Down 17% in June, is the WiseTech share price a wise move for ASX bargain hunters?


No one can deny that this June has been a pretty horrible one thus far. Perhaps that old adage of ‘sell in May and go away’ is actually proving prescient this year (it’s usually not).

Since the start of the month, the S&P/ASX 200 Index (ASX: XJO) has lost a painful 10.6%, including the 1.8% it has shed today thus far. But it’s been a far worse June for the WiseTech Global Ltd (ASX: WTC) share price.

WiseTech shares have copped a beating so far today. The logistics software provider has shed another 2.2% so far today and is now down to $35.13 a share. Since WiseTech started June at a price of $42.10 a share, the company has now lost almost 17% over June thus far.

That puts the company’s losses over 2022 so far at a nasty 41.3%.

But WiseTech is still one of the top performers of the ASX 200 over a longer time frame. The company is still up an impressive 378% over the past five years, despite the heavy falls we’ve seen over this year.

And, as we covered earlier this month, it’s not as though WiseTech is in any kind of financial trouble. The company still has $380 million in cash on its books and no debt.

So could this be a buying opportunity for WiseTech, the W in the old WAAAX club of ASX high-flyers?

Well, let’s hear from an ASX expert. Sean Fenton from Sage Capital recently sat down with Livewire for a podcast. Here’s what he had to say about WiseTech:

I think Richard White at WiseTech Globalhas built a great business… A founder-led business. He’s still got a very big equity share, and it’s also strongly aligned. Works very hard, right down to the nitty gritty, to the company. So he’s very involved day to day in managing that.

And, I think, importantly, is just executed in terms of a logistics tech company, going global with a huge array of acquisitions and focusing on what’s important. Getting the subscribers in there. Consolidating tech where he needs to. And managing that’s been quite complex, and they’ve executed very well.

So it’s fairly safe to say that Fenton is bullish on WiseTech shares right now. It will be interesting to see where this ASX growth share goes next.

At the current WiseTech share price, this ASX 200 tech share has a market capitalisation of $11.44 billion, with a dividend yield of 0.25%.

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