Insights

Altium (ASX:ALU) share price bounces back after responding to media speculation

It has been an eventful day for this tech share…
The post Altium (ASX:ALU) share price bounces back after responding to media speculation appeared first on The Motley Fool Australia. –

The Altium Limited (ASX: ALU) share price has certainly had an eventful day on Monday.

After being down as much as 14% to $31.47 at one stage this morning, the electronic design software provider’s shares have recovered almost completely.

In afternoon trade, the Altium share price is down just 1.5% to $35.96.

Why is the Altium share price so volatile today?

Investors were selling down the Altium share price this morning amid media reports claiming that the company had rejected a second takeover approach from Autodesk.

The reports claimed that the US software giant returned with an improved offer of $40.00 per share, which was promptly rejected. This compares to Autodesk’s June offer of $38.50 per share, which was rejected by the Altium board on the belief that it significantly undervalued the company’s prospects.

One of the reports suggested that the second rejection could be the final straw for the US based software and that it would be withdrawing its interest. This is what sparked the sizeable decline in the Altium share price this morning.

The rebound

However, these reports turned out to be incorrect, leading to a sharp rebound in the Altium share price after it returned from a paused in trading late this morning.

Altium responded to the speculation, stating that Autodesk had not returned with a better offer.

The company released a statement saying: “In response to media speculation today, Altium Limited advises that it has not received any further offer from Autodesk. All details relating to the Autodesk offer have been disclosed by the Company in its ASX announcement released to the market on 7 June 2021.”

Judging by the rebound in Altium’s shares, some investors appear to believe this means there is still a chance that Autodesk could return with a greater offer in the future.

Though, given that the Altium board previously said that Autodesk’s $38.50 per share offer “significantly” undervalued its prospects, it may need to be higher than the one speculated today.

The post Altium (ASX:ALU) share price bounces back after responding to media speculation appeared first on The Motley Fool Australia.

Should you invest $1,000 in Altium right now?

Before you consider Altium, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Altium wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

ASX 200 midday update: Altium sinks, Oil Search CEO resigns

Why the Altium (ASX:ALU) share price is crashing 14% on Monday
ASX 200 midday update: Rio Tinto update disappoints, Evolution sinks

How did the S&P/ASX All Technologies Index (XTX) perform in FY21?

3 excellent ASX shares for growth investors in July

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. owns shares of and has recommended Altium. The Motley Fool Australia owns shares of and has recommended Altium. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!