shares despite there being no news out of it today. Though, it is worth noting that Megaport is likely to be releasing a trading update at next week's annual general meeting. Investors may be expecting a strong quarter to drive its shares higher.

OFX Group Ltd (ASX: OFX)

The OFX Group share price is up 8% to $1.34. This international payment services provider's shares are rebounding on Wednesday after being sold off on Tuesday following the release of its half year results. OFX reported a 4% decline in turnover to $18.4 billion and a 20.6% decline in underlying net profit after tax to $13.5 million. Some investors may believe the selling was overdone and has created a buying opportunity.

The post Why Brickworks, James Hardie, Megaport, and OFX shares are charging higher 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:

Endeavour Group Ltd (ASX: EDV)

The Endeavour Group share price is down a further 3.5% to $4.36. Investors have been selling this drinks giant's shares this week following the release of a first quarter trading update. Endeavour revealed a modest 0.5% increase in group sales to $3,105 million for the three months. This reflects a better than expected performance from its Hotels business, but a miss from its Drinks business. Endeavour Group's CEO, Steve Donohue, advised that "cost of living pressures continued to impact consumer spending in our categories" during the quarter.

Global Data Centre Investment Fund (ASX: GDC)

The Global Data Centre share price is down 56% to $1.43. This has been driven by the data centre focused investment fund's shares going ex-capital return this morning. Ahead of its upcoming suspension from trade following investment disposals (Airtrunk and ETIX Everywhere), the company will be returning capital to shareholders. A total of approximately $1.067 per share will be heading to eligible shareholders later this month on 27 November.

OFX Group Ltd (ASX: OFX)

The OFX Group share price is down 10% to $1.32. Investors have been selling this international payment services provider's shares this morning following the release of its half year results. OFX reported a 4% decline in turnover to $18.4 billion and a 20.6% decline in underlying net profit after tax to $13.5 million. OFX's CEO, Skander Malcolm, said: "The first half was impacted by tough macroeconomic conditions as shifts in the interest rate cycle happened later than we expected. This meant corporate confidence in the UK and Canada was subdued, impacting ATVs, while our Australian Consumer business was also impacted by lower volatility."

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is down 25% to $7.31. The catalyst for this has been the release of an update on the uranium miner's guidance for FY 2025. It said: "As a result of the lower than expected production results for October, and noting the ongoing challenges and operational variability experienced to date in ramping up production at the LHM, Paladin has determined to revise its FY2025 production guidance to 3.0 – 3.6 Mlb (previously 4.0 – 4.5 Mlb) and withdraw all other guidance in relation to FY2025."

The post Why Endeavour, Global Data Centre, OFX, and Paladin Energy shares are dropping today appeared first on The Motley Fool Australia.

Shares in the online foreign exchange OFX Group Ltd (ASX: OFX) are 32.5% deep in the dirt this afternoon. The disappointing performance stands out like a sore thumb, with the benchmark index tracking up 0.6% for the day.

Heading into today, OFX Group touted a one-year return of around 36%. However, investors' lickety-split exodus has left the ASX small-cap company 7% in the red over the past 12 months. Within a single trading day, OFX Group has whipped from 11 cents away from its 52-week high to 34 cents away from its 52-week low.

What could possibly induce such a violent swing in an ASX 300 stock?

Growth goes on hiatus

OFX Group shared its trading update for the first half today. Inside were a few important points, including:

• Net operating income of $111 million expected for the half
• Underlying EBITDA of $29 million expected for the half
• United Kingdom average transaction values down 21.8% on the prior corresponding period
• New corporate clients revenue up 11% on the prior corresponding period

The company didn't provide the potential increase or decrease from last year's first half, but I did some digging. If OFX's expectations are accurate, it would mean a 3.6% decline in net operating income and an 8.8% fall in underlying EBITDA (also known as operating earnings).

One primary reason was given for the slowdown. As mentioned in the OFX update:

Later than anticipated shifts in the interest rate cycle, and corresponding range-bound key currency corridors as a result of the strong USD, resulted in a slower rebound in corporate confidence.

From there, it was explained that these circumstances weighed on their clients' currency trading in the backend of the first half, most notably in September. The subdued level of trading meant OFX Group generated fewer fees and trading income.

What about the outlook for this ASX 300 stock?

At least there's a silver lining within today's update.

According to the release, OFX anticipates a stronger six months in the second half of FY25, improving on the first half and the prior corresponding period. However, it still means OFX Group no longer believes it will achieve ~10% net operating income (NOI) growth.

For shareholders choosing to stick with this ASX 300 stock, OFX plans to outline a 'pathway' for returning to 10% NOI growth alongside its FY25 results in May next year.

Furthermore, management remains committed to achieving 15%-plus NOI annual growth and approximately 30% underlying EBITDA margins in the long-term.

The post Why this ASX 300 stock is crashing 32% 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 dropping:

Appen Ltd (ASX: APX)

The Appen share price is down 3% to $2.11. This appears to have been driven by the artificial intelligence (AI) data services provider's recent institutional placement. Earlier this week, it successfully raised approximately $50 million through the issue of approximately 26 million new shares. These funds were raised at $1.92 per new share, which represented an 11.5% discount to its last close price. The allotment of these new shares took place today, meaning a quick profit was on offer for institutional investors if they wanted to take it.

DUG Technology Ltd (ASX: DUG)

The DUG Technology share price is down 7% to $2.02. This has been driven by the completion of technology company's institutional placement this morning. DUG Technology has received firm commitments for a non-underwritten $30 million institutional placement at $1.90 per new share. This represents a 12.8% discount to its last close price. Management advised that the proceeds raised will be used to accelerate its growth trajectory, including investment in new verticals and geographic expansion.

OFX Group Ltd (ASX: OFX)

The OFX Group share price is down 32% to $1.56. This follows the release of a first half update from the international money services provider. For the six months ended 30 September, OFX expects to deliver net operating income of approximately $111 million and underlying EBITDA of approximately $29 million. Management acknowledges that this outcome is lower than anticipated. It blamed the underperformance partly on the "later than anticipated shifts in the interest rate cycle, and corresponding range-bound key currency corridors as a result of the strong USD, [which] resulted in a slower rebound in Corporate confidence."

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is down 4% to $125.81. This is despite there being no news out of the logistics solutions company today. Though, it is worth noting that its shares have been on fire this year. This could mean that some investors are taking a bit of profit off the table today. For example, despite today's decline, WiseTech Global's shares are up a sizeable 65% since the start of 2024.

The post Why Appen, DUG, OFX, and WiseTech shares are tumbling 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:

DroneShield Ltd (ASX: DRO)

The DroneShield share price is down 14% to $1.19. Investors have been hitting the sell button today after the counter drone technology company completed a $120 million institutional placement. These funds were raised at $1.15 per new share, which represents a 17.3% discount to its last close price. DroneShield's CEO, Oleg Vornik, commented: "This placement is enabling us to undertake a number of rapid R&D programs in response to end user requirements, over the next 12-24 months. This favourably positions DroneShield to fuel its revenue growth and further increase its margins, due to anticipated increase in AI SaaS offerings."

Monadelphous Group Ltd (ASX: MND)

The Monadelphous Group share price is down 5% to $12.33. This has been driven by news that Albemarle has terminated Monadelphous' contracts at the Kemerton Project in the south-west region of Western Australia. This termination follows Albemarle's announcement regarding a comprehensive review of its asset and cost structure. Management was expecting to generate revenue of $75 million to $85 million in FY 2025 from the project. It also estimates that it reduces its current construction work-in-hand by approximately $200 million.

OFX Group Ltd (ASX: OFX)

The OFX Group share price is down 4% to $2.21. This follows the release of a trading update at the international payment services company's annual general meeting. At the event, management advised that trading has been in line with expectations. And with its management of margin and expenses remaining strong, its underlying EBITDA is in line with expectations. It seems that the market was expecting stronger rhetoric or was looking for more detailed commentary on how it is performing in FY 2025.

Star Entertainment Group Ltd (ASX: SGR)

The Star Entertainment share price is down over 2% to 56.7 cents. This follows media speculation in relation to recommendations made during the 2024 Independent Inquiry into The Star. However, the company responded this morning, stating that the "report prepared by Mr Adam Bell SC and submitted to the New South Wales Independent Casino Commission has not yet been publicly released and The Star has not received a copy of the Report or been advised of its contents."

The post Why Droneshield, Monadelphous, OFX, and Star shares are falling today 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:

ALS Ltd (ASX: ALQ)

The ALS share price is up 5% to $14.47. This has been driven by the release of the testing services company's FY 2024 results this morning. ALS reported a 6.8% increase in revenue to $2,586 million and modest 0.2% increase in underlying EBIT to $491.8 million. The company's CEO and managing director, Malcolm Deane, commented: "The Group has continued to deliver revenue growth and maintain industry-leading margins despite challenging market conditions."

OFX Group (ASX: OFX)

The OFX Group share price is up almost 13% to $1.91. This has also been driven by the release of full year results this morning. Investors have responded positively to the foreign exchange company reporting a 6.3% increase in net operating income to $227.5 million and a 3.4% lift in underlying EBITDA to $64.6 million. This was in line with its guidance. CEO Skander Malcolm said: "Despite a tougher macroeconomic backdrop in our two largest markets, it was pleasing to deliver NOI and underlying EBITDA in line with guidance. Without the near-term impact of Paytron on our earnings, we would have delivered positive operating leverage."

Skycity Entertainment Group Ltd (ASX: SKC)

The Skycity Entertainment share price is up 4% to $1.62. This follows news that Skycity has reached an agreement with the Department of Internal Affairs in New Zealand to settle its anti-money laundering and countering financing of terrorism proceedings. According to the release, the settlement includes an admission of guilt and a penalty of approximately NZ$4 million.

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price is up 5% to $16.84. Investors have been buying this enterprise software provider's shares following the release of its half year results. The company reported a 16% increase in revenue to $244.8 million, a 21% lift in annual recurring revenue (ARR) to $423.6 million, and a 17% jump in profit before tax to $61.5 million. Management remains confident on the future and believes it is on track to surpass its ARR target by FY 2025. CEO Ed Chung said: "We are on track to surpass total ARR of $500m+ by FY25, from our current base of $424m. We will continue to invest for the long-term in R&D to build platforms for growth to continue to double in size every 5 years."

The post Why ALS, OFX, Skycity, and TechnologyOne shares are surging today appeared first on The Motley Fool Australia.

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

National Australia Bank Ltd (ASX: NAB)

The NAB share price is down 3.5% to $27.88. This has been driven by the banking giant's shares trading ex-dividend this morning for its fully franked final dividend of 84 cents per share. Eligible shareholders can now look forward to receiving this payout next month on 15 December.

OFX Group Ltd (ASX: OFX)

The OFX share price is down 10.5% to $1.37. Investors have been selling this foreign exchange and international payments company's shares following the release of its half-year results. OFX reported a small decline in underlying EBITDA for the half.

Origin Energy Ltd (ASX: ORG)

The Origin share price is down 3.5% to $8.48. Investors may have doubts that the energy giant's takeover will complete and have been taking profit today. Yesterday, AustralianSuper revealed that it has rejected an eleventh-hour and unsolicited letter received from the Brookfield and EIG consortium and reaffirmed that it will be voting against the takeover. The super fund continues to "believe the offer remains substantially below our estimate of Origin's long-term value."

Telstra Group Ltd (ASX: TLS)

The Telstra share price is down 2% to $3.87. The market has not responded positively to a major announcement from the telco giant this morning. Telstra revealed that it will build five new "major routes" as part of its Intercity Fibre project. Telstra CEO Vicki Brady said: "Connectivity will continue to play a key role in our economy and there is enormous potential for digital technologies to rewrite Australia's growth equation."

The post Why NAB, OFX, Origin, and Telstra shares are falling today appeared first on The Motley Fool Australia.

Most investors are familiar with the primary way that an ASX share can return capital to its investors: by paying out dividends. But share buybacks can be just as lucrative as a dividend, and could even be preferable in some circumstances.

Even the legendary investor Warren Buffett has frequently discussed his love of share buybacks and why he favours a buyback over paying out a dividend at his company Berkshire Hathaway.

How does a share buyback work?

A share buyback is, well, all in the name. A company buys back its own shares on the open market, just as any other investor would. However, instead of holding the shares over time, as you or I might, the company retires or destroys them.

This has several consequences. Firstly, by reducing the supply of available shares, a share buyback puts upward pressure on the company's share price. That's because, under the laws of supply and demand, reduced supply leads to higher prices. So that's one win for shareholders.

Fewer shares also mean that all remaining shareholders see their actual ownership of the company rise. Say I own 10 shares of Company X, and Company X has a total of 100 shares outstanding. As such, I would own 10% of the company.

But if Company X buys back 10 shares from the open market, and retires them, there are now only 90 shares outstanding. I still own my 10 shares, but instead of a 10 % ownership, I now own 11.11%. That entitles me to more of the company's earnings and dividends as a result. And, unlike a dividend, this all happens without me having to pay any tax.

If a company makes a habit of buying back its own stock, it can have a huge impact on shareholder returns over time.

Which ASX stocks have been buying back their own shares in 2023?

So let's talk about which ASX shares have been buying back their own stock in 2023 so far.

Luckily for us, we don't have to sift through ASX notices to find out. The data has been compiled for us by S&P Market Intelligence. So here is a list of some of the ASX shares that have conducted share buybacks in 2023 to date:

• Amcor plc (ASX: AMC)
• Cochlear Limtied (ASX: COH)
• Qantas Airways Limited (ASX: QAN)
• Australian Foundation Investment Co Ltd (ASX: AFI)
• Eagers Automotive Ltd (ASX: APE)
• AMP Limited (ASX: AMP)
• Pinnacle Investment Management Group Ltd (ASX: PNI)
• Objective Corporation Ltd (ASX: OCL)
• Helia Group Ltd (ASX: HLI)
• Temple & Webster Group Ltd (ASX: TPW)
• Djerriwarrh Investments Ltd (ASX: DJW)
• Estia Health Ltd (ASX: EHE)
• Kogan.com Ltd (ASX: KGN)
• OFX Group Ltd (ASX: OFX)
• Mayne Pharma Group Ltd (ASX: MYX)
• AMCIL Limited (ASX: AMH)
• Garda Diversified Property Fund (ASX: GDF)
• US Masters Residential Property Fund (ASX: URF)
• Cogstate Limited (ASX: CGS)

Many of these shares, including Qantas, Cochlear, Eagers Automotive, and Kogan, have had exceptionally strong share price growth this year so far. And from what we know about buybacks, there's little doubt that these were at least partially assisted by the companies' actions in buying back their own stock.

The post Returning capital: These ASX companies have been buying back their shares in 2023 appeared first on The Motley Fool Australia.

Let's take a look at three stocks that the fund managers at LSN Emerging Companies Fund are bullish on:

ASX tech company going in the right direction

Artificial intelligence has been the topic du jour in public discourse this year.

The mainstream release of generative AI engine ChatGPT has opened the world's eyes to the astounding possibilities of this technology.

And, perhaps unsurprisingly, many investment experts have named it as the theme to follow in the coming years.

The LSN team is putting its money into Megaport Ltd (ASX: MP1) to ride this megatrend.

"The recent organisational restructure and investor demand for all things AI pushed Megaport Ltd +21% higher during [last] month," it said in a memo to clients.

"The company provides the connectivity between customers and the top seven cloud providers across three hundred data centres."

Megaport was one of those businesses that burnt through capital in return for growth but is now endeavouring to achieve positive cash flow to satisfy the new world of high interest rates.

The business also lost its chief executive earlier this year.

"The restructure included the appointment of ex-Cisco Systems Inc (NASDAQ: CSCO) executive Michael Reid as CEO, who laid out the pathway to a significant improvement in profitability," read the LSN note.

"A renewed focus on the direct sales channel is a key driver of growth as they position themselves 'to be selling the picks and shovels for the 'AI gold rush"."

'Highly profitable' business on 'confident growth trajectory'

Shares for online currency exchange platform OFX Group Ltd (ASX: OFX) also went gangbusters in May, rocketing a whopping 28%.

According to LSN analysts, the outlook announced during the full-year report last month absolutely exceeded expectations.

"The unwind from COVID tailwinds caused concern in the market about their ability to generate earnings growth, however, benefits from both volume and price, in addition to synergies from their most recent acquisition, has the company confident they can continue their growth trajectory."

The LSN memo noted the company is already "highly profitable".

"[It's] earning operating EBITDA margins of 25% to 30% and has consistently generated free cash flow, which will allow them to pursue further bolt-on acquisitions."

The OFX share price is still 20.2% below where it started 2023.

Property business ready for turnaround

Lifestyle Communities Ltd (ASX: LIC) shares had a miserable May, losing 11%.

"Victoria's leading housing estate operator Lifestyle Communities Ltd advised that settlements for the current financial year would be slightly below previous expectations," read the memo.

"The shortfall stems from two projects — Wollert and Deanside — with residents taking longer to start selling houses, although the company did maintain their long-term settlement targets."

Despite this hiccup, the LSN analysts like what the future holds for the retirement property operator.

"Looking ahead we see the tailwinds for the sector remaining strong with Lifestyle Communities standing to benefit as an experienced player with a solid pipeline, track record and management team."

The Lifestyle Communities share price is down 23.6% year to date.

The post 'AI gold rush': 3 ASX shares LSN analysts love right now 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:

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price has fallen a further 2.5% to 41 cents. Investors have been hitting the sell button this week after the release of the struggling semiconductor company's annual general meeting update. At the event, management said: "The trick for many companies comes when the move from technology to product takes place. In the past, BrainChip frankly hasn't gotten this right. We haven't had a product that can see its way into end production systems." Shareholders responded by voting against its remuneration report.

OFX Group Ltd (ASX: OFX)

The OFX share price is down 6.5% to $1.73. This may have been driven by profit taking from some investors after the international money services company's shares rocketed higher on Tuesday following the release of its full-year results.

Skycity Entertainment Group Ltd (ASX: SKC)

The Skycity share price is down 2.5% to $2.15. This morning, this casino and resorts operator released a trading update. Management revealed that it expects normalised EBITDA of NZ$300 million to NZ$310 million in FY 2023 excluding carpark earnings. This is down from its previous guidance range of NZ$305 million to NZ$320 million.

Universal Store Holdings Ltd (ASX: UNI)

The Universal Store share price has crashed 24% to $3.14. This has been driven by the release of a trading update from the youth fashion retailer. Although Universal Store expects to deliver strong growth in FY 2023, it has warned that trading has become subdued. This is big news because younger consumers were predicted to keep spending thanks to lower exposure to rising rates and a higher minimum wage. However, that doesn't appear to be the case, which has spooked the market.

The post Why Brainchip, OFX, Skycity, and Universal Store shares are dropping today appeared first on The Motley Fool Australia.

OFX shares are up 19.94% at the time of writing to $1.847 apiece.

Formerly known as OzForex Group, OFX provides foreign exchange services and online international payment services. Its brands include OFX, CanadianForex, NZForex, Tranzfers, and ClearFX. 

ASX investors are thrilled with today's news, so let's dig into those numbers. 

OFX shares take off on record EBITDA 

The highlights for the 12 months ended 31 March 2023 are: 

• Turnover of $39.1 billion, up 17.9% on the prior corresponding period (pcp) 
• Revenue $225 million, up 42.4% pcp 
• Net operating income $214.1 million, up 45.6% pcp 
• Underlying operating expenses $151.7 million, up 47.9% pcp 
• Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) $62.4 million, up 40.3% pcp 
• Statutory EBT $37.5 million, up 14.8% pcp 
• Statutory net profit after tax (NPAT) $31.4 million, up 25.6% pcp
• Net cash held $93.8 million, up 11.3% pcp. 

Share buyback

The company also announced it will reinstate its share buyback program with the aim of acquiring up to 10% of OFX shares over the next 12 months. 

OFX shares have dropped in value by 21% in the year to date, which is partly why the company wants to employ this strategy. 

According to a statement: 

The Board considers that at the prevailing share price this is an efficient way of returning capital to shareholders while maintaining the flexibility to pursue accretive M&A [merger and acquisition] opportunities that may arise. 

Acquisition to enhance corporate services 

OFX also announced it will acquire Sydney-based business-to-business payments company Paytron to enhance its offering to corporate clients.  

It will pay $6 million for the business in the first year, and fund the rest of the purchase through dynamic cash funding based on revenue milestones,

The consideration includes up to 11.25 million deferred performance securities subject to development and revenue vesting conditions. 

OFX expects to complete the purchase by 1 July.

OFX wants to buy Paytron for its platform, which offers multi-currency card accounts.

According to a statement: 

This is in line with OFX's focus on expanding its services for B2B clients to generate revenue beyond spot FX and accelerates its current investment program. 

What did management say? 

OFX CEO and managing director Skander Malcolm said: 

I am delighted to report a record result for OFX, which demonstrates our successful pivot to B2B, and our ability to grow value from our loyal client base. 

Our recurring revenues are now 84%, driven by our strong Corporate segment, and it was pleasing to see signs of recovery in our High Value Consumer segment towards the end of the period as interest rate rises begin to stabilise. 

Outlook and FY24 guidance 

Excluding the Paytron acquisition, OFX expects to grow its net operating income to between $225 million and $243 million and its underlying EBITDA to between $63 million and $74 million. 

If Paytron is included, the expectation for net operating income is between $226 million and $244 million and EBITDA between $59 million to $70 million.  

Malcolm said:

FY24 assumes continued growth in our Corporate segment and our other segments to perform in line with FY23. 

We are also excited to invest in new and valuable products and services for our Corporate clients through Paytron, which we are confident will deliver meaningful returns over time. 

Recent history of OFX shares 

OFX shares are down 28% over the past 12 months.

By comparison, the S&P/ASX 300 Index (ASX: XKO) is up 1%. 

The post <strong>Why did ASX 300 share OFX just rocket 20%?</strong> 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 charging higher:

Catapult Group International Ltd (ASX: CAT)

The Catapult share price is up almost 7% to 78.5 cents. Investors have been buying this sports technology company's shares after it delivered a strong full-year result. Catapult reported a 21.8% increase in SaaS revenue to US$84.4 million for the year. The company also revealed that it finished the year strongly, with operating earnings improving by a massive US$15.4 million half on half to US$2.2 million. In light of this, management expects to be free cash flow positive in FY 2024 without the need to raise capital.

OFX Group Ltd (ASX: OFX)

The OFX share price is up 20% to $1.85. This follows the release of the international money services provider's full-year results. OFX reported a 17.9% increase in turnover to $39.1 billion, a 42.4% jump in revenue to $225 million, and a 25.6% lift in net profit to $31.4 million.

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price is up 3.5% to $15.84. This has been driven by the release of the enterprise software provider's half-year results. TechnologyOne reported SaaS annual recurring revenue (ARR) up 40% to $316.3 million and profit before tax up 24% to $52.7 million. This was ahead of analyst estimates.

Zip Co Ltd (ASX: ZIP)

The Zip share price is up almost 14% to 62.5 cents. This morning, analysts at Shaw and Partners suggested that Zip would be a big winner from regulatory changes in the BNPL industry. The broker also feels that it would be an attractive takeover target for Afterpay owner Block Inc (ASX: SQ2).

The post Why Catapult, OFX, TechnologyOne, and Zip shares are charging higher 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:

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 4.5% to 75.5 cents. This is despite the lithium miner announcing a sales agreement with Sichuan Yahua for the sale of additional spodumene concentrate from the Finniss Lithium Operation. Broad weakness in the lithium industry due to pricing concerns has offset this news.

National Storage REIT (ASX: NSR)

The National Storage share price is down 4.5% to $2.40. This follows the completion of the storage company's institutional placement this morning. National Storage has raised $300 million at a 4% discount of $2.41. The proceeds will be used to fund its strategic growth initiatives (committed acquisitions and developments), repay debt, and strengthen its balance sheet.

OFX Group Ltd (ASX: OFX)

The OFX share price is down 12% to $1.57. Investors have been hitting the sell button in response to a trading update. The money transfer company revealed that it expects to achieve its guidance in FY 2023. However, it appears to have spooked investors by revealing that economic uncertainty has led to a softening of demand in its high value consumer segment.

Polynovo Ltd (ASX: PNV)

The Polynovo share price is down 13% to $1.80. This follows news that its chairman, David Williams, has sold 4.75 million shares. The medical device company notes that these shares were sold so Williams could part settle a US property purchase. It also highlights that its chairman still holds 21,384,432 shares and does not intend to sell any more shares for the foreseeable future.

The post Why Core Lithium, National Storage, OFX, and Polynovo shares are dropping today appeared first on The Motley Fool Australia.

But the team at QVG Capital is urging investors to forget all that, because there is only one thing that matters this year.

"2023 will be all about earnings," stated a QVG memo to clients this week.

"We think future returns will be dictated by earnings. Worrying about rates and valuation, risks fighting the last war."

The secret sauce for buying stocks right now

To demonstrate how critical earnings are, the QVG analysts took the example of OFX Group Ltd (ASX: OFX).

The share price for the currency exchange tanked 18% in just one week in January after its latest financial results.

"The update showed softness in the consumer portion of OFX's revenues," read the memo.

"Even minor misses, such as OFX Group [last] month, will be punished."

The QVG team's secret sauce in buying ASX shares this year is to seek out businesses that have a very specific set of attributes.

"We believe the job to be done then is to own the relatively small number of companies run by motivated insiders that produce growing free cash flows," read the memo.

"If we are right on our earnings forecasts on the durable growers and pay a low enough price for the through-the-cycle cyclical growers, then 2023 ought to look a lot different to 2022."

Two ASX shares set to grow earnings

Two examples of such ASX companies expanding their cash flows and earnings are Imdex Limited (ASX: IMD) and Hub24 Ltd (ASX: HUB).

Imdex, in fact, has the opposite month to OFX, enjoying a 13.1% boost in its share price after a well-received quarterly update.

The mining technology provider also has an acquisition in progress.

"Imdex announced a large capital raise to fund the acquisition of a complementary Norwegian business called Devico. 

"Devico is a higher margin, higher growth business than Imdex and increases the skew of earnings to higher intellectual property drilling tools from more commoditised drilling fluids."

The QVG team admitted Imdex was not usually its cup of tea, but the current tailwinds were too hard to resist.

"We typically have little interest in commodity-exposed businesses, given their low through-cycle returns," the memo read.

"However, Imdex is atypical in this regard. Its products have significant intellectual property, can sustain above-industry growth rates and also sustain above-industry returns on capital."

As for Hub24, its share price remains flat for the year, but QVG absolutely loved the inward flows update released last month.

"We were — quietly — bracing ourselves for a soft flows number, given investor sentiment was awful in the December quarter and seemed to deteriorate as the quarter went on," read the memo.

"As it turned out, Hub24 added $2.8 billion of net inflows – a great effort and one that looked even better when Netwealth Group Ltd (ASX: NWL) and Praemium Ltd (ASX: PPS) subsequently released their flows."

This market positioning will serve them well in the coming years, according to QVG analysts.

"Part of our thesis on HUB is that they'll grow earnings faster than revenues in the future as they benefit from scale."

The post Fund reveals the type of ASX shares to buy for 2023, with 2 examples appeared first on The Motley Fool Australia.