What happened
Shares of UP Fintech Holding Limited (TIGR 8.56%) are up 57.5% this week as of 11:05 a.m. EDT Friday, according to data provided by S&P Global Market Intelligence, after the company delivered an exceptional quarterly update.
To be sure, shares of the Singapore-based online brokerage firm surged nearly 30% on Tuesday alone after its second-quarter 2023 press release hit the wires.
So what
UP Fintech's headline numbers easily exceeded Wall Street's expectations. Quarterly revenue grew 23.5% year over year, to $66.1 million, translating to adjusted net income of $15.3 million, or $0.09 to American depositary shares (ADS). Analysts, on average, were modeling adjusted earnings of only $0.04 per share on revenue closer to $44.7 million.
UP Fintech added 29,077 funded accounts during the quarter, bringing its total number of funded accounts to 840,900 -- up 15% from 731,400 accounts at the same point last year. Assets under management swelled to $17.3 billion, up 16.2% year over year, including asset inflows of $1.6 billion in Q2 alone. During the subsequent conference call with analysts, management also stated they're confident the company remains on track to meet its previous guidance for 100,000 new funded accounts in 2023.
Now what
UP Fintech did not provide specific forward revenue or earnings guidance. But one analyst -- Citi's Judy Zhang -- did add fuel to the fire on Wednesday as she reiterated her buy rating on UP Fintech stock and raised the firm's per-share price target to $7.37. The stock currently trades at $5.37 per share.
In the end, given its strong quarterly update, the positive analyst note, and shares being up only modestly year to date in 2023 leading into this report, this leading fintech stock was ripe for a rally this week.
