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%.
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.
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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.
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