Why is the Atomo (ASX:AT1) share price trending downwards?

The Atomo Diagnostics Limited (ASX: AT1) share price is down 16% since this time last month. What's been driving its share price lately?

| More on:
a doctor looking up at question marks

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Atomo Diagnostics Limited (ASX: AT1) share price is down 16% since this time last month. With no news from the company, what's been driving its share price lower lately?

At the time of writing, the Atomo share price is 24 cents, just 1 cent above its all-time lowest closing price.

Let's look at what's been going on with the company's share price over the last few months.

What does Atomo Diagnostics do?

Atomo Diagnostics is an Australian medical device company that supplies the global market with blood-based rapid diagnostic test (RDT) devices.

It aims to provide technology that simplifies and improves the accuracy of the blood testing process. 

The company offers products for both medical professionals and people who need to perform self-testing.

Recently, Atomo has secured the Therapeutic Good Administration's approval for its RDTs, one of which works to detect HIV and the other to detect COVID-19 immunity. 

What's been moving the Atomo Diagnostics share price lately?

The last time we heard from Atomo Diagnostics was when the company was removed from the All Ordinaries Index (ASX: XAO) on 12 March.

Prior to that, the company posted its quarterly earnings in late February. While many of its half-year metrics were positive, with a revenue increase of 389% and gross profit lifting by 278%, its share price dropped.

It's possible the drop in the company's share price is the result of its earnings before interest, tax, depreciation and amortisation (EBITDA) loss of around $2.12 million, although Atomo still held $24.69 million in cash and no debt.

It also announced a number of positive updates from its HIV and COVID-19 immunity RTDs between October and December 2020, but none since. 

Atomo share price snapshot

Atomo Diagnostics is still a relatively new company on the ASX. It was first floated this time last year.

The company's share price got off to a slow start. On the close of its first day on the ASX, its shares were trading at 39 cents apiece. Two trading days later, it reached its highest closing price so far, finishing the day at 54 cents.

It's been trending downwards ever since, having dropped 39.74% since its debut and 24.19% in 2021.

Atomo Diagnostics has a market capitalisation of around $95 million, with approximately 408 million shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. 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. 

More on Share Fallers

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

Why Imricor, Ora Banda, Ventia, and Vulcan shares are dropping today

These shares are ending the week in the red. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why CSL, Imricor, Jumbo, and Netwealth shares are falling today

These shares are under pressure on Thursday. But why?

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Share Fallers

Guess which ASX 200 stock is crashing 42% on big news

Big bad news is weighing heavily on this stock today.

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Beetaloo, Botanix, Cobram Estate, and Origin Energy shares are falling today

These shares are having a poor session on Tuesday. But why?

Read more »

Bored man sitting at his desk with his laptop.
Share Fallers

Why Antipa Minerals, Northern Star, Pilbara Minerals, and Synlait Milk shares are falling today

These shares are starting the week in the red. But why?

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why Evolution Mining, G8 Education, Lottery Corp, and Lynas shares are tumbling today

These shares are ending the week in the red. But why?

Read more »

Two men in hard hats and high visibility jackets look together at a laptop screen at a mine site.
Gold

Down 50% in a year, time to pounce on this beaten-down ASX 200 gold stock?

A leading expert offers his verdict on this beaten-down ASX 200 gold miner.

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why CBA, G8 Education, JB Hi-Fi, and Vault Minerals shares are falling today

These shares are falling on Thursday. But why?

Read more »