Why is the Macquarie (ASX:MQG) share price sliding lower today?

What's happening to Macquarie shares?

| More on:
A young girl stands by the slide in a playground while her friend slides down head first and on her back.

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 is sagging during early morning trade on Monday. This comes after the investment bank announced a share purchase plan (SPP) for eligible investors along with its shares going ex-dividend.

At the time of writing, Macquarie shares are down 1.14% to $200.12 apiece.

Macquarie opens share purchase plan

In its release, Macquarie Group advised that it will conduct a SPP to raise additional funds to support its growth strategy.

Last week, the company completed a $1.5 billion institutional placement, resulting in the issuance of 7.7 million shares.

The SPP price will be the lower of $191.28 or a 2% discount on the 5-day volume-weighted average price up until the closing date.

It's worth noting that SPP shares will be issued after the record date for the 1H22 dividend and will not be eligible to receive the dividend.

The closing date for the SPP is 26 November.

Macquarie goes ex-dividend

While the company has been busy on the news front, investors will be eyeing Macquarie shares as they go ex-dividend today.

Typically, one day before the record date, the ex-dividend date, is when investors must have purchased Macquarie shares. If the investor does not buy Macquarie shares before this date, the dividend will go to the seller.

Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company's shares after securing the dividend.

What does this mean for Macquarie shareholders?

For those eligible for Macquarie's first-half dividend, shareholders will receive a payment of $2.72 per share on 14 December. The dividend is also partially franked which means that shareholders can expect to receive tax credits from this.

Investors who elect for the dividend reinvestment plan (DRP) will have no discount applied to the volume-weighted average price. This is for the 5 trading days leading up to and inclusive of the ex-dividend date.

The payout ratio of 50% is in line with Macquarie's dividend policy (50% to 70% annual payout ratio).

Macquarie share price summary

It has been an outstanding year for Macquarie shares, trekking 45% higher for 2021 and nearly 50% for the last 12 months. The company's shares reached an all-time high of $204.22 last Friday.

Based on today's price, Macquarie commands a market capitalisation of roughly $74 billion, and has approximately 376.65 million shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the 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 Capital Raising

Two people having a meeting using a laptop and tablet to discuss Seven West Media's balance sheet
Technology Shares

Why are Xero shares crashing 9% today?

This cloud accounting platform provider is making big news this week.

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Real Estate Shares

Goodman share price dips then lifts amid capital raise falling flat

Only $5.1 million was raised in Goodman's $400 million share purchase plan offer for retail investors.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Financial Shares

Undercover surging payments company announces $45 million capital raise

It's been a busy time for this payments company.

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.
Capital Raising

Why did this ASX All Ords defence stock crash 22% today?

Investors seem to be rather furious at this stock.

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Capital Raising

Why is the Goodman share price crashing 7% today?

Let's find out what is weighing down this blue chip this morning.

Read more »

A man casually dressed looks to the side in a pensive, thoughtful manner with one hand under his chin, holding a mobile phone in his hand while thinking about something.
Earnings Results

Why are Goodman shares in a trading halt on results day?

What's going on with this blue chip on Wednesday? Let's find out.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Technology Shares

Why is this ASX All Ords stock crashing 10% on Friday?

This share is having a tough time. What's going on?

Read more »

A man looking at his laptop and thinking.
Capital Raising

Guess the ASX All Ords stock launching a capital raising at a 52-week low

After failing last month, the struggling company is trying again.

Read more »