sight alignment consistency, and trigger control.
how are your groups with the .22? with a scoped rifle?
How is your eyesight?
Instruction on basic rifle marksmanship, under the eyes of a decent instructor who can diagnose problems well, will have you shooting 6 inches at 100 yards with iron sights, within a couple of hours. That rifle is capable of better than that; even with 55gr bulk ammo, but it will take work on the basics. If you have not sought face to face professional instruction, or even free competent instruction, I would highly encourage it. If not, you will develop bad habits that will make good shooting pure luck.
Like he said, the gun can almost assuredly shoot better. If your eyes don't cooperate with irons, you can look at a scope, or see if the right glasses/contacts could help (it made a difference for me).
I don't know what sights your gun has, but with A2 sights (fixed front post, A2 adjustable rear), free float handguard, I think RRA 2-stage trigger, and 55gr FMJBT ammo I was able to shoot this at 50yds. Apparently I forgot my micrometer that day, but that's about .75".