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Hub24 (ASX:HUB) share price drops despite ‘record’ Q4 update

Shares in the fintech company are down around 2%. Here are the details
The post Hub24 (ASX:HUB) share price drops despite ‘record’ Q4 update appeared first on The Motley Fool Australia. –

The Hub24 Ltd (ASX: HUB) share price is falling despite the company releasing a “record” Q4 update for FY21.

At the time of writing, shares in the fintech company are trading for $25.71 – down by 1.19%. The S&P/ASX 200 Index (ASX: XJO) is also lower, by 0.56%.

Let’s take a closer look at the latest update.

What did Hub24 report?

In a statement to the ASX, Hub24 says quarterly inflows hit a record $3.9 billion for the period. The total includes $2.2 billion from its original and namesake platform, $1.4 billion from ClearView Wealth, and $300 million from Xplore Wealth. In the March quarter, net inflow for the Hub24 platform was $1.9 billion.

Average monthly inflows are up 52% on FY20 to around $627 million.

Annual net inflow for the previous financial year was $8.9 billion – an 80% increase on the prior corresponding period. Total funds under administration (FUA) are $58.6 billion – up by $7.2 billion on the March quarter. Xplore alone makes up $41.4 billion of FUA.

The company also advised it has signed 26 new licence agreements in the quarter. Total market share is now 3.9%.

Despite these figures investors are in a selling mood today, judging by the Hub24 share price.

Finally, because of its “significant growth” – as the company states – Hub24 is investing to further grow the business.

“The company will be expanding the executive team, hiring additional distribution team members and investing in technology infrastructure to support scale and ongoing innovation. Further detail will be provided in the FY21 results update in August,” it said in its statement.

Hub24 share price snapshot

Over the past 12 months, the Hub24 share price has increased by 102%.

Since hitting its all-time high of $29.05 in the last month, Hub24 shares have been on a downward trend. On current market price, shares in the company are down 11.5%.

The Hub24 share price, however, was one of the best performers in the last financial year.

Hub24 has a market capitalisation of around $1.75 billion.

The post Hub24 (ASX:HUB) share price drops despite ‘record’ Q4 update appeared first on The Motley Fool Australia.

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More reading

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Hub24 Ltd. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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