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.