If you'd invested $10,000 in Netwealth shares at the start of the year, here's how much you'd have now

Would it have been a good idea to buy Netwealth shares on 2 January?

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Netwealth Group Ltd (ASX: NWL) shares have skyrocketed since the start of the year.

The ASX financial share has streaked 29.94% higher to trade at $20.18 per share at the time of writing.

Meantime, the S&P/ASX 200 Index (ASX: XJO) has limped 1.34% forward.

Here's how much you'd have now had you invested $10,000 in Netwealth shares at the start of 2024.

Netwealth shares began the year at $15.35 per share

Yep, you read that right.

The Netwealth share price at the opening bell on 2 January was $15.35.

So, a $10,000 budget would have bought you 651 Netwealth shares. Total spend: $9,992.85.

Today, those 651 shares are worth $13,137.18.

On top of that capital gain, you would have received the interim dividend of 14 cents per share plus franking in March. That's worth a total of $91.14 ex-franking.

So, the total return you would have received just four-and-a-half months after acquisition is $3,235.47.

What's the latest news from Netwealth?

Netwealth's latest price-sensitive news announcement came on 11 April when the company released its March quarter business update.

Netwealth reported $2.7 billion in net inflows for the quarter, a 62.2% increase on the prior corresponding period (pcp) of the March quarter 2023.

This took its funds under administration (FUA) to $84.7 billion as of 31 March.

FUA increased by $6.7 billion during the March quarter, comprising FUA net inflows of $2.7 billion and positive market movement of $4 billion.

The number of accounts increased by 11.6% compared to the pcp.

Over the 12 months to 31 March, the company achieved record FUA inflows of $21.2 billion.

Total FUA for the year increased by 28.5% or $18.8 billion, comprising net inflows of $10.6 billion and positive market movement of $8.2 billion.

It appears that shareholders had loftier ambitions for that set of results, with the Netwealth share price declining 5.03% on the day the report was released.

Should you buy Netwealth at today's share price?

The consensus rating on Netwealth shares among 16 analysts on the CBA trading platform is a hold.

Three analysts say the stock is a strong buy, 1 says a moderate buy, six say hold, two give it a moderate sell rating and four analysts say Netwealth shares are a strong sell.

The consensus expectation for earnings per share (EPS) is 35 cents in 2024, 43.7 cents in 2024 and 52.2 cents in 2025.

The analysts anticipate dividends per share of 29.9 cents in 2024, 38 cents in 2025 and 45 cents in 2026.

Netwealth shares are trading on a price-to-earnings (P/E) ratio of 55.54, according to CBA.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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