Insights

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

AGL’s shares have been charging higher recently…
The post The AGL (ASX:AGL) share price is up 16% in a month. Here’s why: appeared first on The Motley Fool Australia. –

The AGL Energy Limited (ASX: AGL) share price may be trading lower on Wednesday but that hasn’t taken the shine off its impressive recent run.

Since this time last month, the energy company’s shares have risen over 16% to $6.08.

Though, it is worth noting that the AGL share price remains down by 50% in 2021.

Why is the AGL share price up 16% in a month?

There have been a couple of catalysts for the rise in the AGL share price this month.

One relates to its short interest levels. In recent weeks short sellers have been closing their positions. According to data from ASIC, just 1.48% of the company’s shares are now held by short sellers.

This is a huge improvement from recent levels. For example, at the end of November just under 5% of its shares were being shorted. This itself was down from over 7% in late September.

This could be a sign that short sellers believe the AGL share price has bottomed now and its outlook is improving.

One broker that appears to believe that is the case is Ord Minnett. Last month its analysts put a buy rating and $7.55 price target on its shares. Based on the current AGL share price, this implies potential upside of 24% over the next 12 months.

The broker believes there’s a lot of value in its shares at the current level. In fact, its analysts estimate that its shares are trading below the value of just its retail business. In addition, Ord Minnett notes that there’s potential for this side of the business to become a takeover target.

In respect to the latter, there have been suggestions that Telstra Corporation Ltd (ASX: TLS) could be a potential suitor. Particularly given its recent entry into the energy market and aim of becoming a top five energy retailer with 0.5 million+ customers by 2025.

If an offer emerges, it could make 2022 an interesting year for AGL’s shares.

The post The AGL (ASX:AGL) share price is up 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

Could 2022 be a good year for the AGL (ASX:AGL) share price?

Could the worst be over for the AGL (ASX:AGL) share price?

Experts tip 2 beaten up ASX shares for gains in 2022

Why did the AGL share price outperform the ASX 200 today?

AGL (ASX:AGL) share price climbs amid Fortescue Hydrogen partnership news

Motley Fool contributor James Mickleboro 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 and has recommended Telstra Corporation 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!