Why did the AMP (ASX:AMP) share price have such a great month in October?

We take a look at what sparked the financial services company's shares last month

The AMP Ltd (ASX: AMP) share price kicked up a notch in October. After hitting a multi-decade low of 88.5 cents the month before, it appears the company's shares are bouncing back.

At Monday's closing bell, the financial services company's shares edged 1.85% higher to $1.10.

A group of four business people sit around a desk and laptops clapping and smiling.

Image source: Getty Images

How did AMP shares fare in October?

Investors pushed the AMP share price higher last month. This came on the back of a positive third-quarter trading update from the company on 21 October. Its shares rose 4.02% that day to reach a 4-month high of $1.18.

For the month, AMP shares rose by just over 9%, which fared much better than the S&P/ASX 200 Index (ASX: XJO). The benchmark index fell by 0.12% in value over the period.

The company's financial scorecard produced a largely positive performance.

The demerger program is scheduled for completion by the middle of FY22. This will see the transition of the Multi-Asset Group (MAG) from AMP Capital to AMP Australia, creating a superannuation and investment platform business.

AMP advised it will provide a further update on its progress regarding the demerger at an Investor Day on 30 November. In addition, the company will also lay out what's ahead for the remaining financial year as well as FY22.

What do the brokers say?

Analysts at Citi last month reiterated their outlook to a neutral (high risk) rating for the AMP share price. The broker slapped a price target of $1.25 apiece, implying an upside of 13.6% on the current price.

However, the most recent note came from multinational investment bank, Macquarie Group Ltd (ASX: MQG). The firm put AMP shares on a neutral footing, with a price target of $1.10. Interestingly, investors seem to agree with Macquarie's latest assessment based on the current AMP share price.

AMP share price review

Over the past 12 months, the AMP share price has fallen around 34% in value. It is also down by around 29% this year to date. When looking over a 5-year time frame, AMP shares are down by a sizable 75%.

AMP has a price-to-earnings (P/E) ratio of 33.90 and commands a market capitalisation of roughly $3.72 billion.

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 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.

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