The Hub24 Ltd (ASX: HUB) share price is well in the green this morning after the company released its third-quarter market update.
In morning trade, shares in the wealth management software provider are up 3.07% to $26.22. However, this still puts HUB24 shares closer to their 52-week low of $21.64 than their 52-week closing high of $33.13 in October last year.
Let's check the details of the company's third quarter.
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Hub24 share price lifts as funds hold steady
- Platform inflows up 36.4% on the prior corresponding period to $2.6 billion
- Total funds under administration (FUA) at the end of March remain even at $68.3 billion
- Platform advisers increased to 3,432, representing a 24.4% improvement from the prior year
- Completion of Class Ltd acquisition reached
- Xplore Wealth integration continues to progress
What else went on for Hub24 during the third quarter?
The third-quarter update handed down by HUB24 today reflects the challenging conditions seen in equity markets so far this year.
While the Sydney-based financial platform provider notched up another quarter of positive net inflows, the impact wasn't as visible on the company's FUA. This is the byproduct of falling indices on a year-to-date basis, as the world is confronted with new dilemmas.
Despite $2.6 billion of net inflows, FUA sat relatively steady at $68.3 billion at the end of March. Negative market movements to the tune of $2.6 billion cancelled out the added funds during the quarter. This seemed to spur a plunge in the company's share price after market open this morning before it rallied.
In addition, Hub24 continued to advance its integration of Xplore during the quarter. Now, the company expects fund transfers to occur in the first half of FY23. Meanwhile, the SMSF and portfolio management software company, Class, is now fully under the wing of HUB24.
How has the Hub24 share price fared compared to competitors?
Although the Hub24 share price hasn't been the most rewarding investment since the beginning of the year, it also hasn't been the worst.
Taking a look at its ASX-listed rivals, HUB24 has delivered a better result compared to Netwealth Group Ltd (ASX: NWL) and Praemium Ltd (ASX: PPS). HUB24 might be down around 9% YTD, but Netwealth and Praemium are 25.78% and 52.04% worse for wear respectively.
The HUB24 share price currently trades on a price-to-earnings (P/E) ratio of 153 times.
