Hub24 Ltd share price up 2700% in 5 years

The Hub24 Ltd (ASX:HUB) share price has risen 3% on a positive update.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Hub24 Ltd (ASX: HUB) share price has risen 3% so far today on news of a positive funds under management (FUA) update. The Hub24 share price has increased by 135% over the past year and over 2,700% in five years.

The company experienced strong quarterly inflows for the quarter to 31 December 2017, net inflows were $554 million and gross inflows were $771 million. Gross inflows were 62% higher than the prior corresponding period.

FUA ended the quarter at $6.9 billion and has now reached $7 billion. This means it has grown from $5.5 billion at 30 June 2017.

The company had 14 new licensees sign distribution agreements during the quarter representing significant growth opportunities.

Hub24 and Agility have released a joint development initiative to a few pilot clients, which could be a positive step.

The company released platform enhancements in this quarter that create adviser efficiency and support their compliance obligations. Hub24 has moved into new premises to support productivity and future growth.

Paragem has licensed an additional advice practice and now comprises 32 advice practices and 76 authorised representatives.

Hub24 achieved 5th place across the industry in regards to its market share of annual net inflows. The average FUA per adviser increased to $6.6 million.

It probably won't grow anywhere near as much over the next year due to its high valuation. It's currently trading at 34x FY17's earnings.

Foolish takeaway

This update is very positive and a clear sign that Hub24's business plans are working. It's not the type of business I'd normally invest in, but I can see why some investors are getting very excited about it.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »