The AGL (ASX:AGL) share price is down 16% in a month. Here’s why

The company’s shares can’t seem to catch a break.
The post The AGL (ASX:AGL) share price is down 16% in a month. Here’s why appeared first on The Motley Fool Australia. –

The AGL Energy Limited (ASX: AGL) share price has fallen from grace, reaching an all-time low of $6.22 yesterday. This is a stark contrast from when its shares were trading around the $27 mark in April 2017.

Ever since COVID-19, the company has been severely impacted by several downgraded earnings estimates.

At Monday’s market close, AGL shares finished the day slightly up 0.47% to $6.44.

What’s dragging AGL shares lower lately?

There are a few catalysts as to why the AGL share price has tumbled lower over the past month.

First and foremost, AGL released its full year results in mid-August, recording significant losses across the board.

The company acknowledged that it’s struggling with the current conditions of the national electricity market as well as unstable electricity prices. This led to a sharp downturn in wholesale prices for electricity and renewable energy certificates.

Adding to the strain, AGL’s soon-to-close Liddell coal-fired power station faced temporary closures this year. An injured worker and the outage of Liddell Unit 2 forced AGL to shut down operations.

The company plans to transform the site with a hydro and solar energy facility following Liddell’s ceased operations in 2023.

AGL has since proposed to split into two separate energy businesses following a catastrophic 12 months.

The first, New AGL, will focus on delivering electricity, gas, internet, and mobile services to Australian households, emerging as a zero-carbon electricity supplier. And the other business, PrimeCo, will be centred on becoming Australia’s largest electricity generator.

AGL previously noted that it is shifting towards more environmentally friendly options.

AGL share price summary

It has been a disastrous 4 years for AGL shareholders, having lost around 75% of their portfolio value. The company’s share price is down almost 60% in the past 12 months alone, with no end in sight.

It’s anyone guess if and when the AGL share price will stage a recovery and recoup its worth.

On valuation grounds, AGL commands market capitalisation of around $4 billion, with 623 million shares on its registry.

The post The AGL (ASX:AGL) share price is down 16% in a month. Here’s why appeared first on The Motley Fool Australia.

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

Before you consider AGL, 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 AGL 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

AGL Energy (ASX:AGL) share price hits 19-year low
ASX quarterly rebalance: A2 Milk dumped from ASX 50, Nuix kicked out of ASX 200

The AGL (ASX:AGL) share price is now trading on a forecast 11.7% dividend yield
These ASX 200 dividend shares slashed their payouts in August

AGL Energy (ASX:AGL) hits record low, slides a further 12% in August

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 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!