The Polynovo Ltd (ASX: PNV) share price has struggled over the last few weeks.
Whereas the S&P/ASX 200 index (ASX: XJO) has slipped 2% into the red, Polynovo shares are 10% in the red and have reached a new 52-week low in afternoon trade today.
Here are the details.
What's up with the Polynovo share price lately?
Polynovo shares have been on the way down since the company released its FY21 earnings last month. This is despite the company posting fairly robust results.
For instance, Polynovo recognised a 32% and 53% year on year increase in revenue and distributor sales, respectively.
In addition to this, the company expects strong results in FY22 in all of its markets, including the US, Europe, UK, Middle East, Asia, Australia and New Zealand.
It expects strong sales growth in its NovoSorb segment as 70% of burns centres have now purchased the product, according to the company.
This comes in addition to a number of clinical trials booked in for FY22 which could weigh in on the Polynovo share price.
Polynovo's shares made a quick gain in the days following its earnings report, but have been sold off since. After the previous high of $2.23 at the close on 31 August, the Polynovo share price has decreased 11% and is trading at $1.99.
Not to mention, these selling pressures appear to be a continuation of a longer term downtrend on Polynovo's share price chart, having come off highs of $3.18 on 23 April, and then $2.88 on 25 June.
This would appear to be the more likely explanation for the selloff in Polynovo shares since August, over the company's fundamentals.
Polynovo share price snapshot
The Polynovo share price has struggled this year to date and has posted a loss of 49%. This extends the loss over the previous 12 months to 7%.
These results have lagged the broad index's return of around 25% over the past year.
