There was a period, not all that long ago, that the AGL Energy Limited (ASX: AGL) share price looked like it might never bounce back. Indeed, the company behind the stock was nearly sawn down the middle just last year.
But all that's behind us now. The AGL share price has rebounded in recent months, climbing 24% so far this year to pass $10 on Thursday for the first time since early 2021.
The stock hit a multi-year high of $10.01 in late morning trade. It has since slipped slightly to trade at $9.98 – 3% higher than its previous close.
So, has the tide finally turned for the embattled S&P/ASX 200 Index (ASX: XJO) energy producer and retailer? And does that make its stock worth considering right now? Let's take a look.
AGL share price returns to long-forgotten heights
The last few years have been pivotal for the AGL share price and the company's business.
Just a few years back, it was focused on producing coal-fired power. Today, it's aiming to shut down its final coal operation by 2035.
That's expected to see the company that's currently Australia's largest emitter reach net zero.
Not to mention, its leadership team looks notably different today than it did just 12 months ago.
Former chair Peter Botten and former CEO Graeme Hunt each stood down from their roles last year. They were replaced by Patricia McKenzie and Damien Nicks respectively.
On its board, four directors proposed by major shareholder Mike Cannon-Brookes joined the table despite the company only recommending one of them.
And things seem to be progressing well despite the new directors having joined in a way McKenzie labelled "slightly unusual", as per the Australian Financial Review.
Speaking at the publication's recent ESG Summit, the AGL chair reportedly said:
In my opinion, the board is working really well, these are all professional directors … they have demonstrated their independence, they bring a fantastic range of skills and experience and we are working together.
But is it a buy?
In my opinion, AGL still represents a risky investment. After all, the company is in the middle of a notable transformation.
Though, if all goes as expected, the future appears bright for the AGL share price.
Insiders have been snapping up plenty of the company's stock lately, perhaps suggesting those in the know are bullish.
Not to mention, UBS has a buy rating on AGL, though its price target is just $9.60, as my Fool colleague Bronwyn reported last month. That's 3.8% lower than where the ASX 200 stock is trading right now.
Not to mention, the company offers considerable potential for dividend growth, as The Motley Fool Australia's Tristan explored recently.
