Up 63%: The A2 Milk share price just hit a new 52-week high

It’s been a bit of a mixed day for the S&P/ASX 200 Index (ASX: XJO) and most ASX shares so far this Wednesday. At the time of writing, the ASX 200 is barely in the green, up 0.025% for the day thus far after surging higher earlier this morning. But let’s talk about the A2 Milk Company Ltd (ASX: A2M) share price. 

The A2 Milk share price is having a far better day today. This ASX 200 dairy share closed at $6.79 yesterday afternoon but opened at $6.81 this morning before rising up to the $6.92 it is currently trading at. That’s a gain worth a healthy 1.99%.

But it was even better for this company earlier this morning. Just before midday, the A2 Milk share price got as high as $6.95 – a new 52-week high for A2 Milk.

Today’s gain is just the latest in what has been a very lucrative few months for A2 Milk stock. Remember, this is a company that was asking just $3.70 a share as recently as November last year.

As it currently stands, A2 shares are now up a whopping 63.2% year to date. The company is also up 28.4% over the past 12 months, and has put on a happy 87% since November’s 52-week low of $3.70.

Check all of that out for yourself below:

But how has this company managed to stage such an enthusiastic comeback in 2024? After all, A2 Milk has been a bit of a fallen star in recent years, dropping from over $20 a share in 2020 to last year’s lows of under $4.

Why has the A2 Milk share price just clocked a new 52-week high?

Well, today’s new high seems to have come unprovoked. There haven’t been any news, developments or announcements out of the company itself today, or indeed in quite a while.

However, today’s gains are just the latest in a long string of wins for this company. Momentum seems to have been building ever since A2 Milk reported some very impressive numbers back in its half-year results in February.

As we covered at the time, these results revealed that A2 Milk brought in NZ$812.1 million in revenues for the six months to 31 December 2023, an increase of 3.7% over the previous year’s numbers for the same period. 

Earnings before interest, tax, depreciation, and amortisation (EBITDA) ticked up 5% to NZ$113.2 million, which enabled A2 Milk to increase its net profits after tax (NPAT) by a healthy 15.6% to NZ$85.3 million. The company also revealed at the time that its cash balance was up 12% to NZ$792.1 million.

Investors were very impressed by these numbers, sending the A2 Milk share price up 12% upon their release.

This goodwill has continued ever since, with A2 shares now up 37% since the day before these earnings were made public.

So this momentum from February’s earnings appears to have resulted in the new 52-week high we see for A2 Milk today. Let’s see how much further this company can climb going forward.

The post Up 63%: The A2 Milk share price just hit a new 52-week high appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in A2 Milk. 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 recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.