Azzet reports on two ASX stocks experiencing double-digit price movements.
Webjet soars after mystery buyer takes 5%
The 28% spike in Webjet Group’s (ASX: WJL) share price since opening at 64 cents yesterday – which triggered a please explain on the ASX – has raised speculation that the travel agency could be in the early stages of an eventual takeover.
In response to the ASX query this morning, the Webjet Group – not to be confused with former parent company Webjet Travel Group (ASX: WEB) revealed that it has become aware of an undisclosed buyer seeking to acquire up to 5% of its shares after the market closed on Thursday.
It’s understood that the buyer is paying around 80 cents a share for around 19.6 million shares with the ability to increase the offer size at the buyer's discretion.
Since the well-known Webjet B2C business was spun out of Webjet Travel Group in September last year, the small-cap online travel company has struggled to move above the psychological $1 a share level.
It’s not uncommon for the share price of both the spun-off entity and its parent company to struggle post-merger.
Based on Wilsons Advisory analysis of major demergers over the last 15 years, on average both the parent entity and the spin-off have outperformed the market in the 12 months and 24 months post demerger.
Webjet Group includes the Webjet online travel agency (OTA) - the largest OTA in Australia and NZ, plus GoSee, a small motorhome and car rental business.
At the time of the demerger, the broker flagged what it saw as a relatively uncompelling growth outlook, plus a high degree of exposure to the cycle.
However, after completing a rigorous and substantive strategic review, mid-March saw management release detailed plan to deliver significant growth by FY30.
The group is now targeting a doubling of total transaction value (TTV) to $3.2 billion by the end of the decade.
In FY26 the group expects to invest up to $15 million including C$6 million in a brand relaunch.
Webjet's half-year results in November - its first report as an independent company - management flagged "ongoing cost of living pressures continue to subdue demand for travel, particularly for domestic flights".
However, lower interest rates over the remainder of 2025 also bode well for the stock.
After Webjet Group’s share price moved materially lower following the demerger, it was subsequently removed from the S&P/ASX 300 Index.
Webjet Group has a market cap of $327 million; the share price is up 4% over one year and down 4% year to date.
Consensus doesn’t cover this stock.
Healius plunges after issuing special div
Anyone watching the share price movement in Healius (ASX: HLS) may be left wondering why the ASX mid-cap healthcare company was down around 26% at the open.
Rather than being the result of a nasty update or broker downgrade, today’s share price reflects plans by the stock to return $300 million to shareholders through a fully franked special dividend of 41.3 cents per share.
Franking credits equate to 17.7 cents per share or approximately $128 million.
The special dividend follows the completion of the sale of Lumus Imaging to funds managed by Affinity Equity Partners.
Healius received cash proceeds of $822 million, which represented a $965 million enterprise value when adjusted for equipment lease repayment and closing adjustments.
Net proceeds are expected to be in excess of $800 million after all transaction fees, separation costs and other fees.
Based on the Healius share price yesterday, this equates to a 26.8% fully franked dividend yield – which more or less mirrors the extent of today’s fall.
The stock’s share price fall today is a reminder to investors that dividends can affect the price of their underlying stock in a variety of ways.
While there’s no hard and fast guide to when a share price will recover after going ex-dividend, it can create buying opportunities.
Even though anyone buying Healius today won’t receive the special dividend, trading in the stock was abnormally high this morning, with buyers far outweighing sellers.
Shareholders can expect to receive their special dividend on 23 May.
Healius' market cap is $827 million; the share price is down 7% in one year and down 16% year to date.
The stock appears to be in a medium-term rally confirmed by multiple indicators.
Consensus is Moderate Sell.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
