The Metcash share price was charging today. Say hello to a new 15-year high…
The post Here’s why the Metcash share price just hit a 15-year high appeared first on The Motley Fool Australia. –
This Tuesday has given ASX investors a bit of a wild ride. The S&P/ASX 200 Index (ASX: XJO) finished down 0.42% at just over 7,320 points after multiple stints in both positive and negative territory today. But it has been a far happier day for the Metcash Limited (ASX: MTS) share price.
Metcash shares closed 0.84% higher at $4.82 a share. But earlier in the trading day, Metcash rose as high as $4.90 a share. That was a new 52-week high for the company, as well as representing the highest level Metcash shares have been since 2007, before the onset of the global financial crisis.
The operator of the IGA chain of supermarkets, as well as hardware chain Mitre 10, has been on a tear for a while now. The Metcash share price is up 7% over 2022 thus far, healthily outperforming the ASX 200 Index. The company has also seen a gain of almost 36% over the past 12 months, and more than 120% over the past five years.
So what had investors flocking to Metcash shares today?
Why is the Metcash share price at a 15-year high?
Well, it’s possible that it could be a result of the announcement Metcash made this morning. The company told investors it has entered into a supply agreement with Australian United Retailers. This will see Metcash “supply its national network of supermarkets and convenience stores, including its FoodWorks bannered supermarkets, for a further five-year period, commencing 1 July 2022”.
This gives Metcash and its investors some significant certainty, seeing as the company had been supplying Australian United Retailers’ 540-plus stores around Australia on a rolling 12-month contract basis since 2019.
But this latest piece of news isn’t the only tailwind Metcash shares have been enjoying of late. As we’ve covered numerous times, Metcash has been the recipient of some love from more than one ASX broker over the past few months. Last month, my Fool colleague Tristan covered the buy ratings of both Macquarie and Credit Suisse on Metcash shares.
So it could be a combination of these factors that have led Metcash shares to the levels we saw today. No doubt the company has some happy shareholders right now.
The post Here’s why the Metcash share price just hit a 15-year high appeared first on The Motley Fool Australia.
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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 Scott Phillips.