The Hub24 Ltd (ASX: HUB) share price rocketed 43.44% higher in July, placing the fintech company among the top earners on the All Ordinaries (INDEXASX: XAO). By comparison, the All Ords gained 0.9% in July. Like most ASX shares, the Hub24 share price took a big hit during the bear market resulting from the onset of COVID-19. The share price tumbled 41% from 26 February through to 16 March. From there, the Hub24 share price gained a stellar 108% by the time the closing bell rang on 31 July.
Year to date, the company's share price is up nearly 27%, giving it a market capitalisation of $885 million.
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What does Hub24 do?
Hub24 Ltd (formerly known as Investorfirst Limited) is an ASX-listed fintech company. It leverages technology to connect advisers and their clients through wealth management solutions. Hub24 is a fully-integrated solution for superannuation, investment, pension, insurance and margin lending. It's used by advisers to unlock efficiency and add value for their clients.
The company's history dates back to 2007. That's the same year that Hub24 shares (as we know them today) first listed on the ASX. The company started out as Investorfirst, trading on the ASX under the ticker code INQ. In 2013, it made the move to rebrand as Hub24, in line with the name of its platform.
Why did the Hub24 share price soar in July?
The Hub24 share price took off in July despite Credit Suisse cutting its rating for the ASX fintech share at the start of the month. Credit Suisse's rerating saw the Hub24 share price retreat by 1.3% the following day before recommencing its march higher.
Other brokers, like Morgans, retained their add rating.
The record performance indicated by company's fourth quarter report, released on 20 July, saw the Hub24 share price continue to climb higher.
The report showed that the company continued to experience strong net inflows of $1.1 billion during the June quarter. Along with favourable market movements, this saw a 14% growth in its funds under administration (FUA), or $2.1 billion, bringing total FUA to $17.2 billion.
Average monthly net inflows during the 2020 financial year were up 26% from the previous year.
Management noted that net inflows were at record levels for a June quarter despite a weak start for the quarter.
HUB24's market share has increased from 1.3% to 1.94% since March 2019. At the time of writing, the Hub24 share price is trading at $14.14.
