Is Perpetual a takeover target?

The Perpetual Ltd (ASX: PPT) share price is up 12% on no public news.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Perpetual Ltd (ASX: PPT) share price is up 12.9% to $43.45 today, despite the international equities manager releasing no specific news to the market.

Even after today's rise the Perpetual share price is still down 16% over the past year, although a double-digit rise like today's on the back of no public news is very unusual.

One possibility is that a sell side broker has upgraded its rating on the stock, although that is unlikely to lead to such a large share price move.

The traded volume in the stock has also been heavy today at around $47 million at 15.45pm, which is more than 4x the daily average to suggest the move is either the result of bargain hunting by institutional investors, or speculators are buying up the stock on the back of rumours or tip offs around a potential takeover or asset sale.

In the past Perpetual has been rumoured to be a takeover target for the likes of Janus Henderson Group (ASX: JHG) or other larger asset mangers, while its two non-core operating divisions of Perpetual Private and Corporate Trust have also regularly been labelled potential spin offs. Divesting either or both these businesses could make sense for Perpetual if it was serious about simplifying and improving its core asset management business.

I wouldn't rate Perpetual as an investment grade business for dozens of reasons and you only have to look to its share price history to see how the stock has gone nowhere in 18 years since 2001. This despite the tailwinds of compulsory superannuation and generally rising equity markets.

That's not to say it won't attract a suitor for all or parts of its business.

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. You can find Tom on Twitter @tommyr345 The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Happy teen friends jumping in front of a wall.
Share Gainers

Guess which 4 ASX 200 shares are rocking new 52-week highs today!

Investors just sent these four ASX 200 shares to one-year-plus highs.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Evolution Mining, Orthocell, Platinum, and Turaco shares are charging higher

These shares are having a better day that most on Thursday.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing hump day session for the ASX today.

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX managed to bank a small rise this Tuesday.

Read more »

Sport trainer talking to little girl who is climbing wooden ladder in gym.
Share Gainers

Why Vault Minerals, Droneshield, Westgold Resources shares are climbing higher today

These shares are gaining on Tuesday, but why?

Read more »

A young woman smiles as she rides a zip line high above the trees.
Financial Shares

5 best ASX 200 financial shares of FY25 (CBA didn't make the cut!)

These stocks were well and truly 'in the black' for share price growth last financial year.

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
Share Gainers

Why Amaero, Black Cat, Domino's, and Ramelius shares are racing higher today

These shares are having a good session on Tuesday. But why?

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough start to the trading week for investors this Monday.

Read more »