Insights

Here’s what has been moving the IAG (ASX:IAG) share price in September 2021

The company’s shares are having a tough month…
The post Here’s what has been moving the IAG (ASX:IAG) share price in September 2021 appeared first on The Motley Fool Australia. –

The Insurance Australia Group Ltd (ASX: IAG) share price may be flat today, but that hasn’t been the case for September. The insurance giant has encountered some heavy selling of its shares, falling the past 6 consecutive trading days.

At the time of writing, IAG shares remain unchanged at $5 apiece. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.08% to 7,242 points.

What’s affecting the IAG share price

There are two main catalysts that have been weighing down the IAG shares this month.

The first is the broader market weakness on the ASX 200, which has fallen almost 4% in the last 3 weeks. Yesterday, the index plunged to its biggest one-day fall in more than 6 months, shedding 2.1%.

This had a knock-on effect for IAG shares, dropping 0.99% on Monday to a monthly low of $5.

Rising COVID-19 cases in Australia, along with the iron ore rout impacting the economy are being blamed for the fall. Furthermore, overseas losses are being felt as investors eagerly await the United States’ Federal Reserve policy meeting later this week.

While the macro factors appear to unsettle IAG shareholders, the company has been facing its own internal issues.

IAG recently announced that CMC Hospitality filed an application starting a representative proceeding in the Federal Court.

The company said it has not been served with the application and isn’t aware of the detailed nature of the application. Although, it appears to relate to insureds who hold policies with CGU and business interruption losses related to COVID-19.

In addition, IAG’s chief risk officer, David Watts announced his resignation from the company. No reason was given for the departure, and Mr Watts will leave the company sometime in the new calendar year.

IAG will conduct an executive search to replace its chief risk officer.

IAG share price summary

Despite being significantly lower this month, IAG shares are posting a 10% gain since this time last year. However, when looking at the last 2 years, its shares are down almost 40%.

Based on today’s price, IAG presides a market capitalisation of roughly $12.3 billion and has approximately 2.4 billion shares outstanding.

The post Here’s what has been moving the IAG (ASX:IAG) share price in September 2021 appeared first on The Motley Fool Australia.

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

Before you consider IAG, 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 IAG 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

Why this broker sees the IAG (ASX:IAG) share price gaining 12%
The next ASX 200 shares that could undertake a big capital return

Why the IAG (ASX:IAG) share price is down 5% in 7 days
Why experts have high hopes for the IAG (ASX:IAG) share price
Is the IAG (ASX:IAG) share price bouncing back in September?

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 owns shares of and has recommended Insurance Australia Group Limited. 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!