Diligent sheds a massive $134m
Markets have wiped $134 million off the value of Diligent in less than two working days, after the tech stock released figures pointing to slower growth.
The corporate governance software company's share price was in freefall yesterday, ending down 15 per cent to close at $4.12, down 75c.
The stock has fallen about 28 per cent since an announcement on Friday, causing the company's market capitalisation to plummet from $473m to $339m.
Diligent investors are still in the dark about the company's financial performance, as it has had to restate its results for the past three years because of an accounting issue and is yet to do so.
One of the few pieces of information released on Friday was that the company signed 122 net new customers in the three months to September, down from 168 in the same period last year.
Yesterday, First NZ Capital downgraded its rating on Diligent from "Accumulate" to "Neutral".
The broker wouldn't comment further while its clients digested the research, but generally agreed Diligent's story was shifting from high growth to medium growth.
Another analyst said Diligent's massive drop seemed to defy logic, given that the all-important customer retention rate hadn't moved.
- © Fairfax NZ News