How does the Kogan share price perform during lockdowns?

Kogan shareholders might find a silver lining in being stuck at home.

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Kogan.com Ltd (ASX: KGN) was one of ASX's biggest COVID-19 winners. The first lockdown experienced by Australians – put in place in late March 2020 – seemingly spurred an intense increase to the Kogan share price.

The gains were helped along by the online retailer reporting a series of record monthly sales.

This weekend, as Southeast Queensland, Victoria, and Sydney are locked down, Kogan is celebrating a week in which its share price gained 11.8%.

Shares in Kogan finished Friday's session trading for $11.35 a piece.

Could this be a pattern? Let's take a look at how Kogan's shares have reacted to previous lockdowns.

Woman sitting and looking at her phone smiling watching the share price go up

Image source: Getty Images

How Kogan stock reacts to lockdowns

Months after Australia's initial lockdowns, Victoria's second wave took hold.

Lockdowns began in Melbourne on June 30 2020. By 3 August 2020, Victoria had entered stage 4 restrictions. Kogan's shares gained 9.5% the day the major restrictions were implemented and 37% between then and October 19, when restrictions began to ease in the state.

Victoria entered another lockdown on 12 February 2021, a day in which the Kogan share price gained 4.7%.

Then, when embattled Victoria entered yet another 7-day lockdown – later extended to 14 days on 27 May 2021, the Kogan share price gained 3%.  

June 2021 brought a period of short, sharp lockdowns. Parts of Sydney entered their first 'soft' lockdown on 25 June, while parts of the Northern Territory, Western Australia, and Queensland were put into short lockdowns on 27 June, 28 June, and 29 June respectively.

Interestingly, the Kogan share price gained 13% over the first 2 days of Sydney's lockdown, before falling 10.9% over 29 June and 30 June.

Between 15 July and 5 August, two lockdowns were announced for Victoria – the latest announced just yesterday. While South Australia and Brisbane have experienced one each. All the while Sydney has continued to be locked down.

The Kogan share price has fallen 2% in that time frame. However, it has gained 11% since Brisbane entered its lockdown last Saturday. It also shot up 3% on Friday following Victoria's snap lockdown.

Kogan share price snapshot

In a silver lining for Kogan shareholders stuck at home, Kogan has a pattern of gaining when states lockdown.

Though, this year hasn't been good for Kogan on the ASX.

Its shares have fallen 41% since the start of 2021. They've also dropped 39% over the last 12 months.

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. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. 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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