Codan (ASX:CDA) share price tops performance on ASX Tech Index in 2021

The communications technology company is defying the tech stock downturn in 2021 to fly higher.

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Shares in Codan Limited (ASX: CDA) are leading the S&P/ASX All Technology Index (ASX: XTX) this year. The Codan share price has gained almost 60% in 2021 so far.

At the time of writing, shares in Codan are trading at $17.73, gaining 3.02% today. At the start of 2021, shares in the company were swapping hands for $11.28.

By contrast, the All Tech Index has fallen almost 10% since the beginning of the year.

Codan designs and manufactures communications and technologies designed for use in tough conditions. It produces radios, metal detectors, and mining automation systems. The company provides these to a number of users, including ‘Five Eyes’ military and intelligence agencies.

Codan has announced a number of acquisitions this year, as well as posting strong financial results. The company’s share price also managed to dodge the US-driven tech sell-off in March.

Let’s take a closer look at what Codan has been up this year.

Terrific 2021 to date

The first we heard from Codan this year was in mid-February.

Then, the company announced it had acquired US-based Domo Tactical Communications (DTC). DTC produces high bandwidth wireless communications and specialises in multiple-input multiple-output (MIMO) mesh networks.

The news saw the Codan share price hit what was then an all-time high of $13.64.

Two days later, Codan released strong results for the first half of the 2021 financial year.

On 1 April, Codan announced another acquisition, this time of critical communication technologies manufacturer Zetron Inc.

The news led its share price to close 9.5% higher than the previous day’s trade.

Codan share price snapshot

Codan shares have been having more than just a great few months on the ASX.

Since this time last year, the Codan share price has gained around 160%.

The company has a price-to-earning (P/E) ratio of 41.67 and it pays a dividend.

Codan has a market capitalisation of around $3 billion, with approximately 180 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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