Why did the AMP share price just crack another new 52-week high?

The AMP share price has rocketed to trade at $1.28 – the highest it's been in 18 months.

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Key points
  • The AMP share price posted a new 52-week high today, surpassing the milestone for the third time this week
  • At its intraday high, the stock was swapping hands for $1.28 apiece – the highest its been in 18 months
  • It comes amid rumours the financial services provider is back in the running to acquire Westpac's wealth management division

The AMP Ltd (ASX: AMP) share price is back in the green on Wednesday, soaring to yet another 52-week high.

It's the third consecutive session in which the stock has surpassed the milestone. It peaked at $1.263 on Monday and again at $1.275 on Tuesday.

Today, the AMP share price rocketed to trade 1.59% higher than its previous close at $1.28 – the highest it's been in 18 months.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is gaining 0.32%.  

So, what wind might be beneath the wings of the financial services share this week? Let's take a look.

Three businesspeople leap high with the CBD in the background.

Image source: Getty Images

AMP stock surges to new 52-week high

There's been a lot going on in AMP's camp lately, and the company's share price appears to be benefitting.

Not only is the embattled ASX 200 constituent buying back $350 million worth of its stock on-market at the moment, it also revealed growth in many of its businesses over the September quarter.

Meanwhile, the divestment of its Collimate Capital business – set to bring around $700 million in upfront cash payments – is expected to be finalised in the near future.

But that might not be all the company is up to right now. AMP is rumoured to have returned to the ring, battling to control Westpac Banking Corp (ASX: WBC)'s wealth management unit.

The unit has been on the chopping block for some time now, with Colonial First State (part-owned by Commonwealth Bank of Australia (ASX: CBA)) widely reported to be the front runner for the business.

AMP was said to have retreated from the table after outbidding Colonial First State earlier this year, The Australian reports, and has since returned. If AMP were to come out on top, it would fund the acquisition through debt, sources reportedly said.

Whether the company is, indeed, battling for Westpac's wealth unit is yet to be seen.

AMP share price snapshot

The AMP share price has been on the up and up over the last 12 months. It's gained 28% since the start of 2022 and 18% since this time last year.

But it still has a long way to go before it reaches its previous highs.

The stock has tumbled 75% over the last five years amid the fallout of the Financial Services Royal Commission. It has also dumped more than 90% since its early 2000s high – which saw it trading at around $14.50.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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