Insights

Why has the Appen (ASX:APX) share price leapt 18% in a week?

Why are Appen shares back in the hot box this week?
The post Why has the Appen (ASX:APX) share price leapt 18% in a week? appeared first on The Motley Fool Australia. –

The S&P/ASX 200 Index (ASX: XJO) has enjoyed a bumper session over the past week or so. Since market close last Wednesday, the ASX 200 has managed to add a very healthy 2.22%. Bt one ASX 200 share has run laps around even that esteemed performance. That would be the Appen Ltd (ASX: APX) share price.

Appen shares are today (at the time of writing) trading at $10.36 each. Yet, last Wednesday, this company closed at a price of $8.78. That means that, over the past trading week, the Appen share price has enjoyed an eye-watering gain of 17.99%. Additionally, Appen is now almost 25% up from this 52-week low that we saw earlier this month.

This would no doubt be a very welcome change for shareholders of this annotated dataset provider. Even after this impressive run of good performance, Appen shares remain down a nasty 59.38% year to date in 2021. Appen is also down 71.77% over the past 12 months, and down close to 74% from its all-time high of roughly $40 a share that we saw in August 2020.

So what’s turned the ship of sentiment around for Appen, a former WAAAX ASX growth darling?

Why has the Appen share price exploded higher in the last week?

Well, there hasn’t been much in the way of news or announcements out of Appen for a while now, so we can probably rule that out. Its last notable ASX notice was about the acquisition of Quadrant Global back in mid-September.

So it’s probable that investors have decided Appen shares had just become too cheap to ignore. This thesis is supported by a few recent fundie and broker recommendations.

Last week, my Fool colleague James covered how broker Citi retained its buy rating on Appen shares, with a 12-month share price target of $17. That implies a future potential upside of more than 60% over just the next 12 months.

Earlier this week, my Fool colleague Tony covered Switzer Financial Group founder Peter Switzer’s view on Appen. Mr Switzer reckons Appen is “really well-positioned for the future of business, because it’s in artificial intelligence, it’s in machine learning.”

Switzer is estimating that Appen’s performance will improve “when business gets back to normal,” and pointed to the fact that four brokers he follows (including Citi) are rating Appen with price targets well above the current share price.

No doubt shareholders will be sharing in this optimism.

At the current Appen share price of $10.36, this company has a market capitalisation of $1.26 billion, a price-to-earnings (P/E) ratio of 33.96 and a dividend yield of 0.97%.

The post Why has the Appen (ASX:APX) share price leapt 18% in a week? appeared first on The Motley Fool Australia.

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

Before you consider Appen, 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 Appen 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 August 16th 2021

More reading

3 punished ASX shares that could come roaring back

Analysts name 3 excellent ASX growth shares to buy

Why ASX 200 tech shares have outperformed today

Could the Appen (ASX:APX) share price jump to $17 by Christmas?

These ASX tech shares are lighting up the ASX 200 today

Motley Fool contributor Sebastian Bowen 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 Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen 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!