After outperforming the market in August, September has proven to be a disappointing month for the share price of S&P/ASX 200 Index (ASX: XJO) travel stock Flight Centre Travel Group Ltd (ASX: FLT).
That’s despite no news having been released by the company in that time.
As the final trading day of September nears its end, the Flight Centre share price is trading at $14.34. That’s down 19.88% from its final close of August – $17.90.
In fact, the stock hit a new 52-week low today, falling to $14.30 in intraday trade.
Of course, September is generally the market’s worst month, and it’s lived up to its reputation. The S&P/ASX 200 Index (ASX: XJO) has dumped 6.9% so far this month.
So, what’s weighed on the travel agent’s stock? Let’s take a look.
The Flight Centre share price had a disastrous September
The Flight Centre share price’s September performance has been the worst of the bunch.
Its near-20% tumble dwarfs the 14.4% plunge exhibited by the Corporate Travel Management Ltd (ASX: CTD) share price.
That of Webjet Limited (ASX: WEB) also dumped 12.4% over the same period while stock in Qantas Airways Limited (ASX: QAN) outperformed the market, having slipped just 3.7%.
Meanwhile, Flight Centre’s short position has remained relatively unchanged. Having closed August at 15.3%, it sits at 15.1% at last count. That means the stock is still the most shorted on the ASX.
The travel giant’s recent poor performance also came despite brokers tipping future gains.
While no major broker has gone so far as to hit the stock with a buy rating, as my Fool colleague James reports, some are expecting notable upsides.
Goldman Sachs, for one, has a $19.60 price target on Flight Centre shares. That represents a potential 37% upside.
This month’s tumble included, Flight Centre’s stock has dumped 23% since the start of 2022. It has also fallen 33% over the last 12 months.
For comparison, the ASX 200 has slumped 14% year to date and 11% over the last 12 months.
The post The Flight Centre share price has dumped 20% in September. What went wrong? appeared first on The Motley Fool Australia.
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More reading
- Could dividends be back on the cards for Flight Centre shares soon?
- Flight Centre share price tumbles to new 52-week low on Monday
- These are the 10 most shorted ASX shares
- Could this be good news for Flight Centre shares?
- Here are the 10 most shorted ASX shares
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. The Motley Fool Australia has recommended Corporate Travel Management Limited, Flight Centre Travel Group Limited, and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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