Shares in Plus500 Ltd (LSE:PLUS) dropped 5% today as some investors took profits after the company’s interim results, which some commentators thought might contain an upgrade to forecasts.
Despite this, the fintech's stock is still up 27.5% year to date.
The trading technology group reported solid half-year numbers, with revenue rising 4% to $415 million and second-quarter growth accelerating to 15%.
Earnings before interest, tax, depreciation and amortisation (EBITDA) were $185 million, up 1%, maintaining a strong 45% margin.
Plus500 also announced a $90 million share buyback and $75 million in dividends, while cash on hand remains healthy at $938 million.
Strategically, the company has made progress with new licences in Canada and the UAE, a commodities licence in Japan, and the acquisition of Mehta in India.
Its non-over-the-counter (non-OTC) business now accounts for 13% of revenue, with the US futures business expected to exceed $100 million this year.
Peel Hunt notes that Plus500’s valuation remains attractive but suggests the shares might pause after strong gains, given the lack of any forecast upgrades for now.
The broker is a 'buyer' up to 3,400p. The shares were down 160p at 3,264p.