The HUB24 Ltd (ASX: HUB) share price was in exceptionally strong form on Thursday.
The investment platform provider's shares were up as much as 11% to a record high of $31.83 at one stage.
The HUB24 share price ultimately ended the day with a gain of almost 9% to $31.25.
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Why did the HUB24 share price rocket higher?
Investors were bidding the HUB24 share price higher today after the release of a very strong first-quarter update.
According to the release, the company achieved record first-quarter funds under administration (FUA) net inflows of $3 billion. This brought its total FUA to $63.2 billion, which is an increase of 229.1% over the prior corresponding period (pcp).
This was driven by a 139% jump in platform FUA to $45.4 billion and portfolio, administration and reporting services (PARS) FUA of $17.8 billion. The latter business was acquired from Ord Minnett in December 2020 and therefore was not part of the company in the prior corresponding period.
Netwealth also impresses
It wasn't just HUB24 that delivered strong growth in the first quarter. The Netwealth Group Ltd (ASX: NWL) share price also surged higher today following the release of its own quarterly update. This appears to have given investor sentiment in the industry a real boost today.
According to its release, Netwealth reported record net inflows of $4 billion for the quarter. This took Netwealth's FUA to $52 billion, which represents an increase of 52.7% over the pcp and 10.2% quarter on quarter.
Is the HUB24 share price a buy?
Earlier this week the team at Credit Suisse put an outperform rating and $34 price target on the company's shares.
Based on the current HUB24 share price of $31.25, this still implies a potential upside of almost 9% for investors.
It is worth noting that the broker has yet to respond to this and could amend its price target in the coming days once it has run the rule over this update.
This could make it worth keeping a close eye on HUB24 shares.
