AlTi Global (NASDAQ:ALTI) Posts Quarterly Earnings Results, Misses Estimates By $0.37 EPS

AlTi Global (NASDAQ:ALTI) announced its quarterly earnings data on Monday. The basic materials company reported ($0.31) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.37), FiscalAI reports. AlTi Global had a negative net margin of 41.92% and a negative return on equity of 2.22%. The business had revenue of $58.02 million during the quarter, compared to analyst estimates of $61.80 million.

Here are the key takeaways from AlTi Global’s conference call:

• AUM increased 8% year over year to $51 billion, supported by approximately $700 million of net client inflows in the second quarter and favorable market performance.
• Revenue rose 11% year over year to $58 million, while recurring management and advisory fees increased 11% to $54 million. Adjusted EBITDA exceeded $5 million, up 9% from the prior-year quarter.
• Operating expenses declined 12% year over year to $69 million, including a 40% reduction in professional fees, as zero-based budgeting and cost-control initiatives began to improve the cost structure. Management expects these benefits to accelerate in 2027.
• AlTi recorded a nearly $19 million unrealized investment loss after an external Asian credit and special situations manager unexpectedly decided to unwind its fund within 12 months. The strategy is also expected to contribute less revenue going forward.
• The strategic review remains ongoing, with the special committee continuing to evaluate opportunities that could enhance shareholder value; management provided no further update.

AlTi Global Stock Down 3.4%

Shares of ALTI traded down $0.15 during trading hours on Monday, reaching $4.30. The stock had a trading volume of 243,866 shares, compared to its average volume of 184,809. The firm has a 50-day simple moving average of $3.42 and a 200 day simple moving average of $3.77. AlTi Global has a 12 month low of $2.75 and a 12 month high of $5.45. The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 0.03. The company has a market capitalization of $651.97 million, a price-to-earnings ratio of -3.05 and a beta of 0.71.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. XTX Topco Ltd bought a new position in shares of AlTi Global in the fourth quarter valued at $63,000. AQR Capital Management LLC increased its position in shares of AlTi Global by 8.2% during the fourth quarter. AQR Capital Management LLC now owns 37,424 shares of the basic materials company’s stock worth $174,000 after acquiring an additional 2,824 shares in the last quarter. GAM Holding AG acquired a new stake in shares of AlTi Global in the 4th quarter worth about $120,000. Price T Rowe Associates Inc. MD raised its holdings in shares of AlTi Global by 28.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 27,873 shares of the basic materials company’s stock worth $130,000 after acquiring an additional 6,197 shares during the last quarter. Finally, Barclays PLC lifted its position in AlTi Global by 11.6% in the 4th quarter. Barclays PLC now owns 67,567 shares of the basic materials company’s stock valued at $314,000 after acquiring an additional 7,011 shares in the last quarter. Institutional investors and hedge funds own 3.57% of the company’s stock.

Wall Street Analysts Forecast Growth

ALTI has been the subject of several recent analyst reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of AlTi Global in a research report on Friday, July 17th. Zacks Research lowered shares of AlTi Global from a “hold” rating to a “strong sell” rating in a research note on Tuesday, July 14th. Two research analysts have rated the stock with a Sell rating, According to data from MarketBeat.com, the company currently has a consensus rating of “Sell”.

About AlTi Global

AlTi Global, Inc provides wealth and asset management services individuals, families, foundations, and institutions in the United States, the United Kingdom, and internationally. It operates through two segments, Wealth Management and Strategic Alternatives. The company offers discretionary investment management, non-discretionary investment advisory, and investment management and advisory services. It also provides trust and administration services, such as entity formation and management; creating or modifying trust instruments and administrative practices to meet beneficiary needs; corporate, trustee-executor, and fiduciary services; provision of directors and company secretarial services; administering entity ownership of intellectual property rights; advisory and administration services in connection with investments in marine and aviation assets; and administering entity ownership of fine art and collectibles.