Why is the A2 Milk share price rising so dramatically today?
The post Why the A2 Milk (ASX:A2M) share price is up more than 3% today appeared first on The Motley Fool Australia. –
The S&P/ASX 200 Index (ASX: XJO) is having a decent day on the markets today. At the time of writing, the ASX 200 is currently up 0.65% to 7,309 points. One ASX 200 share that’s pulling more than its weight today is the A2 Milk Company Ltd (ASX: A2M) share price. A2 Milk shares are presently up a very robust 4.19% to $6.97 a share.
This latest gain is just another positive move in what has been a top month or two. Remember, A2 shares hit a multi-year low of $5.04 back in mid-May. After today’s move, the company is now up more than 35% from those lows. In saying that, the company is still very much in the red if we zoom out further than that. This time last year, A2 was a $20 share, and is still down almost 65% from those highs today.
A2 Milk share price recovers further
But that’s too depressing to discuss any further! So what’s going on with A2 Milk today that might prompt such a decisive move upwards? Well, it’s not due to any company announcements or updates today, so let’s take that out of the equation. A2 hasn’t given investors any news since its Monday announcement that the New Zealand Overseas Investment Office had given the green light for the company’s proposed acquisition of a 75% interest in Mataura Valley Milk. But it might be this announcement that is continuing to see investors hit the buy button on A2 shares. After all, the A2 share price is up 5.7% since Monday morning.
But we’ve also seen A2 getting some love from brokers and fund managers as well in recent days. Just yesterday, my Fool colleague Tony reported on how Watermark Funds Management chief investment officer Justin Braitling singled out A2 shares as “a strong buy”. And last week, my Fool colleague James looked at Bell Potter’s latest ‘buy’ recommendation for A2, complete with a 12-month price target of $8.50. This may also be contributing to A2 shares’ success today.
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Motley Fool contributor Sebastian Bowen owns shares in A2 Milk. 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 recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.