The consulting and tech solutions company’s share price is riding high today.
The post Why is the RPMGlobal (ASX:RUL) share price up 7% this Wednesday appeared first on The Motley Fool Australia. –
The RPMGlobal Holdings Ltd (ASX: RUL) share price has jumped into the green today.
At the time of writing, RPM shares are exchanging hands at $1.98 apiece, a 6.45% gain on the day.
Even though there is no price sensitive news on RPM, let’s take a look at what it has been up to lately.
Quick recap on RPM Global
RPMGlobal is a consulting and software provider with niche expertise in the mining industry.
The company’s software arm is the major contributor to revenue, whilst its advisory division is focused on providing economic consultation to the mining industry.
At the time of writing, RPM has a market capitalisation of $454 million.
What has RPM Global been up to lately?
June was a busy month for the company when it released two key announcements.
On 16 June, the company confirmed it had acquired the environmental, social and governance (ESG) company Nitro Solutions Pty Ltd.
Nitro provides ESG solutions to the mining industry and lends RPM a “dedicated division focused solely on ESG”.
Nitro was acquired through a $2.1 million cash transaction that was finalised on 30 June. RPM Global shares climbed 4.7% in the five days following this announcement.
Then, on 18 June, RPM revealed it had a stronger than expected total contracted value (TCV) for its subscription software sales.
From the release, RPM increased TCV software subscriptions by $9 million, reaching a total of $40 million at that time.
Finally, on 2 July RPM Global shares reached their all-time high after the company revealed strong growth in its FY 2021 results.
RPM explained that TCV from software subscription sales and perpetual licence contracts totalled $52.9 million, up $9.5 million from the announcement on 18 June.
Of particular note was that TCV from software subscriptions alone was $47.7 million, up $7.3 million from $34.5 million the same time last year.
RPM Global shares have climbed a further 10% since this date. Therefore, it stands to reason that investors continue buying RPM shares on the back of these three positive events in the company’s growth narrative.
RPM Global share price snapshot
The RPM Global share price has had a strong year to date, posting a return of 55% since January 1. This has extended the previous 12 months’ return of 108%.
These returns have outpaced the S&P/ASX 200 Index (ASX: XJO)’s return of ~20% over the past year.
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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended RPMGlobal Holdings. The Motley Fool Australia has recommended RPMGlobal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.