Bentley Systems, the Nasdaq-listed infrastructure engineering software company, saw its shares tumble to a 52-week low of $30.51 (£24.20) in trading on Wednesday. The stock has fallen approximately 18% from its 52-week high of $37.20, as investors rotate away from growth-oriented technology names amid rising interest rate expectations.
The Pennsylvania-based firm, which provides software for roads, bridges, and utility networks, has been hit by a combination of factors. Analysts point to slowing public infrastructure spending in the US and Europe, as well as a broader market shift towards defensive stocks. ‘Bentley is a high-quality name, but it’s not immune to the macro headwinds facing the entire software sector,’ said a London-based equity strategist. ‘UK investors with exposure to US tech via passive funds should brace for continued pressure.’
The FTSE 100 fell 0.6% on the same day, as global risk appetite waned. For British pension holders and retail investors, Bentley’s slide is a reminder that US-listed stocks remain vulnerable to dollar strength and Federal Reserve policy. The pound strengthened to $1.26 against the dollar, which also weighed on the sterling value of US holdings.
Sector-wide, the S&P 500 Information Technology index has shed nearly 5% over the past month. Bentley’s competitors, including Autodesk and Hexagon, have also seen declines, though Bentley’s drop is the most pronounced. The company is due to report quarterly earnings in early November, and some analysts expect downward revisions to revenue guidance.
‘Infrastructure software is a long-term growth story, but near-term sentiment is fragile,’ added the strategist. ‘UK investors should watch the upcoming earnings call closely for any signals on demand from European clients.’
Source: Market data from Nasdaq and LSEG.