Tesserent Share Price Up on New Acquisition (ASX:TNT)
The Perth-based internet security company announced a new acquisition recently, picking up iQ3 in a share purchase agreement completed on 23 September.
The acquisition news saw the Tesserent Ltd [ASX:TNT] share price gain 9.3% on the open to trade at 23.5 cents at the time of writing.
What’s happening at Tesserent?
So far, it has been a big year for the company. The obvious consideration with every company right now is COVID-19 and the effect it has taken. Every company seems to of reacted differently to the virus due to its market and circumstances.
Tesserent reported way back in April that the virus had minimal negative impact on the financial performance of the company and had even secured new business wins of more than $5 million at the time.
This trend continued throughout the pandemic and allowed Tesserent to go on a bit of a shopping spree.
Starting in July the company acquired Seer Security, then Airloom and Ludus Cybersecurity in August.
Now iQ3 in September.
This is all part of Tesserent’s Cyber 360 Strategy which aims to consolidate opportunity within a highly fragmented marketplace.
This strategy coupled with the very minor effects of the COVID-19 pandemic on the company’s financial position helped Tesserent’s stock price up over 836% since the March low.
Where to from here for the TNT share price?
Tesserent experienced incredible growth of its stock price throughout 2020 so far, reaching a new all-time high of 30 cents at the start of September before retracing a little over 21% to its price at the time of writing.
The retracement took place on weakening volume indicating sellers may not yet be fully committed to a further move down. Should the price continue to fall, then the level of 20 cents may be enough to halt the fall.
On the upside if the price moves up, then the levels of 25 and 27 cents may come into focus.
With 27 cents being the previous all-time high set back in 2016, this may be tough to crack before it could consider breaking the current all-time high of 30 cents.
For Money Morning