Magellan (ASX: MFG) share price falls 11% when Barrenjoey bites

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NS Magellan Financial Group Co., Ltd. (ASX: MFG) Stock prices are under pressure today.

Magellan shares are currently down 10.99% to $ 45.77 per share.This move was made by Wealth Manager Fiscal Year 2021 Revenue this morning.

As My fool colleague James Mickleboro picked up earlier today, Magellan reported a 9% increase in assets under management (FUM) and a 10% increase in pre-tax profit and performance fees.

However, Magellan also reported net profit after tax of $ 265.2 million, down 33%. Adjusted net profit after tax was also down 6% to $ 412.7 million.Company’s dividend In 2009, it decreased by 2% from the previous year.

Perhaps the latter indicator is what is causing Magellan’s share price to fall in relation to today’s investors.according to Report Australian person todayThe decrease in adjusted net income after tax can be attributed primarily to “direct investment by Magellan Capital Partners”. Magellan’s new product and strategy including investment in Valenjoy Investment Banking startups “.

Baran Joey’s investment puts pressure on Magellan’s share price

According to Magellan’s annual report, the company currently owns a 40% stake in Balanjoy.

Hamish Douglas, chair of Magellan, said in a report that Valen Joey was the main cause of the $ 41.8 million after-tax loss from Magellan’s investment. Balan Joey Capital Partners. This was the result of Barranjoey’s “heavy upfront costs for executives to build teams, onboard clients, and set up the necessary infrastructure.”A 12% stake in the fast food chain also contributes. Guzman y Gomez 15% share with FinClear Holdings Ltd..

However, Douglas emphasized his support for Balun Joey. Here are some of what he said:

Does this have anything to do with us? Not even a little. These costs are expected and we are confident in both the outlook for each of these investments and the addition to building a stronger Magellan over time. At Magellan, we’re not focusing on short-term earnings or performance, and that won’t change.

Still, investors are clearly not completely softened. It is judged by what happened to Magellan’s share price today after these earnings were published.

At the current pricing, Magellan shares Market first Of $ 8.57 billion.It also has Price earnings ratio (P / E) Dividend yield of 21.13 and trailing dividend yield of 4.7%.

The company’s stock has so far declined by about 13% since the beginning of 2021. It has also decreased by about 27% in the last 12 months.

Magellan (ASX: MFG) share price falls 11% when Barrenjoey bites

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