Navigator Global Investments Ltd (ASX: NGI) shares are back in demand on Tuesday after another update from the company.
At the time of writing, the Navigator share price is up 7.66% to $2.67. By comparison, the broader S&P/ASX All Ords Index (ASX: XAO) is down 0.50% to 8,881 points.
That continues a strong run for the alternative investment manager, with the stock up around 30% over the past month.
It has also climbed about 70% over the past year, putting it among the top performers on the ASX over that period.
Here’s what investors are looking at today.
Fresh support after capital raising update
Navigator’s latest update showed strong support for the institutional part of its raising.
The company said it has completed the institutional part of its fully underwritten 1-for-8.13 accelerated non-renounceable entitlement offer.
It raised about $134 million from institutional investors, with new shares issued at $2.40 each.
That sits below where the stock is trading today, which helps explain the positive reaction.
Demand also looked solid, with eligible institutional shareholders taking up about 99% of their entitlements.
The retail offer is expected to raise another $11 million, taking the total raising to about $145 million if completed as planned.
What the money is being used for
The raising is linked to Navigator’s proposed acquisition of a portfolio of alternative asset manager interests.
The deal has a total consideration of US$195 million and involves net revenue share interests in 17 alternative asset managers connected to Stable Asset Management.
Navigator said the portfolio had US$15 billion in firm-level assets under management at March 2026. It also had US$1.8 billion in ownership-adjusted AUM and US$27 million in CY2025 net portfolio income.
The company said the deal adds scale and diversification across alternative asset managers, while also expanding its relationship with Stable.
The UBS target price lift is also helping sentiment today. The broker has raised its target by 5.6% to $3.80, which sits well above the current share price.
Foolish takeaway
Navigator has a few things working in its favour today.
The capital raise was well supported by investors, the stock is trading above the offer price, and UBS has raised its target price.
Still, I would not ignore how far the stock has already moved. A 70% gain over the past year means expectations are much higher than they were.
Instead, I would be watching whether the acquisition flows through to stronger earnings and continued growth in assets under management.
The post Why this ASX stock just jumped 7% after a 70% run 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. 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.