The BHP Group Ltd (ASX: BHP) share price is having a tough finish to the week.
In afternoon trade, the mining giant's shares are down 6% to $51.85.
This means the Big Australian's shares are down almost 13% from the record-high of $59.39 they reached on Monday.
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What's going on with the BHP share price?
While there has been some weakness in certain commodity prices since the war began in the Middle East, it hasn't been severe enough to explain the pullback in the BHP share price.
It seems that there are other reasons for the selling from investors.
One could be profit-taking. When BHP's shares reached their record high, it meant they were up approximately 50% over a 12-month period.
That incredible return doesn't even include the dividends that BHP has paid during the period.
Clearly, BHP shares have been a great investment over the past 12 months. But with analysts now suggesting that they are fully valued, some investors may have decided to take profit.
For example, Morgans recently put a hold rating and $49.00 price target on its shares. It said:
A strong copper-driven 1H26 result, but the highlight was a savvy deal monetising Antamina's silver stream for value equal to consensus valuation of the entire asset. Earnings quality continues to step forward, maintaining robust operational and cost performances across the portfolio. Injecting >US$6bn cash in H2 more than offsets Jansen. Maintain HOLD rating.
What else?
In addition, over the past 12 months, the mining sector has benefited from a sector rotation which saw large investors sell out of technology and into miners.
The opposite appears to be happening on Friday, with the mining sector a sea of red but the technology sector roaring higher.
The S&P/ASX 200 Resources index is down 3.7% at the time of writing, while the S&P/ASX All Technology Index is up 3.6%.
It is possible that investors are buying beaten up ASX shares like Pro Medicus Ltd (ASX: PME), which is up 10% today, and WiseTech Global Ltd (ASX: WTC), which is up 6%, and selling high-performing ASX shares like BHP, Rio Tinto Ltd (ASX: RIO), and Northern Star Resources Ltd (ASX: NST).
Time will tell if this is a true rotation, but given the dirt cheap valuations in the tech sector and full valuations in the mining sector, it wouldn't be a surprise if the shift continues in the coming weeks.
