The AGL Energy Ltd (ASX: AGL) share price has hit a record low at $6.36 in early trade on Wednesday.
Let’s investigate further.
What’s up with the AGL share price today?
On Tuesday, AGL announced plans to restructure its senior management team, culling several members from its senior ranks.
The company will see a number of key executives exit over the coming periods into December of FY22.
This aligns with the planned demerger date which AGL hopes to finalise by the fourth quarter of FY22. Recall that AGL’s plan will see it demerge into two ASX-listed companies, AGL Australia and Accel Energy.
Investors have also been selling AGL shares on the back of its FY21 results in August.
The AGL share price has wallowed in a sea of red since January 1 as the company advances on its plans to demerge into these two separate entities.
Over the month of August alone, AGL shares dived another 12% into the red, which just goes to underscore current investor sentiment.
In fact, it’s been a difficult time over the last five years for the AGL share price, having sunk by 77% over that time from a high of $27.61.
There is no market-sensitive information for the company today. Therefore, it stands to reason that investors continue to sell the company’s shares as part of the wider downtrend in the AGL share price.
Foolish takeaway
AGL is advancing on its plans to demerge into two separate ASX-listed entities, Accel Energy and AGL Australia.
It has scheduled a completion date by the fourth quarter of FY22 and hopes to finalise the demerger by then.
At the time of writing, AGL has a market capitalisation of $3.95 billion.
The post AGL Energy (ASX:AGL) hits record low, slides a further 12% in August appeared first on The Motley Fool Australia.
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More reading
- AGL (ASX:AGL) share price struggles amid major management shake-up
- Here’s why the AGL (ASX:AGL) share price is down today
- August hasn’t been a great month so far for the AGL (ASX:AGL) share price
- Here’s why the AGL (ASX:AGL) share price is down 6% in a week
- How does the AGL (ASX:AGL) earnings result compare to Origin?
The author Zach Bristow has no positions 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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