Why has the Tesserent (ASX:TNT) share price tumbled 12% in a month?

The cybersecurity company can't seem to catch a break on the market despite releasing positive news this month.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Tesserent Ltd (ASX: TNT) share price has taken a dive and fallen about 12% in the past month. This comes despite the internet security services provider releasing a couple of positive announcements to the ASX.

At the time of writing, the Tesserent share price is up 1.21% today to 17 cents apiece.

A young Tesserent technician stands in a dark computer server room looking at his ipad during a cybersecurity inspection

Image source: Getty Images

What's dragging Tesserent down?

Investors seemed unimpressed by the company's efforts to boost its cybersecurity presence, sending the Tesserent share price south.

The first notable fall was on 19 November, when the company provided the market with a business update.

While the release highlighted a 372% increase in annual turnover against the prior year, investors shrugged off the good news. In addition, there were some organisational changes which saw a reshuffle of management personnel.

The release, along with the annual general meeting (AGM) later that day, failed to change investor thinking. Over the following 3 trading days, the Tesserent share price sank by almost 20%.

The other significant fall came on 6 December, despite no announcements from the company. Tesserent shares fell heavily, down 11% to a 52-week low of 15 cents. The trend, however, was quickly reversed when Tesserent announced the acquisition of 2 companies the next morning.

Tesserent shares rose 16%, with management noting that the latest purchase would cement its position as the leading provider of cybersecurity solutions.

Tesserent expects both additions to immediately integrate into its ecosystem. This is particularly the case with its North Security business, which leads the company's federal government team and delivers large multi-year projects.

Tesserent share price summary

Over the past 12 months, the Tesserent share price has continued its declining trend to post a loss of about 50%. The company's shares reached a 52-week high of 44 cents in January, before gradually treading lower throughout the year.

Tesserent commands a market capitalisation of roughly $203 million, with approximately 1.2 billion shares outstanding.

Motley Fool contributor Aaron Teboneras 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.

More on Technology Shares

a man wearing spectacles has a satisfied look on his face as he appears within a graphic image of graphs, computer code and technology related symbols while he concentrates on a computer screen
Technology Shares

Top ASX 200 tech shares to buy right now: Morgans

It’s time to jump on some leading players in the tech sector, according to one broker.

Read more »

A young woman sits on her lounge looking pleasantly surprised at what she's seeing on her laptop screen as she reads about the South32 share price
Technology Shares

These ASX tech shares are buys: Goldman Sachs

Goldman Sachs speaks very highly about these tech shares.

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Technology Shares

Xero share price dips 3% amid Silicon Valley Bank fallout

Xero has been caught up in the Silicon Valley Bank collapse.

Read more »

A worried man holds his head in his hands
Technology Shares

These ASX tech shares have exposure to the Silicon Valley Bank collapse

The second-largest banking collapse in US history occurred last week.

Read more »

asx share price resignation represented by man kicking miniature man through the air
Technology Shares

Novonix shares will soon be booted out of the ASX 200. What might this mean for investors?

ASX 200 share Novonix will soon be just an All Ords share.

Read more »

Technology Shares

Is the new leaner, meaner Xero stock a buy right now?

Is this tech stock a buy after announcing major cost reductions?

Read more »

A young woman with her mouth open and her hands out showing surprise and delight as uranium share prices skyrocket
Technology Shares

Why is the Xero share price racing 11% higher today?

Investors have been fighting to get hold of Xero's shares on Thursday.

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Technology Shares

The ASX 200 tech shares I'd be thrilled to buy at a 20% discount

I’d love to go shopping for these tech names if they heavily dipped.

Read more »