Azzet reports on three stocks with price moving updates today.
Web Travel dives on accounting anomalies ~
Shares in Web Travel (ASX: WEB) were trading a whopping 28.9% lower by 2:15 pm AEDT (3:15 am GMT) after the hotel room aggregator, within a short and sweet note, told the market that its Spanish subsidiary is being audited by that nation’s tax authority.
After the recent antics with Corporate Travel Management (ASX: CTD) regarding overcharging of British and European clients, the market was quick to sell Web Travel and ask questions later.
Today’s share price fall is a smack in the face for long-suffering shareholders, many of whom have stuck with the stock in the expectation that valuation dynamics would eventually trigger an attractive takeover offer.
It’s understood that the Spanish tax authorities are now auditing the subsidiary for direct taxes paid between April 2021 and March 2024, plus indirect taxes for the 2022 calendar year.
These audit issues add a new layer of financial uncertainty to a company that has been struggling to emerge from demerger from its B2C business (Webjet) in September 2024.
Today’s Web Travel sell-off coincided with a broader 1.5% drop in the ASX 200, and this clearly has accentuated what was always going to be a bad day of trading.
If we've learnt anything from the Corporate Travel Management debacle, it’s that additional bad news following these shock announcements proceeds to tarnish management in the eyes of the market.
Even from a crisis management viewpoint, management’s response today provides the market with little confidence that it knows the full extent of the underlying issues.
Initial responses suggest these accounting anomalies would require a substantial writedown; however, Web Travel later nuanced that adjustments would be only minor.
Which one is it?
Today’s shock announcement is also a bitter pill for shareholders following WebBeds strong first half for FY26, with total transaction value (TTV) reaching $3.17 billion, up 22% year-on-year.
Commenting on the 1H FY26 update, Web Travel managing director John Guscic told the market that WebBeds continues to deliver world-class TTV growth, driven by the significant above-market growth coming through in our top three regions, particularly the Americas.
Sadly, what the market also gleaned from Corporate Travel Management debacle was that these issues can and do take time to unravel; despite assurances from management that it complies with its continuous disclosure obligations.
The likelihood of this issue festering and the doubts it places on management’s competence go a long way to explaining why long-suffering shareholders concluded today that enough is enough.
Web Travel has a market cap of $1 billion; the share price is down 39% in one year and down 34% in the last week.
Since October 2024, the share price has tumbled from over $7 to $3 today.
In the recent short-term, investors have been purchasing the stock’s shares.
This bullish sign is evidenced by a rising 20-day moving average.
However, the 5-day moving average still lies below the 50-day moving average and implies that investors with a medium to long-term time horizon are still selling.
Consensus is Moderate Buy.
Terragen Holdings soars following capital raising
Shares in Terragen Holdings (ASX: TGH) were trading 23.8% higher after the ag biotech small cap told the market it has raised around $7 million in a two-tranche placement at $0.022 per share - boosting its pro forma cash position to around $9.8 million - to fund global commercialisation and R&D.
Capital raised will see around 318.2 million new shares issued.
It’s understood that major participants in the placement included a prominent Hong Kong-based investment manager and co-founder of Ward Ferry Management, Scobie Ward ($2.25 million), and WAM Investments ($3.29 million).
While fresh funds are expected to target manufacturing expansion - and the development of key distributor and partner relationships – some proceeds will also help strengthen product management resources and to support global market access initiatives, crucial for the company's international growth ambitions.
Commenting on today's announcement, Terragen's CEO, Richard Norton, reminded the market that the company operates in markets estimated at $28 billion, spanning cropping, intensive animal feeding, companion animals, and domestic gardens.
He also reminded investors that Terragen’s patented microbial strains are delivering meaningful productivity gains across agriculture, with its biostimulant ranked first in independent testing against 21 competitor products for its ability to rapidly decompose organic waste.
“Terragen remains focused on accelerating market adoption and drive long-term, sustainable growth and the Equity Raising will assist Terragen to continue to pursue global distribution partnerships to expand its presence in the beef, lamb and high-value cropping markets,” he said.
Meanwhile, the new chair of Terragen, Michele Allan, said the Australian market for biostimulants – now said to be worth $200 million annually - can no longer be underestimated.
“Terragen provides investors with a compelling opportunity in this rapidly expanding sector. Globally, markets are increasingly prioritising climate-smart food systems that reduce emissions and use nature-based products to lift productivity,” she noted.
“The Board believes the equity raising will support Terragen’s strategy to accelerate commercial adoption and strengthen the Company’s operating foundations for long-term growth.”
The share price has been bouncing higher since releasing its quarterly activity report on 30 January, which included numerous updates on numerous projects, including revelations it has obtained permits from the Canadian Food Inspection Agency (CFIA) to allow TPR to be used for research settings with commercial livestock.
Terragen Holdings has a market cap of $13 million; the share price is down 33% in one year and up 30% in the last week.
Consensus does not cover this stock.
REA Group Ltd tumbles on 1H update
Shares in REA Group (ASX: REA) were trading over 8.6% lower this afternoon following revelations that its first-half result fell short of market expectations, with higher tax dragging profit below broker expectations.
While earnings matched forecasts, core profit, which rose year-on-year to $341 million were down 1-2% on consensus forecasts.
Much of the first half miss is being attributed to weaker national listings - down 8% year-on-year in January - and negative operating jaws in Australia, plus runaway Australian operating costs which outpaced revenue.
Commenting on today’s update, REA Group CEO Cameron McIntyre tried to appease the market by pointing to strong double-digit yield growth within its core residential business.
“Into the second half we will continue to drive innovation with new product features and capabilities to enhance the value and experiences we deliver,” he said.
“These, coupled with ongoing strength in property market fundamentals, position REA well for further growth in the remainder of FY26.”
Key 1H FY26 financials from Core Operations include:
- Revenue of $916 million, up 5% YoY.
- Operating expenses of $347 million, up 3%.
- Earnings of $569 million, up 6%.
- Net profit of $341 million, up 9%.
- EPS of $2.58, up 9%.
- Reported net profit of $336 million decreased 24%, largely reflecting the gain on sale of the group’s investment in PropertyGuru in the prior period.
- Interim dividend of $1.24 per share fully franked, up 13%.
Coinciding with today’s update, the company announced an on-market share buy-back of up to $200 million, which is expected to commence on or after 23 February 2026.
Commenting on the buyback, Hamish McLennan, REA Group chairman, reminded the market that the group’s extremely strong balance sheet enables the group to return surplus capital to shareholders while continuing to invest in strategic growth opportunities.
Looking forward to 2026, the group now expects national residential Buy listing volumes to decline by 1-3%, reflecting larger than expected year-to-date declines in the Perth and Brisbane markets.
By comparison, January listing volumes were down 8% YoY, with Melbourne and Sydney each declining 1%.
The group expects 12-14% residential Buy yield growth, with the magnitude of growth potentially impacted by geo mix movements across the remainder of the year.
Expectations for mid-single-digit operating expenses growth are unchanged, reflecting high single-digit growth for Australia, the consolidation of iGUIDE, divestment of PropTiger and exiting Housing Edge.
Meanwhile, earnings losses in India are expected to be in the range of $40-45 million, and contributions from combined associates’ losses are expected to marginally improve in FY26 compared to FY25.
Since late January, REA Group has been trading at historically low levels, which is now being linked to market fears of the long-term threat posed by AI-driven competition.
Since late August last year, the share price has tumbled from $263.16 to $164.16.
REA Group has a market cap of $21 billion; the share price is down 35% in one year and down 13% in the last week.
The stock’s shares appear to be weak with little demand from investors.
The 200-day moving average is downward sloping, and the recent price action has also been weak.
Consensus is Moderate Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
