Shares in the Aussie manufacturer have been firing lately.
The post The Incitec Pivot (ASX: IPL) share price is up 18% in the past month. Here’s why appeared first on The Motley Fool Australia. –
The Incitec Pivot Ltd (ASX: IPL) share price has been quietly climbing in recent weeks. Shares in the Aussie manufacturer have climbed 18.2% higher in the past month while investors focus on the August reporting season.
At the time of writing, the Incitec Pivot share price is up 1.07%, trading at $2.83.
Why is the Incitec Pivot share price climbing?
It’s been a couple of weeks since the last price-sensitive ASX announcement from the fertiliser and chemicals manufacturer.
The most recent announcement was an investor market update on 29 July. Its shares climbed higher after the company announced a strong second-half performance. Firming commodity prices and a solid manufacturing performance were key factors behind the result.
Incitec Pivot reported strong electronic detonator sales growth in its explosives segment as it targets technology-driven segment earnings growth of 10% by FY22.
The Incitec Pivot share price also jumped 5.8% higher on 13 July after a positive manufacturing update.
Incitec Pivot reported changes to its manufacturing model including a shift from global to regional management structures. The company said it would improve and drive delivery of its manufacturing operations, particularly while COVID-19 travel restrictions remain.
The manufacturer also reported its Waggaman ammonia plant in Louisiana had restarted and reached full production.
The news sent the Incitec Pivot share price soaring and kickstarted a strong month on the markets.
A July 15 update on Incitec Pivot’s Range Gas Project joint venture with Central Petroleum Limited (ASX: CTP) drew a muted response. Central Petroleum reported all three wells in the pilot program had been operating continuously since pumping commenced on 14 June.
The joint venture was also running a competitive tender process to select an infrastructure provider to deliver gas processing facilities required to support full-field development.
The Incitec Pivot share price was subdued following the joint venture news. However, things have been good in the past month based on the recent strong gains.
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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.