Why did the BHP (ASX:BHP) share price go backwards in October?

Let’s see what’s going on with BHP shares.

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The BHP Group Ltd (ASX: BHP) share price has continued to decline over the past month followed by weak investor sentiment.

At the time of writing, the mining giant’s shares are further slipping 2.07% to $35.67. This means that the company’s shares have fallen more than 5% in the past week alone.

What happened to BHP shares in October?

Investors pushed the BHP share price lower last month following the company’s first-quarter trading update on 19 October.

BHP revealed a fall in production across most of its operations due to a variety of issues affecting each of its commodities. Its shares sunk 2.04% following the release after reaching a one-month high of $39.28 in the prior day.

On a positive note, the company stated that the proposed merger of its petroleum business with Woodside Petroleum Limited (ASX: WPL) is on track. However, this did little to appease investors who were largely concentrated on the results.

Despite the current slump, BHP stated that all production and unit cost guidance remains unchanged for the 2022 financial year.

The company is scheduled to hold its annual general meeting (AGM) on 11 November.

What do the brokers think?

A number of brokers weighed in on BHP’s shares after the release of its latest performance report.

Analysts at Macquarie cut its price target by 3.6% to $54.00 for the BHP share price. Credit Suisse had a more bearish tone, reducing its outlook by a sizeable 15% to $39.00. It’s worth noting that this is almost in line with the current share price.

Leading Australian investment firm Morgans had a different view, raising its rating by 1.9% to $46.05. It appears the broker is focused on BHP’s statement that FY22 guidance is stable for now.

BHP share price summary

Since the beginning of the year, it has been another disappointing result for BHP shares, falling by more than 15%. This is in stark contrast to when its shares were tracking more than 25% higher for the year-to-date period during August.

Based on today’s price, BHP presides a market capitalisation of roughly $105.7 billion with approximately 2.96 billion shares outstanding.

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