Why the Adacel share price fell 10% today

Adacel Technologies Limited (ASX:ADA) share price could be an opportunity with strong growth ahead

| More on:
a woman

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

Adacel Technologies Limited (ASX: ADA) saw its share price fall 9.6% today to $1.80, and shares have dropped 15.8% in the past 5 business days.

Shareholders probably won't be too disappointed though. The share price is still up 575% since the start of this year.

Adacel share price 2015
Source: Yahoo Finance

As I outlined in late November, Adacel has had a strong year with a number of accomplishments pushing the share price higher, including a forecast of a 50% rise in profit before tax for the 2016 financial year.

Investors may be taking some profits off the table after such a strong run. After all, the company is trading on a trailing P/E ratio of 36x.

But if the air traffic control systems and simulators developer can achieve its forecast, the P/E ratio could drop much lower. It's definitely one to add to the watchlist.

Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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

Soldier in military uniform using laptop for drone controlling.
Technology Shares

This ASX drone tech stock just hit a record high. Here's why investors are piling in

Elsight shares hit a record high as strong momentum, revenue growth, and insider buying attract investor attention.

Read more »

A woman on a green background points a finger at graphic images of molecules, a rocket, light bulbs and scientific symbols as she smiles.
Technology Shares

2 magnificent ASX tech stocks to buy in 2026

Quietly essential, globally relevant, and built for the long term. These are two ASX tech stocks I’m watching closely in…

Read more »

A child dressed in army clothes looks through his binoculars with leaves and branches on his head.
Opinions

Up 735% in a year! The red-hot EOS share price is smashing Droneshield and other defence stocks

Investor interest in defence stocks has boomed.

Read more »

It's raining cash for this man, as he throws money into the air with a big smile on his face.
Technology Shares

Up 700% in 12 months! Why this ASX tech stock just raised $150m

This high-flying stock is raising funds. But why?

Read more »

A montage of planes, ships and trucks, representing ASX transport shares
Technology Shares

Is Wisetech a buy, sell or hold at current levels?

Jarden has run the numbers on the Wisetech share price.

Read more »

a uranium-fuelled mushroom shaped cloud explosion surrounded by a circle of rainbow light with a symbol of an atom to one side of it.
Opinions

What's next for the best-performing ASX 200 stock of 2025?

This ASX stock boomed in 2026.

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Opinions

3 reasons Xero shares are a screaming buy right now

Here's what I expect from the tech stock this year.

Read more »

Piggybank with an army helmet and a drone next to it, symbolising a rising DroneShield share price.
Technology Shares

New all-time high. Why this ASX defence stock is flying again today

EOS shares jump to a record high on defence tailwinds and a broker upgrade.

Read more »