Why has the Soul Patts (ASX:SOL) share price tumbled 16% in a month?

Here's what the iconic investment house has been up to over the last 30 days…

| More on:

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 last 30 days have been tough for the Washington H. Soul Pattinson and Co Ltd (ASX: SOL), colloquially known as 'Soul Patts', share price.

Despite the investment house completing a significant merger, its stock has tumbled.

At the time of writing, the Soul Patts share price is $33.49, 15.8% lower than it was this time last month.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 2.1% in the same time.

So, what's been weighing on the company's stock lately? Let's take a look.

Group of thoughtful business people with eyeglasses reading documents in the office.

Image source: Getty Images

The month that's been for Soul Patts

The Soul Patts share price isn't performing well this month despite the company finalising its merger with Milton Corporation Ltd.

Market watchers will likely be familiar with Milton Corporation, which used to trade under the ticker MLT. It became a listed investment company (LIC) way back in 1958 when it floated on the Sydney Stock Exchange.

Milton Corporation was delisted earlier this month after Soul Patts took its reins.

The merger was announced in June. It saw Milton shareholders provided with around 0.186 Soul Patts shares for every share in Milton they held. The offer valued Milton's stock at $6 apiece, representing a 20% premium on its previous closing price.

Unfortunately, the market's excitement over the merger didn't last long. The Soul Patts share price gained 1.1% when the merger was completed on 5 October before falling 5.3% the following day.

And that's not all. Of the last 21 trading sessions prior to today's, Soul Patts has spent 15 in the red, leading its stock's value to fall by $6.24.

However, the investment house is confident in its future. Soul Patts released its annual report for 2021 on Tuesday.

While the report isn't price-sensitive, Soul Patts used the space within it to highlight its previous and expected growth.

Soul Patts share price snapshot

Despite a poor month's performance, Soul Patts' stock is well and truly in the green.

Its value has increased 10% since the start of 2021. It is also trading for 33% more than it was this time last year.

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 owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

Stressed businessman sits in panic amid digital stock market financial background.
Share Fallers

Why Megaport, Lendlease and JB Hi-Fi shares all crashed 14% to 15% this week

ASX investors punished Lendlease, Megaport, and JB Hi-Fi this week. But why?

Read more »

Woman checking out new laptops.
Consumer Staples & Discretionary Shares

Down 14% today: Are JB Hi-Fi shares now a bargain-bin buy?

Could JB's plunge mean a bargain buy?

Read more »

A man sitting at his desktop computer leans forward onto his elbows and yawns while he rubs his eyes as though he is very tired.
Share Fallers

Why did DroneShield shares crash 30% in July to new one-year lows?

DroneShield shares got smashed in July. But why.

Read more »

Man with his head on his head with a red declining arrow and A worried man holds his head and look at his computer as the Megaport share price crashes today
Share Fallers

Down 43%! What on earth happened with Liontown shares in July?

Investors pummelled Liontown shares in July. Time to buy?

Read more »

A bored woman looking at her computer, it's bad news.
Share Fallers

These were the worst-performing ASX 200 shares in July

These shares had a tough time in July. Let's find out why.

Read more »

A man dressed in a business suit freefalls from a rocky cliff with a grey sky background.
Share Fallers

Why these 3 ASX 200 stocks are crashing in this week's surging market

Investors sent these three ASX 200 shares tumbling 15% to 18% in this week’s rising market. But why?

Read more »

A man holds his head in his hands after seeing bad news on his laptop screen.
Share Fallers

3 ASX shares down at least 50% in FY26

Let's see why these shares were sold off during the last financial year.

Read more »

Side-on view of a devastated male investor laying his head on his laptop keyboard
ASX Share Market News

5 biggest losers on the ASX 200 in FY26

The worst performers include 2 sector leaders, and all 5 stocks more than halved in value.

Read more »