Insights

Nuix (ASX:NXL) share price plunges 7% in 7 days

Nuix shares are dropping again. Could ongoing ASIC investigations be to blame?
The post Nuix (ASX:NXL) share price plunges 7% in 7 days appeared first on The Motley Fool Australia. –

The Nuix Ltd (ASX: NXL) share price is continuing its downward trend, despite the company having managed to stay relatively quiet.

At the time of writing, the software company’s shares are swapping hands for $2.47, down from $2.67 a week ago. That represents a 7.49% decline in value.

However, Nuix is no stranger to volatility and it’s also got a lot on its plate right now. Let’s take a look what Nuix has been up to lately.

What’s going on with the Nuix share price?

Perhaps ongoing and unfolding investigations into Nuix, its advisors, and its former directors are to blame for its share price flopping.

ASIC going after former CFO

Nuix’s former chief financial officer Stephen Doyle is being investigated by the Australian Securities and Investments Commission (ASIC).

ASIC believes Doyle and his brother engaged in insider trading in January and February of 2021.

Doyle is accused of warning his brother of Nuix’s February downgrade, giving his brother enough time to offload around 2 million shares.

The tip-off is said to have saved both brothers from losing $5.7 million when the Nuix share price tumbled 32% on the back of the downgrade.

Macquarie and Nuix subjects of ASIC investigation

Additionally, both Nuix and its major shareholder Macquarie Group Ltd (ASX: MQG) are reportedly facing an ASIC investigation into Nuix’s prospectus’ seemingly inflated financial forecasting.

Macquarie backed Nuix in its initial public offering (IPO) back in December 2020. The float reportedly made Macquarie’s pockets $524 million heavier.

Since then, after numerous profit downgrades, the Nuix share price has plummeted 68%.

A law firm reportedly told ASIC that Nuix’s prospectus was off 3 times. However, the watchdog failed to find anything suspicious about the company’s financial forecasting prior to it floating on the ASX.

ALP Senator Deborah O’Neill addressed ASIC’s alleged failings in Parliament last month, saying:

The failure of ASIC to appropriately regulate Nuix’s IPO has had catastrophic consequences for all investors except for Macquarie Bank, Nuix’s and Macquarie’s executives and offshore banks in tax-friendly Vanuatu and Switzerland.

Nuix share price snapshot

Despite being touted as the biggest IPO of 2020, the Nuix share price has been a major disappointment.  

It has dropped around 70% since it floated roughly 7 and a half months ago.

The company has a market capitalisation of around $796 million, with approximately 317 million shares outstanding.

The post Nuix (ASX:NXL) share price plunges 7% in 7 days appeared first on The Motley Fool Australia.

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

Before you consider Nuix, 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 Nuix 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 Weekly Wrap: ASX shakes off lockdowns to rise higher

Why the Mineral Resources (ASX:MIN) share price is up 39% in 3 months
Could the ASA send the Macquarie (ASX: MQG) share price plummeting?
Nuix (ASX:NXL) share price: this fund manager still sees a ‘big opportunity’
Broker warns that small lenders are set to beat ASX bank shares

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. 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
Trade The US Market With ZERO Brokerage* + FREE Access To Trading Ideas & Value Analysis Tools. Click Here!