Insights

The AGL (ASX:AGL) share price just hit its lowest point in 17 years

It’s been a red day for gas and energy provider.
The post The AGL (ASX:AGL) share price just hit its lowest point in 17 years appeared first on The Motley Fool Australia. –

The AGL Energy Limited (ASX: AGL) share price is having a bearish run lately.

At market close, the energy generator’s share price is down 2.95%, trading at $7.23. Early it hit an intraday (and 17 year!) low of $7.15.

While the company has not made any price-sensitive announcements for a month, there have been a couple of news events that may have affected AGL shares.

Let’s take a closer look.

The AGL share price is down in the dumps

One explanation for AGL’s devastating day could be spillover from competitor Origin Energy Ltd‘s (ASX: ORG) market update.

Origin shares are trading 7.4% lower presently to $4.13 each. The spark for this fall was a bleak outlook Origin gave the market this morning. The company expects underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) for FY22 to “materially fall” to somewhere between $450 million and $600 million.

Origin CEO, Frank Calabria, said

FY2022 presents challenges for the Energy Markets business, and we are responding by targeting significant capital and operating cost savings, including from the introduction of the Kraken platform and new low cost and more efficient retail operating model, with customer migrations to the new platform continuing to progress very well.

As Mr Calabria’s comments on Origin’s challenges refer to the whole sector, not just his company, investors may be extrapolating his comments to AGL. This could explain the downturn in the AGL share price.

Other developments

Last month, along with a demerger announcement, AGL declared its expected EBITDA to come in at the low end of a previously announced guidance of $1.6 billion to $1.8 billion. It also said it would suspend its special dividend program of paying 25% of underlying profits for the next 2 years.

AGL shares are down 11.4% this month.

Also, brokers at Credit Suisse recently downgraded their AGL share price outlook to $6.70 while retaining an underperform rating.

AGL share price snapshot

Over the past 12 months, the AGL share price has decreased 57.6%. Year-to-date it is down 40.8% and over the last 5 years it’s 64.8% lower.

AGL Energy has a market capitalisation of $4.6 billion.

The post The AGL (ASX:AGL) share price just hit its lowest point in 17 years 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 May 24th 2021

More reading

Why A2 Milk, Marley Spoon, Origin, & Sezzle shares are tumbling lower

Here are 3 heavily traded ASX 200 shares on the markets today

The AGL (ASX:AGL) share price is down 60% in 5 years. But have the dividends paid off?
ASX 200 midday update: NAB’s $2.5bn buyback, Origin shares sink

Origin (ASX:ORG) share price crashes 8% on $2.2bn charge and FY 2022 guidance

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!