Insights

Why is the AMP (ASX:AMP) share price falling again today?

The AMP share price is near its all-time low. So what’s going on?
The post Why is the AMP (ASX:AMP) share price falling again today? appeared first on The Motley Fool Australia. –

The AMP Ltd (ASX: AMP) share price continues to go from bad to worse. AMP shares are down a nasty 4% today to $1.08 a share. This puts the embattled wealth manager just a hair above the all-time low of $1.05 a share it reached last week. It also gives up the gains that AMP saw last Friday when the company rose by close to 4%.

This move actually makes AMP one of the worst-performing S&P/ASX 200 Index (INDEXASX: XJO) shares on the market today. Even the ASX 200 is having a day in the green, currently up 0.2% to 7,047 points today.

So what’s going on with AMP?

A disastrous three years

Things have been going downhill for AMP for just over three years now. Ever since the Banking Royal Commission held in 2018, AMP shares have been under pressure. As you might remember, the Royal Commission uncovered systemic misconduct by AMP, including the infamous fees-for-no-service scandal. The company’s plans to right the ship have undergone setback after setback. This resulted in AMP’s post-Royal Commission CEO Francesco de Ferrari resigning from AMP earlier this year.

AMP did manage to orchestrate the sale of its AMP Life division last year. It also successfully offloaded its AMP Capital arm last month. But it wasn’t enough to stop a shareholder revolt at its annual general meeting a few days later, narrowly avoiding a second strike on its remuneration report.

Which brings us to today. Right now, AMP shares are at their lowest levels ever. And that’s saying something for a company that has been listed for more than two decades. The shares are now around 80% below where they were in February 2018, and 92% below where they were at AMP’s ASX listing back in 1999.

So why is the AMP share price falling again today?

It’s not exactly clear why the AMP share price is once again coming under pressure. There are no major news or announcements out of the company that might result in investors hitting the sell button.

AMP has even commenced a share buyback program as of 10 May. This should, in theory, be supporting higher AMP share prices, since share buybacks take shares off the market. And this has been happening with gusto. Just today AMP released a market announcement detailing how it purchased $4.5 million worth of shares last week.

So perhaps today’s share price moves are the result of a large institutional investor exiting an AMP position. Or perhaps a broker issuing a sell recommendation. Though it’s not clear yet, what we do know is that today’s move was probably not what investors were hoping for after Friday’s share price bump. At the current share price, AMP Limited has a market capitalisation of $3.7 billion.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 2021

More reading

Are ASX 200 iron ore shares in for a rough ride?

How to tell if an ASX 200 share is risky

Morgans picks small cap ASX shares with near-term share price catalysts

Expert says buy these ASX expensive defensives as market momentum is peaking

ASX 200 up 0.1%: Aristocrat results, Zip’s global expansion continues

The post Why is the AMP (ASX:AMP) share price falling again today? appeared first on The Motley Fool Australia.

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
Trade The US Market With ZERO Brokerage* + FREE Access To Trading Ideas & Value Analysis Tools. Click Here!