The lithium giant’s shares have fallen from grace in recent times.
The post Why has the Allkem share price tumbled 30% from its May all-time high? appeared first on The Motley Fool Australia. –
TheÂ Allkem LtdÂ (ASX: AKE) share price has been under severe selling pressure since the end of May.
After reaching an all-time high of $14.38 on 30 May, the lithium mining company’s shares are now fetching $10.15. This represents a fall of almost 30% in just three weeks.
Let’s take a look at what has happened recently with Allkem.
Allkem shares momentarily power off
Despite the company releasing aÂ positive updateÂ earlier this month, investors have continued to offload Allkem shares.
On 6 June, the company announced strong conditions in the battery metals market, leading to increased lithium carbonate and spodumene concentrate prices.
However, negative sentiment across the industry brought on by a weakened near-term outlook for lithium has weighed down the Allkem share price.
The broker noted that fundamental mispricing has generated an outsized supply response well ahead of demand.
Because of this, Goldman Sachs forecasts a lithium price correction to as low as US$16,000 per tonne in 2023.
Currently, the going rate for lithium carbonate per tonne is around US$71,400.
When the report came out on 1 June, Allkem shares tanked 15% on the day.
And since then, its shares have recorded just four days in the green out of the last 14 trading days.
While theÂ industry pushed backÂ after Goldman Sachs’ report, no one knows exactly where the price of lithium will be next year.
Allkem share price snapshot
Despite coming off a horrid run, the Allkem share price has surged by 70% over the past 12 months.
However, looking at year to date, the company’s shares are relatively flat for the period, down around 2%.
Allkem commands a market capitalisation of approximately $6.25 billion.
The post Why has the Allkem share price tumbled 30% from its May all-time high? appeared first on The Motley Fool Australia.
Before you consider Allkem Limited, 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 Allkem Limited wasn’t one of them.
The online investing service heâs run for over 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.
See The 5 Stocks
*Returns as of January 13th 2022
setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
Leading brokers name 3 ASX shares to buy today
Top broker names 4 ASX lithium stocks to buy now
Top broker tips Allkem share price to jump 80%
Mineral Monday: What you need to know about lithium and which ASX shares are cashing in on it
5 things to watch on the ASX 200 on Monday
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 Scott Phillips.