Why the HUB24 (ASX:HUB) share price jumped 11% to a record high today

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company

The HUB24 Ltd (ASX: HUB) share price was in exceptionally strong form on Thursday.

The investment platform provider’s shares were up as much as 11% to a record high of $31.83 at one stage.

The HUB24 share price ultimately ended the day with a gain of almost 9% to $31.25.

Why did the HUB24 share price rocket higher?

Investors were bidding the HUB24 share price higher today after the release of a very strong first quarter update.

According to the release, the company achieved record first quarter funds under administration (FUA) net inflows of $3 billion. This brought its total FUA to $63.2 billion, which is an increase of 229.1% over the prior corresponding period.

This was driven by a 139% jump in platform FUA to $45.4 billion and Portfolio, Administration and Reporting Services (PARS) FUA of $17.8 billion. The latter business was acquired from Ord Minnett in December 2020 and therefore was not part of the company in the prior corresponding period.

Netwealth also impresses

It wasn’t just HUB24 that delivered strong growth in the first quarter. The Netwealth Group Ltd (ASX: NWL) share price also surged higher today following the release of its own quarterly update. This appears to have given investor sentiment in the industry a real boost today.

According to its release, Netwealth reported record net inflows of $4 billion for the quarter. This took Netwealth’s FUA to $52 billion, which represents an increase of 52.7% over the prior corresponding period and 10.2% quarter on quarter.

Is the HUB24 share price a buy?

Earlier this week the team at Credit Suisse put an outperform rating and $34.00 price target on the company’s shares.

Based on the current HUB24 share price of $31.25, this still implies potential upside of almost 9% for investors.

And it is worth noting that the broker has yet to respond to this and could amend its price target higher (or lower) in the coming days once it has run the rule over this update.

This could make it worth keeping a close eye on HUB24 shares.

The post Why the HUB24 (ASX:HUB) share price jumped 11% to a record high today appeared first on The Motley Fool Australia.

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More reading

Motley Fool contributor James Mickleboro 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 Hub24 Ltd and Netwealth. The Motley Fool Australia owns shares of and has recommended Netwealth. 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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