The e-commerce company has had a good day today.
The post Why is the Kogan (ASX:KGN) share price 7% higher today? appeared first on The Motley Fool Australia. –
The Kogan.com Ltd (ASX: KGN) share price has surged more than 7% in today’s trading session.
Despite releasing its full-year results last week, shares in the e-commerce company are in hot demand today.
Let’s take a look at why investors are bidding the Kogan share price higher today.
What’s pushing the Kogan share price higher?
Kogan hasn’t released any price-sensitive news that could explain today’s bullish price action.
As a result, there could be several catalysts moving the Kogan share price.
Firstly, shares in the e-commerce giant could be bouncing as investors digest the company’s full-year results.
Shares in Kogan tanked more than 15% last week after releasing a disappointing FY21 report.
In addition, a bullish note from leading broker Credit Suisse could also be pushing the Kogan share price higher today.
Analysts from the broker retained an outperform rating on the e-commerce company.
Despite the inherent risks, analysts cited Kogan’s strong medium term growth prospects.
In addition, it is also important for investors to note that Kogan is one of the most shorted companies on the market.
According to the most recent data, Kogan’s share registry has a 9% short interest.
As a result, today’s price action could be short-sellers cashing in their profits.
How did Kogan perform in FY21?
Kogan released a dour full-year result last week, highlighted by an 87% reduction in net profit after tax of $3.5 million
Despite an increase in revenue, inventory management issues weighed down the company in FY21.
Other highlights from Kogan’s FY21 report included;
Gross sales increased 52.7% to $1,179 million
Revenue jumped 56.8% to $780.7 million
Gross profit rose 61% to $203.7 million
Adjusted net profit after tax up 43.2% to $42.9 million
Reported net profit after tax down 86.8% to $3.5 million
Kogan.com active customer base up 46.9% to 3,207,000, Mighty Ape up to 764,000
Cash balance of $12.8 million and no final dividend
Snapshot of the Kogan share price
Last year, the Kogan share price was a market darling as consumers flocked to online retailers.
However, the company has failed to replicate its success into the new year.
Since the start of the year, shares in Kogan have plunged more than 39%.
Shares in the e-commerce giant were up more than 7% earlier today after hitting an intra-day high of $11.86.
At the time of writing, the Kogan share price is poised to close 3% higher for the day at $11.38.
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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.