WiseTech Global Ltd (ASX: WTC) shares have dipped back into the red today.
Shares in the S&P/ASX 200 Index (ASX: XJO) logistics solutions company are down 1.1% in late morning trade on Tuesday, swapping hands for $106.49.
That sees shares in the ASX 200 tech stock down 20.3% since the closing bell rang last Tuesday, 15 October.
Longer term, shares remain up 77% over 12 months and 303% over five years.
As you may be aware, WiseTech stock has come under selling pressure amid a series of rather personal allegations against CEO Richard White concerning potentially inappropriate behaviours.
White has sold around $100 million in WiseTech shares over the past month. He claimed to be selling those to meet the high demand for shares from other investors. But news emerged that he used the funds to pay his former partner.
Yesterday, news broke that White and Linda Rogan had settled their matters outside of court.
But fresh news today could be pressuring shares, as reports emerged that White gave former WiseTech employee (and allegedly his lover) Christine Kontos a home valued at $7 million.
WiseTech's board said yesterday that they were "reviewing the full range of matters".
So, with the big one-week fall and 'scandalous' news still emerging, is it time to buy WiseTech shares?
Time to buy WiseTech shares?
Citi analyst Siraj Ahmed is taking a cautious approach.
Despite the settlement that White reached with Rogan, caution could be in order as White's personal life comes under greater scrutiny.
Ahmed (quoted by The Australian) said the saga could impact new customer signings and advised that it is "too early to step in".
Richard Coppleson, head of institutional sales and trading at Bell Potter, has a more optimistic and long-term view on WiseTech shares.
According to Coppleson (quoted by The Australian):
We all know why WiseTech was smashed … and this can play out in many different ways.
For me, as a very long-term shareholder since March 2020, I look at what they company has, is and most importantly will continue to achieve – so at this stage, on a long-term view I will not be selling.
As for what the company has been achieving, here's what WiseTech reported for its FY 2024 results:
- Total revenue of $1.04 billion, up 28% year on year
- Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $496 million, up 28% on FY 2023
- Underlying net profit after tax (NPAT) of $284 million, up 15% year on year
- Final fully franked dividend of 9.2 cents per share, up 10% from the prior final dividend
CLSA tips 14% upside for the battered ASX 200 tech stock
CSLA analysts Nick Basile and John Martin believe WiseTech shares have been unduly sold off due to the "leadership noise" spurred by media articles into White's personal life.
Noting the sell down "creates a buying opportunity", the analysts said (quoted by The Australian):
WTC's board response thus far, a short statement to acknowledge recent articles and commit to further investigation, was light on detail, and therein lies the opportunity, in our view.
We believe WTC has a combination of a large total addressable market, broad product roadmap and a significant competitive moat from which it can survive and ultimately thrive under any senior management upheaval, if required.
CSLA raised WiseTech shares to an outperform rating with a price target of $121 a share. That represents a potential upside of 13.6% from current levels.
