Macquarie Group Ltd (ASX: MQG) shares are getting caught up in the broader market sell-down today.
Shares in the S&P/ASX 200 Index (ASX: XJO) diversified financial stock closed on Friday trading for $197.97. In afternoon trade on Monday, shares are changing hands for $195.76 apiece, down 1.1%.
For some context, the ASX 200 is down 0.8% at this same time.
With today's slide factored in, Macquarie shares are down 11.5% since the opening bell on 2 January.
And, according to Morgans' Damien Nguyen, that retrace could make now an opportune time to pick up some shares (courtesy of The Bull).
Image source: Getty Images
Macquarie shares now 'good value'
"Macquarie is a global investment leader with strong exposure to infrastructure and renewable energy," said Nguyen, who has a buy recommendation on Macquarie shares.
Among his reasons for being bullish on the stock is the company's reliable passive income payouts.
"Macquarie blends stable income with growth opportunities and paid an interim dividend of $2.60 a share in December 2024," Nguyen said.
Macquarie also paid a final dividend of $3.85 a share in July 2024. This sees the stock trading on partly franked trailing dividend yield of 3.6%.
As for this year's sell-down in Macquarie stock, Nguyen said, "We view the recent sell-off as overdone and see the stock as good value for long-term investors."
Commenting on Macquarie's most recent update, Nguyen added:
In a third quarter trading update in February, MQG noted fiscal year 2025 net profit after tax was broadly in line with the prior corresponding period. Macquarie plans to report its full year results on May 9.
What else did Macquarie report for Q3?
While Q3 net profits were broadly flat year on year, Macquarie shares received some support with management reporting that the profit contribution from Macquarie Asset Management and Banking and Financial Services – its annuity-style businesses – were up "substantially" compared to the same nine-month period in the prior year.
On the negative side of that ledger, the nine-month profit contribution from the company's Commodities and Global Markets and Macquarie Capital – its markets-facing businesses –were "substantially down" year on year.
Commenting on the outlook for Macquarie shares on the day of the update, CEO Shemara Wikramanayake said:
Macquarie remains well-positioned to deliver superior performance in the medium term with its diverse business mix across annuity-style and markets-facing businesses; deep expertise across diverse sectors in major markets with structural growth tailwinds; patient adjacent growth across new products and new markets; ongoing investment in our operating platform; a strong and conservative balance sheet; and a proven risk management framework and culture.
