Why has the Brainchip (ASX: BRN) share price tanked 20% in a month?

We take a look at what's weighed on the AI's company's share price lately?

| More on:

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

The Brainchip Holdings Ltd (ASX: BRN) share price has had an awful month's trade on the ASX despite no news having been released by the company.

In fact, the last time the artificial intelligence company updated the market with price-sensitive news was way back in August when it released its earnings for the first half of 2021.

As of Tuesday's close, the Brainchip share price is 39 cents, 2.5% lower than Monday's close.

This time last month, Brainchip's shares were swapping hands for 48 cents apiece. That means the Brainchip share price has dropped a whopping 19.79% over the last 30 days.

For context, the S&P/ASX 200 Index (ASX: XJO) has fallen 1.9% in this time.

Meanwhile, the S&P/ASX Information Technology Index (ASX: XIJ) has dropped 6% over the last 30 days while the S&P/ASX All Technology Index (ASX: XTX) is down 5.6%.

So, what's been weighing on the global AI company's stock lately? Let's take a look.

A woman holds her hand out under a graphic hologram image of a human brain with brightly lit segments and section points.

Image source: Getty Images

Could this be why Brainchip has struggled lately?

The Brainchip share price's recent slide might have something to do with its founder and CEO Peter van der Made.

On 10 September, the company announced van der Made was in the process of offloading 8,993,315 Brainchip shares. At the time, my Foolish colleague reported the holding was valued at around $4.3 million.

However, the shares were only earmarked the be sold on 10 September. They would actually swap hands 15 trading days later for the volume average weighted price exhibited through the 15-session period.

Thus, on 5 October, the shares left van der Made's portfolio with the buyer paying $3,659,584.

The Brainchip share price fell 2.5% on the day the swap was completed. However, it fell a similar amount during both the previous session and following session.

Since then, Brainchip's stock has gained another 2.6%.

Whether or not the boss' extended trade was weighing on the AI company's stock is impossible to say.

Though, it's worth noting van der Made still owns more than 160 million Brainchip shares.

Brainchip share price snapshot

The last month has plunged the Brainchip share price into the longer-term red on the ASX.

Right now, the company's shares are trading for 9% less than they were at the start of 2021. However, they're currently valued 6% higher than they were this time last year.

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. 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.

More on Share Fallers

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Centuria Capital, Iluka, Metcash, and Reliance Worldwide shares are falling today

These shares are having a tough session on Tuesday. What's going on?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Humm, Metcash, PLS, and WiseTech shares are sinking today

These shares are starting the week in the red. But why?

Read more »

A bored man sits at his desk, flat after seeing the latest news on the share market.
Share Fallers

Why Aeris, Newmont, PLS, and REA Group shares are tumbling today

These shares are ending the week in the red. But why?

Read more »

Frustrated and shocked businesswoman reading bad news online from phone.
Share Fallers

Why Air New Zealand, Emeco, ResMed, and Westgold shares are tumbling today

These shares are having a poor session on Thursday. But why?

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Share Fallers

Why Karoon Energy, Novonix, Transurban, and Woodside shares are sinking today

These shares are having a tough time on hump day. What's going on?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Karoon Energy, PLS, South32, and Transurban shares are falling today

These shares are having a poor session on Tuesday. What's going on?

Read more »

Lines of codes and graphs in the background with woman looking at laptop trying to understand the data.
Share Fallers

Why Aussie Broadband, Coles, EOS, and Santos shares are falling on Monday

These shares are missing out on the good times today.

Read more »

A man with his back to the camera holds his hands to his head as he looks to a jagged red line trending sharply downward.
Share Fallers

Why Larvotto, Newmont, Qantas, and Steadfast shares are dropping today

These shares are under pressure on Thursday. What's going on?

Read more »