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Date : 19/08/2022

Two ASX Asset Management Stock Prices That Are Poised For Growth!

During economic uncertainties, investors tend to invest in an asset management stock with a well-established business model and stable revenue stream. Despite widespread pessimism about 2022, ASX stocks had a fantastic month in July. The S&P/ASX 200 Index (ASX: XJO) rose by 6% in July.

Several asset management stocks have rallied during this period. The challenge for investors is to pick the asset management company share price that can continue growing because of strong fundamentals, not just those that benefitted from the momentum in July.

The big question then becomes, what to invest in? One option is to pick asset managers. These companies buy other assets, use their stellar management to drive the value of those assets, and eventually sell them for a profit.

Thus, asset managers are sophisticated investors looking to make a profit and deliver shareholder value.

Here we have two Asset Management stock prices that were the best performers last month and gained over 40% in one month. It is a massive gain in such uncertain economic conditions.

 

Pinnacle Investment Management Group (ASX: PNI)

The stock price of investment distributor Pinnacle Investment Management Group Ltd (ASX: PNI) jumped 42.4% in July. During the month, the firm sent a statement to the ASX.

According to Pinnacle’s last market report, the asset management stock company’s ten affiliates have already earned $57.1 million in performance fees for FY22, of which Pinnacle will get $16.4 million. But even with the news, the update alone does not justify the ASX share’s 40% rise in value.

We believe the big surge in Pinnacle’s stock price in July was driven more by rising investor risk appetite to equities market connected growth firms, despite the clear good news that it demonstrates outperformance across several Pinnacle’s funds.

Financial Analysts are keeping their Pinnacle asset management stock positions, anticipating further growth and potential outperformance.

FY22 results show that the company recorded a gain in revenues of 41.47%, and its NPAT increased by more than 19%. The numbers reflect a positive image of the asset management stock. Past data also shows that its revenue and profits are consistently increasing over the last five years.

PNI shares are valued at $11.26 and have gained more than 40% last month. The current market cap of the company is approximately 2.25 Billion AUD.

 

pinnacle investment management stock

 

 

MA Financial Group Ltd (ASX: MAF)

MA Financial Group Ltd (ASX: MAF) shares increased by 36.7% in July. Compared to Pinnacle, MA Financial didn’t even have to say anything for this to occur.

However, like Pinnacle, MA Financial profited from rising investor interest in growth companies, especially those in the asset management stock industry, even though it did not provide any company-specific information during July.

Financial analysts have given the stock a buy recommendation.

The stock dividends are a welcome addition to the overall financial picture. Pinnacle now has a dividend yield of over 3%, while MA Financial pays out around 2.6%.

FY21 data shows that the company’s revenue has increased by more than 47%, while its NPAT has gained by around 53%. This is an incredible performance by the company. Its financial numbers are strong, and the past data suggests that the FY22 result would gain by a similar percentage, if not more, than that.

MAF shares are trading at $6.29 and have gained more than 40% last month. The current market cap of the company is around 1.1 Billion AUD.

 

ma financial group ltd asset management stock growth

 

 

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