Why the Praemium Ltd share price rocketed 18% higher today

Thankfully for its shareholders the Praemium Ltd (ASX: PPS) share price is heading in the right direction at long last.

Prior to today the investment platform provider’s shares were down 20% year-to-date. But in early trade Praemium has clawed back some of this decline and is up 18% to 42 cents.

Why have its shares climbed higher?

This morning the company announced that it achieved a number of records during the June quarter.

This included record quarterly inflows of $554 million across Praemium’s global platforms and funds.

Approximately $364 million of these inflows were for its Australian business, with its international business recording $190 million, or £113 million, of inflows during the quarter.

This now means that funds under administration have surpassed $6 billion for the first time, representing impressive growth of 34% from the previous quarter.

A key driver of growth has been the growing popularity of Praemium’s retail superannuation offering SuperSMA. Funds under administration on the SuperSMA platform reached $657 million during the quarter.

Another catalyst was the successful launch of its individually managed account (IMA) service in the United Kingdom.

Should you invest?

The company may have had a tough time of late following a boardroom spat, but with the matter now resolved it can once again focus on growing the business and creating value for shareholders.

So with its shares changing hands at 30x estimated full-year earnings, I think Praemium certainly looks to be great value for money considering its current growth profile.

In light of this, I would put it up there with Class Ltd (ASX: CL1) and XERO FPO NZX (ASX: XRO) as one of the better fintech investment options on the market today.

Finally, if you like shares like Xero and Praemium, then I think you'll love these explosive growth shares.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Class Limited and Xero. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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