Hot stock pick IOOF Holdings
Australian financial services firm IOOF Holdings (ASX: IFL) has taken a price hit lately following allegations of misconduct from Fairfax newspapers. IOOF Holdings Limited is an Australian financial services company which offers a range of products and services including financial advice, superannuation, investment management and trustee services.
According to analysts at Intelligent Investor, this may introduce some short term reputational damage but is unlikely to have an effect on IOOF's long term profit potential and as such, a buying opportunity has presented itself.
"Most of the matters raised in the Fairfax press are historic in nature and IOOF believes all these issues have been addressed," the firm said.
Following the acquisition of Shadforth Financial Group (SFG Australia) in August last year, IOOF is well placed to integrate the SFG advisory business to increase overall funds under advice. Combined with a consolidation of services underway by management, the board expects to achieve $20m in savings by the end of next financial year.
Insider activity on the company courtesy of StockLight's new @ASXinsiders twitter feed also show numerous director purchases throughout 2014 indicating insider confidence in the overall business.
- ASX Insiders (@ASXinsiders) August 12, 2015
Factoring the attractive 5.43% dividend yield and 12.4% return on equity, IFL ticks the boxes for StockLight's quantitative filter. Intelligent Investor has also issued a BUY recommendation with a target price below $9.50.