Why is Magellan (ASX:MFG) in news today?

 Highlights

• It’s the happy hour for Magellan shareholders as they can finally know who is running the show. 
• As a result, investors finally show interest in trading Magellan on the ASX now. 
• Magellan closed in green today with a ‘more than average’ trading volume on the ASX today. 

The shares of Magellan Financial Group Limited (ASX:MFG) closed 5.033% higher at AU$17.11 per share on the ASX today (3 May). Approximately 2.1 million shares of Magellan were traded throughout the entire trading session on the ASX today. 

The share price of Magellan has fallen over 60% on the ASX over the past 12 months. On the other hand, Magellan’s year-to-date share price also fell over 10% on the ASX today (3 May). 

What impacted Magellan’s share price on the ASX today? 

Magellan’s share price on the ASX has been quite volatile over a couple of months now. Especially after the former CEO, Hamish Douglass announced his medical leave in February 2022. Apart from being an excellent leader, Hamish Douglass was also the most important face of the company. After Douglass took a leave, investors went under a phase of uncertainty, thinking about whether Douglass will return. The company was solely led by its co-founder Chris Mackay and Nikki Thomas during Douglass’ absence. 

On 21 March 2022, Hamish Douglass announced his decision to resign from his role as CEO of Magellan after facing a lot of ups and downs over the past year. Therefore, investors are now able to take a sigh of relief as the uncertainty period is over with Douglass’ decision to resign. 

According to media reports, Nikki Thomas is ready to replace Hamish Douglass as the permanent CIO, taking it over the back of Chris Mackay. Thomas used to work for Magellan as a fund manager. He was brought back to the company when Douglass took medical leave.  

As a result, the current situation of Magellan could be responsible for pushing its share price on ASX today. Furthermore, Magellan’s share price has gained approximately by 14% on the ASX during the past five days. 

Magellan was also traded heavily today, and it closed in green despite the whole ASX 200 Financials sector closing in red today. 

The S&P/ASX 200 Financials sector (ASX:XFJ) closed 0.323% lower at 3004.2 on the ASX today (3 May). 

About Magellan: 

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Magellan Financial Group Limited is an ASX-listed diversified financial company established in 2006. The company was established with the aim of helping its clients to generate attractive returns through global equity investments and safeguarding their capital at the same time. Magellan currently holds a market capitalisation of AU$3.02 billion, and its headquarter is situated in Sydney. The company is popularly known for offering its services to high net worth, retail and institutional investors. The company, with a team of 28 highly experienced investment professionals, manage over AU$69.9 billion in global equity and infrastructure strategies for its clients across the world. Magellan owns offices in Australia, New Zealand and the United States.