Here's why this ASX 200 share just dived 16% to an all-time low

ASX 200 investors aren't happy with Platinum Asset Management today.

Man with his head on his head with a red declining arrow and A worried man holds his head and look at his computer as the Megaport share price crashes today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Platinum Asset Management shares are deep in the red today
  • ASX investors have driven the share price to an all-time low 
  • The investment manager has reported almost $222 million in FUM net outflows in March 

ASX 200 investors are dumping Platinum Asset Management Ltd (ASX: PTM) shares today, at one point driving them down to an all-time low.

The Platinum share price plummeted to $1.87 this morning, the lowest level the company has traded at since it was listed in 2007. By contrast, the S&P/ASX 200 Index (ASX: XJO) is up 0.52% today. Platinum shares have since gained a little ground and are now trading 15% lower at $1.90.

At the time of writing, 13.56 million shares in the ASX 200 investment manager have already changed hands. That's more than quadruple the company's 30-day average of 3.14 million shares traded per day.

What's going on with this ASX 200 share?

It appears ASX investors may be disappointed with Platinum's latest funds under management report. Released yesterday, the report shows net outflows of approximately $222 million in funds in March.

This includes approximately $162 million in net outflows from the Platinum Trust Funds.

Platinum now has 19.44 billion in funds under management.

Adding insult to injury is a broker note out of Credit Suisse downgrading Platinum shares from neutral to underperform.

According to reporting in The Australian, the broker recommends that ASX investors sell. It has cut its price target for the ASX 200 share to $1.90.

Platinum share price recap

This ASX 200 share is having a rough time of it in 2022. The Platinum share price is down 32% year to date. This is in stark contrast to the ASX 200 benchmark, which is down 1.4%.

The past 12 months have been no better with the shares down 62% compared to an ASX 200 gain of 7%.

The Australian-based investment manager describes its investing strategy as contrarian and long-term. According to the website, the team looks "beyond short-term market turbulence… to seek out 'unfashionable' companies whose actual worth is greater than the value implied in their present share price".

Motley Fool contributor Bronwyn Allen 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Financial Shares

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Financial Shares

Why is this ASX 300 stock crashing 23% today?

Shareholders of this stock have been hit with some bad news.

Read more »

Happy man working on his laptop.
Financial Shares

3 things about AFIC stock every smart investor knows

These are underrated factors about the LIC.

Read more »

Frazzled couple sitting out their kitchen table trying to figure out their finances or taxes.
Dividend Investing

Here's the AMP dividend forecast through to 2026

There is some good news for AMP shareholders.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Earnings Results

Soul Patts share price struggles on falling profits

ASX 200 investment house Soul Patts reported its half year results this morning.

Read more »

Financial Shares

Buy this ASX All Ords stock for a 15% gain and 9% dividend yield

Goldman Sachs is tipping big returns from this stock.

Read more »

Man pointing at a blue rising share price graph.
Financial Shares

Big ASX news: Macquarie share price hits new 52-week high

It's been a great day to own Macquarie shares...

Read more »

a woman wearing a dark business suit holds her hand up in a stop gesture while sitting at a desk. She has a sombre look on her face.
Financial Shares

Guess which ASX All Ords stock is suspended amid takeover rumours

Another ASX share is rumoured to have received a takeover offer.

Read more »

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
Financial Shares

Own Soul Patts shares? Here's the ASX 200 stock's result preview

What might the investment house report?

Read more »