The Macquarie Group (ASX:MQG) share price smashed its record high on Thursday

Let's take a closer look at what's been a great day for the investment banking company.

| More on:
A boy hold money and dressed in business suit next to money bags on a desk, indicating a dividends windfall

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 Macquarie Group Ltd (ASX: MQG) share price has spent today's session in the green.

In early trade Macquarie shares reached their all time high, touching an intraday high of $168.50 before tracing back down, where they are currently exchanging hands at $167.50 apiece.

In addition, whereas the S&P/ASX 200 index (ASX: XJO) has posted a return of 0.9% over the past month, the Macquarie Group share price is 7% in the green.

What tailwinds are behind the Macquarie Group share price?

Macquarie shares had a strong August, having climbed from a low of $155.61. That signifies an 8% gain from the record high described earlier in this article.

A positive broker note out of investment firm Morgans highlighted Macquarie's exposure to infrastructure and alternatives as a plus for the investment case on Macquarie's shares.

It reiterated its add rating, implying a buying opportunity, and backed this up by assigning a price target of $172.30.

In addition, the bank also issued a capital note offering that is set to inject a further $500 million in liquidity to enhance the company's expansion opportunities. The financing is only costing Macquarie 2.9% per annum, however, the effect on its balance sheet is meaningful.

There is also positive sentiment in the ASX-listed banking basket, which may be lifting the Macquarie share price.

We can see this in two ways. Firstly, the S&P/ASX 200 Banks index (ASX: XBK) is up almost 4% over the month and around 26% over the year. That's well ahead of the broad index.

Then when we look at the Betashares Australian Financials Sector ETF (ASX: QFN) we can see it is up 5% on the month, and also up 23% year to date.

Judging from these two indicators that serve as relevant proxy's to gauge investor sentiment, it appears that the basket of Australian Financials sector shares, including banks like Macquarie, are exhibiting strengths across the board.

There is no market sensitive information for the company of late. Therefore, it stands to reason that investors are pushing the Macquarie Group share price higher on the back of these tailwinds.

Macquarie Group share price snapshot

The Macquarie Group share price has posted a year to date return of 21%, extending the previous 12 month's gain of 31%.

These results have outpaced the broad index's climb of around 25% over the past year.

The author Zach Bristow has no positions in any 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 owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

a man sits back from his laptop computer with both hands behind his head feeling happy to see the Brambles share price moving significantly higher today
Industrials Shares

Up 39% in a year, is there more growth to come for this ASX 200 share?

IML Equity Analyst Josh Freiman shares his views on a major ASX 200 industrial stock.

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Catapult, Flight Centre, Nufarm, and Xero shares are storming higher today

These shares are having a strong session on Thursday. But why? Let's find out.

Read more »

drug capsule opening up to reveal dollar signs signifying rising asx share price
Healthcare Shares

3 ASX healthcare shares going gangbusters on Thursday

Investors are sending these ASX healthcare stocks soaring today. But why?

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX 200 made it three-for-three losses in a row this Wednesday.

Read more »

A young woman wearing overalls and a yellow t-shirt kicks one leg in the air showing excitement over the latest ASX 200 shares to hit 52-week highs
Share Gainers

Why Brickworks, James Hardie, Megaport, and OFX shares are charging higher today

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

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors endured another day of selling this Tuesday.

Read more »

Man pointing at a blue rising share price graph.
Technology Shares

Guess which ASX 300 tech stock is already up 64% in November!

The ASX 300 tech stock is surging higher this month. But why?

Read more »

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

Why ANZ, Block, Neuren, and Pilbara Minerals shares are pushing higher today

These shares are having a solid session on Tuesday. But why? Let's find out.

Read more »