A recent announcement from Adore seems to have shifted investor sentiment, boosting the company's share price.
There have been questions about whether e-commerce companies on the ASX have bottomed, given recent dismal performance. Some recent transactions would suggest that this is exactly what has happened. Adore Beauty announced that Executive Directors James Height and Kate Morris both bought a portion of new shares. On 9 March, Height picked 46,265 shares and Morris picked up 46,266 at $2.054. The next day, Height added 153,735 shares at $2.11 and Morris purchased shares 153,734 for the same value, about $840,000 all together and bringing the number of securities held after charge to 10,400,000 fully paid ordinary shares each for Height and Morris.
While the response wasn’t immediate, it seems that investors may be buoyed by this kind of buy up. Adore Beauty opened at $2.19 today, up from $1.97 at close on Friday, and 9.5% share price growth over a seven day period.
Kogan has also made an impressive leap, closing at $5.40 on Monday. For context, it closed at $4.91 just last Wednesday. It also looks like good news too for Temple & Webster, opening at $6.70 this morning. Over the last week, Kogan has gained 2.3% and the Temple & Webster share price is up 8.1%. Similarly, Redbubble is up 10.5% to $1.68. And yet….there haven’t been any releases from these companies that might explain this shift in investor sentiment.
Many of the ASX’s prominent growth shares have been pummelled in recent times, and are now experiencing gains. Whether Adore’s directors triggered this shift, or whether Height and Morris expanding their portfolio is representative of what’s happening in the wider market can’t be known.
Source: Power Retail Australian Listed E-Com Index based on ASX reporting for the period.
While not every e-commerce company has experienced the same levels of growth, the E-Com Index overall is outperforming the ASX200. In the last seven days, the ASX Listed E-Com Index experienced 5.3% growth, while the ASX200 grew 1.8%, driven by Adore (+9.5%), Bike Exchange (+2.9%), Kogan (+2.3%), Redbubble (+10.5%) and Temple & Webster (+8.1%). Booktopia closed at $0.78 on Monday, down 17% over the last week, with MyDeal down 1.5% in the same period to $0.65.
Figures are current as at close of ASX on 21 March 2022. This is analysis only and not intended as investment advice.
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