Key points
- The A2 Milk share price is in the red and down 5.7% over the past 30 days
- In the past year, the company’s shares have dropped nearly 50%
- Takeover rumours emerged in late January but no news as yet
The A2 Milk Company Ltd (ASX: A2M) share price is gravitating lower over the past month after diving nearly 50% in a year.
Since the first trading day of 2022 on 4 January, the company’s shares have lost 5.7% in value. A2 Milk shares are now trading for $5.25, down 1.31% for the day so far.
Let’s take a look at how the past 30 days have played out.
What’s moving the A2 Milk share price?
A2 Milk shares have been bouncing around in the past month. The biggest fall took place between 20 January and 24 January, when the shares fell 4%.
A2 Milk is a fresh milk and infant formula company. They sell milk products made from cow’s milk that contain the A2 protein type.
Falling revenue in China has plagued the company’s share price, with shipments of products between Australia and China severely disrupted by COVID-19.
It may be that Omicron and interest rate fears plaguing the market as a whole between 20-24 January had an impact on A2 Milk. For perspective, the S&P/ASX 200 Index (ASX: XJO) fell nearly 3% during this period.
However, it hasn’t been all bad this month for A2 Milk. On 25 January, the A2 Milk share price surged 7% on speculation that it could be a takeover target for the Canadian dairy company Saputo Inc. (TSE: SAP).
However, the company’s shares had given back some of these gains by 27 January, falling 3.85%. It may be that investors sold off the shares after the takeover rumour wasn’t confirmed. In fact, A2 Milk did not comment on the rumour at all.
A2 Milk will report its FY22 financial year results on Monday 21 February. In FY21, the company reported a 30% fall in revenue to NZ$1.16 billion and a 79.1% reduction in net profit after tax to NZ$80.7 million.
One broker is optimistic about the company’s fortunes. My Foolish colleague James reported recently that Bell Potter has a $7.70 price target on A2 Milk shares. That’s 46% more than the current price at the time of writing.
A2 Milk share price recap
The A2 Milk share price has fallen by 1.15% over the past 5 days.
That compares to the S&P/ASX 200 Index (ASX: XJO) which is up 2.25% over the same period.
The company commands a market capitalisation of roughly $3.9 billion based on the current share price.
The post Why has the A2 Milk (ASX:A2M) share price spilled 5% in a month? appeared first on The Motley Fool Australia.
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More reading
- Can the beaten down A2 Milk (ASX:A2M) share price get back to $10?
- Here are the top 10 ASX shares today
- Why A2 Milk, Baby Bunting, Codan, and Sezzle shares are surging higher
- Why the A2 Milk (ASX:A2M) share price is jumping 8% despite the market selloff
- A2 Milk (ASX:A2M) share price awaits judgement day as earnings draw near
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 Bruce Jackson.
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