Insights

The Boral (ASX:BLD) share price is down 7% in a month. Here’s why

Boral shares continue their descent over the last month.
The post The Boral (ASX:BLD) share price is down 7% in a month. Here’s why appeared first on The Motley Fool Australia. –

The Boral Limited (ASX: BLD) share price has faced headwinds over the last month as the dust settles on its takeover from Seven Group.

Whereas the S&P/ASX 200 index (ASX: XJO) has posted a return of 2% over the last month, Boral shares have slipped 7% into the red.

Here we uncover the headwinds Boral shares have faced of late.

Seven Group acquisition offer

Recall that back in May, Seven Group Holdings Ltd (ASX: SVW) put forward a $6.50 per share offer to acquire all of the Boral shares it didn’t own. At the time, the deal was worth $8 billion.

After the original offer was rejected, Seven came back to revise its all cash offer to $7.30 per share.

Moreover, Seven confirmed it had increased its stake to 52.65% of Boral’s outstanding shares in mid July. It announced it had gained full voting rights a day later.

Then, Boral announced the divestment of its Australian timber business for $64.5 million, which sent its shares edging lower.

Following this, Seven’s takeover bid finished on 29 July where it was left holding around 69.5% of the construction company’s voting power.

Seven Group CEO Ryan Stokes immediately took over as chair of Boral’s board the following morning. Afterwards, shares went creeping further into the red.

Ever since Seven Group gained control on 29 July, Boral shares have cratered 7.4% into the red. Therefore, it stands to reason that selling pressure on the Boral share price may be influenced by this major event, as there is no other news for the company.

Boral share price snapshot

Despite the calamity over the last month, Boral shares have displayed strength on the charts this year to date.

The Boral share price has posted a gain of 38% since January 1, extending the previous 12 month’s return of 84%.

These results have outpaced the broad index’s climb of around 25% over the past year.

The post The Boral (ASX:BLD) share price is down 7% in a month. Here’s why appeared first on The Motley Fool Australia.

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

Before you consider Boral, 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 Boral 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

Here’s why the Boral (ASX:BLD) share price is falling today
Boral (ASX:BLD) share price falls as Seven wins takeover and outs chair
Boral (ASX:BLD) share price struggles as Seven waits to take over
Boral (ASX:BLD) share price edges lower on divestment news
These ASX 200 CEOs have the most wealth tied up in their companies

The author Zach Bristow has no positions 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!