Why did the Novonix share price tumble 22% in May?

a young man sits on the floor with his back against a sofa hunched over his phone in one hand and his other hand on top of his head as though he is seeing bad news as his face looks sad and anguised.a young man sits on the floor with his back against a sofa hunched over his phone in one hand and his other hand on top of his head as though he is seeing bad news as his face looks sad and anguised.

The Novonix Ltd (ASX: NVX) share price struggled through last month despite the company staying mostly silent.

As of the final close of May, the Novonix share price was swapping hands for $4.09. That’s 22% lower than it ended April.

For context, the S&P/ASX 200 Index (ASX: XJO) slipped 3% over the same period.

Let’s take a closer look at what went wrong for the battery materials and technology company’s share price in May.

What weighed on Novonix’s stock in May?

The Novonix share price was battered by the market in May. Its tumble followed the release of its quarterly report on April’s final day of trade.

The company dropped its activities and cash flow reports for the March quarter on 29 April.

While the Novonix share price lifted 3% that day – likely due to the company’s revenue growth – it tumbled 4% the following session.

And the stock’s performance didn’t improve much from then on. It was dragged lower alongside many of its S&P/ASX 200 Information Technology Index (ASX: XIJ) peers amid an international tech sell-off.

In fact, the ASX 200 info tech sector slipped 8.7% last month while the tech-heavy Nasdaq Composite dumped 2%.

Unfortunately for Novonix investors, the company’s stock is particularly vulnerable to market volatility due to its valuation, as The Motley Fool Australia’s James Mickleboro reported last month.

The only news issued by the company last month detailed the exit of a key board member.

Trevor St Baker – billionaire and founder of Novonix investor St Baker Energy Innovation Fund (SBEIF) – stepped down from the company’s board.

“My resignation should not reflect any diminution of interest by SBEIF or of the St Baker family in Novonix as a serious growth stock in our investment portfolios,” St Baker said.

The Novonix share price traded relatively flat on the day St Barker announced his resignation.

Novonix share price snapshot

Novonix’s stock’s poor performance in May added to its recent struggles.

Right now, the company’s share price is 65% lower than it was at the start of this year. However, it has gained 53% since this time last year.

The post Why did the Novonix share price tumble 22% in May? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Novonix right now?

Before you consider Novonix, 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 Novonix 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

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 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.

from The Motley Fool Australia https://ift.tt/CwzvfIE

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s