Why the Macquarie share price is breaking new ground today

The gains continue for the banking giant.

| More on:
A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.

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 pushing boundaries again on Friday, with the banking stock nudging towards new 52-week highs.

At the time of writing, Macquarie shares are swapping hands at $225.79 apiece, up 23% this year to date.

This week's performance is linked to several factors, including the recent sale of its stake in AirTrunk and growth in its lending book.

Let's take a closer look.

Created with Highcharts 11.4.3Macquarie Group PriceZoom1M3M6MYTD1Y5Y10YALL1 Sep 20236 Sep 2024Zoom ▾Sep '23Nov '23Jan '24Mar '24May '24Jul '24Sep '24Oct '23Oct '23Jan '24Jan '24Apr '24Apr '24Jul '24Jul '24www.fool.com.au

Macquarie share price rallies

One of the biggest drivers behind the rising Macquarie share price this week is the sale of the bank's stake in AirTrunk.

As a reminder, data centre operator AirTrunk was sold to private equity giant Blackstone in a landmark $24 billion deal this week.

Macquarie Asset Management (MAM) partnered with The Public Sector Pension Investment Board (PSP Investments) to sell their interest in the data centre giant to Blackstone.

In total, the combined interest was 88%, netting Macquarie a handsome sum from the final sale amount. The deal is one of the largest data centre sales ever.

MAM (on behalf of its managed fund and clients) and PSP Investments acquired a majority stake in AirTrunk in 2020.

Since then, the company has expanded from five data centres in Australia, Singapore and Hong Kong, to become a leading hyperscale data centre specialist across 11 sites, including Japan and Malaysia.

Capacity across the portfolio has grown from 450MW to over 1.8GW, with a strong future growth pipeline.

The resulting sale comes after Macquarie and PSP made the initial investment bank in 2020 on a $3 billion valuation. The implied sale value indicates an 8 times return on the original investment.

It's no wonder investors are happy with the outcome.

Analysts believe this transaction alone could significantly boost Macquarie's performance fees. JP Morgan estimates it could be worth between $1 billion and $1.3 billion, according to The Australian Financial Review. This could impact the Macquarie share price.

Grabbing additional market share

Macquarie isn't just making waves in infrastructure. It's also rapidly expanding its presence in Australia's mortgage market.

According to my colleague Tristan, Macquarie's home loan business grew five times faster than the other banking majors in July.

Its mortgage book increased by 1.6%, compared to the broader industry's 0.3% growth.

Macquarie's current market share of owner-occupier and investor lending sits at 5.5%, thanks to its focus on the broker channel. This growth is driven by a reset in funding costs, which allowed Macquarie to be more competitive in its pricing.

UBS analysts suggested this puts Macquarie in a good spot moving forward, saying its "book grew on a net basis by $1.9 billion month-on-month".

Moreover, the lending growth comes at a time when industry lending is on the up.

According to the Australian Bureau of Statistics (ABS) lending data, the total value of new housing loans rose 3.9% in July.

Meanwhile, new investor loans rose 5.4% in value to nearly $12 billion, up more than 35% from July 2023.

Foolish takeaway

The Macquarie share price continues its ascent on Friday. It is up 32% in the past year.

Should you invest $1,000 in A2b Australia right now?

Before you buy A2b Australia shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and A2b Australia wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Blackstone, JPMorgan Chase, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Bank Shares

Woman using a pen on a digital stock market chart in an office.
Bank Shares

Here's the Westpac dividend forecast through to 2027

Let's see what analysts are forecasting for the banking giant.

Read more »

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

Hunting for passive income? Here's everything you need to know about the latest NAB dividend

NAB revealed its interim dividend payout this morning.

Read more »

Three business people look stressed as they contemplate stacks of extra paperwork.
Bank Shares

3 headwinds that could sink CBA shares

A leading expert explains why CBA shares are looking vulnerable.

Read more »

Man looking happy and excited as he looks at his mobile phone.
Bank Shares

NAB share price jumps on solid half year results

Investors have responded positively to the bank's results.

Read more »

A young bank customer wearing a yellow jumper smiles as she checks her bank balance on her phone.
Bank Shares

$5,000 in this ASX200 heavyweight could mean $270 in dividends

This banking giant stands out from the pack in terms of dividend yield. 

Read more »

A man looking at his laptop and thinking.
Bank Shares

Is it time to buy Westpac shares?

The Westpac share price has taken a hit this week. Are the bank’s shares ripe for a rebound?

Read more »

A businesswoman on the phone is shocked as she looks at her watch, she's running out of time.
Bank Shares

Want to bag the next Westpac shares dividend? Better be quick…

Westpac will pay an interim dividend of 76 cents per share next month.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Bank Shares

After its result, what does Macquarie think Westpac shares are worth?

Let's see what the broker is saying about Australia's oldest bank.

Read more »