The Washington H Soul Pattinson & Co Ltd (ASX: SOL) share price has surged in the past three weeks.
Since 16 March, shares in the investment house have gained around 13%, making it one of the best performers across the sector.
For comparison, the S&P/ASX 200 Index (ASX: XJO) has increased by 5.2% across the same time frame.
At the time of writing, Soul Patts shares are swapping hands for $28.56, down 0.17%.
What’s driving the Soul Patts share price higher?
After hitting a 52-week low of $24.76 in mid-March, the Soul Patts share price has continued to climb.
It seems investors believed the company’s shares were trading at bargain prices back then.
As such, from 17 March to 29 March, Soul Patts shares registered nine consecutive trading days of gains.
To put that into perspective, its shares rose from $25.15 (at close of trade on 16 March) to $28.60 (at close of trade on 29 March).
Supporting the share price ascent, the company released its half-year results for the 2022 financial year on 24 March.
In summary, Soul Patts reported strong numbers despite its statutory net profit after tax (NPAT) recording a loss of $643 million.
The biggest win for shareholders came from the board’s decision to increase the interim dividend by 11% to 29 cents. This reflected one of the highest first-half dividends in the history of Soul Patts.
On the day the results were released, Soul Patts shares lifted 2.19% to $27.59, and 3.12% to $28.45 on the following day.
In addition, management hinted at a rosy outlook for the company regardless of the COVID-19 pandemic and the war in Ukraine.
The group noted it has ample firepower on its balance sheet to purchase attractive investments during market downturns.
The post Why has the Washington H. Soul Pattinson share price leapt 13% in 3 weeks? appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended Washington H. Soul Pattinson and Company Limited. 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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