What happened to the Iress share price?
Shares of fintech giant Iress Ltd [ASX:IRE] were down more than 3% today, continuing the downward move over the last couple of weeks, after the company released positive news last month.
Iress is a major player in Australian brokerage, and has also pushed into wealth management and major international markets around the globe. It was a good set of numbers they released.
Group revenue was 389.7 million, up 8% on the prior year. Strong revenues were generated in Australia, the United Kingdom and South Africa.
Because they have offices around the world, revenues for the company are impacted by changes in foreign currency rates. On a constant currency basis, group revenue actually increased 13% on the prior year.
Why is the IRE share price down today?
Shares are down because the company went ex-dividend today. If you purchase shares on or after ex-dividend date, you are not entitled to the dividend. Naturally, the shares are worth less.
All things being equal, the share price should fall by the roughly the amount of the dividend on the ex-dividend date. It’s to be expected. Otherwise the market would be giving something for nothing, which rarely happens.
What now for Iress Ltd?
You could watch a chart of the company share price; see how the share price reacts ex-dividend. Should the share price go on and find higher support after positive news and ex-dividend, then that may give you an indication that future revenues remain strong.
Despite the share price being sold down the last two weeks, the long term trend remains up and the share price is finding continued support above $10.50.
Should the share price break above the high of the strong full year results, that might be very bullish for Iress, which is trading just under all time highs. Remains one for the watch list.
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