Hub24 Limited

HUB Details

Expansion of Distribution Capability with Key Appointments: Hub24 Limited (ASX: HUB) disclosed to the market about the creation of two new roles to expand its distribution capability and provide additional dedicated support to licensees and advisers. The Group has appointed Shane Muscat (formerly Head of Institutional Sales at Colonial First State) to the Board as a Head of Strategic Sales to lead new business initiatives with licensees, boutiques, and new corporate partners. Moreover, Paula Day (a former Head of Strategic Accounts at CFS) will also join the Board as a Head of Key Accounts and will manage and build strategic relationships with HUB24’s large licensee clients. Further, these new hires will join Greg Newman who was recently appointed permanently to the role of Head of Retails Distribution managing current and new advisor relationships.

The management stated that the group will continue to deliver market-leading functionality and leverage expanding industry opportunities. Moreover, the management believes that these senior appointments will provide healthy possible client development base and relationship team. The group lately reported a strong performance in the third quarter of FY18 with net inflows of $595m that reflected a growth of 42% over prior corresponding period. The group’s funds under Administration were also up 58% to $7.4b as at 31 March 2018.


Growth in FUA and net inflow (Source: Company Reports)

The stock price has spiked up 193.4% in the last one year as at May 23, 2018 and currently trading at its nearly 52-weeks high level. The stock plunged by 4.24% on May 24, 2018 with investors leveraging the rise in the stock price. Meanwhile, Hyperion Asset Manager has ceased to be a substantial holder of the group.

We believe that the investors can take profits on the stock given many catalysts already priced in the current trading level. We put a “Sell” recommendation on the stock at the current market price of $ 14.44.
 

HUB Daily Chart (Source: Thomson Reuters)

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