Why has the Wesfarmers (ASX:WES) share price leapt 8% over the past month?

The company's shares are treading higher of late. We take a closer look

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The Wesfarmers Ltd (ASX: WES) share price has managed to storm higher recently after hitting a 6-month low last month. Its shares touched the bottom with $53.83 on 11 October before zipping upwards.

When looking at the past month, the conglomerate's shares have gained around 8.1%. By compassion, the S&P/ASX 200 Index (ASX: XJO) has flatlined over the same time frame. Today, its shares are currently up 0.25% to $59.25.

Below, we take a closer look at what's been happening with the Wesfarmers share price.

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Image source: Getty Images

What has Wesfarmers been up to?

Investors have been buying up Wesfarmers shares as the company continues to transition into a post-COVID-19 era.

The company previously advised of tough trading conditions in its annual general meeting held last month. Businesses such as Bunnings, Kmart, and Target were impacted by government-mandated store closures.

However, with Australia's vaccination rates accelerating and meeting individual state/territory targets, restrictions have been eased. This means Wesfarmers' businesses have reopened to customers.

In addition, the company noted that online sales have managed to soar, negating any loss of potential revenue in the prior months.

The company provided an update on its acquisition of Australian Pharmaceutical Industries Ltd (ASX: API) on 8 November, which saw the Wesfarmers share price rise.

The conglomerate announced it had entered into a scheme implementation deed (SID) for a cash consideration of $1.55 per share.

Wesfarmers upped its stake in Australian Pharmaceutical Industries through buying 95.1 million shares. The company now holds a 19.3% interest.

The Australian Pharmaceutical Industries board recommended its shareholders vote in favour of the scheme. Furthermore, each director intends to vote all of the shares controlled by them in favour of the deal.

Wesfarmers share price snapshot

Since the beginning of the year, the Wesfarmers share price has gained 18%, surging past pre-pandemic levels. The company's shares reached a record high of $67.20 in August before treading lower over the next couple of months.

Wesfarmers commands a market capitalisation of around $67.23 billion, making it the eighth largest company on the ASX.

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 Wesfarmers 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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