The Kogan (ASX:KGN) share price has suffered 4 52-week lows in the past week. Here’s why

It’s gone from bad to worse for Kogan shares…

| More on:
A young girls clings in fright to a big red slide.

Image source: Getty Images

It’s no secret that the S&P/ASX 200 Index (ASX: XJO) didn’t have a fantastic month over the November just passed. The ASX 200 went backwards by close to 1% over the month, falling by 0.92% to finish at 7,256 points. But that’s nothing compared to what happened to the Kogan.com Ltd (ASX: KGN) share price.

Kogan shares had a disastrous month, no way around it. This e-commerce company began November at a share price of $9.94. By market close yesterday, Kogan was priced at just $7.99 a share. Going from $9.94 to $7.99 represents a fall of 19.62%. Ouch.

Not only that, but Kogan has also suffered through four new 52-week lows over just the past week. We had one on 25 November, another on 26 November, a third on 29 November and a fourth just today.

Yes, Kogan shares hit a new 52-week low of $7.74 this morning, and are currently going for $7.92 a share, down 0.88% today thus far. The last time Kogan shares were trading in this range was back in April 2020. On these prices, Kogan shares are now a depressing 70% or so off of the all-time highs of roughly $25 a share that we saw last year.

So what’s gone so wrong for this company?

Kogan share price puts on November rain

Well, Kogan’s more recent woes can be traced back to the quarterly trading update the company released back on 20 October. Kogan reported a 21.1% year on year bump in gross sales for the 3 months ending 30 September to $330.5 million. As well as a reduction in inventory that had been previously plaguing the company’s balance sheet. Even so, investors didn’t seem to be impressed. A week after this report was released, the Kogan share price had lost almost 14%.

Subsequent bearish notes from ASX brokers may also have dented investor enthusiasm for the company. Not to mention Kogan’s repeat appearances on the ASX’s ‘most shorted shares’ list.

The fact that shareholders voted against Kogan’s remuneration report at last week’s annual general meeting for the second year in a row, giving the company a dreaded ‘second strike’. Shareholders overwhelmingly voted against spilling the company’s board. But it still arguably wasn’t a good look. This could be behind the most recent run of 52-week lows.

All in all, it hasn’t been a great week, month or even year for Kogan. But we recently checked in with the Motley Fool‘s Chief Investment Officer Scott Philips for his views on what Kogan shares are really worth, so make sure to check that out.

In the meantime, at the current Kogan share price of $7.747, this company now has a market capitalisation of $828.4 million.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor Sebastian Bowen owns shares of Kogan.com ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Retail Shares

a woman leans on her shopping trolley as she rests her chin in her hand as if thinking as she stands in the middle of a grocery supermarket shopping aisle with a serious look on her face.
Retail Shares

Could this help Woolworths (ASX:WOW) withstand the current climate of uncertainty?

Key points The Woolworths share price jumped 3.53% on Friday The supermarket giant has been recognised as the most valuable …

Read more »

A man stands in his shed holding a cordless drill from Bunnings
Retail Shares

Own Wesfarmers (ASX:WES) shares? 2 of its major businesses are wearing new crowns

Key points Wesfarmers-owned Bunnings named Australia’s No. 1 brand and Officeworks No. 3 The titles – given out annually by …

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Broker Notes

Broker sees 42% upside for the Accent (ASX:AX1) share price

The Accent Group Ltd (ASX: AX1) share price is under pressure again on Thursday. In afternoon trade, the footwear retailer’s …

Read more »

adore beauty share price
Retail Shares

Cettire (ASX:CTT) share price gains on new $100b potential market

Key points The Cettire share price is 1.36% higher this morning, trading at $2.99 The gain follows news the luxury …

Read more »

ASX 200 retail shares a woman smiles over the top of multiple shopping bags she is holding in both hands up near her face.
Retail Shares

Premier (ASX:PMV) share price jumps 9% after solid growth despite losing 42,000 trading days

Key points Premier Retail had a better half than most retailers despite losing 42,000 trading days Strong performances from Peter …

Read more »

a pile of colourful trainer shoes and sandshoes fashioned to look like a large shoe.
Retail Shares

The Accent (ASX:AX1) share price is down 17% this year, is it a buy?

Key points The Accent share price has been falling this year COVID impacts are hurting the retailer’s trading Management are …

Read more »

A smiling woman compares broker fees on her laptop and mobile phone.
Broker Notes

Broker says Adairs (ASX:ADH) share price is cheap after selloff

Key points Adairs shares were sold off this week following the release of a trading update While its sales were …

Read more »

shoes asx share price represented by white shoes against pink and blue background AX1 share price downgrade
Retail Shares

Why is the Accent (ASX:AX1) share price backtracking today?

Key Points Accent shares fall after trading update fails to impress investors Trading conditions impacted by Omicron variant EBIT forecasted …

Read more »