Although the Magellan Financial Group Ltd (ASX: MFG) share price got off to a rather strong start today, it won’t be finishing the day’s trading. Yes, Magellan shares last traded at around 2 pm this Friday. At the time, they were up 1.77% at $29.36 each. And that’s where they will be staying, at least for today.
So what’s happened to the Magellan share price?
Well, the company put out an ASX statement just after 2 o’clock this afternoon. It conformed that Magellan Financial Group had requested the halt. Why?
Magellan shares placed in trading halt
Here’s what the company said in the announcement:
The trading halt is being requested pending an announcement to be made by MFG. The announcement relates to the termination of a material contract.
MFG requests that the trading halt lasts until the earlier of the commencement of trading on Monday 20 December 2021 or when the announcement is released to the market.
And that’s all we know for now.
This announcement comes at a time where Magellan shares have faced significant pressure. Before today’s trading halt, the Magellan share price had already lost close to 16% over the past month, and almost 44% over the past 6. And as we examined this morning, it also comes at a time where some of Magellan’s largest funds are facing performance scrutiny. That’s despite the company continuing to record growing funds under management (FUM).
So no doubt shareholders will be hoping that this latest development isn’t too serious in nature. The Magellan share price arguably doesn’t need any more bad news.
At this last-traded share price, Magellan has a market capitalisation of $5.45 billion, with a price-to-earnings (P/E) ratio of 20.3, and a trailing dividend yield of 7.2%.
The post The Magellan (ASX:MFG) share price just got halted. What’s going on? appeared first on The Motley Fool Australia.
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Motley Fool contributor Sebastian Bowen 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.
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