The WiseTech Global Ltd (ASX: WTC) share price was a strong performer on Wednesday.
The logistics solutions software company’s shares ended the day a sizeable 6% higher at $48.24.
Why did the WiseTech share price shoot higher on Wednesday?
There are a few potential reasons why the WiseTech share price is rising today. This includes a much needed rebound in the tech sector and a the release of a recent bullish broker note.
And while it is true that the company’s shares are due to trade ex-dividend in the coming days, it seems highly unlikely that investors would be scrambling to get hold of shares purely for a 4.75 cents per share interim dividend. After all, with the WiseTech share price trading at $48.24, this represents a paltry dividend yield of less than 0.1%.
In respect to the tech rebound, the S&P ASX All Technology index had a strong day and rose a sizeable 2.4%. This was more than twice the return of the benchmark ASX 200 index.
As for the broker note. Last week Morgan Stanley retained its overweight rating but lifted its price target on the WiseTech’s shares by a sizeable 43% to $50.00.
The broker was pleased with its first half performance and notes that management hinted that it could soon start making acquisitions again. Morgan Stanley estimates that WiseTech could have in the region of $1 billion to spend on bolt-on acquisitions.
The WiseTech share price is still down 19% in 2022 despite today’s gain.
The post Why did the WiseTech (ASX:WTC) share price jump 6% today? appeared first on The Motley Fool Australia.
Should you invest $1,000 in WiseTech right now?
Before you consider WiseTech, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and WiseTech wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- 3 beaten-up ASX tech shares that ‘tick all the boxes’: fundies
- Time is running out to lock in the WiseTech (ASX:WTC) dividend. Here’s why
- Glitch! Why are ASX tech shares getting hammered on Monday?
- Top brokers name 3 ASX shares to buy next week
- ASX tech shares have been smashed today as market hits 3-week low
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended WiseTech Global. The Motley Fool Australia owns and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/XIromb1
Leave a Reply