Why is the AGL (ASX:AGL) share price having such a stellar day?

Thursday is proving fruitful for AGL’s stock…

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It’s been a good day on the ASX for the AGL Energy Limited (ASX: AGL) share price despite no news having been released by the company.

However, it’s not alone in defying a generally poor day on the market to record a gain.

At the time of writing, the AGL share price is $5.47, 4.09% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is down around 0.03% while the All Ordinaries Index (ASX: XAO) is sporting a 0.16% drop.

Let’s take a look at what’s happening with the energy provider on Thursday.

What’s going on with the AGL share price?

The AGL share price is taking off today for no apparent reason, but so is the company’s home index.

The S&P/ASX 200 Utilities Index (ASX: XUJ) is currently up 1.52%, with only one of its constituents not recording a gain.

That is Spark Infrastructure Group (ASX: SKI), which has a good reason to not be in the green. It’s currently frozen as it prepares to be taken over.

AGL is the sector’s top performer. Coming in behind it are the share prices of APA Group (ASX: APA) and Origin Energy Ltd (ASX: ORG), recording gains of 1.8% and 0.8% respectively.

The strong performance of the AGL share price comes despite recent reports the company is cutting its workforce ahead of its planned demerger and its former CEO landing it on a list of the 5 biggest corporate mistakes of 2021.

ABC News reported yesterday the company is offering staff redundancy packages as it attempts to cut 10% of its costs.

Today, the Australian Financial Review announced it deems former CEO and managing director Brett Redman’s retirement from his role at AGL the worst instance of corporate succession of 2021.

Redman stepped down from the role in April 2021, shortly after the company announced its plan to split in two.

In fact, Redman seemed to be leaving the role because of the structural separation. Thus, his departure put pressure on the company at a particularly sensitive time.

But despite today’s strong performance, the AGL share price is still in the long-term red. Right now, it is 54% lower than it was at the start of 2021.

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 APA Group. 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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