The Electro Optic Systems Holdings Ltd (ASX: EOS) share price is having a rough month on the ASX.
The company’s share price tumbled on the back of its half-year results and it hasn’t managed to recover since.
This time last month, the Electro Optic Systems share price closed at $4.12. At the time of writing, it’s $3.61, down 0.28%. That represents a 10.42% tumble over the course of a single month.
Could the technology company‘s half-year report really have caused such a plummet? Let’s take a look.
What’s weighing on the tech company’s shares?
Electro Optic Systems’ stock has been struggling these last few weeks.
The source of its troubles might be the company’s half-year results, which were released on 30 August.
The company reported its revenue for the 6 months ended 30 June 2021 had increased 30% on that of the prior comparable period. Additionally, the company’s statutory earnings before interest and tax also increased 58%, while its operating cash flow reached $4.6 million.
However, Electro Optic Systems reported an operating loss after tax of $11.7 million. Though, that was better than the prior comparable period’s $14.2 million loss.
The Electro Optic Systems share price plunged 4.4% on the day its results were announced, before falling another 9.7% the following day. So far, it has only managed to scrape back 1.4%.
While it could be easy to blame Electro Optic Systems’ half-year results for its recent poor performance, there are also short sellers to factor into the equation.
As The Motley Fool Australia regularly reports, Electro Optic Systems is often among the ASX’s most shorted shares.
Electro Optic Systems share price snapshot
Its poor performance over the last month has added to Electro Optic Systems’ stock’s struggles.
It’s currently 38.9% lower than it was at the start of 2021. It has also fallen 31.6% since this time last year.