The Dicker Data share price is trading at YTD lows. Here’s why

Disappointed man with his head on his hand looking at a falling share price his a laptop.Disappointed man with his head on his hand looking at a falling share price his a laptop.

The Dicker Data Ltd (ASX: DDR) share price tumbled to a year-to-date low of $10.87 yesterday before climbing back up.

Widespread turmoil across the ASX on the back of Monday’s heavy losses on Wall Street sent investors packing.

Shares in the hardware, software and cloud distributor defied the sell-off to finish 0.61% higher to $11.57. However, when factoring in the past month, its shares have fallen 8%.

For context, the S&P/ASX 200 Index ended the day down 3.55% to 6,686 points.

Let’s take a look at what’s weighing on Dicker Data shares in recent memory.

What’s driving Dicker Data shares lower?

A number of factors outside the company’s control have led the Dicker Data share price to sink since 24 March.

Russia’s attack on Ukraine continued to spook international markets as sanctions were handed down on the Kremlin.

Subsequently, oil and gas prices rose and global markets began to tank as this would stall worldwide economic growth.

While this didn’t have anything to do with Dicker Data directly, its shares weren’t spared, falling to $12.11 on 9 May.

Furthermore, the latest inflation figures and potentially aggressive rate hikes in 2022 are having a detrimental effect on international markets.

The S&P/ASX All Technology Index (ASX: XTX) is down 7% in a month, and 36% for the current calendar year.

While Dicker Data reported strong growth in its first-quarter update on 11 May, this hasn’t been enough to stem the bloodshed.

If the ASX plunges further, it’s most likely that the IT distributor’s shares will follow suit.

Dicker Data share price summary

In 2022, Dicker Data shares have lost around 22% due to a severe downturn across global markets.

Although, when looking over the past 12 months, its shares are up 11% in that time frame.

Dicker Data commands a market capitalisation of roughly $1.99 billion and has a trailing dividend yield of 4%.

The post The Dicker Data share price is trading at YTD lows. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has positions in Dicker Data Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data Limited. 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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