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Here’s why the Sequoia (ASX:SEQ) share price surged 5% today

The Sequoia share price has increased by almost 5% today after the company announced strong FY20 results and an ambitious FY21 target at its AGM.
The post Here’s why the Sequoia (ASX:SEQ) share price surged 5% today appeared first on Motley Fool Australia. –

woman throwing arms up in celebration whilst looking at asx share price rise on laptop computer

The Sequoia Financial Group Ltd (ASX: SEQ) share price has jumped almost 5% in today’s trading following the financial services company’s annual general meeting (AGM). Sequoia shares are currently trading at 44 cents, up 4.76%.

What did Sequoia report today?

Sequoia  is a financial services company offering financial planning, stock broking, and accounting to both retail and wholesale clients. The company reported that it more than tripled its earnings in FY20.

It says that despite enormous changes in the industry post-Hayne Report (which resulted in large institutions abandoning the financial planning industry altogether), it remains bullish and has plans to add 600 advisers to its roster. 

Sequoia also reported that it expects to see revenue increase to above $100 million in FY21, operating profit to increase by 25% to $6 million, and that it is working towards increasing the dividend payout ratio from 25% to 65% over the next 4 years. The company says it is currently tracking ahead of this budget.

In today’s AGM announcement, Sequoia chief executive Garry Crole indicated he believes there will continue to be new entrants into the financial planning sector, however he thinks that a full recovery will not occur before 2024.

Major financial highlights

Sequoia announced the following metrics for FY20:

How has the Sequoia share price performed in 2020?

The Sequoia share price has had a tremendous year in 2020, almost doubling in value on the back of strong results. Its current share price of 44 cents gives it a market cap of $54 million.

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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here’s why the Sequoia (ASX:SEQ) share price surged 5% today appeared first on Motley Fool Australia.

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