A quick look at the Macquarie Group Ltd [ASX:MQG] share price.
One of the country’s largest banking houses recently reported their results for FY20.
The MQG share price was hit by the COVID-19 pandemic, but so far is recovering reasonably well. Trading at $122.86 at the time of writing (up .97% today), Macquarie Group is looking a bit healthier than its banking peers.
What’s happening at Macquarie
Pre-COVID, Macquarie was trading at an all-time high of $152.35. When the pandemic hit, their price dropped by 53.76% into the March low of this year.
The company recovered well, gaining 74.81% in price to where it sits today.
The impressive recovery took place on solid financial results for the year, with the company reporting:
- Net profit of $2.731 Billion (down 8% on FY19).
- Earnings Growth of 10%.
- Group Capital of $8.1 billion.
- 51 years of unbroken profitability.
- 5% dividend growth over last five years.
Not bad compared to the other big banks.
Let’s compare the MQG share price chart with CBA and AMP:
Taking a snapshot of others in the sector we can see that Commonwealth Bank of Australia [ASX:CBA] gained 22.55% since the March low.
AMP Ltd [ASX:AMP] managed to claw back 25.46%, While Macquarie nearly tripled those returns, putting on 74.81%.
2020 is proving to be a difficult year for the financial sector but Macquarie looks to be the strongest throughout the recovery.
Where to from here for the MQG share price?
With the Australian economy looking fragile, it might be a bit early to think that the strong recovery will hold.
Over the last few weeks, price for Macquarie fell away a little after hitting the resistance level of $129.81.
If this fall continues then the levels of $114.99 and $103.17 may provide future support.
Conversely, if the MQG share price can turn and move up, then price levels of $129.81 and $136.41 may become the new focus.
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For Money Morning