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?

| More on:
white arrow pointing down

Image source: Getty Images

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 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.

Motley Fool contributor Sebastian Bowen 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.

More on Share Fallers

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

The worst 3 ASX 200 stocks to buy and hold in October unmasked

You would have done well to avoid these three ASX 200 stocks in October.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why AFT, Amcor, Corporate Travel, and Macquarie shares are falling today

These shares are ending the week in the red. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why AGL, Imugene, Star, and Woolworths shares are dropping today

These shares are dropping on Thursday. Let's see why investors are selling them.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Fallers

Why Corporate Travel Management, JB Hi-Fi, Mineral Resources, and Syrah shares are rising

These shares are having a strong session. Why are investors buying their shares?

Read more »

A guys points his fingers down.
Share Fallers

Why Brainchip, Cettire, Star, and Woolworths shares are being sold off today

These shares are having a difficult time on hump day. But why?

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Black Cat, BlueScope, Cettire, and Coronado shares are falling today

These shares are missing out on the good times on Tuesday. But why?

Read more »

a business man in a suit holds his hand over his eyes as he bows his head in a defeated post suggesting regret and remorse.
Share Fallers

Why Adriatic Metals, Metcash, Paladin Energy, and Westgold shares are tumbling today

These shares are starting the week in the red. But why?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Down 36% in 3 weeks, why is the Mineral Resources share price getting hammered again on Friday?

ASX investors are bidding down Mineral Resources shares again on Friday.

Read more »