Here’s why the AMP (ASX:AMP) share price is down 10% in the last month

The share price slump continues for the embattled wealth manager.

| More on:
thumbs down

The AMP Ltd (ASX: AMP) share price has been under the pump of late. Shares in the embattled financial services company have slumped 10.5% in the last month to $1.11 per share at Thursday’s close.

What’s with the AMP share price?

The sharpest decline in value over the past month came on Monday 21 June. The AMP share price slumped 6.4% to start that trading week despite no market announcements or other major news. However, it did coincide with investors selling off across the financial services sector.

In terms of company news, arguably the most dominant has been the recent restructuring of the company. AMP announced on 8 July that Macquarie Group Ltd (ASX: MQG) would acquire AMP Capital’s Global Equity and Fixed Income business for up to $185 million.

AMP Capital and the private markets business as a whole have long been the most profitable segments within the AMP empire. However, there was a muted reaction from the market to this piece of news, with the AMP share price broadly unchanged.

The latest sale to Macquarie comes as AMP readies a spin-off of its private markets business. The proposed demerger comes after acquisition talks with global private equity group Ares Management fell flat.

While the last month has been underwhelming for shareholders, longer timelines don’t necessarily paint a better picture. The AMP share price is now down 28.9% year to date, 36.6% in the last 12 months and 80.1% in the last 5 years. Of course, these figures don’t include the impact of dividends on overall returns.

However, it doesn’t paint a pleasant picture for the financial services group. Former Australia and New Zealand Banking Group Ltd (ASX: ANZ) executive Alexis George is set to take over from current CEO, Francesco De Ferrari in the third quarter of this year. Investors will be hoping a change in leadership will provide a change in fortunes for the AMP share price as well.

Should you invest $1,000 in AMP right now?

Before you consider AMP, you'll want to hear this.

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

The online investing service he’s run for nearly 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 are better buys.

*Returns as of August 16th 2021

Motley Fool contributor Ken Hall 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 Financial Shares