ASX BNPL share Splitit sinking 11% on rollercoaster day

Scared looking people on a rollercoaster ride, just like the Afterpay share price in recent months.Scared looking people on a rollercoaster ride, just like the Afterpay share price in recent months.

The Splitit Ltd (ASX: SPT) share price is on a wild ride today. In early trade it hit a high of 31 cents — a gain of almost 9%. But it has since slumped and at the time of writing is 25.5 cents — down 10.53% on Wednesday’s close.

For comparison, the S&P/ASX All Technology Index (ASX: XTX) is currently climbing 2.08%.

Let’s take a look at what is impacting the Splitit share price today.

Splitit responds to ASX query

Splitit shares have had a stellar month, surging around 60% since market close on 5 April.

During this time, the ASX has sent Splitit two share price queries, one of which was released to the market today.

Splitit shares soared 31% between market close on 5 April and 27 April. Then on 28 April, the company’s share price exploded 55%.

The ASX BNPL share reiterated today is not aware of any non-public information that explained the first price and volume movement.

With regard to the second movement, Splitit cited the CEO’s new vision potentially impacting the share price.

Commenting on the second share price movement, Splitit said:

Splitit believes that, after almost 6 months without a permanent CEO in place, gaining insight into the new CEO’s assessment of Splitit’s potential may have influenced investors to trade in Splitit’s shares.

Splitit told the ASX it is complying with listing rules. The company also responded to the ASX on 27 April advising it was not aware of any information explaining recent trading of its shares.

On 28 April, the company released a quarterly activities report, CEO presentation, and AGM meeting results.

In a new vision outlined on 28 April, CEO Nandan Sheth highlighted Splitit “bridges the gap” between BNPL and credit cards. The company also revealed it is in talks with Google about expanding its partnership with the technology giant to United States customers.

The company allows customers to split payments using available credit lines. This differentiates the company from other ASX BNPL shares.

Sheth commenced in the role of CEO on 28 February.

Share price snapshot

The Splitit share price has fallen 66% in the past year. However, this year to date it is up 2%, while it is up 21% in the past week alone.

Splitit has a market capitalisation of about $129 million based on the current share price.

The post ASX BNPL share Splitit sinking 11% on rollercoaster day appeared first on The Motley Fool Australia.

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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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