November hasn’t been a great month for shareholders of International Consolidated Airlines Group (LSE: IAG). Furthermore, the IAG share price is the second-worst performer in the FTSE 100 index since last Friday. What’s going on?
The IAG share price stumbles
As I write, the IAG share price stands at 155.26p, up 0.68p (+0.4%) on Wednesday’s close. On 1 October, this popular stock closed at 188.02p, but has since dived by 32.76p (-17.4%). Over the past month, the shares have dropped by 11.6%, but the real damage was done in the past fortnight. On Friday, 5 November, shares in the owner of British Airways, Iberia, and Aer Lingus airlines closed at 180.16p. Hence, they have lost almost 25p (-13.8%) in less than two weeks. So why has the stock been burnt since Bonfire Night?
IAG’s stock slipped after recent results
On 5 November, IAG released its third-quarter results. In Q3/21, IAG’s passenger capacity reached 43.4% of its Q3/19 level, with capacity expected to hit 60% in Q4. The group also reported positive operating cash flow for Q3, as well as liquidity of €12.1bn (including €8bn in cash) as at 31 October. However, the group still made an operating loss of €452m between July and September.
Looking at the IAG share price’s recent moves, it appears that investors bought in ahead of the anticipated results, pushing up the stock. Since the Q3 results emerged, the stock has dropped by 8.4%. Perhaps sellers were disappointed with the latest figures, driving the price down again? Let’s see what happens to IAG in the run up to the end of 2021. Will they enjoy a ‘Santa rally’?
Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services, such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a diverse range of insights makes us better investors.
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