The S&P/ASX 200 Index (ASX: XJO) is down 4.3% over the past 6 months, despite the best efforts of this surging ASX 200 stock.
The fast-rising company in question is Computershare Ltd (ASX: CPU).
Shares in the financial administration company are bucking the broader Trump tariff-driven market sell-down today as well, with shares flat in late afternoon trade at $38.15 apiece.
For some context, the ASX 200 is down 1.1% at this same time.
With shares up 52% over the past six months, Computershare now commands a market cap north of $22.3 billion.
With that blistering performance in mind, Seneca Financial Solutions' Arthur Garipoli believes the ASX 200 stock may have run too hot too quickly (courtesy of The Bull).
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ASX 200 stock 're-rated too quickly'
"This share registry services provider recently reported strong first half results in fiscal year 2025," said Garipoli, who has a sell rating on the ASX 200 stock.
"The company delivered a profit after tax from continuing operations of $286.5 million, an increase of 24.9% on the prior corresponding period. It also upgraded full year guidance," he said.
Garipoli added:
CPU has been a beneficiary of higher interest rates, which we believe have peaked. The stock has re-rated too quickly and is trading on lofty multiples, in our view. It may be time to consider locking in a profit.
What's the latest from Computershare?
Computershare reported its half-year results on 12 February. And investors responded by sending the ASX 200 stock to close up 15.5% on the day.
Among the highlights stoking investor interest, the company achieved a 6.4% year-on-year increase in management revenue to $1.5 billion. Management earnings before interest and tax (EBIT), excluding margin income, of $171 million were up 27.9%.
With a nod to Garipoli's concerns about the potential headwinds from lower interest rates, rate cuts during the half-year saw Computershare's margin income slide 0.8% year-on-year to $392 million.
"Margin income proved resilient, down less than 1% in the half, despite interest rates falling further than we expected," Computershare CEO Stuart Irving said on the day.
The company also upgraded its full-year FY 2025 earnings guidance by 7.5% to $1.35 per share.
In light of the strong performance, the ASX 200 stock increased its interim unfranked dividend by 12.5% to 45 Aussie cents per share.
Computershare stock trades on a 2.3% unfranked trailing dividend yield.
