Two ASX shares have just hit 52-week lows today. Let’s take a look at why they are down on their luck.
Booktopia Group Ltd (ASX: BKG)
The Booktopia share price plunged to a 52-week low of $1.31 today despite no news out of the company. The company’s shares are trading at $1.33 at the time of writing, a 55.5% drop from their yearly high of $2.99 in August. They are now down almost 50% this year.
Investors have been selling Booktopia shares on the back of some tough news for the company. Earlier this month, the ACCC notified the company it would be taking it to the Federal Court. The claims relate to communications to customers with regards to returns and refunds.
Booktopia defended the claims in a statement to the market authorised by chairman Chris Beare on December 8. The company said:
At no time were these communications intended to exclude or limit Booktopia’s obligations under the Australian Consumer Law.
Another factor impacting the Booktopia share price could be an update from the company just before Christmas.
In a trading update to the market on December 23, the company advised it is expecting earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $4 to $4.5 million in the first half of the financial year. This is up to 50% less than the $8 million recorded in the previous year.
The company advised earnings were lower due to labour costs managing Sydney’s COVID-19 lockdowns. The ongoing threat of the COVID-19 Omicron variant in Australia could be continuing to impact investor confidence in this ASX share.
Openpay Group Ltd (ASX:OPY)
The Openpay share price hit a 52-week low on Thursday. In afternoon trade, the buy now, pay later (BNPL) company’s shares are trading at 74 cents after hitting the yearly low of 73 cents this morning.
In fact, the Openpay share price is now down nearly 78% from its 52-week high of $3.35 and about 68% this year.
The latest decline in this ASX share reflects a trend across the BNPL sector.