Why did the Race Oncology (ASX:RAC) share price drop 10% today?

What happened with Race shares today?

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Key points

  • The Race Oncology share price slipped almost 10% today
  • It hit a new 12 month low during intraday trading 
  • Today's fall has dragged Race shares more than 36% lower in 2022 so far

Today wasn’t a great day for most ASX shares. The All Ordinaries Index (ASX: XAO) ended up losing 0.93% over this Tuesday’s trading session. But that loss was eclipsed by the Race Oncology Ltd (ASX: RAC) share price.

Race shares ended up finishing at $2.30 a share, down a nasty 9.8% for the day. What’s worse, the company hit $2.27 during intra-day trading a new 52-week low for Race Oncology. That puts the company’s losses over 2022 so far at 36%, including 17.3% over the past 5 trading days. Its 12-month loss now stands at 38%.

So why did this company have such a lousy day of trading today?

Race to the bottom for Race Oncology share price

Well, unfortunately, it’s not entirely clear. There were no announcements or news out of the company to speak of. Nor have there been since a major update in January, which was an activities update for the December quarter. Back then, the company announced that its capital raising had been successful and oversubscribed at $3 a share. Race also reported a healthy cash position as well as a “preclinical discovery into heart protection during cancer treatment”.

That caused the Race share price to rise at the time. But investors appear to have forgotten all about those developments today.

So while it’s unclear exactly what spooked investors today, it could just be the nature of the company itself. As a small-cap ASX share with a market capitalisation of just over $400 million, Race is a company that could have been treated as a more speculative investment by some of its shareholders. As such, on a day like today when investors didn’t seem in the mood to take risks, Race shares might have just been the victim of some fear-provoked selling pressure.

Whatever the reasons for today’s sell off, Race shareholders will undoubtedly be hoping for better fortunes over the rest of the week.

Motley Fool contributor Sebastian Bowen 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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