Why is the WiseTech (ASX:WTC) share price soaring 14% in November?

It’s been a good month so far for the cloud-based software provider’s shares. We take a closer look

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The WiseTech Global Ltd (ASX: WTC) share price is back in focus after cruising past its all-time high with ease.

Although news activity has been quiet from the cloud-based software provider of late, its shares today hit a record high of $58.50. They are currently changing hands for $58.34 apiece, a gain of 0.95% on the day. They have also climbed 14.2% since the start of November.

Let’s take a closer look.

What’s up with WiseTech lately?

The WiseTech share price has gained 64% since bouncing off a low in late August and has done so relatively unchallenged.

Curiously, it has also done so in the absence of any price-sensitive information out of WiseTech’s camp. The last time WiseTech released anything significant was back in August, when it presented its FY21 results.

Back then, it recognised a 63% jump in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $206 million, well ahead of management’s guidance of $190 million.

The bolus of WiseTech’s sales growth came from recurring revenue across the year – a sign obviously deemed positive by investors considering the immediate reaction.

For instance, recurring revenue contributed 96% of the company’s FY21 over sales. This carried down through the income statement as well – WiseTech doubled net profit after tax (NPAT) to $105 and had free cash flow of $139 million for the year, up 150%.

One other factor investors bought into was the company’s improved FY22 guidance. Management now expects 18%–25% revenue growth for the year, and EBITDA to expand by 26%–28%.

WiseTech’s share price popped over $10 per share on the day of the announcement. It has since levelled off but continued upwards at a steady pace.

Aside from this, tech shares in general are showing strength this past month, with the S&P/ASX All Technology Index (ASX: XTX) climbing more than 4% in that time. As such, the broader sector is performing well.

WiseTech share price history

It’s been a year of greenery for WiseTech shareholders. The company has performed well across all time frames.

For instance, in the past 12 months, the WiseTech share price has climbed 89%. It has also rallied 89% this year to date.

In the past month of trading, its shares have gained more than 7%, and are also up around 5% in the past week.

At the time of writing, WiseTech Global has a market capitalisation of $18.77 billion.

Should you invest $1,000 in WiseTech Global right now?

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended WiseTech Global. The Motley Fool Australia owns shares of and has recommended WiseTech Global. 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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