What happened to the Liontown share price in May?

The lithium favourite posted a new record high last month.

| More on:
A person wears a roaring lion mask.

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

Key points

  • The Liontown share price posted a record high of $3.02 in May 
  • Though, it closed last month just 0.7% higher than it was at the end of April, trading at $2.76
  • Meanwhile, rumours of another takeover bid were squashed by the company

The Liontown Resources Ltd (ASX: LTR) share price soared to a record high in May before handing back its gains.

After finishing April trading for $2.74, stock in the company behind the Kathleen Valley lithium project rocketed to a peak of $3.02 on 12 May. But the record high wasn't to last.

The Liontown share price closed last month back at $2.76 – just 0.73% higher than it was 31 days prior.

Created with Highcharts 11.4.3Liontown Resources PriceZoom1M3M6MYTD1Y5Y10YALL28 Apr 202331 May 2023Zoom ▾28 Apr28 …30 Apr2 May4 May6 May8 May10 May12 May14 May16 May18 May20 May22 May24 May26 May28 May30 May1 May1 May8 May8 May15 May15 May22 May22 May29 May29 Maywww.fool.com.au

In the meantime, the broader S&P/ASX 200 Index (ASX: XJO) fell 3% over the course of last month.

So, what drove shares in the lithium favourite to pop then drop in May? Let's take a look.

What happened to the ASX 200 lithium favourite in May?

This year has been a wild ride for those invested in Liontown shares.

The company was the subject of a $2.50 per share takeover bid from New York-listed lithium giant Albemarle Corporation (NYSE: ALB) in March.

While the bid was quickly rejected, it saw the market send the Liontown share price 68% higher in a single session – a gain it hasn't yet lost.

And more takeover talk surrounded the ASX 200 stock last month.

Reports a second suitor was scoping it out emerged in early May, with a bid of around $2.75 per share rumoured to be in the works.

But investors' excitement was short-lived. The company dismissed the reports, saying Albemarle's was the last offer presented to it.

That was the last time the market heard price-sensitive news from the company.

Though, it also released an investor presentation and announced it's awarded the full mining services contract for Kathleen Valley's Corner and Mt Mann open pits.

Iron Mine Contracting was the lucky company signing the contract. The contract is valued at around $240 million over its three-year term.

Liontown share price snapshot

This year has been a ripper one for the Liontown share price.

The stock has more than doubled since the start of 2023, rising 123% in that time. It's also 126% higher than it was this time last year.

Meanwhile, the ASX 200 has gained 3% year to date and 1% over the last 12 months.

Motley Fool contributor Brooke Cooper 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 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 Scott Phillips.

More on Materials Shares

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Materials Shares

Fortescue shares fall despite record-breaking first half performance

Not even a record-breaking performance was enough to please investors.

Read more »

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

Why this $2.3 billion ASX 200 mining stock just crashed 9%

Investors have been quick to hit the sell button today. But why?

Read more »

two young mining apprentices wearing their high visibility gear and hard hats stand together smiling.
Materials Shares

Are BHP shares dirt cheap?

A leading broker has given its verdict on this mining giant following its update.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Materials Shares

Big returns! Broker tips Liontown shares to double in value

This lithium miner could be heading higher from here according to one broker.

Read more »

Two young African mine workers wearing protective wear are discussing coal quality while on site at a coal mine.
Materials Shares

Why this expert thinks lithium could be a big deal for Rio Tinto shares

Let’s dig into what lithium could mean for Rio Tinto.

Read more »

Materials Shares

Novonix share price crashes 10% on shock news

Why are investors hitting the sell button on Tuesday? Let's find out what is happening.

Read more »

Lion holding and screaming into a yellow loudspeaker on a blue background, symbolising an announcement from Liontown.
Materials Shares

Why are Liontown shares roaring 14% higher today?

Investors are fighting to get hold of this lithium miner's shares. But why?

Read more »

Business people standing at a mine site smiling.
Materials Shares

South32 shares higher on solid half year update

The market has responded positively to the miner's update. Let's dig deeper into it.

Read more »