Here's what happened to the AMP (ASX:AMP) share price in the FY21 third quarter

It has been a busy second-half so far for AMP…

| More on:
man and woman discussing superannuation

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 AMP Ltd (ASX: AMP) share price has moved in circles since the company entered the second-half of FY21.

AMP shares kicked off the second quarter at $1.125 apiece and have travelled sideways for most of the period. At the end of 3 months, the financial services company's share price closed at 99 cents.

Today, AMP shares are swapping hands for $1.125, down 0.44%.

What happened in Q3 FY21?

The biggest story that affected the AMP share price in the third quarter of FY21 was the company's half-year results.

AMP delivered a robust scorecard, highlighting a rebound across key financial metrics. This was largely driven by management's focus on the Australian wealth management net cash outflows and controllable costs.

The board decided to maintain a conservative approach to its capital and dividends until the demerger and future strategies are finalised. AMP did not declare an interim dividend for the period which led to shareholders dumping the company's shares.

Another story worth mentioning was that the Australian Securities and Investment Commission (ASIC) formally ended its investigation into AMP.

The allegations centred around suspicions of criminal conduct related to AMP's "fees for no service" conduct. This revolves around charging fees to people who did not have access to a financial advisor.

However, ASIC dropped the case, opting not to pursue criminal charges against AMP.

Lastly, the company's shares hit a new multi-decade low after three members of the Independent Advisory Committee resigned. The report from the Australian Financial Review stated that GPT Group (ASX: GPT) and Mirvac Group (ASX: MGR) "have been shortlisted" for a takeover of the running of AMP's $7 billion Capital Wholesale Office Fund.

About the AMP share price

In the months following AMP's results, its shares hit a multi-decade low of 88.5 cents in late September, before rebounding higher.

When zooming out to the last 12 months, the AMP share price has fallen 20%, with year-to-date down around 30%. The company's shares have lost about 80% of its wealth since early 2018.

In context, the S&P/ASX 200 Index (ASX: XJO) has gained 20% from this time last year and is up more than 10% year-to-date. The ASX 200 also reached a record high of 7,632 points in mid-August.

AMP presides a market capitalisation of roughly $3.69 billion and has approximately 3.3 billion shares on its registry.

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 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 Bruce Jackson.

More on Financial Shares

A man with long hair and tattoos holds out an EFTPOS payment machine from behind a shop counter.
Financial Shares

1 dirt-cheap ASX stock I'd buy as Aussie cash carrier looks for a lifeline

Every crisis comes with an opportunity. I reckon this payments company is in the buy zone as cash crumbles.

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Financial Shares

Why is this ASX 300 stock crashing 23% today?

Shareholders of this stock have been hit with some bad news.

Read more »

Happy man working on his laptop.
Financial Shares

3 things about AFIC stock every smart investor knows

These are underrated factors about the LIC.

Read more »

Frazzled couple sitting out their kitchen table trying to figure out their finances or taxes.
Dividend Investing

Here's the AMP dividend forecast through to 2026

There is some good news for AMP shareholders.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Earnings Results

Soul Patts share price struggles on falling profits

ASX 200 investment house Soul Patts reported its half year results this morning.

Read more »

Financial Shares

Buy this ASX All Ords stock for a 15% gain and 9% dividend yield

Goldman Sachs is tipping big returns from this stock.

Read more »

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

Big ASX news: Macquarie share price hits new 52-week high

It's been a great day to own Macquarie shares...

Read more »

a woman wearing a dark business suit holds her hand up in a stop gesture while sitting at a desk. She has a sombre look on her face.
Financial Shares

Guess which ASX All Ords stock is suspended amid takeover rumours

Another ASX share is rumoured to have received a takeover offer.

Read more »