Magellan (ASX:MFG) share price flops as fresh talk of turmoil at the top emerges

Here’s what might be weighing on the Magellan share price on Wednesday.
The post Magellan (ASX:MFG) share price flops as fresh talk of turmoil at the top emerges appeared first on The Motley Fool Australia. –

The Magellan Financial Group Ltd (ASX: MFG) share price is slipping amid reports of a rift among the company’s management and potential class actions.

The claims of clashing management follow from the resignation of the fund manager’s long-term CEO, Dr Brett Cairns earlier this month. Of course, fallout rumours are likely the least of the company’s worries.

As my Foolish colleague, Michell Lawler reported yesterday, $1.8 billion was dropped from its market capitalisation on Monday following the loss of a major client.

That could lead to even more pain for Magellan in the future, according to some publications.

At the time of writing, the Magellan share price is $20.09, 2.29% lower than its previous close.

Let’s take a look at what’s being reported on the now-embattled company.

Magellan share price sliding again on Wednesday

The Magellan share price is sliding once more this morning, ditching some of yesterday’s much-needed gains.

The dip comes amid reports from The Australian claiming the company’s board was concerned by its former CEO’s management style prior to his departure.

Additionally, the publication states there may have been a fallout between Cairns and Magellan chair and founder, Hamish Douglass. The company reportedly denied the assertions.

It also flagged the potential financial effect of Douglass’ separation from wife, Alexandra.

The Australian noted it could cause “a liquidity event” for the company. That’s despite the pair stating they have no intention to sell their shares in the company.

On top of that, after the market closed yesterday, The Age reported class actions might soon come the company’s way.

It stated lawyers from class action specialist firms Phi Finney McDonald and Quinn Emanual were eying recent goings-on at Magellan.

The Age quoted Phi Finney McDonald principal lawyer, Tim Finney as saying:

[C]ertainly given the allegations of inconsistent disclosures, combined with the price reaction, it is certainly a matter that could well result in a securities class action in my view.

Today’s dip sees the Magellan share price 62% lower than it was at the start of 2021.

It has tumbled 41% this week alone.

The post Magellan (ASX:MFG) share price flops as fresh talk of turmoil at the top emerges appeared first on The Motley Fool Australia.

Should you invest $1,000 in Magellan Financial Group right now?

Before you consider Magellan Financial Group, 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 Magellan Financial Group 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

Is it a sell? Why is Morgans saying ‘avoid’ the Magellan (ASX:MFG) share price?

Why Australian Clinical Labs, Magellan, Sandfire, and Telix shares are rising

ASX 200 (ASX:XJO) midday update: Magellan rebounds, Pilbara Minerals sinks

Magellan (ASX:MFG) shares just lost $1.8b of market cap. What now?

Why Audio Pixels, CIMIC, Magellan, and St Barbara shares are tumbling

Motley Fool contributor Brooke Cooper 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.

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!