The AGL share price underperformed last month despite the company’s silence.
The post Why was the AGL share price undercooked in July? appeared first on The Motley Fool Australia. –
The AGL Energy Limited (ASX: AGL) share price lifted slightly last month, but not enough to mirror the gains posted by the broader market.
The energy producer and retailerâs stock rose from $8.25 at the end of June to close July trading at $8.38, representing a 1.58% gain over the course of the month.
The S&P/ASX 200 Index (ASX: XJO), on the other hand, surged 5.74% while the S&P/ASX 200 Utilities Index (ASX: XUJ) rose 3.13% in that time.
So, why did the AGL share price lag the ASX 200 and its sector in July? Letâs take a look.
What drove the AGL share price last month?
The reason behind the AGL share priceâs underperformance last month is tough to pinpoint. Particularly as the company has been notably quiet lately.
In fact, the last time the market heard price-sensitive news from AGL was on 30 June.
Then, the energy giant revealed its former suitor Brookfield Asset Management sneakily snapped up a 2.5% stake in the companyâs shares.
Off the market, the company announced it will be investing $40 million over five years into the Clover hydro power station, part of the Kiewa Hydro Scheme, last month.
The money will go towards upgrading the station â a move that will see the scheme’s output increase by 14 megawatts, the equivalent of powering Victoriaâs Alpine region.
Finally, a notable broker revealed its expecting big things from the AGL share price last month.
JP Morgan is said to be bullish on wholesale electricity prices and, as a result, it believes AGL could be a winner.
The broker slapped AGLâs shares with an overweight rating and a $10.60 price target, as my Fool colleague Bronwyn reports.
Morgans also has an add rating and a $9.67 price target on the stock. Â Â
The post Why was the AGL share price undercooked in July? appeared first on The Motley Fool Australia.
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More reading
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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Brooke Cooper 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.
