ASX All Ords share Humm Group Ltd (ASX: HUM) had a rough start to the week.
Shares in the diversified financial services company closed on Monday trading for 68.5 cents apiece, down 3.52%.
For some context, the All Ordinaries Index (ASX: XAO) closed the day up 0.27%.
That loss sees Humm shares down 0.72% since this time last year.
Though those losses will have been greatly eased by the two fully-franked dividends the ASX All Ords share paid out over the past 12 months. Humm shares currently trade on a fully-franked trailing dividend yield of 3.28%
Following Humm’s half-year results release (H1 FY 2026) last Wednesday, the team at Ord Minnett reiterated their buy rating on Humm shares, forecasting a much more profitable year ahead for stockholders.
What did Humm report?
For the six months to 31 December, Humm reported statutory profit (after tax) of $13.9 million, up 13% from the prior half year (H2 FY 2025). Assets under management of $5.4 billion were down 1.9%.
The ASX All Ords share declared a fully-franked interim dividend of 1.5 cents per share. At Monday’s closing price, that represents a pending yield of 2.2%.
If you’d like to bank that passive income payout, you’ll need to own shares by market close this Wednesday. Humm shares trade ex-dividend on Thursday, 19 February.
Commenting on the half-year results, Humm CEO Angelo Demasi said:
1H26 demonstrates disciplined execution, stable net interest income and net interest margin through the cycle. Credit quality remains robust, supported by ongoing enhancements to origination scorecards and a continued focus on higherâquality assets.
Why Ord Minnett is bullish on this ASX All Ords share
Commenting on Humm’s half-year results, Ord Minnett noted:
Humm Group’s 1H26 was a slight miss at the reported line, however this was skewed by a number of ‘one-off’ charges â when we focus on the Net operating income line, it delivered a 1% beat against our forecasts.
And Ord Minnett was pleased with the net interest margin Humm managed to achieve.
According to the broker:
Whilst were slightly softer, net interest margin of ~5.5% was a pleasant surprise. The business is clearly in a transformation phase (with investments being made in the humm loan product, the transformation) â once completed, these should put HUM in a stronger footing to deliver growth.
Connecting the dots, Ord Minnett said, “With the stock trading on only 8.9x PE [price to earnings ratio] for FY26, we retain our buy rating on valuation grounds.”
Ord Minnett has a price target of 87 cents per share for the ASX All Ords share. That represents a potential upside of 27% from Monday’s closing price.
The post Why this buy-rated ASX All Ords share is tipped to surge 31% appeared first on The Motley Fool Australia.
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.