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    Time to buy Audinate (AD8)?

    Hello MM team, Thanks for your answers to all my previous questions. I am an Audinate shareholder and have happily see them executing their strategy with great success. Their products are becoming industry standard, and from my enquiries, it seems users like their products very much. Since its high in March, AD8's share price has fallen over 24%.The insiders selling possibly contributed to the fall, as well as the changing perspectives about interests rates. Are there other reasons? Is the selling overdone in your view, and should we use it to accumulate? Thanks, Angela

    Answer

    Hi Angela,

    A timely question with Audinate (AD8) hosting an investor day to highlight their product this week. We have done well out of the stock, taking profits along the way to now hold just a 3% weighting in the Emerging Companies Portfolio, sitting on a profit of ~100%. Much of the last leg higher came on the back of the stock’s inclusion in the ASX200. Index inclusions lead to buying from passive funds that track the ASX200, whilst the stock also lands on the radar of funds that are limited to shares within the index. As a result, there was a vacuum of buying in February which took the stock over $23, also supported by a strong 1H result delivered that month.

    Since then, the stock has struggled as the forced buying petered, however, there are now signs of support into the weakness as trading becomes more normalized. The Investor Day on Thursday was well attended and the commentary coming out of the day was quite supportive of the AV technology company’s prospects. We continue to like the outlook and are considering adding to the position.

    From what we understand, the insider selling was not a reflection on the business performance.

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    Audinate Group (AD8)
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