The Pro Medicus Ltd (ASX: PME) share price is plummeting today despite no new announcements from the company.
At the time of writing, the health imaging company’s shares are down a sizeable 7.2% to $44.06 after recovering from an intraday low of $43.05. That’s 9.3% lower.
What’s dragging Pro Medicus shares lower?
A catalyst for the Pro Medicus share price falling deep in the red today has come from broader market weakness.
The S&P/ASX 200 Index (ASX: XJO) is tumbling 1.31% lower to 7,337 points following Wall Street’s heavy losses last week.
In particular, the tech-focused Nasdaq fell 4.2% on Friday, registering its lowest closing levels in more than 12 months.
The selling pressure led to the index sinking 13.26% in April, its worst month since October 2008. This was brought on by an underwhelming performance from the tech titans such as Amazon, Netflix, and Meta Platforms.
While Pro Medicus is not directly related to the above companies, it does operate in the United States.
Furthermore, with an extremely high price-to-earnings (P/E) ratio of 118.95, this is bound to cause a jerk reaction.
Investors clearly are putting a lot of hope on Pro Medicus further expanding in North America. However, with the current market volatility, the company’s shares are the first to be hit hard.
Over the last 12 months, the Pro Medicus share price has lost around 7% with year to date down 30%.
The company’s shares reached a 2022 high of $63.12 on 4 January, before plunging 30% in the weeks following.
Since then, the company’s shares have moved in circles.
Based on valuation grounds, Pro Medicus commands a market capitalisation of around $4.6 billion.
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