Analysts explained why Swarmer shares fell by 40% in a month. What are the reasons?
As of May 11, the capitalization of Ukrainian deftech startup Swarmer has fallen almost half from its peak level — to $398 million.
As of May 11, the capitalization of Ukrainian deftech startup Swarmer has fallen almost half from its peak level — to $398 million.
According to Forbes, trading started at $27.42 per share, one of the lowest prices since the IPO in March.
Capital Times Investment Director Artem Shcherbyna, commenting on this issue, noted that such dynamics are now typical for the entire defense sector.
«Even giants like Rheinmetall and Thales are falling,» Shcherbina states.
He also believes that the stabilization of the conflict in the Middle East and investors' expectations of an end to the war in Ukraine could have had a negative impact on Swarmer’s share price.
Nevertheless, a positive signal, according to him, is that Swarmer shares, even after the drop, are still trading above the offering price.
«The markets are in a mode where they buy almost everything except the military segment,» says economist and retail investor Oleksiy Plastun.
According to the expert, investors began selling shares of large defense companies even before the announcement of the ceasefire in Iran.
Investment analyst Andriy Nesteruk, meanwhile, believes that since the IPO, Swarmer has not had any loud announcements that would encourage investors to buy shares: the only exception is the announcement of entering the Japanese market in partnership with Rakuten Group.
In addition, in his opinion, investors may postpone buying shares in anticipation of the reporting. «Those who wanted to have already bought their shares. For new investors, additional information is needed,» he explained.
As dev.ua reported, Ukrainian deftech startup Swarmer went public in March — the company’s shares soared in price fourfold.
On the first day after the offering, Swarmer shares increased by 520%, or more than 6 times.
When Swarmer completed its IPO, its share price increased more than 10 times, and its capitalization jumped to $700 million.
Ukrainian deftech startup Swarmer enters the Japanese market with the support of Viber owner — Rakuten Group
Ukrainian deftech startup Swarmer enters the Japanese market with the support of Viber owner — Rakuten Group
Ukrainian HIMERA and Swarmer collaborate to protect drone swarms from electronic warfare
Ukrainian HIMERA and Swarmer collaborate to protect drone swarms from electronic warfare
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