Why has the Tesserent (ASX:TNT) share price tumbled 12% in a month?

The cybersecurity company can't seem to catch a break on the market despite releasing positive news this month.

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The Tesserent Ltd (ASX: TNT) share price has taken a dive and fallen about 12% in the past month. This comes despite the internet security services provider releasing a couple of positive announcements to the ASX.

At the time of writing, the Tesserent share price is up 1.21% today to 17 cents apiece.

A young Tesserent technician stands in a dark computer server room looking at his ipad during a cybersecurity inspection

Image source: Getty Images

What's dragging Tesserent down?

Investors seemed unimpressed by the company's efforts to boost its cybersecurity presence, sending the Tesserent share price south.

The first notable fall was on 19 November, when the company provided the market with a business update.

While the release highlighted a 372% increase in annual turnover against the prior year, investors shrugged off the good news. In addition, there were some organisational changes which saw a reshuffle of management personnel.

The release, along with the annual general meeting (AGM) later that day, failed to change investor thinking. Over the following 3 trading days, the Tesserent share price sank by almost 20%.

The other significant fall came on 6 December, despite no announcements from the company. Tesserent shares fell heavily, down 11% to a 52-week low of 15 cents. The trend, however, was quickly reversed when Tesserent announced the acquisition of 2 companies the next morning.

Tesserent shares rose 16%, with management noting that the latest purchase would cement its position as the leading provider of cybersecurity solutions.

Tesserent expects both additions to immediately integrate into its ecosystem. This is particularly the case with its North Security business, which leads the company's federal government team and delivers large multi-year projects.

Tesserent share price summary

Over the past 12 months, the Tesserent share price has continued its declining trend to post a loss of about 50%. The company's shares reached a 52-week high of 44 cents in January, before gradually treading lower throughout the year.

Tesserent commands a market capitalisation of roughly $203 million, with approximately 1.2 billion shares outstanding.

Motley Fool contributor Aaron Teboneras 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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