Insights

Ansell (ASX:ANN) share price hits a new 52-week low today

Could Australia’s reopening be weighing on the Ansell share price?
The post Ansell (ASX:ANN) share price hits a new 52-week low today appeared first on The Motley Fool Australia. –

The Ansell Limited (ASX: ANN) share price has slipped to a new 52-week low today. Unfortunately for shareholders, this deepens Ansell’s fall from grace. It was only four months ago when the health and safety protection solutions company hit a 52-week high of $44.07.

At the end of Monday’s session, shares in the company finished at $31.30, down 1.07% from their previous close. This means the Ansell share price is now down approximately 29% from its 52-week high milestone.

Let’s have a closer look at what has been happening at the $4.1 billion company.

Going out of fashion

It is perplexing to think a company that delivered strong revenue and earnings growth in its FY21 full-year results is suffering a share price decline. However, that is exactly the case for personal protection equipment (PPE) manufacturer, Ansell.

In August, the company posted a 25.6% increase in sales to US$2 billion. Meanwhile, net profit after tax (NPAT) jumped a staggering 57% year-over-year to US$338 million. Certainly not bad growth for a healthcare company that is 92 years old.

However, the growth story was largely a beneficiary of the COVID-19 pandemic, which created a surge in demand for PPE across the globe. Now, as vaccination rates reach re-opening levels, investors are worried the tailwind might be reversing. Hence, the market is applying downwards pressure to the Ansell share price.

This daily infographic provides the total number of vaccine doses administered in Australia as of 24 October 2021

Stay up to date with COVID-19 vaccine information here: https://t.co/lsM33j9wMW pic.twitter.com/7qcW7ymFgK

— Australian Government Department of Health (@healthgovau) October 25, 2021

As we recently covered, analysts from Macquarie have shared this perspective in its latest broker note. Essentially, the broker foresees a softening in demand for PPE. Consequently, Ansell is predicted to have difficulty raising prices to offset increasing costs being observed with inflation.

As a result, Macquarie suspects the company might fall short of earnings estimates for FY2022. In response, the broker has applied an underperform rating on the company with a $32 share price target for Ansell.

Ansell share price recap

Although Australia is only now beginning to emerge from its broad lockdowns and restrictions, the Ansell share price has been falling since June. Meanwhile, over the past 12 months, the company’s shares have sunk 23% in value. In contrast, the S&P/ASX 200 Index (ASX: XJO) has gained 20.9% during that time.

Having said all that, it is worth mentioning that Ansell is currently trading on a trailing 12-month price-to-earnings (P/E) ratio of 12.6 times. Likewise, the company is boasting a 3.2% dividend yield.

The post Ansell (ASX:ANN) share price hits a new 52-week low today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Ansell right now?

Before you consider Ansell, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Ansell wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Leading brokers name 3 ASX shares to sell today

Why Ansell, Predictive Discovery, Strike Energy, & Zip shares are sinking

Why the Ansell (ASX: ANN) share price is crashing today

ASX 200 (ASX:XJO) midday update: Westpac’s $1.3bn earnings hit, Ansell sinks

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 Ansell Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!