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Why did the Kogan share price jump 6% today?

Kogan's shares were on form on Wednesday…

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James Mickleboro
Author Bio James Mickleboro is an investment writer and analyst who has worked with The Motley Fool Australia for 10 years, covering ASX shares, market news, broker research, dividends, growth stocks, and long-term investing ideas. Over that time, James has written extensively about Australian equities and developed a particular focus on helping everyday investors understand the stories behind share price moves, company announcements, broker views, and broader market trends. His best investment recommendation was identifying Afterpay while it was still a small-cap growth share, before its rise into one of Australia’s biggest technology success stories. His worst investment lesson came from CSL Ltd (ASX: CSL), where he was burnt by believing management could turn the business around sooner than the market ultimately allowed. Areas of Expertise ASX shares Growth and dividend investing Broker research Interpreting company announcements Market news Portfolio strategy Long-term wealth creation Education Bachelor of Politics, Philosophy and Economics. CFA Institute Social Media LinkedIn Favorite Investment Quote "It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett
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Key points
  • The Kogan share price was on form on Wednesday with a 6% gain
  • This appears to have been driven by bargain hunters picking up shares
  • The struggling ecommerce company's shares are still down 57% in 2022 after this gain

The Kogan.com Ltd (ASX: KGN) share price was going in the right direction at last on Wednesday.

The struggling ecommerce company's shares rose a sizeable 6% to end the day at $3.72.

A man sees some good news on his phone and gives a little cheer.

Image source: Getty Images

Why did the Kogan share price race higher?

The Kogan share price was on the move today amid a rebound in the retail sector after some sizeable declines in recent weeks.

Several beaten down retail shares rose along with Kogan. This includes the following:

  • The Accent Group Ltd (ASX: AX1) share price rose 6%
  • The Baby Bunting Group Ltd (ASX: BBN) share price climbed 2.5%
  • The City Chic Collective Ltd (ASX: CCX) share price jumped almost 7%
  • The Temple & Webster Group Ltd (ASX: TPW) share price rose 2.5%

These gains appear to have been driven by bargain hunters picking up shares rather than anything sector specific.

After all, even after today's strong gain, the Kogan share price is down 57% since the start of the year.

It is a similar story for the others listed above, with Accent down 44% in 2022, Baby Bunting down 25%, City Chic down 54%, and Temple & Webster down 57%.

Shareholders will no doubt be hoping that today's gains represent an inflection point for their shares and it is onwards and upwards from here.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Accent Group, Baby Bunting, and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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