Insights

Here’s why the Kogan (ASX:KGN) share price is falling on Friday

Investors are checking out from the online retailer today…
The post Here’s why the Kogan (ASX:KGN) share price is falling on Friday appeared first on The Motley Fool Australia. –

The Kogan.com Ltd (ASX: KGN) share price is taking a tumble in trade on Friday. With no announcements out from the online retailer, it appears the company is at the peril of a broader selloff in the market.

At the time of writing, the Kogan share price is 3.79% lower to $11.16 apiece. Likewise, the consumer discretionary sector is the second worst-performing today, down 2.2%.

For comparison, the broader S&P/ASX 200 Index (ASX: XJO) is trending 1.4% lower to 7,237.2 points.

Let’s cover a couple of reasons why Kogan might be feeling the pinch today.

Making the most shorted

While the Kogan share price is possibly feeling the pain of a widespread red day, there’s a couple of reasons that could be making it worse for this company.

Firstly, the company has found itself the target of heavy short selling over recent times. As covered on Wednesday, Kogan shares are the second most heavily shorted shares on the ASX this week. According to ASIC data, short interest was 10.2% — only beaten by Webjet Limited (ASX: WEB).

Often companies that are heavily shorted find themselves under added pressure on negative trading sessions. As a result, this could be adding to the displeasure of Kogan investors on Friday.

Secondly, the Kogan share price experienced a possible sugar hit when roughly a third of Australia entered lockdowns in late June. Since then, many restrictions have been lifted across states and territories.

With this in mind, any potential uplift in online sales may have been short-lived.

Kogan share price recap

Investors of the online retailer would be well experienced with red days by now. The Kogan share price has been on a bearish trend since late October 2020. Back then the company’s shares reached a peak of $25.57, a far cry from today’s ~$11.16 figure.

Since the beginning of the year, the Kogan share price has fallen more than 42%. As a result, the company now seats around a price-to-earnings (P/E) ratio of 27.55. This compares to the retail industry average P/E ratio of 38.2 times.

The post Here’s why the Kogan (ASX:KGN) share price is falling on Friday appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

3 stellar ASX 200 growth shares that could be buys in July

3 companies that broke their way into the ASX 200 in FY21

3 stellar ASX growth shares that are highly rated

These are the 10 most shorted shares on the ASX

2 ASX tech shares that might be buys in July 2021

Motley Fool contributor Mitchell Lawler owns shares in Kogan. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. 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!