T. Rowe Price Group (NASDAQ:TROW) Releases Earnings Results, Beats Expectations By $0.15 EPS

T. Rowe Price Group (NASDAQ:TROW) announced its quarterly earnings results on Thursday. The asset manager reported $2.52 earnings per share for the quarter, beating analysts’ consensus estimates of $2.37 by $0.15, FiscalAI reports. The business had revenue of $1.86 billion for the quarter, compared to the consensus estimate of $1.85 billion. T. Rowe Price Group had a net margin of 28.28% and a return on equity of 20.67%. T. Rowe Price Group’s revenue for the quarter was up 5.3% on a year-over-year basis. During the same period last year, the company posted $2.23 EPS.

Here are the key takeaways from T. Rowe Price Group’s conference call:

• Adjusted EPS of $2.52 rose 13% year-over-year, the company repurchased $340M of stock in Q1 and raised the quarterly dividend to $1.30, supported by a strong balance sheet with ~$4.1B of cash and discretionary investments.
• The firm reported $13.7B of net outflows in Q1, driven largely by equities and mutual fund redemptions (notably U.S. growth strategies), and one-year performance remains challenged across several products.
• Distribution and product initiatives gained traction—ETFs surpassed $25B AUM with $2.8B net inflows (32 ETFs), SMAs reached ~$17B with ~$962M net inflows, and launches/expansions (Europe, interval funds, CLO) are underway.
• Long-term investment performance is largely strong on an asset-weighted basis (notably 3-, 5-, and 10‑year periods), but short‑term (1‑year) performance lags, especially for certain equity strategies.
• Alternatives arm OHA is scaling—$112B AUM, ~ $30B dry powder, record fundraising momentum and institutional demand—and management views current spread widening as an opportunity to deploy capital across private credit and structured credit products.

T. Rowe Price Group Stock Performance

NASDAQ TROW traded up $0.54 during trading hours on Friday, reaching $103.42. 2,252,173 shares of the company’s stock were exchanged, compared to its average volume of 2,038,838. The company’s 50-day moving average is $92.87 and its two-hundred day moving average is $99.28. T. Rowe Price Group has a one year low of $85.22 and a one year high of $118.22. The company has a market capitalization of $22.51 billion, a price-to-earnings ratio of 11.18, a price-to-earnings-growth ratio of 4.50 and a beta of 1.51.

T. Rowe Price Group Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, March 30th. Investors of record on Monday, March 16th were paid a dividend of $1.30 per share. This represents a $5.20 dividend on an annualized basis and a yield of 5.0%. The ex-dividend date of this dividend was Monday, March 16th. This is a positive change from T. Rowe Price Group’s previous quarterly dividend of $1.27. T. Rowe Price Group’s dividend payout ratio (DPR) is currently 56.22%.

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. TD Cowen increased their price target on shares of T. Rowe Price Group from $93.00 to $94.00 and gave the company a “hold” rating in a research report on Friday. Morgan Stanley set a $105.00 price target on shares of T. Rowe Price Group in a research report on Monday. Bank of America increased their price target on shares of T. Rowe Price Group from $85.00 to $86.00 in a research report on Wednesday, January 14th. Jefferies Financial Group cut their price target on shares of T. Rowe Price Group from $107.00 to $91.00 and set a “hold” rating on the stock in a research report on Wednesday, April 8th. Finally, Keefe, Bruyette & Woods increased their price target on shares of T. Rowe Price Group from $95.00 to $107.00 and gave the company a “market perform” rating in a research report on Friday. Ten investment analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Reduce” and an average target price of $98.62.

More T. Rowe Price Group News

Here are the key news stories impacting T. Rowe Price Group this week:

• Positive Sentiment: Q1 earnings beat and strong profitability — T. Rowe reported $2.52 EPS vs. $2.37 consensus, with revenue roughly in line (~$1.86B) and healthy margins/ROE, supporting upside to the stock. Read More.
• Positive Sentiment: Profit growth despite flows — Management said rising asset values helped offset client outflows, producing higher profit for the quarter, which investors view as resilience in fee revenue. Read More.
• Positive Sentiment: Analyst price-target increase — Keefe, Bruyette & Woods raised its price target to $107 (from $95) while keeping a “market perform” rating, signaling modest analyst confidence but constrained upside. Read More.
• Neutral Sentiment: Mixed AUM and fee trends — Coverage highlights rising advisory fees and year‑over‑year AUM growth in some reports, while others note quarter‑level AUM declines and client outflows; this creates ambiguity on near‑term fee trajectory. Read More. Read More.
• Neutral Sentiment: Earnings materials and transparency — The company released its slide deck and call transcript, giving investors detail on fee mix, flows and cost dynamics to assess sustainability of margins. Read More.
• Negative Sentiment: Conflicting revenue coverage — At least one outlet flagged a revenue miss for Q1, adding short‑term headline risk and fueling some sell‑side debate over near‑term growth momentum. Read More.

Institutional Trading of T. Rowe Price Group

Large investors have recently bought and sold shares of the business. DV Equities LLC bought a new stake in T. Rowe Price Group during the 4th quarter worth approximately $32,000. Quarry LP bought a new stake in T. Rowe Price Group during the 3rd quarter worth approximately $61,000. MUFG Securities EMEA plc bought a new stake in T. Rowe Price Group during the 2nd quarter worth approximately $63,000. Quadrant Capital Group LLC bought a new stake in T. Rowe Price Group during the 3rd quarter worth approximately $96,000. Finally, Geneos Wealth Management Inc. increased its stake in T. Rowe Price Group by 22.5% during the 2nd quarter. Geneos Wealth Management Inc. now owns 1,181 shares of the asset manager’s stock worth $114,000 after purchasing an additional 217 shares in the last quarter. 73.39% of the stock is owned by institutional investors.

About T. Rowe Price Group

T. Rowe Price Group, Inc is a global investment management firm headquartered in Baltimore, Maryland, founded by Thomas Rowe Price Jr. in 1937. The company provides a broad range of investment products and services for individual investors, financial intermediaries, retirement plan sponsors and institutional clients. Its offerings are built around active investment management and in-house research across equity, fixed income and multi-asset strategies, reflecting a long history as a research-driven asset manager.

The firm’s product lineup includes mutual funds, separate accounts, collective investment trusts, target-date and target-risk funds, and managed account solutions, as well as services for defined contribution and defined benefit retirement plans.