The Olympics might be over, but that’s not stopping the Macquarie share price from setting its own record today…
The post The Macquarie (ASX:MQG) share price is up 5% in a week. Here’s why appeared first on The Motley Fool Australia. –
The Macquarie Group Ltd (ASX: MQG) share price is setting new records on Thursday as the $60.28 billion banking beast notches up a new all-time high.
At the time of writing, shares in the company are trading for $163.40, up 2.15%. However, the newly minted all-time high of $163.65 was set earlier in the session.
What’s been happening with Macquarie?
While the other banks are reporting earnings, Macquarie dished out its full-year results back in May. For a quick recap, the investment-focused bank delivered a 4% increase in net operating income year-over-year to $12,774 million. Pleasingly, earnings per share (EPS) grew by 7% to $8.43 per share compared to the prior year.
According to the company’s investor relations page, the next item on the financial calendar is Macquarie’s FY22 half-year results on 29 October 2021. That’s a while away yet… so, what is closer to the present to explain the recent push in the Macquarie share price?
Firstly, the investment bank’s latest bank capital note offering (BCN3) opened to investors yesterday. This will be an exchange-tradeable unsecured debt offering from Macquarie used to raise $500 million. The bank wants to use these funds as a buffer to protect senior creditors against losses. Additionally, the net proceeds of the offer will be used for general corporate purposes.
A positive for Macquarie is the payout for this debt instrument has been set relatively low at 2.9% per annum. As a result, the funds from this sure-up the investment bank’s balance sheet at a reasonably low cost.
Positive rating on Macquare share price
Another positive for the Macquarie share price is broker sentiment. As my Foolish colleague James covered last week, the analysts over at Morgans find the investment bank appealing.
The leading broker is attracted to Macquarie’s potential backed by exposure to infrastructure and renewables. Lastly, Morgans analysts have an ‘add’ rating and a $172.30 price target on the Macquarie share price.
Should you invest $1,000 in Macquarie Group right now?
Before you consider Macquarie 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 Macquarie 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 May 24th 2021
If you invested $1,000 in Macquarie (ASX:MQG) shares a decade ago, here’s what it would be worth now
ASX 200 Weekly Wrap: Blockbuster Afterpay deal turbocharges ASX to new record highs
Motley Fool contributor Mitchell Lawler owns shares of Macquarie Group Limited. 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 shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.