Wesfarmers Share Price Dip by 6.70% Despite Positive Weeks
Wesfarmers Ltd [ASX:WES] shares have experienced a negative slide in their share price today, hitting a low of 6.70%, or $32.86 a share. The current share price is $32.62.
However, there doesn’t seem to be a correlating bad event to cause such a dip, which could lead one to believe it could correct itself soon enough. Though shareholders may find the change surprising after a positive week for the company.
Why did Wesfarmers share price drop this morning?
The move comes as the retailer trades ex-dividend today for their interim and special dividends, which shareholders can expect to receive on 10 April.
The company had released their half-year results earlier this month, which saw positive results in their share price. Correlating to this, the board had declared a fully franked $1.00 per share interim dividend, and a fully franked $1.00 per share special dividend.
In their announcement to shareholders last week, Wesfarmers had announced a NPAT (net profit after tax) of $1.08 billion for the half year ending 31 December 2018.
They’d announced gains following their de-merger from Coles Group Ltd [ASX:COL], the disposals of their Bengalla coal mine to New Hope Corporation Ltd [ASX:NHC] and the sale of Kmart Tyre and Auto Service (KTAS) and Quadrant Energy.
The repositioning has appeared to be a good move for the company, with their EBIT (earnings before interest and tax) increasing by 37.5% including significant items, when compared with their last corresponding period.
They also reported great results in their digital schemes, in the formalising of their joint venture with the Advanced Analytics Centre for Flybuys.
And following the good news, they experienced a few days of their shares hovering around $35. Until today.
Positives still ahead for Wesfarmers
Considering the good news we’ve seen from the company so far, it may not be long until we see a rightful connection in their share price, more reflecting of the positives they have achieved in the last year.
If not, perhaps this is a good time for investors to get hold of such a prominent stock, while others may not be brave enough.
For Money Morning
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