Zacks Investment Research Downgrades T. Rowe Price Group (NASDAQ:TROW) to Hold


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Zacks Investment Research cut shares of T. Rowe Price Group (NASDAQ:TROW) from a buy rating to a hold rating in a research report released on Saturday morning, Zacks.com reports. They currently have $191.00 target price on the asset manager’s stock.

According to Zacks, “Shares of T. Rowe Price have outperformed the industry in the past six months. The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all of the trailing four quarters. First-quarter results reflect revenue growth, higher assets under management (AUM) and elevated costs. The company's planned initiatives, including investment in technology and advisory services, strengthening distribution channel and launching new investment strategies and vehicles are likely to stoke long-term growth. Also, the asset manager is debt free with sufficient liquidity. Therefore, the company is likely to be able to sustain impressive capital-deployment activities. Yet, rising costs and regulatory pressure across investment-management industry, along with overdependence on investment advisory fees, are concerning.”

Several other analysts have also recently commented on the stock. Morgan Stanley lifted their target price on shares of T. Rowe Price Group from $181.00 to $186.00 and gave the stock an equal weight rating in a research note on Friday, April 30th. Credit Suisse Group cut shares of T. Rowe Price Group from an outperform rating to a neutral rating and boosted their price objective for the company from $179.00 to $181.00 in a research note on Tuesday, March 30th. They noted that the move was a valuation call. Wells Fargo & Company boosted their price objective on shares of T. Rowe Price Group from $200.00 to $215.00 and gave the company an overweight rating in a research note on Tuesday, April 20th. Barclays boosted their price objective on shares of T. Rowe Price Group from $145.00 to $150.00 and gave the company an underweight rating in a research note on Monday, January 25th. Finally, The Goldman Sachs Group raised shares of T. Rowe Price Group from a sell rating to a neutral rating and boosted their price objective for the company from $134.00 to $170.00 in a research note on Tuesday, January 5th. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and one has assigned a buy rating to the company. The company currently has a consensus rating of Hold and an average target price of $166.36.

Shares of T. Rowe Price Group stock opened at $181.86 on Friday. The company has a market capitalization of $41.26 billion, a P/E ratio of 20.37, a P/E/G ratio of 1.19 and a beta of 1.15. T. Rowe Price Group has a 1 year low of $105.56 and a 1 year high of $183.92. The business has a 50 day moving average price of $176.31 and a 200 day moving average price of $158.40.

T. Rowe Price Group (NASDAQ:TROW) last released its earnings results on Thursday, April 29th. The asset manager reported $3.01 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $2.92 by $0.09. The firm had revenue of $1.83 billion during the quarter, compared to analysts’ expectations of $1.79 billion. T. Rowe Price Group had a net margin of 35.92% and a return on equity of 30.52%. T. Rowe Price Group’s revenue for the quarter was up 24.9% on a year-over-year basis. During the same period in the previous year, the company earned $1.87 EPS. As a group, equities research analysts expect that T. Rowe Price Group will post 9.23 earnings per share for the current fiscal year.

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 30th. Investors of record on Tuesday, March 16th were issued a dividend of $1.08 per share. This is a positive change from T. Rowe Price Group’s previous quarterly dividend of $0.90. The ex-dividend date of this dividend was Monday, March 15th. This represents a $4.32 annualized dividend and a dividend yield of 2.38%. T. Rowe Price Group’s payout ratio is presently 53.53%.

In other T. Rowe Price Group news, CEO William J. Stromberg sold 9,000 shares of the business’s stock in a transaction on Thursday, March 11th. The shares were sold at an average price of $173.78, for a total value of $1,564,020.00. Also, President W. Sharps Robert sold 6,000 shares of the business’s stock in a transaction on Monday, March 29th. The stock was sold at an average price of $176.75, for a total transaction of $1,060,500.00. Following the completion of the transaction, the president now owns 472,138 shares in the company, valued at approximately $83,450,391.50. The disclosure for this sale can be found here. Insiders own 1.00% of the company’s stock.

A number of hedge funds have recently modified their holdings of the business. Charles Schwab Investment Management Inc. lifted its holdings in T. Rowe Price Group by 2.4% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 2,967,656 shares of the asset manager’s stock worth $449,274,000 after buying an additional 69,878 shares in the last quarter. UBS Asset Management Americas Inc. raised its stake in shares of T. Rowe Price Group by 6.9% in the 4th quarter. UBS Asset Management Americas Inc. now owns 2,494,534 shares of the asset manager’s stock valued at $377,648,000 after purchasing an additional 161,345 shares in the last quarter. Norges Bank acquired a new stake in shares of T. Rowe Price Group in the 4th quarter valued at about $330,525,000. Provident Trust Co. raised its stake in shares of T. Rowe Price Group by 6.5% in the 1st quarter. Provident Trust Co. now owns 2,142,658 shares of the asset manager’s stock valued at $367,680,000 after purchasing an additional 130,965 shares in the last quarter. Finally, Sumitomo Mitsui Trust Holdings Inc. raised its stake in shares of T. Rowe Price Group by 15.7% in the 4th quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 1,609,340 shares of the asset manager’s stock valued at $243,638,000 after purchasing an additional 217,813 shares in the last quarter. Hedge funds and other institutional investors own 69.48% of the company’s stock.

T. Rowe Price Group Company Profile

T. Rowe Price Group, Inc is a publicly owned investment manager. The firm provides its services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions. It launches and manages equity and fixed income mutual funds. The firm invests in the public equity and fixed income markets across the globe.

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