Money3 (ASX:MNY) share price on the rise after positive update

The Money3 Corp Ltd (ASX: MNY) share price is on the rise after the company provided a positve update. Here's what was released.

| More on:
A hand moves a building block from green arrow to red, indicating negative interest rates

Image source: Getty Images

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 Money3 Corp Ltd (ASX: MNY) share price is on the rise today after a rocky start. This movement comes after the company announced a positive update to the ASX.

At the time of writing, the financial services company's shares are exchanging hands for $2.89, up 0.7%.

Quick take on Money3

Founded in 2000, the Victorian-based business specialises in non-bank automotive finance throughout Australia and New Zealand. This includes flexible secured and unsecured personal loans for a period of up to 5 years. Money3's brands include Cash Train and Personal Finance Co.

Money3 upgrades guidance

Investors are warming to Money3's encouraging release.

In a statement to the ASX, Money3 advised that due to improved trading conditions, it expects its net profit after tax (NPAT) to increase. This is based on the company's strong new loan originations which recorded a compound annual growth rate (CAGR) of 30.2%. In addition, favourable economic conditions along with anticipated cash collections during Q4 FY21 is driving the profit expectation.

Accordingly, Money3 upgraded its profit guidance for FY21 to $38 million. This represents a jump from the $36 million that was previously indicated in its February half-year results.

Comments from the CEO

Money3 CEO, Scott Baldwin touched on the company's progress, commenting:

We continue to experience strong organic new loan originations through the second half of the financial year and expect this trend to continue into FY22.

While the forecasted result is uplifting, used vehicle pricing is predicted to stabilise. The company estimates to carry a large number of pre-approved loans in FY22, due to delays in new asset delivery.

How has the Money3 share price performed?

Over the last 12 months, Money3 shares have moved higher to post a gain of more than 80% for investors. The company's share price reached an all-time high of $3.38 in late April, before heading lower from profit-taking.

Based on today's price, Money3 presides a market capitalisation of roughly $580 million, with 208 million shares outstanding.

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

More on Financial Shares

A businesswoman on the phone is shocked as she looks at her watch, she's running out of time.
Financial Shares

Hoping to bag the next dividend on IAG shares? Better hurry…

The insurance giant has announced a 20% higher interim dividend of 12 cents per share.

Read more »

Woman and man calculating a dividend yield.
Earnings Results

Why did the AMP share price just crash more than 13%?

AMP shares are taking a beating on Friday. But why?

Read more »

Frustrated and shocked business woman reading bad news online from phone.
Earnings Results

IAG share price crashes 8% despite first-half profit surge

This insurance giant has delivered a big increase in profits for the first half. But investors aren't celebrating it.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Earnings Results

Suncorp share price jumps on strong result and $4.1b return to shareholders

This insurance giant is returning significant funds to shareholders after the sale of its banking operations.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Financial Shares

Macquarie share price dips on mixed quarterly results

Macquarie released its nine-month performance update this morning.

Read more »

Sports fans watching a match at a bar.
Financial Shares

Own IAG shares? Here's what to look out for in the upcoming HY25 report

It could be a very interesting result for IAG.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Dividend Investing

6% dividend yield and up 30% in the last 6 months! Is this the perfect stock for growth and income investors?

This little-known ASX financial services company has been surging recently – and it pays a monster dividend.

Read more »

a man surrounded by huge piles of paper looks through a magnifying glass at his computer screen.
Financial Shares

Is it time to buy GQG or Magellan shares?

These two fund managers have seen a lot of volatility.

Read more »