Fortescue Ltd (ASX: FMG) shares have fallen to a new 52-week low on Tuesday.
At the time of writing, the Fortescue share price is down 2.37% to $17.28 after briefly touching $17.10 earlier this morning.
There's a pretty simple explanation behind much of today's fall. Fortescue is trading ex-dividend for its 46-cent fully franked final dividend, which is due to be paid later this month.
Still, today's move continues what has been a difficult year for shareholders.
Fortescue shares are now down around 21% since the start of 2026 and have fallen roughly 6.7% over the past month.
So, with the shares back at their lowest level in a year, is this starting to look like a buying opportunity?
A rough few months
Fortescue shares were trading above $22 in late May before beginning their latest slide.
The stock has struggled to regain momentum since then and entered September close to the bottom of its 52-week range.
Today's ex-dividend move needs to be kept in context. The shares closed at $17.70 yesterday and investors buying from today will no longer receive the 46-cent final dividend.
Looking beyond today's price swing, Fortescue recently reported FY26 underlying EBITDA of US$8.6 billion, up 9%, and underlying net profit rose 9% to US$3.5 billion.
Free cash flow increased 25% to US$3.2 billion, while iron ore shipments reached a record 201.3 million tonnes.
What do brokers think?
Despite the weaker share price, brokers remain fairly cautious.
According to TipRanks, the average 12-month price target across 11 analysts is $17.95. That's only around 4% above the current Fortescue share price.
There are currently 2 'buy' ratings, 6 'holds' and 3 'sells'.
Morgan Stanley is one of the more bearish brokers. It reiterated its 'sell' rating on Tuesday with a $15.45 price target, implying downside of around 11% from current levels.
At the other end, Macquarie has a 'buy' rating and $20 target, while Ord Minnett is also positive with a $19.50 target.
Is it time to buy Fortescue shares?
The falling share price has certainly made Fortescue look cheaper than it did a few months ago.
The company paid $1.08 per share in fully franked dividends across FY26. Based on the current share price, that represents a trailing dividend yield of around 6.3%.
But brokers don't see a huge amount of upside on average, and the shares have remained in a clear downtrend since May.
That leaves investors with a mixed picture. The shares are cheaper and the dividend yield looks decent, but brokers are hardly rushing to call the stock a bargain.
A lot will depend on whether Fortescue can keep producing strong cash flow from here.
The post Fortescue shares just hit a 52-week low. Is it time to buy? appeared first on The Motley Fool Australia.
Motley Fool contributor Aaron Teboneras 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 no position in any of the stocks mentioned. 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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