The Tesserent Ltd (ASX: TNT) share price has been struggling lately despite several pieces of seemingly positive news having been released by the company.
Over the last month, Tesserent’s stock has fallen 22.41%. Right now, the Tesserent share price is 22.5 cents. This time last month it was 29 cents.
So, what spurred the cyber security company’s share price to tumble? Let’s take a look.
Tesserent struggles on the ASX
The Tesserent share price has been sliding lately despite the company posting strong financial year 2021 earnings and releasing news of an exciting acquisition.
The company released its results for financial year 2021 on 30 August.
Within them, it noted it had made a $4.9 million profit after tax and its revenue had been boosted 233% to reach $67.3 million.
However, the market showed indifference to Tesserent’s seemingly successful 12 months. The Tesserent share price ended the day exactly where it started it, before plunging 11% lower the following session.
The market’s cold reaction to Tesserent’s FY21 results was the second time a seemingly positive announcement fell flat for the company in August.
On 19 August, Tesserent announced its plan to acquire Australian cybersecurity company, Loop Secure.
Despite lifting during the session in which the company announced its acquisition, the Tesserent share price closed exactly where it had finished the previous day’s trade.
Tesserent plans to acquire Loop Secure for around $13.5 million, paying $9 million in cash and the rest in shares.
Tesserent share price snapshot
The Tesserent stock’s recent slide has added to its ongoing woes.
Right now, the company’s share price is 36% lower than it was at the start of 2021. It has also fallen 8% since this time last year. However, it is currently up 4.65% on the day.
The company has a market capitalisation of around $230 million, with approximately 1 billion shares outstanding.
The post Why is the Tesserent (ASX:TNT) share price down 22% in a month? appeared first on The Motley Fool Australia.
Should you invest $1,000 in Tesserent right now?
Before you consider Tesserent, 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 Tesserent wasn’t one of them.
The online investing service he’s run for nearly 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 August 16th 2021
More reading
- Tesserent (ASX:TNT) share price fails to fly despite 230% revenue growth in FY21
- Why the Tesserent (ASX:TNT) share price is surging 7% higher today
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 Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3huZLeW
Leave a Reply