Why the Boral (ASX:BLD) share price is down 17% in a month

The building products and construction materials company has faced a number of recent headwinds.
The post Why the Boral (ASX:BLD) share price is down 17% in a month appeared first on The Motley Fool Australia. –

The Boral Ltd (ASX: BLD) share price finished the day down 2.17% on Wednesday, at $5.86 per share.

While the building products and construction materials company eked out a 0.7% gain yesterday, the Boral share price remains down 17% over the past month.

Below, we take a look at some of the recent headwinds buffeting the company.

What headwinds has Boral faced recently?

Boral’s share price looks to have come under some pressure with S&P Dow Jones Indices’ pending changes to the S&P/ASX Indices.

That will see Boral exit the ASX 100 Index, replaced by Virgin Money UK (ASX: VUK). While that won’t directly impact retail investors or even many institutional funds, some of the largest fund managers are limited to investing in the ASX 100 pool. This means Boral may now be off their radar.

The changes, part of the September quarterly review, come into effect on 20 September, before the opening bell.

Boral’s share price may also have been negatively impacted by its 2021 financial year results, released on 24 August. The results were largely short of analyst expectations, with revenue from continuing operations decreasing 6% year-on-year to $2.92 billion.

The company also did not declare a final dividend and said that lockdowns will impact its quarterly performance by roughly $50 million.

Going back a few weeks earlier, the Seven Group Holdings Ltd (ASX: SVW) takeover bid rounded off on 29 July.

Seven Group now holds 69.5% of Boral’s shares, giving it majority voting rights. This saw the quick ousting of the company’s previous Board chair Katheryn Fagg, who was replaced by Seven Group’s CEO Ryan Stokes.

Boral share price snapshot

Up until the end of July, the Boral share price was enjoying a strong run. On 26 July the company was trading at multi-year highs of $7.41 per share. You have to go back to 20 April 2018 to find the Boral share price trading any higher than that.

Since that high, shares have retraced 21%.

Year-to-date, the company remains up 18%. That compares to a 12% gain posted by the S&P/ASX 200 Index (ASX: XJO) so far in 2021.

The post Why the Boral (ASX:BLD) share price is down 17% in a month 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

These were the worst performing ASX 200 shares in August

Brokers think these 2 top ASX shares are buys in September 2021

The ASX reporting wrap-up: WiseTech, Bravura, Seven Group

Seven Group (ASX:SVW) share price drops on FY21 earnings
Boral (ASX:BLD) share price on watch as revenue falls

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!