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The BHP Group Ltd (ASX: BHP) share price is trending downwards. That’s despite the company providing an update to the market on its potash mine in Western Canada.

At the time of writing, shares in the mining giant are trading for $40.43 – down 3.12%. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.46% lower.

While it should be noted that today’s announcement isn’t market sensitive, it could still very well be playing into the thinking of some investors.

Let’s take a closer look.

What is potash?

According to BHP, potash is a “vital link” in the global food supply chain. It is a potassium-rich compound used mainly as fertiliser in agricultural production. As well, potash can be used for glass manufacturing, oil and gas drilling, aluminium recycling, water softening, fireworks, and other uses.

Today’s announcement relates to the company’s Jansen mine, which is located 140km east of Saskatoon – the largest city in the Canadian province of Saskatchewan. BHP owns 100% of the mine that is expected to produce 4.5 mega tonnes per year of the product.

The BHP share price is falling despite latest presentation

In a release to the ASX, BHP says Jansen “fits our strategy” and describes the project as “modern, long-life” and “expandable”. The company says potash is an “attractive” future facing commodity with exposure to global megatrends and has “attractive fundamentals.”

BHP says there are 3 benefits to its portfolio from investing in potash. They are:

• Greater immunity from economic cycles and growing demand as customers look for more environmentally friendly materials.
• A globally diverse customer base that differs from BHP’s existing commodity exposures.
• An increased operating footprint, as potash is primarily found in areas BHP does not have a strong presence in, such as Canada. In fact, BHP describes Canada as a “leading, stable mining jurisdiction”.

Despite these promised benefits, the BHP share price is falling.

Outlook

BHP also outlined what it expects from the Jansen project – both financially and in a broader sense.

Operationally speaking, the mining giant expects an EBITDA margin from the site of about 70%. It expects the mine to be paid back in 7 years’ time once operations begin and it is estimating operating costs to be at US $100 per tonne. It also expects carbon emissions to be low compared to other fertiliser projects. For example, 80% of underground mining and other support vehicles will be battery operated with hopes to have 100% of vehicles be electric.

The mine should begin operations at the beginning of 2027, according to today’s presentation at least. Let’s see what it means for BHP, and the BHP share price, when we reach that time.

BHP share price snapshot

Over the past 12 months, the BHP share price has increased 7.84%. Year-to-date, however, it is down 6.11%.

Its 52-week high is $54.55 per share and its 52-week low is $33.73 per share.

BHP Group has a market capitalisation of about $205 billion.

The post BHP (ASX:BHP) share price slips despite potash update appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Sidarous 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 Bruce Jackson.

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It has been a disappointing few weeks for the Zip Co Ltd (ASX: Z1P) share price.

The buy now pay later (BNPL) provider’s shares are down 0.5% to $6.80 this afternoon.

This means the Zip share price is now down 20% since this time last month.

Why is the Zip share price falling?

Investors have been selling down the Zip share price since the release of its full year results.

Although the company delivered stellar sales growth, its spiralling costs appear to have spooked the market.

Not even an update at its Retail Investor Day event this week has been able to lift its shares. That update revealed plans to expand into savings accounts and cryptocurrency trading and transacting.

Is this a buying opportunity for investors?

According to a note out of Jefferies, its analysts believe the Zip share price is good value at the current level.

This morning the broker retained its buy rating and $8.28 price target on the company’s shares. Based on the current Zip share price, this implies potential upside of almost 22% over the next 12 months.

The note reveals that Jefferies believes that Zip’s shares are trading at too large a discount to rivals Afterpay Ltd (ASX: APT) and Affirm.

The broker estimates that Zip’s shares trade at 9x FY 2022 sales, whereas Afterpay and Affirm trade on 24x and 25x multiples, respectively.

And while the broker acknowledges that their leadership positions in an increasingly competitive industry warrant higher multiples, it doesn’t believe the difference should be as great as it is.

Particularly given Zip’s differentiated strategy, which it notes now includes cryptocurrencies and physical payment cards. The broker feels this strategy is the right way to go and also feels that its increased costs to support its global expansion are justified.

All in all, it is positive on the company’s growth outlook and continues to rate Zip’s shares as a buy.

The post Top broker says Zip (ASX:Z1P) share price can rise 22% appeared first on The Motley Fool Australia.

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• ASX 200 rises, Zip falls, Brambles sinks
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• ASX 200 (ASX:XJO) midday update: Westpac asset sale blocked, Zip crypto update
• Zip (ASX:Z1P) share price lower despite savings and crypto products update

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T 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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The Ramsay Health Care Limited (ASX: RHC) share price is having a pretty decent start to this Wednesday’s trading. At the time of writing, Ramsay shares are up a healthy 0.31% to $68.38 a share.

However, zooming out, and the picture isn’t quite so bright. Ramsay shares are now down around 5.1% since Friday 3 September. That’s a pretty nasty drop for a 12-day span.

The company is faring… ok in 2021 so far, up close to 9% year to date. It’s up a rather paltry 2.7% over the past 12 months. Compared to the S&P/ASX 200 Index (ASX: XJO), this is arguably quite poor, seeing as the ASX 200 is up close to 11% in 2021 so far, and almost 26% over the past year.

So what’s been happening with Ramsay that might have sparked this recent bout of volatility?

Earnings and dividends…

Well, the short answer is… not much. Ramsay has announced no major news or developments since the announcement of its FY21 earnings report last month. Just to recap, the company reported a healthy lift in earnings by 29.1% to $1.13 billion, and a 58.1% jump in statutory profit to $449 million.

Of course, those numbers are coming off a low base, since FY20 was a pretty tough year for this healthcare company. But even so, investors seem to have given their approval, seeing as the Ramsay share price remains above it’s pre-earnings pricing by around 0.7% as of today.

But perhaps the single biggest reason why Ramsay has had a rough couple of weeks is the company’s dividend. Last month, in addition to the metrics above, Ramsay announced a final dividend for FY21 of $1.03 a share, bringing its full-year dividend to $1.515 per share.

Ramsay traded ex-dividend for this final payout on 6 September. This caused the usual share price dip, reflecting that new shareholders will not be eligible for the payout.

This dip (which is one of the best reasons to have a share drop in value) is the primary reason why Ramsay shares have gone backwards by around 5% since 3 September. Eligible shareholders will receive this dividend on 30 September.

So could Ramsay shares be a buy at these current levels?

Could the Ramsay Health Care share price a buy today?

Well, one fund manager who thinks so is Tribeca Investment Partners fund manager Jun Bei Liu. My Fool colleague Tony interviewed Ms Liu this week, and it turns out she is very bullish on Ramsay shares right now. Here’s some of what she told the Motley Fool:

Ramsay, obviously private hospitals, and elective surgery at the moment is being suspended — it’s having an earnings impact. However, remember, this is infrastructure-like, private hospital assets. It used to trade at such a big premium to the market, at a premium to the other healthcare businesses.

Now it trades just over 20 times [forward P/E ratio]. The rest of the healthcare sector trades at over 40. And this is a business, structurally, things are looking better, not looking at the pandemic.

At the current Ramsay Health Care share price, this company has a market capitalisation of $15.57 billion and a dividend yield of 2.22%.

The post The Ramsay Health Care (ASX:RHC) share price is down 5% in 8 days. Could it be a buy? appeared first on The Motley Fool Australia.

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• 2 ASX shares that won’t stay cheap: fund manager
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• 5 things to watch on the ASX 200 on Friday
• Ramsay (ASX:RHC) share price on watch after strong FY 2021 profit growth but cautious outlook
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Motley Fool contributor Sebastian Bowen owns shares of Ramsay Health Care Limited. 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 Ramsay Health Care Limited. 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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The National Australia Bank Ltd. (ASX: NAB) share price is down 0.32% in afternoon trading, to $28.14 per share.

The S&P/ASX 200 Index (ASX: XJO) is slipping as well, down 0.3%.

Some 4 months has passed since the big four bank released its half-year results for the 6 months ending 31 March (H1FY21). We take a look at how the NAB share price has been tracking since.

But first, a quick recap of the key results.

What did the ASX 200 bank report for H1FY21?

The NAB share price was in the spotlight on 6 May, when the bank released its results before market open.

Some of the key metrics the bank reported included a 1% lift in revenue compared to the prior corresponding half year. It also reported a 94.8% leap in cash earnings to $3.34 billion.

On another positive front, NAB reported its writeback of credit impairment charges fell to $128 million, down from $1.16 billion in H1FY20.

ASX income investors would have been pleased with the dividend payout, though that didn’t prevent NAB’s share price sliding on the day. The bank declared a fully-franked interim dividend of 60 cents per share, up from 30 cents per share in the prior corresponding period.

Ross McEwan, NAB’s CEO, said in the results announcement that, “There is growing momentum across our bank, reflecting our investment in key strategic priority areas. While there is still much to do, we are progressing on our ambition to deliver better outcomes for customers and colleagues. Focus and execution remain key.”

The bank is scheduled to release its full 2021 financial year results on 9 November.

How has the NAB share price performed since reporting results?

On the day of reporting the comany’s half-year results the NAB share price dropped 3%, closing at $26.56 per share.

Since the opening bell on 6 May, NAB’s shares are up 2.5%. That compares to a gain of 4.3% posted by the ASX 200 over that same period.

The post How has the NAB share price performed since reporting results appeared first on The Motley Fool Australia.

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• How these 4 ASX 200 bank shares have performed since reporting results
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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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The S&P/ASX 300 Index (ASX: XKO) is in reverse today, wiping out most of this week’s gains.

At the time of writing, the ASX 300 is hovering around 7,423 points, down 0.24%. Since hitting a record high of 7,625 points on 13 August, the index has gradually been treading lower.

Let’s take a look at which shares are among the top movers on the ASX 300.

Accent Group Ltd (ASX: AX1)

The Accent share price is up an astonishing 14.63% to $2.35 despite no news from the retail group.

However, a broker note out of Morgan Stanley raised its price target on Accent shares by 8.3% to $2.60. The leading investment house also upgraded its recommendation to an overweight rating.

This has led investors to agree with Morgan Stanley’s assessment, snapping up the shares following Accent’s recent share price weaknesses.

Pilbara Minerals Ltd (ASX: PLS)

Another significant mover today is the Pilbara Minerals share price, up 9.73% to a record high of $2.48.

The lithium miner released the results from its second lithium spodumene concentrate digital auction yesterday.

Pilbara Minerals advised it intends to accept the highest bid received of US$2,240/dmt for 8,000 dmt of spodumene concentrate.

It is expected that a sales contract will be entered into within the coming days.

Paladin Energy Ltd (ASX: PDN)

Following suit, the Paladin Energy share price is up 7.63% to a multi-year high of $1.0225.

The uranium producer hasn’t provided any new releases since its full-year results late last month. That said, the spot price for uranium has soared in recent weeks on the back of positive sentiment among fund managers.

And the leading ASX shares heading south?

AGL Energy Ltd (ASX: AGL)

Continuing to fall wayside is the AGL share price, down 6.8% to $5.89.

The energy company entered into a new Otway Basin Gas Sales Agreement with Cooper Energy Ltd (ASX: COE) on Monday. This is for all developed and uncontracted volumes from the Casino, Henry and Netherby fields in the Otway Basin.

The new arrangements aren’t expected to take effect until 1 January 2022.

The sales volumes from Cooper are guided between 3.7 million Boe (barrels of equivalent) to 4.1 million Boe. Previously, the company had estimated sales in the range of 3.7 million Boe to 4.3 million Boe.

Cimic Group Ltd (ASX: CIM)

Also in decline is the Cimic share price, down 4.3% to $20.25.

The global engineering company is trading ex-dividend, hence the reason for its shares falling.

The board declared a partially-franked dividend of 42 cents apiece to be paid on 7 October 2021.

The post Which ASX 300 shares are on the move mid-week? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Aaron Teboneras 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 recommended Accent Group. 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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The Best & Less Group Holdings Ltd (ASX: BST) share price has had a cracking past week on the market.

In the space of 5 trading days, shares in the clothing retailer have marched 18.9% ahead. This continues the successful trend that Best & Less has experienced since its ASX-listing in July. The company’s share price has surged more than 38% in its 51 days of publicly listed life.

Right now, the Best & Less share price is swapping hands for $3.32 apiece, up 2.47%.

Let’s inspect the company and gain an understanding of what has propelled its shares higher recently.

Is no news good news?

Despite the Best & Less share price ascending to new all-time highs, the last week has entailed not much at all. This could be a positive for investors. It appears the business is focusing on the task at hand and executing accordingly.

The period of uneventfulness has ensued following the company’s release of its full-year results for FY21. Impressively, Best & Less exceeded its prospectus forecasts on all key metrics. This included increasing revenue by 6.1% to $663.2 million year-over-year.

Perhaps, even more, astonishing, the company’s net profit after tax skyrocketed 191.9% to $47 million. This milestone accomplishment surpassed its prospectus forecast by ~18%. This demonstrated that Best & Less is a formidable ASX-listed retailer that is able to turn a hefty profit.

It is possible that more investors are now paying attention and take a closer look at the retailer. If so, it could be warranted considering the fundamentals on display.

For example, at its current market capitalisation of $406.2 million, Best & Less is trading on a price-to-earnings (P/E) ratio of 8.6 times. In comparison, ASX-listed company’s that Best & Less considers competitors are fetching much richer earnings multiples, as shown below:

• Baby Bunting Group Ltd (ASX: BBN) with a $675 million market capitalisation trades on a 40 times 12-month trailing P/E ratio
• Reject Shop Ltd (ASX: TRS) with a $233 million market capitalisation trades on a 28.4 times 12-month trailing P/E ratio
• H & M Hennes & Mauritz AB (STO: HM-B) with a $40.5 billion market capitalisation trades on a 48.2 times 12-month trailing P/E ratio

It would seem that the broader market is pricing in low to no growth in the near term for Best & Less by comparison. Although, the company has already committed to 4 net new stores in FY22 to date.

Best & Less share price unfazed by lockdown impact

It also appears investors are willing to look beyond the immediate COVID-19 impacts on retail shares. In July, the Australian Bureau of Statistics reported a 2.7% month-on-month fall in retail sales.

Today, National Australia Bank Ltd. (ASX: NAB) has shared its forecast for retail sales in August. Unfortunately, it’s not looking pretty. In its note, NAB stated it expects an additional 2.7% month-on-month reduction in retail sales for August due to lockdowns.

These difficult conditions were also reflected in an FY22 trading update released by Best & Less today. According to the release, for the first 8 weeks of the new financial year, total sales were down 25.7%. Similarly, like-for-like sales were down 11.7% compared to FY21.

Despite this, the Best & Less share price is climbing higher today.

The post Why the Best & Less (ASX:BST) share price has surged 19% in a week appeared first on The Motley Fool Australia.

More reading

• These recent ASX IPOs have just reported for the first time. How’d they go?
• Best & Less (ASX:BST) share price slides despite record profit

Motley Fool contributor Mitchell Lawler 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 recommended Baby Bunting. 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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The Cochlear Limited (ASX: COH) share price has been a positive performer on Wednesday.

In afternoon trade, the hearing solutions company’s shares are up over 2% to $235.39.

This means the Cochlear share price is now up 24% since the start of the year. This is despite its shares falling 8% over the last four weeks.

Is the Cochlear share price good value?

One top broker is likely to see the recent pullback in the Cochlear share price as a buying opportunity for investors.

In response to the company’s full year results last month, the team at Macquarie Group Ltd (ASX: MQG) retained their outperform rating but trimmed their price target on its shares by 3% to $256.00.

Based on the current Cochlear share price, this suggests there’s still approximately 9% upside over the next 12 months.

What did the broker say?

According to the note, Macquarie was pleased with the company’s performance in FY 2021.

For the 12 months ended 30 June, Cochlear reported a 10% increase in sales revenue to $1,493.3 million and a 54% jump in underlying net profit to $236.7 million. The latter was in line with Macquarie’s expectations and also the company’s guidance of $225 million to $245 million.

However, one thing that did fall short was the company’s guidance for FY 2022. Cochlear is expecting net profit growth of 12% to 20% for the year ahead.

Macquarie was expecting stronger growth, which led to its analysts revising its earnings per share estimate for FY 2022 down by approximately 11%.

Nevertheless, the broker remains positive on the company’s outlook and the Cochlear share price. This is due to its belief that the company is positively leveraged to a post-pandemic recovery in activity levels.

Macquarie also noted recently that its survey of US based audiologists was very favourable. Its survey found that Cochlear’s products were the highest rated in the industry and met key criteria for both adult and paediatric patients. As a result, the company is expected to grow its market share over the next 12 months.

The post The Cochlear (ASX:COH) share price is down 8% in 4 weeks. Is it a buy? appeared first on The Motley Fool Australia.

More reading

• How have ASX healthcare shares performed during the August 2021 earnings season?
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• August wasn’t a great month for the Cochlear (ASX:COH) share price

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Cochlear Ltd. 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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The IOUpay Ltd (ASX: IOU) share price has struggled this past week.

Shares in the buy now, pay later (BNPL) company have fallen around 7% in the past 7 days.  

Let’s take a look at what’s been dragging the IOUpay share price lower this past week.

Acquistion sinks IOUpay share price

It seems investors have lost interest in IOUpay.

Following a trading halt, the digital payment company made headlines late last week after announcing an acquisition.

IOUpay acquired a 42% stake in Malaysian finance company I.Destinasi Sdn Bhd (IDSB) for AU$41.3 million, via 2 tranches.

According to IOUpay, the acquisition was completed with the intention of using IDSB as a complementary business.

The BNPL player highlighted collaborative opportunities of “cross-selling” between IOUpay’s short-term offerings and IDSB’s long-term products.

In addition, IOUpay noted that IDSB owns a key credit licence (AG Code2) for the region.

The company also highlighted the purchase price could be decreased if IDSB’s profit before tax is less than AU$9.8 million for FY21.

Shares in IOUpay initially rocketed more than 22% after the company announced the news, opening at 36 cents.  

However, in the past week, investors seem to have lost interest in the BNPL player.

As a result, shares in IOUpay have drifted and are currently trading around 28.5 cents.

More on IOUpay

IOUpay operates in the BNPL sector, providing mobile banking and payment services to people in southeast Asia. The company also services leading banks in Malaysia.

IOUpay also works with telecommunication network providers to supply mobile OTT (over the top) services that leverage their subscriber base.

Since the start of the year, the IOUpay share price has soared more than 69%.

Indeed, shares in the BNPL player rocketed to record highs earlier this year after the company entered into a merchant referral agreement with EasyStore Commerce.

Despite releasing further merchant agreements throughout the year, the IOUpay share price has given back much of its gains since February.

At the time of writing, shares in IOUpay are trading 1.72% lower for the day at 28.5 cents.

The post IOUpay (ASX:IOU) share price continues its slump, down 7% in a week appeared first on The Motley Fool Australia.

More reading

• Why the IOUpay (ASX:IOU) share price is leaping higher
• IOUPay (ASX:IOU) share price soars 10% on news of BNPL offering

Motley Fool contributor Nikhil Gangaram 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 Bruce Jackson.

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This Australian industry is forecast to see record profits this year. Here’s what S&P/ASX 200 Index (ASX: XJO) shares investors might want to keep an eye on over the coming year.

Could these be the next ASX 200 sector to boom?

Companies involved in Australia’s agriculture industry might be preparing to receive record profits in the near future, with the sector’s profits expected to surpass $70 billion for the first time.

The federal government’s Australian Bureau of Agriculture and Resource Economics and Sciences (ABARES) has just updated its forecast for 2021/22, predicting the agriculture sector is in for a record-breaking year.

Australian farmers are having a fantastic year on the land. Particularly, as seasonal conditions and rainfall have turned out better than expected.

While Australia’s agriculture sector is enjoying a bumper year, its international competitors are struggling. Much of the northern hemisphere saw below average rainfall and warmer weather over the 3 months ended 31 July.

ABARES expects the weather above the equator to have increased the prices of agricultural commodities to Australia’s benefit.

In fact, the body expects the value of Australia’s crop exports to increase by 17% to $30 billion in 2021/22. Further, ABARES believes the country’s canola exports’ value will increase by 50%.  

Additionally, the global recovery from COVID-19 has brought increased demand for travel and retail, which in turn will likely increase demand for fibres, oilseeds, and sugar.

The increasing demand and great year for Australian farmers might leave some market watchers wondering how to get a slice of the action.

Here are 3 ASX 200 shares that could be about to benefit from Australian agriculture’s record-breaking year.

2 ASX 200 shares involved in the agriculture sector

GrainCorp Ltd (ASX: GNC)

Investors might want to keep an eye on GrainCorp in the near future.

The company operates the largest grain storage and handling network on Australia’s eastern coast. GrainCorp also operates 7 bulk port terminals to help get Australian grain out to international markets.

It also produces canola oil and meal, and cattle and livestock feed.

ABARES has predicted that much of GrainCorp’s business will see a boost in 2021/22.

Elders Ltd (ASX: ELD)

Elders’ business model is splashed across most of Australia’s agriculture sector. It has business in farm and rural insurance, property sales, market reporting, and commodity exchanges.

The company also sells a multitude of farming equipment and provides professional services to farmers.

It’s relatively safe to say that what’s good for the agriculture sector, is also good for Elders.

The post ASX 200 shares in this sector could be poised to boom in the coming year appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• ASX 200 Weekly Wrap: New records just keep coming for the ASX 200

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 recommended Elders Limited. 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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The AMP Ltd (ASX: AMP) share price continues swimming in a sea of red on Wednesday.

At the time of writing, shares in the financial services giant are trading at an all-time low of $1 per share. That’s a 2.44% drop from the market open.

What’s the deal with AMP’s share price lately?

The AMP share price has been on an extended run south ever since the Australian Securities and Investment Commission (ASIC) commenced criminal proceedings against the company.

Serious allegations and findings of misconduct were already brought against AMP from the Royal Commission into Banking and Financial Services. One of those findings was that AMP was charging fees on its life insurance and advisory services to accounts of deceased customers.

The investigations into such reprehensible conduct have been drawn out over a 3 year period after AMP admitted to the wrongdoings.

Keep in mind the AMP share price has come off a high of $5.43 back in March 2018, the time of the Royal Commission.

Even though ASIC dropped one of its cases against AMP in July, there is no doubt the Royal Commission’s findings still plague the AMP share price to this day.

For instance, the company reported a fairly robust first half result last month, which resulted in a slight recovery in its share price.

In its report, the company recognised a 57% increase in net profit after tax (NPAT) from the year prior and grew its assets under management (AUM) by 8%.

However, zooming out, the downward pattern has continued from this point and its earnings result had little to no impact on the longer-term trend of the AMP share price.

What else is weighing down AMP shares?

It could also be that a failed deal with Ares Management Corp earlier in the year has left a sour taste in the mouth of investors – particularly since it was the second failed deal with Ares.

Adding more pressure is AMP’s demerger plans to split and form two separate entities, AMP Limited and AMP Private markets.

The company expects the split to finalise some time in FY22 but this appears to be weighing in on the AMP share price today.

Finally, it’s important to remember the market prices shares on the basis of a blend of past earnings history and future earnings expectations.

AMP expects its FY21 earnings to be weaker than FY20 due to lower investment return and performance income – especially given the decision to withhold the interim dividend last month. At the same time, its past earnings results over the last 3 years haven’t been much to write home about either.

So taking all of this into consideration, it starts to make sense how the market is pricing AMP shares. It’s reflecting a combination of controversy, failed deal flow, lower earnings expectations and the lack of visibility in AMP’s growth vision.

AMP share price snapshot

The AMP share price has been a major disappointment on the ASX this year, posting a loss of 36% since January 1.

Over the last month alone, AMP shares have slipped a further 13% into the red. This extends the loss over the last 12 months to 33%.

These results have lagged the S&P/ASX 200 Index (ASX: XJO)’s gain of around 25% over the past year.

The post The AMP (ASX:AMP) share price hit an all-time low of $1 today appeared first on The Motley Fool Australia.

More reading

• The AMP (ASX:AMP) share price has fallen another 7% in a month. What’s next?
• Here’s why the AMP (ASX:AMP) share price is down 4% in a week
• How have ASX financial shares performed during the August 2021 earnings season?
• What does the future look like for the AMP (ASX:AMP) share price?
• When was the best day ever on the AMP share price chart?

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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