The Moneyme Ltd (ASX: MME) share price is one of the better performers on the ASX today.
At the time of writing, Moneyme shares are up 2.21% to $1.39 a share, after rising as much as 4.4% earlier in the day. That's significantly better than the broader S&P/ASX 200 Index (ASX: XJO), which has lost 0.9% today so far.
However, zooming out and the picture doesn't look quite as bright. At the current share price, the company is still sitting more than 11% below the highs it reached on its first day of trading back in December 2019.
It's also more than 20% below its 52-week high of $2 a share. However, it would have been a good move to pick up Moneyme shares 12 months ago amidst the lows of the 2020 COVID-19 crash. The Moneyme share price is up 168% over the past 12 months.
So what is this company? And why are Moneyme shares rising strongly today in the middle of a broader market sell-off?
Moneywho?
Moneyme is a credit provider – it provides personal loans to customers. It has an 'online-only business model, with customers applying to use Moneyme's digital services through its website.
This company offers traditional personal loans, including cash loans, cash advances and same-day loans. It also offers credit cards and lines of credit through its Freestyle account.
Moneyme customers can expect to pay an interest rate between 6.25% and 19.95% on Moneyme's credit services. Its newest service is Moneyme+, which offers a buy now, pay later-esque service with interest-free periods of up to 48 months.
Moneyme has a funding facility with Westpac Banking Corp (ASX: WBC) announced last year. This deal enabled Moneyme to reduce its funding costs by more than half to below 5% per annum.
The company released its half-year earnings results for the six months ending 31 December 2020 last month. In this update, Moneyme reported revenue growth of 12% to $24 million and a net profit after tax of $1.3 million.
Why is the Moneyme share price rising today?
There is no obvious reason why the Moneyme share price is on the move today. The last market announcement this company made was back on 2 March. And that was just some routine paperwork.
According to ASX data, there has been no large surge in trading volumes either. We can't even say it's just because the ASX financials sector is doing well. At the time of writing, the S&P/ASX 200 Financials Index (ASX: XFJ) is down 0.33%.
Moneyme shares did dip to $1.35 both yesterday and this morning, so perhaps some buyers out there are finding that price level a bit too cheap to pass up. That is right at the bottom of the range Moneyme has been trading at since August last year.
Whatever the reason, I'm sure Moneyme investors would be pretty content with today's market moves. At the current Moneyme share price, the company has a market capitalisation of $237.44 million.
*Editor's note: this article was updated on 31 March to clarify the MoneyMe share price movement from the first day MoneyMe shares traded on the ASX in December 2019, to the current MoneyMe share price level.
