What dragged on the Aussie Broadband (ASX:ABB) share price today?

It seems a key update wasn't enough to get investors biting today.

| More on:
a woman looks exhausted and overwhelmed as she slumps forward into her hand while looking at her laptop screen.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Aussie Broadband Ltd (ASX: ABB) share price was rangebound on Wednesday, dipping into the red in afternoon trading.

At market close, the Aussie Broadband share price is $5.29, a fall of 0.94% on the day, despite no market-sensitive information coming from the company today.

However, it released an important update after the market closed yesterday. Let's take a look.

Why up with Aussie Broadband shares today?

In its update, the company referred to an announcement made by Over the Wire Holdings Ltd (ASX: OTW) about the scheme of arrangement between its shareholders and Aussie Broadband.

The arrangement was approved by shareholders on 24 February and by the Federal Court of Australia on 3 March 2022. It was implemented yesterday.

As a result, Aussie Broadband now holds all shares in Over the Wire. Aussie Broadband confirmed all shares were successfully transferred and former Over the Wire shareholders have been paid.

Consequently, trading of Over the Wire shares was suspended yesterday, following the implementation of the scheme.

Aussie Broadband has since made changes to its board, announcing Over the Wire CEO Michael Omeros will take on the role of Executive Director.

Outgoing from the board is Chief Technology Officer John Reisinger who will continue in his executive role in day-to-day business.

According to Aussie Broadband's managing director Phillip Britt, Resinger was integral in the development of the company's software and network infrastructure.

"He has one of the most creative technical minds in the industry and we look forward to his ongoing contribution and leadership to the enlarged group," Britt said.

Despite the changes, investors didn't seem overly impressed today. Shares closed in the red on very thin volume, totalling just 33% of the company's 4-week average.

However, it's done little to derail the Aussie Broadband share price. It's staged a remarkable comeback after springing off a low of $4.01 on 27 January.

Aussie Broadband share price snapshot

In the last 12 months, the Aussie Broadband share price has gained more than 76% and is now up 10.5% for the year.

Over the past month alone, the company's shares have soared another 21% and are trading almost 9% higher in the previous 5 days of trading.

TradingView Chart

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Communication Shares

Two women happily smiling and working on their computers in an office
Dividend Investing

Which ASX 200 communications share will pay the best dividend yield in 2025?

Several communications stocks are expected to pay dividend yields above the ASX 200 Index average of 4%.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Communication Shares

Is this my chance to buy Telstra shares?

After drifting lower, I’m considering whether this stock is an opportunity.

Read more »

Man smiling at a laptop because of a rising share price.
Communication Shares

This ASX 200 stock just hit an all-time high and UBS still tips 24% upside

Fear not buying this ASX 200 communications stock despite it trading at a record high, says UBS.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Communication Shares

Are Tuas shares the next Telstra?

I think this Asian telco has an exciting future.

Read more »

Five young people celebrate outside with sparklers
Dividend Investing

1 ASX dividend stock down 47% in 12 months I'd buy right now

These stocks are a real opportunity, in my view.

Read more »

Woman and man calculating a dividend yield.
Communication Shares

3 insiders buy up shares in ASX All Ords stock following crash

Shares were bought swiftly following the crash.

Read more »

Worried unemployed woman sits on white chair waiting for job interview
Communication Shares

One beaten-up ASX stock at 'a potential turning point' in 2025

The company has shown fundamental improvements, this fundie says

Read more »

A happy man and woman sit having a coffee in a cafe while she holds up her phone to show him the ASX shares that did best today.
Communication Shares

Telstra stock: Buy, sell, or hold in 2025?

Here’s what I’d take into account with the telco.

Read more »