Insights

Here’s why the Medibank (ASX:MPL) share price jumped 7% in a month

Medibank shares have been an ASX winner over the last month.
The post Here’s why the Medibank (ASX:MPL) share price jumped 7% in a month appeared first on The Motley Fool Australia. –

The Medibank Private Ltd (ASX: MPL) share price has climbed well into the green over the past few weeks.

Whereas the S&P/ASX 200 Index (ASX: XJO) is down 0.13% over the last month, Medibank shares have gained a further 7% over this time.

Let’s uncover what’s behind these gains.

What tailwinds are behind the Medibank share price?

The Medibank share price has been on a strong run over the last month. Although, there hasn’t really been a great deal of market-sensitive information during this time.

However, looking at the chart, Medibank shares have been trading in an ascending channel since March this year, climbing 20% this year to date.

Medibank Private share price, long-term trend: March-September 6 2021

Source: The Motley Fool

This momentum has been carried through the month of August until today and seems to be fuelled by several drivers in the company’s growth engine.

For starters, Medibank completed the acquisition of Myhealth Medical Group back in February. Then it released its half-year results for FY21 where it recognised a 27% increase in net profit after tax (NPAT) from the year prior.

In June, Medibank then announced it would return approximately $105 million to customers impacted by COVID-19. As per the company, the payment would cover around 2 million accounts.

As such, the company’s total COVID-19 support package amounted to $300 million.

Finally, the company released its FY21 results in August, recognising stellar growth over the year.

In its report, Medibank recognised a 40% jump in NPAT to $441 million that stemmed from a 4,900% increase in net investment income.

Consequently, the company increased its full-year dividend to 12.7 cents per share, a year on year increase of around 6%. Shareholders will enjoy this payment with full franking credits.

Based on the sum of these factors, it appears the Medibank share price has climbed higher over the last four weeks as a part of a long-term upward trend that has been sustained over 2021.

From this long-term trend, the Medibank share price is trading near its five year high of $3.67, currently sitting at $3.61 which is up 0.28% on Monday’s closing price.

Medibank Private share price snapshot

The Medibank share price has climbed 42% over the past 12 months after a bumpy start to 2021. In the past week, Medibank shares have walked a further 1.4% into the green.

This return has outpaced the broad index’s gain of around 25% over the past year.

The post Here’s why the Medibank (ASX:MPL) share price jumped 7% in a month appeared first on The Motley Fool Australia.

Should you invest $1,000 in Medibank Private right now?

Before you consider Medibank Private , 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 Medibank Private 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

How does the Medibank (ASX:MPL) earnings result compare to NIB?
Medibank (ASX:MPL) dividend boost as payout ratio reduced
Medibank (ASX:MPL) share price on watch after 40% jump in profit
How did the Medibank (ASX:MPL) share price respond last earnings season?
10 ASX shares we’re overweight in right now: fund

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.

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!