What happened to the Brickworks (ASX:BKW) share price 2021?

The building materials manufacturer had a year to remember in 2021

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Key points

  • The Brickworks share price soared nearly 26% in 2021
  • June was the best month of the year for the company
  • Investors were impressed with the company’s financial results

The Brickworks Ltd (ASX: BKW) share price had a phenomenal run in 2021 including a major bounce in June.

The company’s share price increased from $19.20 to $24.16 during the year, up 25.8%.

Let’s take a look at what impacted the company’s share price.

2021 highlights

Investors had many highlights during the year including surges in late January, March, June, September, and December.

Between market close on 28 January and 8 February, shares in the company increased 11.27%. The stock was rated as a “buy” by at least six brokers during this time. Motley Fool Australia noted in March that Brickworks had maintained or increased its dividend yields for 44 years.

In June, shares soared 20.76% between market close on 1 June and 30 June. Investors reacted positively to a trading update released by the company. The profit from its joint venture industrial property trust was reevaluated by $100 million. The Brickworks share also benefited from the economy reopening in the United States.

August and September saw the share price bounce up and down like a yo-yo. The Brickworks share price hit a yearly high of $25.98 on 14 September. The company also announced it would scale back its operations in NSW and Qld due to the COVID-19 outbreak.

However, positive full-year results gave the Brickworks share price a boost. The company recorded an underlying net profit after tax of $285 million, a 95% gain. Its 50/50 joint venture with property trust Goodman Group (ASX: GMG) played a part in its record earnings before interest and taxes (EBIT) of $253 million. Analysts at Citi lifted their price target on the company to $30.

But, from late September, shares in the company fell again. In fact, between market close 27 September and 2 December, the Brickworks share price fell 12.57%. The Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price also fell 21.49% during this same time frame. Brickworks owns a 39.4% stake in this company.

However, then came another comeback. The Brickworks share price gained 6.57% between market close on 2 December and 31 December. Investors responded well to a trading update revealing the company expected record property earnings in the first half of financial year 2022.

Foolish takeaway

The Brickworks share price, with its 26% gain in 2021, easily outperformed the benchmark S&P/ASX 200 Index‘s (ASX: XJO) 12% rise over the same period.

The company’s shares have started the year slightly in the green, up 1.74% year to date.

The company has a market capitalisation of about $3.7 billion based on its current share price.

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The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Brickworks. The Motley Fool Australia owns and has recommended Brickworks. 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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