This ASX 200 tech share just hit another all-time high, its fourth this month

It’s been a bumper month for TechnologyOne shares. Here are the details

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The S&P/ASX 200 Index (ASX: XJO) is enjoying a decent month, so far anyway. Since the start of November, the ASX 200 has added roughly 1.4% and is sitting at 7,426 points at the time of writing this Tuesday. That’s up 0.62% for the day so far. But one ASX 200 tech share is doing even better. That would be the TechnologyOne Ltd (ASX: TNE) share price.

TechnologyOne shares are presently trading at $13.02 each, up 0.85% for the day so far. But earlier today, this company hit $13.07 a share. That is a new all-time high for TechnologyOne.

Normally, an all-time high for any ASX share would be a cause for celebration. But given this is the fourth time TechnologyOne has hit a new watermark just this month, we might have a rare occasion where investors might greet this news with a yawn.

Not only that, but we also saw TechnologyOne make no less than 5 record highs over September, as my fool colleague Brooke covered at the time. TechnologyOne also happened to be the third-best performing ASX 200 share out of the entire index over September as well.

Today’s latest all-time high means this ASX tech share has now gained an impressive 59% year to date, and 46% over the past 12 months. It’s also up a solid 142% over the past 5 years.

So what is behind this extraordinary performance more recently?

Why are TechnologyOne shares still hitting new highs?

Well, it’s hard to say, believe it or not. We haven’t had any major news out of TechnologyOne since its announcement that it was acquiring the UK-based Scientia back on 3 September (which, surprise, surprise, led to a new record high at the time).

This recent run of strong sentiment from investors may have been sparked by some expert opinions on this company’s future. Brokers have been very bullish on TechnologyOne over the past few months.

In September, my Fool colleague James covered broker Bell Potter’s ‘buy’ rating on TechnologyOne, along with its $13.50 share price target. Bell Potter reckons the Scientia acquisition will help improve the company’s FY22 and FY23 earnings.

My Fool colleague Tristan also recently covered broker Morgans’ buy rating on TechnologyOne as well.

Another thing that investors might have in mind with TechnologyOne is its upcoming earnings results for FY 2021. TechnologyOne is scheduled to report these earnings next week on 23 November.

In its commentary on this company, Bell Potter noted that “the full-year result tends to be a catalyst for the share price – and we expect no different this year – as the second-half result tends to be stronger both in terms of earnings and cash flow”.

So perhaps Bell Potter is not the only investor envisaging this scenario.

At the current TechnologyOne share price, this ASX tech share has a market capitalisation of $4.15 billion, with a dividend yield of 1.02%.


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Motley Fool contributor Sebastian Bowen 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.

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