What made Computershare (ASX:CPU) gain over 60% in a year?

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What made Computershare (ASX:CPU) gain over 60% in a year?

Computershare (CPU) share price
Image source: © Alexandersikov | Megapixl.com

Highlights

  • The share price of Computershare performed well in the past 12 months representing over 60% gain.
  • The company acquired assets in Wells Fargo Corporate Trust Services, which impacted its earnings and dividend.
  • The ASX tech stocks are performing in green today

The shares of Computershare Limited (ASX:CPU) traded 1.559% higher on the ASX today (16 March) at AU$22.80 per share at 12:33 PM AEDT. Despite no significant updates today, approximately 600,000 shares of the software and service company have been traded on the ASX so far.

Read more: Computershare (ASX:CPU) closes over 11% high. Here’s why

How did the Computershare stock perform in the past 12 months?

The Computershare stock performed exceptionally well in the past one year. The share price of Computershare gained approximately by 60% over the past 12 months.

A significant event that took place over the past 12 months was CPU’s acquisition of assets of Wells Fargo Corporate Trust Services. Wells Fargo is a leading trust and agency service provider in the US. It serves the government as well as corporate clients. Computershare expected the acquisition to bring attractive financial returns for its shareholders. Additionally, Computershare also expected the acquisition to offer greater exposure to positive, long term structural growth trends in trust and securitisation products.

Apart from that, the overall tech stock on the ASX performed well today, with XIJ trading 2.79% higher at 1:12 PM AEDT. Some leaders in the tech stocks have also traded in the green today, including: 

  • WiseTech Global Limited (ASX:WTC) traded 3.90% higher today at AU$48.670 per share at 1:12 PM AEDT and gained over 78% in the past 12 months.
  • Altium Limited (ASX:ALU) traded 2.54% higher today at AU$31.930 per share at 1:12 PM AEDT and gained over 19% over the past 12 months.
  • Novonix Limited (ASX:NVX) traded 1.21% higher today at AU$5.005 per share at1:12 PM AEDT and gained over 89% over the past 12 months.

Computershare’s year-to-date share price gained approximately by 12% on the ASX today at 1:12 PM AEDT.

Computershare’s financial summary:

Computershare (CPU) share price

Image source: © Pariwatlp | Megapixl.com

Computershare has reported revenue growth of 6% to AU$1.16 billion during the six months period ended on 31 December 2021. The company’s net income reached AU$92.1 million representing 27% growth during the same period.

Read more: Centuria (ASX:CNI) joins hands with Morgan Stanley to form AU$210M JV

Computershare’s dividend distribution:

Computershare will be paying an interim dividend of 24 cents per share, representing an increase of 4.3%. The dividend will be 40% franked. The company will be paying the dividend to its eligible shareholders tomorrow, i.e., 17 March 2022.

Computershare’s guidance for FY22

Computershare’s results for the first six months of FY22 were ahead of expectations. As a result, the company is optimistic about its H2FY22 performance. The board of Computershare expects its earnings per share (EPS) to increase approximately by 9% compared to its prior corresponding period. Additionally, CPU’s EBIT ex Margin Income is also expected to grow by 13% compared to the rise of 3% stated in the initial guidance in August.

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