The Jumbo Interactive Ltd (ASX: JIN) share price has hit a new 52-week high in intraday trade today.
Earlier this afternoon, the Jumbo share price reached $17.84 – the highest it’s been in 12 months.
At the time of writing, Jumbo shares are 6.51% higher than their previous close, swapping hands for $17.83.
Jumbo’s flagship service is OzLotteries. It also runs official government and charitable lotteries.
Let’s take a look at what’s been driving the lottery business’ shares lately.
The year that’s been
Over the last 12 months we’ve heard several pieces of exciting news from Jumbo.
Firstly, the company extended its agreement with Tabcorp Holdings Limited (ASX: TAH) by another 10 years in June 2020. Under the agreement, Jumbo will continue to sell Tabcorp lottery tickets.
Then, in September, the company announced its subsidiary had made an agreement with Lotterywest. The agreement saw Jumbo providing Lotterywest with its software platform and services for the next decade.
The only time the ASX has heard price-sensitive news from Jumbo this year was when it released its half year results in February.
In the 6 months ended 31 December 2020, Jumbo reported a 26% increase in its total transaction value, raking in $233 million.
It’s revenue also grew, but only by 9% to $41 million.
The company’s underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew by just 3.7% to $24.1 million. And it penned a 0.5% lift in net profit after tax (before amortisation) to $16.3 million.
Despite the small gains, the Jumbo share price fell that day to close 6.9% lower than its previous session.
Since its half year results were released, the Jumbo share price has gained 31%.
Jumbo share price snapshot
It has been a good year so far on the ASX for the Jumbo share price.
Currently, Jumbo shares are 26% higher than they were at the beginning of 2021. They have also gained 77% since this time last year.
The company has a market capitalisation of around $1 billion, with approximately 62 million shares outstanding.
The post The Jumbo (ASX:JIN) share price hits a new 52-week high appeared first on The Motley Fool Australia.
Should you invest $1,000 in Jumbo right now?
Before you consider Jumbo , you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Jumbo wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of May 24th 2021
More reading
- Jumbo (ASX:JIN) share price rises to reach new 52-week record
- 2 ASX dividend shares this broker likes
- These ASX insiders are buying up more shares in their companies
- 2 growing ASX dividend shares for income investors
- Jumbo (ASX:JIN) share price tumbles on broker downgrade
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3d9Z4p5
Leave a Reply