The BHP Group Ltd (ASX: BHP) share price has come under significant pressure on Thursday morning.
In early trade, the mining giant's shares are down 7% to $41.71.
This means BHP's shares are now down 21% since this time last month.
Image source: Getty Images
Why is the BHP share price sinking today?
There are a couple of reasons why the BHP share price is underperforming today.
One of those is further weakness in the iron ore price after curtailed steel production in China hit demand for the base metal.
According to CommSec, the spot iron ore price fell 5.9% or US$9.05 overnight to US$143.55 a tonne.
It is for this reason that the shares of fellow mining giant Rio Tinto Limited (ASX: RIO) are trading lower today.
What else is weighing on its shares?
But arguably the biggest weight on the BHP share price today is the fact that it is trading ex-dividend this morning.
This means that the company's shares are now trading without the rights to its upcoming dividend. As a result, new buyers of BHP shares will not be entitled to this dividend and its share price has fallen to reflect this.
Eligible BHP shareholders can look forward to receiving the Big Australian's record fully franked final dividend of 273.6 cents per share later this month on 21 September.
Is this a buying opportunity?
One leading broker that sees a lot of value in the company's shares at the current level is Macquarie.
In the middle of last month, the broker retained its outperform rating but trimmed its price target slightly to $58.00.
Based on the latest BHP share price, this implies potential upside of 39% over the next 12 months. Macquarie is also forecasting generous dividends in FY 2022 and FY 2023.
