Insights

Why did the Altium (ASX:ALU) share price gain 33% in a year?

Altium shares were on a high in 2021
The post Why did the Altium (ASX:ALU) share price gain 33% in a year? appeared first on The Motley Fool Australia. –

Key points

The Altium share price gained 33% in 2021
Altium rejected an offer from US software giant Autodesk in June
The technology company’s share price recovered from September to December

The Altium Ltd (ASX: ALU) share price had a stellar 2021 after a slow start to the year.  

The company’s share price soared from $33.99 to $45.19, a 32.95% gain. Altium outperformed the S&P/ASX 200 Index (ASX: XJO) by about 46%.

Let’s take a look at what has weighed on the Altium share price in 2021.

Ups and downs with a strong finish

The Altium share price had a sluggish start to the year before blasting ahead in June. The share price then had its ups and downs in the second half of 2021 but finished on a high.

In the first five months of the year, the Altium share price sank. Between market close on 31 December 2020 and 28 May, the shares in the tech company dived 17%.

In May, the Altium share price dropped 19% in the first two weeks — between market close on 30 April and14 May. This was in line with the S&P ASX All Technology Index (ASX: XTX), which fell 13.41% in the same time period.

However, in June the company’s shares changed direction, lifting 39% between market close on 4 June and 7 June alone.

Driving this massive uplift was news a takeover offer from US software giant Autodesk Inc (NASDAQ: ADSK) had been rejected at the $38.50 per share price. The company believed the proposal undervalued the company.

In August, Altium shares slumped again by 16.69% between 25 August and 30 August. This price shed appeared to be driven by investor reaction to the company’s FY21 earnings report. Altium’s revenue increased by 1%, but its profit before tax declined by 7%.

The Altium share price then gained 44.93% between market close on 9 September and 31 December. Investors reacted well to the company’s annual meeting update in November.

CEO Aram Mirkazemi expressed optimism the company was on track to achieve its FY 2022 guidance of 16-20% revenue growth. Altium was also rated as a “buy” by multiple brokers.

Share price snapshot

The Altium share price has fallen 9% in the past month and nearly 4% in the past week.

Year to date, the company’s shares have fallen roughly 12%. In comparison, the All Technology Index has also fallen 8% since the start of the year.

Altium has a market capitalisation of about $5.2 billion based on its current share price.

The post Why did the Altium (ASX:ALU) share price gain 33% in a year? 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 over 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 January 13th 2022

More reading

Here’s why ASX 200 tech shares (ASX:XTX) outperformed today

Down 10% already in 2022. Is the Altium (ASX:ALU) share price now a buy?

5 things to watch on the ASX 200 on Wednesday

3 fantastic ASX growth shares rated as buys

2 excellent ASX tech shares to buy after the market meltdown

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium. The Motley Fool Australia has no position in any of the stocks mentioned. 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!