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S&P/ASX 200 Index (ASX: XJO) healthcare shares have largely performed well in 2021.

Of the 13 companies categorised as ASX 200 healthcare shares, 10 are in the black for the calendar year while only 3 are showing losses.

Additionally, 7 of the 13 ASX 200 healthcare shares are beating the performance of the index, which has gained just under 13% year-to-date.

Below we take a look at the best and worst performer so far this year.

At the bottom of the 2021 list

The worst ASX 200 healthcare share performer so far in 2021 is Polynovo Ltd (ASX: PNV).

Year-to-date, Polynovo’s share price is down 44%. The medical device company is currently trading for $2.21 per share.

Polynovo hit turbulence early in the year when its half year financial results for the 6 months ending 31 December 2020, while showing sales growth, came in below guidance. Shares fell by 31% in January

COVID-19, a boon for some healthcare companies, has worked against this one.

The company depends on its access to surgeons and ongoing elective surgeries for growth. In May, shares suffered another sharp fall after the company reported a slowdown on both fronts due to the pandemic.

Top ASX 200 healthcare share performer in 2021

Coming in at the top of the list for ASX 200 healthcare shares in 2021 is Pro Medicus Limited (ASX: PME).

The healthcare imaging software and services provider’s share price is up 59% year-to-date, currently trading for $55.76.

Pro Medicus kicked off the New Year well, with the announcement of a major new contract win on 13 January for its Visage Imaging business.

The 7-year contract was signed with Intermountain Healthcare, the largest medical services provider in the US state of Utah. The company estimated the value of the contract at $40 million.

Pro Medicus shares gained 22% in January.

Shares enjoyed another boost in May with the announcement of another new contract win on 13 May. The 8-year deal with The University of Vermont Health Network in the US state of Vermont was valued at $14 million.

The company’s share’s price has gained 37% since it released that announcement.

The post The best and worst performing ASX 200 healthcare shares of 2021 appeared first on The Motley Fool Australia.

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• ASX 200 midday update: Afterpay to be acquired by Square, Oil Search to merge with Santos

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended POLYNOVO FPO and Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus 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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Followers of the cryptocurrency Bitcoin (CRYPTO: BTC), or any other crypto coin, would be well used to volatility by now. Cryptocurrencies have now long had a reputation for being some of the most volatile assets available to retail investors.

To illustrate, let’s take the benchmark index for the Australian share market, the S&P/ASX 200 Index (ASX: XJO). Over 2021 so far, the ASX 200 is currently up 12.9%. Year to date, the ASX 200 has moved around somewhat, but has never dropped more than around 3% from a year-to-date high as of yet. Let’s compare that to Bitcoin. In 2021 so far, Bitcoin is up roughly 47.4%. But it has also fluctuated wildly, falling more than 50% between mid-April and mid-July.

Yowza.

But Bitcoin has also been on a mini-bull run in recent weeks too. In fact, since 20 July, the flagship cryptocurrency has risen from just under US$30,000 a coin to more than US$43,380 today. That’s a rise of almost 47% in just 3 weeks.

It’s not just Bitcoin either. The second-largest crypto by market capitalisation – Ethereum (CRYPTO: ETH) – has also rallied strongly over the past few weeks. Over the same period, one Ether has risen in value by a whopping 68.7% on current pricing.

So could the crypto bear market we have seen play out over the past few months finally be over?

Well, technically yes, seeing as the prices of these cryptocurrencies have rallied so strongly. So what’s behind this recovery?

What’s behind Bitcoin’s recovery?

Like ‘most things crypto’, this rally is hard to put a finger on. But there have been some interesting developments in the crypto world that may be fuelling positive sentiment. The Motley Fool recently discussed the potential emergence of ‘Britcoin’, a cryptocurrency backed by the Bank of England. Moves like this could continue to lend legitimacy to the cryptocurrency space, and could well be helping to put a floor under Bitcoin’s recent losses.

But we could also just be seeing some good old-fashioned bargain hunting going on here. Bitcoin has a famously (or perhaps infamously) loyal army of supporters. Perhaps many of these Bitcoin ‘ultra-bulls’ have been picking up cryptos like Bitcoin at an elevated rate after its dip below US$30,000 a coin last month. In many cases, investors who ‘buy the dip’ on Bitcoin and other cryptos in the past have subsequently been rewarded.

Case in point, an investor who picked up $10,000 worth of Bitcoin on 20 July would have close to $15,000 worth of the cryptocurency today. That’s not a bad return for 3 weeks of waiting!

The post Bitcoin is now up 40% in just 3 weeks. What’s going on? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns shares of Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. 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 FYI Resources (ASX: FYI) share price has been one of the best performers on the ASX today. This comes despite no news from the mining company since its update last Wednesday.

At the closing bell, FYI Resources shares finished the day trading at 77 cents, up 22.22%. In comparison, the All Ordinaries Index (ASX: XAO) is flat at 7,809 points.

What’s pushing FYI Resources shares higher?

Investors appear upbeat about the alumina company’s prospects, driving up its share price in Monday’s session.

In May, FYI Resources and Alcoa Australia entered into an exclusivity agreement to facilitate negotiations of a high purity alumina (HPA) project joint venture. A 3-month term was to allow both parties to conduct due diligence to establish whether a joint venture could be technically and economically feasible.

Fast forward to last week, FYI Resources announced that due diligence has been completed. In addition, the company noted that substantial progress has been made in negotiations for a possible joint venture.

As a result, both FYI Resources and Alcoa Australia have extended the exclusivity agreement for another month. It is expected the extra time will finalise any remaining work and see the beginning of drafting a binding term sheet.

FYI Resources managing director Roland Hill commented:

Alcoa and FYI are negotiating a significant opportunity for a unique Joint Venture to leverage our combined strengths to capture opportunities in the high-growth HPA market. While the requirement for the extension is not ideal, our commitment to successfully negotiating a binding agreement is unwavering and we will continue to work constructively towards its completion.

Alcoa Australia president Michael Gollschewski added:

While not yet conclusive, Alcoa is encouraged by the progress made towards the establishment of a possible joint venture with FYI Resources for the production of HPA.

About the FYI Resources share price

Over the last 12 months, FYI Resources shares have accelerated by more than 978%, reflecting positive investor sentiment. The company’s share price is up almost 214% in 2021 so far.

On valuation metrics, FYI Resources has a market capitalisation of roughly $235.3 million, with 336 million shares on issue.

The post FYI Resources (ASX:FYI) share price soars 22% today, up 37% in a week appeared first on The Motley Fool Australia.

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• Bitcoin is now up 40% in just 3 weeks. What’s going on?
• Santos (ASX:STO) share price lower amid fresh revelations
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• FY 2021 results preview: Is the JB Hi-Fi (ASX:JBH) share price in the buy zone?
• Transurban (ASX:TCL) share price slumps amid latest West Gate Tunnel drama

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 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 Santos Ltd (ASX: STO) share price is in the negative territory on Monday. This comes amid fresh concerns regarding the chairman of the company’s merger target, Oil Search Ltd (ASX: OSH).

At market close, shares in the oil and gas giant are fetching $6.42, down 0.54%. Meanwhile, the company’s shares have gained 11% over the past 12 months. Comparatively, the S&P/ASX 200 Index (ASX: XJO) has rallied nearly 24% over the same time period.

So, what’s all the fuss about on Monday?

Oil Search management muddies merger

Firstly, some background… On 19 July this year, previous Oil Search Chief Executive Dr Keiran Wulff abruptly resigned from his position. Based on the release, the resignation with immediate effect came as Dr Wulff suffered a deterioration in a long-term medical condition.  

However, the announcement also specified that the board had entered into discussions with Wulff following the receipt of complaints regarding his behaviour. In specific terms, the behaviour was said to be, “inconsistent with the standards expected by the Board in relation to his management style.”

Fast forward to today, now there are fresh revelations in relation to the matter. According to reports by The Australian, the whistleblower whose complaints resulted in the shock exit of Wulff now holds concerns the previous CEO was too close to Oil Search Chairman, Rick Lee. As a result, the whistleblower fears the closeness may jeopardise the chances of a fair enquiry into the complaint.

It is believed that both Wulff and Mr Lee would speak as frequently as four to five times a day regarding a range of matters. Reportedly, this also led to the sense of exclusion from the other executives on the board.

Impacting the Santos share price

These latest developments throw a further spanner in the works for Santos as it plans to merge with the Papua New Guinean oil and gas producer. The Santos share price has been falling over the past month as it contends with potential blockades.

For example, the PNG government recently made it clear that it held power over the merger. As such, the government has voiced that it wants the deal to be in the best interests of locals.

The post Santos (ASX:STO) share price lower amid fresh revelations appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
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• Oil Search (ASX:OSH) share price sliding amid fresh merger concerns
• Why ASX Energy shares are the worst performers today

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 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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There are a lot of growth shares out there for investors to choose from. To narrow things down, I have picked out two that analysts love.

Here’s why analysts rate these growth shares highly:

Bapcor Ltd (ASX: BAP)

The first ASX growth share to look at is Bapcor. It is the Asia Pacific’s leading provider of vehicle parts, accessories, equipment, service and solutions. It is also the name behind a number of retail brands such as Autobarn, Burson Auto Parts and Midas.

Bapcor has been performing very strongly in FY 2021. This has been driven by strong demand for used cars, which  has resulted in elevated sales across its brands.

Positively, the company looks well-placed to continue its growth in the future. This is thanks to its strong market position and bold expansion plans. Those plans see Bapcor aiming to increase its store network by more than 694 new stores over the next five years. This includes both at home and in the Asia market.

Citi is very positive on the company. It currently has a buy rating and $9.55 price target on the company’s shares.

TechnologyOne Ltd (ASX: TNE)

Another growth share to look at is TechnologyOne. It is Australia’s largest enterprise software company, providing a global software as a service (SaaS) ERP solution that transforms business and makes life simple for its customers.

The company’s integrated enterprise SaaS solution is easy to use and available on any device, anywhere and anytime. Management notes that over 1,200 leading corporations, government agencies, local councils and universities are powered by this software.

This has supported very strong recurring revenue growth in recent years and is expected to continue doing so over the coming years. For example, management is targeting annualised recurring revenue (ARR) of over $500 million by FY 2026. This is over double its current base of $233 million.

One broker that is very positive on TechnologyOne is Morgans. It currently has an add rating and $10.00 price target on its shares. Morgans believes TechnologyOne can achieve its FY 2026 aspirational ARR target.

The post 2 quality ASX growth shares analysts rate as buys appeared first on The Motley Fool Australia.

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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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor. 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 JB Hi-Fi Limited (ASX: JBH) share price will be one to watch next week when it releases its full year results.

Ahead of the release, I thought I would look to see what the market is expecting from the retail giant on 16 August.

What is expected from JB Hi-Fi in FY 2021?

While JB Hi-Fi has already pre-released its FY 2021 results, that doesn’t mean there won’t be things in it that could move the JB Hi-Fi share price.

Let’s start with the knowns. Last month the company revealed that it expects to report unaudited sales of $8,916.1 million and net profit after tax of $506.1 million. This will mean growth of 12.6% and 67.4%, respectively, over the same period last year.

This top line growth was driven by strong sales momentum throughout the year following heightened demand for consumer electronics and home appliances. Whereas its bottom line growth was underpinned by significant operating leverage thanks to gross margin improvement and disciplined cost control.

What about the unknowns?

According to a note out of Goldman Sachs, it has suggested that investors watch out for its cash flow, drivers of performance across operating leverage and gross margins, and a trading update into July. The latter is particularly important given the ongoing lockdowns.

Goldman commented: “JBH has largely pre-announced its FY21 results (Sales, EBIT and NPAT). Key factors to watch out for during the upcoming results are the cash flow, drivers of performance across operating leverage and gross margins and trading update into July 2021 especially given the ongoing lockdowns.”

“We forecast the group to report an operating cash flow of A$613.3mn (A$455.2mn pre-AASB16). We expect capital expenditure to have been A$56.8mn and the group to have maintained a net cash position of A$310mn (excl. leases or A$374.3mn including lease liabilities). We expect the group to announce a final dividend of A¢107 for FY21.”

Is the JB Hi-Fi share price good value?

Goldman Sachs continues to sit on the fence with the JB Hi-Fi share price.

It has retained its neutral rating and $49.40 price target. Based on the current JB Hi-Fi share price of $48.14, this implies potential upside of ~2.6% before dividends. Though, with dividends this potential return stretches to a more attractive ~8%.

The post FY 2021 results preview: Is the JB Hi-Fi (ASX:JBH) share price in the buy zone? appeared first on The Motley Fool Australia.

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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. 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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Shares in Transurban Group (ASX: TCL) have been bathed in red during today’s trading session.

The slump comes after more controversy surrounding Transurban’s West Gate tunnel project.

At the time of writing, the Transurban share price is exchanging hands at $13.93 apiece, down 2.6%.

Let’s cover what this means for investors in closer detail.

A bit of background

The West Gate tunnel is a large infrastructure project in Melbourne. Transurban started a joint venture with building subcontractor John Holland back in 2017, after it was awarded the tender.

However, tunnelling has not started on the project to date, due to a “result of disputes” between the major parties.

The disputes relate to “changes in the requirements for disposal of soil contaminated with PFAS (per- and poly-fluoroalkyl substances)”, as per Transurban.

As a result, a purpose-built site was required to dispose of the material, which is “currently being activated”, after approvals in the first half of 2021.

The saga doesn’t end there, however.

What’s the latest?

Transurban released its FY2021 results outlining its progress at the West Gate project earlier today.

In the presentation, Transurban outlined the headwinds the project faced moving forward, explicitly as a result of the PFAS saga.

To illustrate, Transurban estimates the subcontractor’s construction cost could now mushroom “in the order of $3.3 billion” on top of the $6.7 billion costs already baked into the contract. Not to mention, the subcontractor’s “claims are higher” according to Transurban.

In addition, the company must now advance a number of cash flow support initiatives to John Holland, totalling over $500 million.

In order to reach any settlement, the company estimates that “all project parties would be required to make a meaningful financial contribution”.

Unsurprisingly, the original planned completion in 2023 “is no longer considered achievable”. Moreover, a further update on West Gate “cannot be provided at this stage”.

It’s not only the two construction giants that are unhappy with the squabbling and lacklustre results exhibited from West Gate.

Victorian Minister for Transport and Infrastructure Jacinta Allan was quoted in today’s The Australian as saying: “We need an alternative to the West Gate Bridge – and that’s why we’ve been working with Transurban to try and fix their mess, and we’ve been clear with them that time is running out”.

Investors have punished Transurban shares today after the news and the company’s FY21 results.

Transurban share price snapshot

The Transurban share price has posted a year to date return of 1.98%, extending the previous 12 month’s 1.8% gain.

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

Transurban shares are also down 4.2% over the past month.

The post Transurban (ASX:TCL) share price slumps amid latest West Gate Tunnel drama appeared first on The Motley Fool Australia.

More reading

• The economy and ASX earnings in focus. Scott Phillips on Nine’s Late News
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• 2 buy-rated ASX dividend shares for August
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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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The S&P/ASX 200 Index (ASX: XJO) has had rather a flat start to the week’s trading this Monday. At the time of writing, the ASX 200 is currently up, but only just, rising 0.07% so far today to 7,544 points. But let’s dig a bit deeper and check out some of the ASX 200 shares that are being the most heavily traded today.

3 of the most heavily traded ASX 200 shares today

Telstra Corporation Ltd (ASX: TLS)

ASX 200 telco Telstra is our first cab off the rank this Monday. So far today, a hefty 10.75 million TLS shares have traded hands. This coincides with the telco hitting a new 52-week high this morning. Telstra’s latest high watermark is now $3.83 a share, pipping the previous high of $3.81.

We also got some news today that the telco has had a ‘win’ from the federal government’s decision to impose a “45% purchase limit of low-band frequency for telcos in regional areas”. This 45% level was above the 43% that Telstra reportedly requested.

Silver Lake Resources Ltd (ASX: SLR)

ASX 200 gold miner Silver Lake is next up here. Silver Lake has seen an even higher number of 10.96 million of its shares trade on the share market today

This is probably the result of the company’s nasty share price fall we are seeing. Silver Lake is currently down a substantial 4.03% today to $1.43 a share. This move is being mirrored across the ASX gold mining sector this Monday and is likely a reaction to the price of gold itself dropping sharply over the weekend.

Pilbara Minerals Ltd (ASX: PLS)

And last and certainly not least, we have lithium producer Pilbara Minerals. Pilbara is our most traded ASX 200 share so far today. The company has seen just over 12 million of its shares swap hands so far. That’s despite an absence of any major news or announcements out of the company — or any substantial share price moves.

However, even though the Pilbara share price is currently up an unremarkable 0.48% to $2.10 today, it did hit a new all-time high of $2.14 a share just after market open this morning. It’s probably for this reason that we are seeing so many Pilbara shares change owners today.

The post Here are 3 ASX 200 shares being heavily traded on Monday appeared first on The Motley Fool Australia.

More reading

• The economy and ASX earnings in focus. Scott Phillips on Nine’s Late News
• Telstra (ASX:TLS) share price rises after regional frequency win
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Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation 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 owns shares of and has recommended Telstra Corporation 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 (ASX: NAB) share price is on the rise. The positive price movement comes as the ‘Big 4’ bank announced the purchase of the Citigroup Inc (NYSE: C) Australian consumer business for $1.2 billion.

At the time of writing, shares in the bank are trading for $27.07 – up 1.42%. It should be noted NAB shares have been trading higher throughout the day and there has not been a noticeable uptick in its share price post-announcement. The S&P/ASX 200 Index (ASX: XJO), meanwhile, is 0.07% higher.

Let’s take a closer look at the news.

NAB share price rises amid Citi deal

In a statement to the ASX, NAB says it will acquire Citigroup’s Australian consumer business for the value of “net assets of the Citigroup Consumer Business plus a premium of $250 million”.

NAB will pay in cash using existing balance sheet resources. The purchase includes Citi’s home lending portfolio, unsecured lending business, retail deposits business, and private wealth management business.

NAB says the deal will result in $390 million in savings over the next 3 years.

Citigroup’s Australian consumer business has lending assets of approximately $12.2 billion ($7.9 billion in residential mortgages and $4.3 billion in unsecured debt) and deposits of about $9 billion.

NAB will not acquire all of the technology systems that currently service these portfolios. Instead, it will enter into a Transitional Services Agreement (TSA) with Citigroup to assist with the integration of the Citigroup business into NAB’s. The TSA is expected to be in place for approximately 30 months.

Investors may be interested in this deal, judging by the rising NAB share price.

As part of the deal, Citibank senior management and around 800 staff will join NAB on completion. Citigroup’s institutional business in Australia is not a part of the deal.

The purchase is subject to regulatory approval including from the federal Treasurer, APRA, and the ACCC. If all goes as planned, the deal should be completed by March 2022.

Management commentary

NAB CEO Ross McEwan said the proposed acquisition supported NAB’s strategic growth ambition for its Personal Banking business.

The proposed acquisition of the Citigroup Consumer Business brings scale and deep expertise in unsecured lending, particularly credit cards, which continue to be an important way for customers to make payments and manage their cashflows.

The cards and payments sector is rapidly evolving and access to a greater share of payments and transaction data will help drive product and service innovation across our Personal Banking business and deliver market leading customer experiences.

NAB share price snapshot

Over the past 12 months, the NAB share price has increased 59.5%. It’s outperformed the ASX 200 by over 30 percentage points. Year-to-date, it has increased 19.7% to the index’s 12%.

National Australia Bank has a market capitalisation of $89.2 billion.

The post NAB (ASX:NAB) share price rises on Citi consumer business acquisition appeared first on The Motley Fool Australia.

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• How do you value the NAB (ASX:NAB) share price?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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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One of the ASX’s largest energy generators and retailers, AGL Energy Limited (ASX: AGL), is set to give investors a look at its books when it reports its full-year earnings for FY2021 this Thursday. But for any investors anxious to see how AGL’s going, a look at the recent (and not so recent) performance of this company might have to do until then.

This Monday AGL shares are, at the time of writing, starting the earnings week off on the wrong foot. The AGL share price is currently down 0.47% to $7.42 a share. That’s decidedly in the lower end of the company’s 52-week price range of $7.15-$17.16 a share.

As you might have gathered, the past year has not been kind to this energy company. Yes, almost exactly a year ago today, AGL was sitting at over $17 a share. This means that it has since lost a nasty 56.5% of its value since. That’s going off of today’s share price. Year to date, AGL is also down around 38.8%. And is just a few percentage points off of its 52-week low of $7.15 that we saw at the end of last month.

Zooming out a little, and the true impact of these levels becomes apparent. At $7.41 a share, AGL is currently trading at levels that ASX investors haven’t seen since way back in 2004. Early 2004.

AGL last peaked at more than $27 a share, but that was back in May 2017. The company has now lost more than 72% of its value against those levels on today’s pricing.

What’s gone wrong here?

What has caused such a devastating reevaluation of this company’s value? Well, we can put it down to a few factors. First are ethical and environmental (environmental, social and corporate governance, or ESG) concerns. Since AGL is one of the largest employers of coal-fired electricity generation in Australia, the company has been faced with ESG concerns voiced by ethically-conscious investors over the past few years.

Indeed, many commentators have cited these concerns as a potential reason behind AGL’s plans to split its company in two by the end of this financial year (FY2022). The company is planning on separating its generation assets and its retail assets into two separate entities. It plans to do this by ‘demerging’ its generation assets into a new company to be called ‘Accel Energy’.

However, investors have also given these plans a lukewarm reception (putting it kindly). Since the announcement in late June, AGL shares have slumped even lower, losing close to 20% since the news was announced. This may have been exacerbated by the company’s announcement that it intends to ditch its previously-flagged new new dividend policy. This involved AGL paying out 100% of its earnings as dividends until FY2023 due to the demerger.

Finally, AGL has also been battered by the deteriorating business conditions of the national wholesale electricity market in which it operates. Back in June, AGL told the markets that it now expects its FY2021 numbers to come in at the lower end of its previous guidance range ($1.58 billion–1.84 billion). It told investors to expect a “material step-down in earnings” over FY2022 as well. That was due to “the lower wholesale electricity prices of the last 2 years now being realised”.

About the AGL share price

No doubt AGL’s shareholders will be hoping for some better news this Thursday. At the current AGL share price, the company has a market capitalisation of $4.64 billion and a trailing dividend yield of 11.07%.

The post What can we learn from the AGL Energy (ASX:AGL) share price history? appeared first on The Motley Fool Australia.

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• It hasn’t been a great week for the AGL (ASX:AGL) share price
• The AGL (ASX:AGL) share price just hit its lowest point in 17 years
• The AGL (ASX:AGL) share price is down 60% in 5 years. But have the dividends paid off?

Motley Fool contributor Sebastian Bowen 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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