Netwealth shares have shot out of the blocks during today’s session.
The post Why the Netwealth (ASX:NWL) share price is up 9% on Thursday appeared first on The Motley Fool Australia. –
The Netwealth Group Ltd (ASX: NWL) share price has walked through Thursday’s session firmly in the green.
Netwealth shares are now exchanging hands at $15.47 apiece, a 9% jump from the open.
What’s up with the Netwealth share price today?
There is no market sensitive information for the company today. However, it is likely that Netwealth shares are on the move in response to its FY21 earnings release on Wednesday.
In it, Netwealth recognised an approximate 20% year on year increase in revenue, in addition to net profit after tax (NPAT) growth of 24% from the year prior.
Moreover, the company saw its platform revenue increase to $142 million, a 17% year on year increase. This coincided with a 50% increase to funds under administration (FUA) to $47.1 billion.
Finally, Netwealth declared a 9.5 cents per share final dividend, taking the annual dividend payment to 18.56 cents a share. This signifies a 26% increase from the year prior.
There were other takeouts too, like a 9% increase in transaction fee revenue, and the average account size grew from $385,000 to $481,000.
In addition, the company recorded the largest quarterly FUA inflows “for the thirteenth consecutive quarter” for its Plan For Life platform, of $2.3 billion.
Initially, the share price reaction to the news was mixed, and Netwealth ended up finishing the day in the red.
However, today’s moves in the Netwealth share price suggest that investors see the upside in the company’s healthy financial performance, including the dividend increase.
Netwealth share price snapshot
The Netwealth share price has struggled this year to date, posting a loss of 3% since January 1. Despite this, Netwealth shares are still around 8.5% in the green over the last 12 months of trading.
Moreover, in the last month, Netwealth shares have given away a further 8% on the charts.
Nonetheless, these returns have lagged the S&P/ASX 200 index (ASX: XJO)’s return of around 25% over the last year.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of August 16th 2021
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 Netwealth. The Motley Fool Australia owns shares of and has recommended Netwealth. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.