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

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

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 Trading Down 3.4%

ALTI traded down $0.15 during midday trading on Monday, hitting $4.30. The company’s stock had a trading volume of 243,866 shares, compared to its average volume of 184,809. AlTi Global has a 52-week low of $2.75 and a 52-week high of $5.45. The firm has a 50-day moving average price of $3.42 and a two-hundred day moving average price of $3.77. 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 firm has a market cap of $651.97 million, a P/E ratio of -3.05 and a beta of 0.71.

Hedge Funds Weigh In On AlTi Global

Several institutional investors and hedge funds have recently bought and sold shares of ALTI. Price T Rowe Associates Inc. MD grew its stake in shares of AlTi Global by 28.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 27,873 shares of the basic materials company’s stock valued at $130,000 after buying an additional 6,197 shares during the period. Deutsche Bank AG acquired a new position in AlTi Global in the fourth quarter valued at $139,000. Citadel Advisors LLC purchased a new stake in AlTi Global during the third quarter valued at about $126,000. Brevan Howard Capital Management LP grew its position in AlTi Global by 42.5% during the third quarter. Brevan Howard Capital Management LP now owns 39,327 shares of the basic materials company’s stock valued at $138,000 after acquiring an additional 11,727 shares during the period. Finally, Bank of America Corp DE increased its stake in AlTi Global by 28.2% during the third quarter. Bank of America Corp DE now owns 31,553 shares of the basic materials company’s stock worth $112,000 after acquiring an additional 6,938 shares during 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 analyst reports. Zacks Research downgraded shares of AlTi Global from a “hold” rating to a “strong sell” rating in a research note on Tuesday, July 14th. Weiss Ratings reiterated a “sell (d-)” rating on shares of AlTi Global in a report on Friday, July 17th. Two analysts have rated the stock with a Sell rating, According to MarketBeat.com, AlTi Global has a consensus rating of “Sell”.

AlTi Global Company Profile

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.