The AMP Ltd (ASX: AMP) share price took a tumble on Thursday after the former-financial giant dropped its full-year earnings, declaring its return to dividend.
The stock dumped 13.4% in yesterdayâs session and itâs continuing its fall today. It’s trading 1.32% lower at $1.12 at the time of writing.
Thatâs its lowest point in months. And looking further back, the S&P/ASX 200 Index (ASX: XJO) stock has dumped 79% since February 2018.
Does that leave the AMP share price in the buy zone right now? Letâs take a look.
Are AMP shares a buy following Thursdayâs dive?
The market turned its back on AMP shares on Thursday when the company announced a $184 million underlying net profit after tax (NPAT). That marked a 34% year-on-year fall.
The dint was mainly put down to market volatility, repricing in the wealth management business, and a reduced net interest margin in its bank business.
Though, it did post its first dividend in four years â offering investors 2.5 cents per share.
It also vowed to continue its $1.1 billion capital return initiative in the coming financial year.
While the 20% franked dividend did mark a milestone for the embattled company, it wasnât enough to impress UBS.
The broker kept its sell rating on AMP shares, tipping them to fall to $1.09, The Australian reported. That marks a potential 2.75% downside on its current price.
Analysts were disappointed by the results and guidance, saying courtesy of the publication:
[O]ur first impressions are that the result highlights the depth of challenges facing the core businesses, and FY23 guidance commentary does not indicate FY23 will be much easier.
Looking to future dividends, the ASX 200 staple is tipped to pay 4 cents per share in financial year 2023, according to CommSec data. That’s forecasted to increase to 5.2 cents per share in financial year 2024.
The post Are AMP shares finally cheap enough to buy following Thursdayâs 13% crash? appeared first on The Motley Fool Australia.
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More reading
- Here are the 3 most heavily traded ASX 200 shares on Thursday
- The AMP dividend is back! Here’s what you need to know
- Why AMP, Evolution, Perenti, and Whitehaven Coal shares are dropping
- AMP share price dives 12% on earnings miss
- Here are the top 10 ASX 200 shares today
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 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 Scott Phillips.
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