The Magellan Financial Group Ltd (ASX: MFG) share price launched higher on Tuesday despite no news being released by the company.
Shares in the embattled funds management business tumbled 9.78% last week and another 1.34% on Monday. Hence, today’s gains might be a simple market correction after the selloff.
At market close, the Magellan share price finished at $15.01, 7.14% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) closed up 0.7% while the All Ordinaries Index (ASX: XAO) gained 0.75%.
Let’s take a closer look at Magellan’s performance today and how the company tracked compared to its sector’s movements.
What’s going on with the Magellan share price on Tuesday?
The Magellan share price took off on Tuesday, reaching an intraday high of $15.08, representing a 7.6% increase.
That’s a significantly better performance than that of the S&P/ASX 200 Financials Index (ASX: XFJ). It closed up 0.57%, with Magellan its best performing stock.
The funds management company was trailed closely by Zip Co Ltd (ASX: Z1P) which gained 4.76% on Tuesday.
The Pinnacle Investment Management Group Ltd (ASX: PNI) was the sector’s third-best performer. Its share price closed 4.14% higher today.
Today marks a rebound for the Magellan share price. It has been mostly in the red since the company announced its founder and former chair Hamish Douglass had resigned from its board last week.
Douglass stepped away from his role as chair and chief investment officer for a period of medical leave in February.
Unfortunately, today’s gains haven’t been enough to boost the Magellan share price back into the green.
It is still 29% lower than it was at the start of 2022. It has also fallen 66% since this time last year.
The post Why did the Magellan (ASX:MFG) share price soar 7% on Tuesday? appeared first on The Motley Fool Australia.
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More reading
- These were the worst performing ASX 200 shares last week
- 3 high-yield ASX dividend shares trading near 52-week lows
- Why Adairs, Betmakers, Magellan, and Northern Star shares are dropping
- Magellan (ASX:MFG) share price higher despite Hamish Douglass resignation news
- Down 80%, what’s gone so wrong for Magellan (ASX:MFG) 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. owns and has recommended PINNACLE FPO and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended PINNACLE FPO. 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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