News

Why is the Tesserent (ASX:TNT) share price down 22% in a month?

Male IT engineer shrugs his shoulders as he tries to understand network.

Image source: Getty Images

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.

Leave a Reply

Your email address will not be published. Required fields are marked *

Time limit is exhausted. Please reload the CAPTCHA.