S&P/ASX 200 Index (ASX: XJO) financial share Pinnacle Investment Management Group Ltd (ASX: PNI) has been on a tear since plumbing one-year closing lows in early April.
Pinnacle shares closed down 0.89% on Tuesday, trading for $21.25 apiece.
Despite that retrace, shares remain up 48% since closing at $14.35 on 7 April.
Taking a step back, the ASX 200 financial share has gained 21.29% over 12 months. Though that's not including the 60 cents a share in partly franked dividends Pinnacle delivered to stockholders over the full year.
At Tuesday's closing price, this sees Pinnacle shares trading on a partly franked 2.8% dividend yield (part trailing, part pending).
The final dividend of 27 cents per share is still up for grabs. If you want to bank that passive income, you'll need to own Pinnacle stock at market close on Friday, 29 August. Pinnacle trades ex-dividend on 1 September.
Speaking of which, here are three reasons Medallion Financial Group's Stuart Bromley is bullish on the outlook for Pinnacle Investment (courtesy of The Bull).
Should you buy the ASX 200 financial share today?
"Pinnacle provides distribution and business support to a range of world class asset managers known as affiliates," said Bromley, who has a buy recommendation on the ASX 200 financial share.
"The company announced that 91% of affiliate strategies outperformed respective benchmarks over five years to June 30, 2025," he noted, citing the first reason he's optimistic on the outlook for the stock.
As for the second reason, Bromley said:
Pinnacle posted net profit after tax of $134.4 million in fiscal year 2025, up 49% on the prior corresponding period. Funds under management for aggregate affiliates was up 63% in fiscal year 2025, supporting its medium to long term earnings outlook.
And legendary investor Warren Buffett – who once noted that "a great manager is as important as a great business" – would likely approve of the third reason Bromley tips Pinnacle as a buy.
"Recent success reinforces confidence in management's ability to execute on planned growth initiatives," Bromley concluded.
The hold case for Pinnacle shares
Sequoia Wealth Management's Peter Day is taking a more cautious approach on the ASX 200 financial share following the recent strong run higher.
Day noted that he recommended the "global multi-affiliate investment management firm as a buy" on The Bull on 31 March "when the over-sold stock closed at $17.56".
He added, "The shares closed at $25.33 on August 7. The stock was trading at $21.20 on August 21."
Explaining his switch over to a hold recommendation on the ASX 200 financial share, Day said:
PNI posted a net profit after tax $134.4 million in fiscal year 2025, an increase of 49% on the prior corresponding period, but 4% below consensus.
PNI offers a solid springboard for growth in fiscal year 2026 supported by strong financial metrics.
