The Atomo Diagnostics Limited (ASX: AT1) share price is down 16% since this time last month. With no news from the company, what’s been driving its share price lower lately?
At the time of writing, the Atomo share price is 24 cents, just 1 cent above its all-time lowest closing price.
Let’s look at what’s been going on with the company’s share price over the last few months.
What does Atomo Diagnostics do?
Atomo Diagnostics is an Australian medical device company that supplies the global market with blood-based rapid diagnostic test (RDT) devices.
It aims to provide technology that simplifies and improves the accuracy of the blood testing process.
The company offers products for both medical professionals and people who need to perform self-testing.
Recently, Atomo has secured the Therapeutic Good Administration’s approval for its RDTs, one of which works to detect HIV and the other to detect COVID-19 immunity.
What’s been moving the Atomo Diagnostics share price lately?
The last time we heard from Atomo Diagnostics was when the company was removed from the All Ordinaries Index (ASX: XAO) on 12 March.
Prior to that, the company posted its quarterly earnings in late February. While many of its half-year metrics were positive, with a revenue increase of 389% and gross profit lifting by 278%, its share price dropped.
It’s possible the drop in the company’s share price is the result of its earnings before interest, tax, depreciation and amortisation (EBITDA) loss of around $2.12 million, although Atomo still held $24.69 million in cash and no debt.
It also announced a number of positive updates from its HIV and COVID-19 immunity RTDs between October and December 2020, but none since.
Atomo share price snapshot
Atomo Diagnostics is still a relatively new company on the ASX. It was first floated this time last year.
The company’s share price got off to a slow start. On the close of its first day on the ASX, its shares were trading at 39 cents apiece. Two trading days later, it reached its highest closing price so far, finishing the day at 54 cents.
It’s been trending downwards ever since, having dropped 39.74% since its debut and 24.19% in 2021.
Atomo Diagnostics has a market capitalisation of around $95 million, with approximately 408 million shares outstanding.
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Motley Fool contributor Brooke Cooper 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 Bruce Jackson.
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