In major news on UK stocks, Hargreaves Lansdown PLC (GB:HL) shares rose by over 3% as of writing, after the company reported higher inflows, increased share dealing volumes, and an expanded client base in its trading update for Q3 FY24. The highlight of the results was the better-than-expected influx of 34,000 new customers, bringing the total number of active clients close to 1.9 million. The company’s net new clients registered a growth of 48% year-over-year.
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Additionally, Hargreaves highlighted that its strong Q3 performance was driven by its dedication to exceptional client service that yielded tangible outcomes in this quarter.
Hargreaves Lansdown is a renowned financial services firm known for its industry-leading investment platform.
Hargreaves Lansdown’s Q3 Performance
In the third quarter, Hargreaves Lansdown witnessed a net new business of £1.6 billion, surpassing market expectations of £1.4 billion. This included £900 million from its investment platform and £700 million from its Active Savings pots, indicating increased client activity leading up to the tax year-end.
This contributed to a record-high closing AUA (assets under administration) of £149.7 billion, ahead of analysts’ consensus of £148 billion. The share dealing volumes averaged 794,000 per month throughout the quarter, compared to 770,000 in Q3 2023.
Overall, Hargreaves Lansdown posted 6% revenue growth, reaching £199.7 million compared to Q3 2023, driven by increased dealing volumes and higher platform revenue resulting from elevated AUA levels.
Analysts at Panmure Gordon described the update as good and believe it is better than what’s currently reflected in the share price. The firm further stated that it’s too early to declare a long-term change, as cost of living pressures still remain significant.
Is Hargreaves Lansdown a Good Buy?
HL stock has been rated a Hold based on three Sells, two Buys, and one Hold recommendation. The Hargreaves Lansdown share price forecast is 901.57p, which is 11.4% higher than the current price level.
