Why is the WiseTech share price slipping 5% lower today?

Tech shares continue to face volatility this year.

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Key points

  • WiseTech shares are down almost 5% in early afternoon trade
  • The stock has sunk amid weakness in the wider tech sector, also down 5% at the time of writing
  • In the last 12 months the WiseTech share price has held onto a 46% gain

The WiseTech Global Ltd (ASX: WTC) share price is tracking lower today and is now down 4.67% at $39.15.

While there’s been no market-sensitive information released by the company today, in wider market moves, the S&P/ASX All Technology Index (ASX: XTX) is 5.19% in the red at the time of writing.

What’s up with WiseTech?

Tech and growth-type shares have each taken a beating in 2022 and the downward momentum appears to have carried into the third quarter of this financial year.

WiseTech shareholders have seen their positions oscillate over the past three months with shares collapsing from a high of $53.21 in early April.

In the last month of trade, WiseTech shares have sunk almost 20% into the red. They are down 33% this year to date and are now resting at six-month lows.

Both upward momentum and sentiment appears to be lowly in the WiseTech share price.

In fact, analysts are even calling for the company to create a catalyst to drive its shares higher – perhaps through an acquisition, according to the team at Macquarie.

“A transformative acquisition could provide a positive share-price catalyst for WiseTech,” Macquarie analysts wrote in a recent note.

However, the broker also thinks WiseTech won’t spend more than US$400 million, even though it could probably search for a transaction in the realm of US$1 billion.

Macquarie is neutral on WiseTech and values the company at $45 per share, holding the same view as six other brokers – 50% of coverage, according to Bloomberg data.

Meanwhile, the consensus price target from all analysts is $48.57 per share, implying around $10 of further upside if the crowd has it valued correctly.

WiseTech share price snapshot

In the last 12 months, the WiseTech share price has held onto a 46% gain, However, it is trading deep in the red for 2022.

It is also down 7% over the past week.

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. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Macquarie Group Limited. 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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