Shares in the online retailer are on the rise. Here are the details
The post Kogan.com (ASX:KGN) share price jumps ahead of full-year results appeared first on The Motley Fool Australia. –
The Kogan.com Ltd (ASX: KGN) share price is rising today ahead of the release of the company’s full-year results next week.
At one stage today shares were up 4% but have since partially retreated. At the time of writing, they are swapping hands for $12.73 apiece, a gain of 2% on yesterday’s closing price.
Shares in the online retailer have rallied 23% since the start of August.
Let’s take a look at what’s fuelling the Kogan share price.
What’s boosting the Kogan share price?
Kogan hasn’t released any price-sensitive news that could explain today’s bullish price action.
However, it is important to keep in mind that shares in the online retailer remain one of the most shorted companies on the market.
According to the most recent data, Kogan’s securities registry has a short interest of 8.8%. As a result, the lack of price-sensitive information could mean short-sellers are covering their positions in the e-commerce company.
These short-sellers will be looking to de-risk their portfolio as Kogan nears its reporting date for FY21.
How has Kogan performed in 2021?
Despite its stellar performance this month, the Kogan share price has struggled this year.
The online retailer was a market darling at the height of the pandemic last year. With COVID-19-induced lockdowns forcing consumers to flock online, shares in Kogan surged to all-time highs of around $25 per share by October 2020.
Despite lockdowns persisting into 2021, Kogan shares have nearly halved from their all-time high.
There have been several catalysts that have caused the Kogan share price to plunge.
The initial catalyst can be traced back to late January when the company released a business update for the first half of FY21. According to the update, Kogan was flagging a slower rate of growth than expected.
The second catalyst prompting investors to sell their Kogan shares was another update from the company in late May.
In the update, Kogan noted the company is expecting to report adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $58 million to $63 million in FY 2021.
In comparison, market consensus estimated Kogan’s EBITDA for FY21 to be around $70 million.
What’s next for Kogan?
A large proportion of Australia’s population has had to endure lockdowns again this year. As a result, investors will be keeping a keen eye on how Kogan has performed in relation to its guidance.
Kogan is scheduled to report its results for the full year on Tuesday, 24 August.
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Motley Fool contributor Nikhil Gangaram owns shares of Kogan.com ltd. 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.