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Highlights
- Nitro's shares last traded at AU$1.61 each, up 13.83%, outperforming ASX 200 Information Technology Index.
- There is no specific reason provided by the company for this huge gain.
- However, the gain might be because of the rebound in the tech sector.
Nitro Software Limited (ASX:NTO) shares skyrocketed for a second day today (30 March 2022).
Although there is no specific announcement by the company for this gain, however, this surge appears to be driven by a rebound in the tech sector and an optimistic broker note.
Nitro's shares last traded at AU$1.61 each, up 13.83%, outperforming ASX 200 Information Technology Index, which was 3.84% up at 1,878.50. Information Technology was the best performing sector today, gaining over 3.7% and more than 2.9% for the last five days.
The S&P/ASX200 Index also closed higher today, gaining 0.67% to 7,514.50, a new 50-day high. The index has risen 1.85% in the last five days but has remained steady over the previous year to date.
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Why is Nitro share price zooming?
Following another solid night on Wall Street's tech-focused Nasdaq index, a number of beaten-down ASX tech equities rebounded again on Wednesday (30 March 2022).
Furthermore, according to a recent note from Goldman Sachs, Nitro's shares have been substantially oversold, offering a purchasing opportunity for investors. Therefore, this could be another reason why the company's stock were rising today.
According to the report, the broker's shares have a buy rating and a $2.60 price objective. Despite its recent surge, the Nitro share price still has a 62% upside potential.
Source: © Wutzkoh | Megapixl.com
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What does Nitro Software do?
Founded in 1997, San Francisco-based Nitro Software is an Australian and multinational document productivity software firm. It provides PDF productivity, simple to qualified eSignatures, sophisticated APIs and connectors, document production, and industry-leading analytics through its Nitro Productivity platform. In addition, the organisation offers maintenance and support services.
Nitro's FY2021 financial highlights
- As of 31 December 2021, Nitro's annual recurring revenue (ARR) stood at US$46.2 million.
- On 20 December 2021, Nitro had acquired Connective NV for EUR70 million.
- Revenue of US$50.7 million was recorded after excluding Connective and US$50.9 million including Connective.
- Operating EBITDA loss met the upgraded guidance range, as it stood at US$7.6 million after including Connective.
- At the end of the year, the company had a cash and cash equivalent balance of US$48.2 million, with no debt.
Stock performance
Nitro's shares have picked up fast in the last five trading sessions and gained over 20%. However, the company recorded a 35% negative growth in its YTD share price.
Also Read: Why is Nitro Software (ASX:NTO) in news today
