ASX stock of the day: Janus Henderson (ASX:JHG) opens at new 52-week high

The Janus Henderson Group (ASX: JHG) share price is having a top day today. Here's why this fund manager could be in investors' good books.

| More on:
positive asx share price represented by lots of hands all making thumbs up gesture

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Janus Henderson Group CDI (ASX: JHG) share price is having a fantastic day today. Janus Henderson shares are up 7.17% at the time of writing to $41.99 a share.

That came after a very strong open for the company, which saw the Janus Henderson share price spike all the way up to $43.08 – almost 9% higher than the $39.37 price the company closed at yesterday.

At $43.08, it's also the new 52-week high and the highest level this company has traded at since mid-2018. It also means the Janus Henderson share price is up almost 98% from the lows the company reached in March. However, we're still a long way away from the ~$64 a share levels we saw back in late 2015.

So who is Janus Henderson? And why are the shares spiking so enthusiastically today?

Janus Hender-who?

Janus Henderson is in the business of asset management. It's a funds management company that is actually dual-listed, hence the 'CDI'. It (of course) appears on the ASX under the ticker JHG. But it is also listed on the New York Stock Exchange as Janus Henderson Group PLC (NYSE: JGH).

Despite these two listings, it is actually headquartered in the United Kingdom (explaining the PLC on the end there). So we have a real globetrotter here! This is explained by the fact that Janus Henderson used to be 2 separate companies – you guessed it, Janus Capital Group and Henderson Group. Janus was an American company, and Henderson, British before the two merged in 2017.

So, as we just touched on, Janus Henderson is a fund manager. The company states that: "Our individual, intermediary and institutional clients span the globe and entrust us with… their assets".

It offers both mutual funds (managed funds) and exchange-traded fund (ETF), although its Australian offerings are more or less restricted to 'wholesale' (read ultra-wealthy) clients. Even so, its funds' are available in many, if not most countries in the world in varying degrees. This includes the United Kingdom, Europe and the United States and Canada, as well as most of South America and the Middle East.

It's North American funds under management (FUM) is the company's crown jewel, housing US$208.8 billion (or 56%) of the total FUM of US$374.8 billion (as of the 2019 annual report). Europe, the Middle East, Africa and Latin America account for another US$111.6 billion, with the Asia Pacific making up another US$54.4 billion in turn.

Why is Janus Henderson rocketing today?

Strangely, there is no immediately-obvious reason why Janus Henderson shares are rocketing today. There are no newsworthy announcements that the company has made recently, and certainly none with any earth-shattering, share price-moving potential that one would deem obvious.

However, if we dig a little deeper, something interesting does bubble up to the surface. Janus Henderson has been buying back its own shares. With gusto.

The company has posted a daily share buyback notice almost every trading day for months now. In fact, just today, the company did the same thing, telling the markets that the company has bought back and cancelled almost 4,000 shares. Same as yesterday, and the same as the day before that.

Perhaps investors (or one giant investor) have noticed.

Share buybacks are accretive to shareholder value. If a company buys-back its own shares, it reduces the pool of shares that its profits (and dividends) have to be split between. Thus, a share buyback increases the earnings per share that an investor can expect to receive from their investments. Even if the company isn't actually growing its profits in the conventional manner. A buyback is often compared to a dividend in how it returns value to the shareholders.

It's possible that these buybacks have led to the spike in Janus Henderson today. Or it's possible that someone knows something good about the company that hasn't been released to the markets just yet.  Either way, it's been a good day for Janus shareholders!

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors started the week off in a good mood today.

Read more »

A cute young girl with curly hair sips a glass of milk through a straw with a smile on her face.
Broker Notes

Up 37% this year, why Macquarie expects A2 Milk shares to keep outperforming

Macquarie remains bullish on A2 Milk shares heading into 2026. Let’s see why.

Read more »

Woman and man calculating a dividend yield.
Share Market News

Big week for markets: Here's what to watch

Tech earnings, rate speculation, and Aussie inflation data could shake markets this week — but long-term investors should keep their…

Read more »

ASX shares Business man marking buy on board and underlining it
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

dissapointed man at falling share price
Share Fallers

Why Boss Energy, Elsight, Pilbara Minerals, and Whitehaven Coal shares are falling today

These shares are starting the week in the red. But why?

Read more »

An older female ASX investor holds a gangster-style fist pump pose showing off gold rings with dollar signs on them.
Broker Notes

Why Macquarie forecasts Northern Star shares are set to surge 55%

Macquarie believes Northern Star shares are well-placed to rocket higher.

Read more »

A group of people gathered around a laptop computer with various expressions of interest, concern and surprise on their faces. All are wearing glasses.
Share Market News

ASX 200 tech stock near record high, is it still a buy?

This company's soaring share price and rising profits are turning heads.

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why Bellevue Gold, Bubs, Clarity Pharmaceuticals, and Regal Partners shares are rising today

These shares are starting the week on a positive note.

Read more »