The Class Ltd (ASX: CL1) share price was trading 5.93% higher today.
Over the past month, shares of Class Ltd have pushed 11% up. For comparison, the S&P/ASX 200 (INDEXASX: XJO) has risen 1% in the same time.
About Class Ltd
Class is a software company which specialises in products for financial advisers and self-managed superannuation funds (SMSFs). These are called the Class Portfolio And Class Super, respectively.
There was no market-sensitive news filed by Class on the ASX today. However, there are three noteworthy developments for the software company in recent times.
Firstly, earlier this week the company’s Chairman, Matthew Quinn, acquired 40,000 shares in the Class for around $48,495. Investors often think it’s positive when the CEO or board of directors start buying shares in the company they run.
Secondly, Class shares were removed from the ASX 300 index by Standard & Poor’s (S&P). This is rarely a good sign because it usually follows poor share price performance.
Finally, last month, Class reported its 2019 financial results to the market showing a 12% increase in revenue to $38 million and a profit of $8.9 million, up 3% year over year. That’s good but not great.
Buy, Hold or Sell?
The recent news for Class appears mixed because the company hasn’t met the market’s expectations over the past year. Class shares are down from over $2 per share to around $1.44 in less than a year.
Having said that, I quite like the Class business model because it should be able to scale profitably.
Unfortunately, the financial software space is competitive and subject to the whims of regulation. If I were considering buying Class shares today I’d probably look at Bravura Solutions Ltd (ASX: BVS) or Iress Ltd (ASX: IRE) at the same time. Alternatively, our free report below includes some good ideas!
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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).
Disclosure: At the time of publishing, Owen does not have a financial interest in any of the companies mentioned.