The WISR Ltd (ASX: WZR) share price has continued its remarkable run on Wednesday.
In afternoon trade the neo-lender’s shares have rocketed 15% higher to a record high of 27 cents.
This latest gain means that WISR’s shares are up an incredible 440% since this time last year.
Why is the WISR share price rocketing higher?
Investors have been fighting to get hold of WISR’s shares over the last 12 months thanks to its strong growth and a recent placement.
Earlier this month WISR released its second quarter update and revealed $31.6 million of new loan originations.
This lifted its total originations to $54.9 million for the first half of FY 2020 and $163.8 million for the 12 months to December 31. The former was an increase of 90% on the prior corresponding period.
Pleasingly, CEO Anthony Nantes appears confident in its prospects in 2020.
He said: “2020 is shaping up as another big year for Wisr as we continue to drive our strategy to scale loan originations, deliver category-defining products and partnerships, and ultimately provide Australians with a smarter, fairer alternative when it comes to their personal finances.”
This commentary was made prior to the aforementioned placement which raised $33.5 million.
These funds will be used to accelerate its growth. Mr Nantes explained: “We are very pleased with the strong support we have received for the capital raise. The result is a clear validation of Wisr’s strategy and vision to provide Australians with a smarter, fairer alternative when it comes to their personal finances, and our approach to redefining what a consumer lending company can be.”
“Wisr will use the proceeds of the Placement to support the scaling of the core lending business, the ongoing development of our ecosystem of category-defining products, continue to attract the best talent from across industries in Australia and strengthen the balance sheet. Through our unique strategy and commitment to a meaningful purpose, we look forward to making a positive and sustained impact as we grow the Company,” he concluded.
Positive broker note.
Also supporting the WISR share price has been a broker note out of Moelis Australia Ltd (ASX: MOE).
On January 13 Moelis retained its buy rating but lifted its price target to 28 cents. It believes it has a large opportunity in the personal lending market and is well-placed for growth.
WISR’s shares are now trading just a cent away from this price target.
The post Why the WISR share price is rocketing 15% higher today appeared first on Motley Fool Australia.
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The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020