Netwealth Group Ltd (ASX: NWL) shares fell by 8.7% in earlier trading to an intraday low of $13.20.
The ASX financial share has recovered some ground to $13.57 per share at the time of writing, down 6.16%.
The Netwealth share price stormed 5.71% higher yesterday to a new 52-week peak of $14.78.
This followed the release of the investment platform provider's quarterly update.
As my Fool colleague James covered, Netwealth reported a record level of funds under administration (FUA) for the quarter.
Netwealth's FUA increased by $4.4 billion for the fourth quarter of FY23 to a record $70.3 billion.
The increase was due to net FUA inflows of $3.2 billion and positive market movements of $1.2 billion.
According to the company, Netwealth accounted for 66% of industry net funds flows for the 12 months to March 2023. This gave the company an additional 1% market share to 6.7%.
By comparison, competitors Macquarie Group Ltd (ASX: MQG) has 12.4% market share, and HUB24 Ltd (ASX: HUB) has 6.1% share.
Netwealth management said the record quarter reinforced its confidence in both its "transition pipeline and the potential for new business opportunities".
However, it also warned that the uncertain economic environment is having an impact on operations.
What's dragging Netwealth shares down today?
Well, it could be a simple case of investors taking profits following yesterday's surge.
Or, it could be a broker downgrade that surfaced today.
According to a report on nabtrade, top broker Macquarie has cut its 12-month price target on Netwealth shares to $14.40. The previous target was $15.
Macquarie now has a neutral rating on Netwealth shares and reduced its price target on valuation grounds.
Macquarie expects Netwealth to face headwinds from increased gross outflows and lower cash in its FUA in the near term.
According to Refinitiv data, six of 14 analysts rate the Netwealth shares a buy, six say hold, and two say sell. Their median price target is $14.
