Insights

Why the Netwealth (ASX:NWL) share price is up 9% on Thursday

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.

The post Why the Netwealth (ASX:NWL) share price is up 9% on Thursday appeared first on The Motley Fool Australia.

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

More reading

Here are the top movers on the ASX 300 today

Why Bapcor, BHP, CSL, & Netwealth shares are tumbling today

Which ASX 300 shares are the biggest winners and losers mid-week?

Netwealth (ASX:NWL) share price drops 5% on FY21 earnings
How did the Netwealth (ASX:NWL) share price fare last earnings season?

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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!