T. Rowe Price Group (TROW) Downgraded by Zacks Investment Research to Hold
Zacks Investment Research lowered shares of T. Rowe Price Group (NASDAQ:TROW) from a buy rating to a hold rating in a research note published on Friday. The firm currently has $115.00 target price on the asset manager’s stock.
According to Zacks, “Shares of T. Rowe Price have outperformed the industry over the last six months. The company's earnings surprise history is decent. It has surpassed the Zacks Consensus Estimate for earnings in two of the trailing four quarters. The company’s planned strategic initiatives like investment in technology and advisory services, strengthening distribution platform, along with introduction of products, will likely stoke long-term growth. Further, it remains debt-free with sufficient liquidity and is focused on boosting shareholders’ confidence through steady capital deployment activities. However, given the strategic initiatives, management estimates operating expenses to flare up 11% for 2017. Also, the regulatory pressure across the investment management industry remains another key concern.”
Other analysts have also recently issued research reports about the company. Goldman Sachs Group upgraded T. Rowe Price Group from a neutral rating to a buy rating and upped their price objective for the company from $85.00 to $100.00 in a research note on Thursday, September 28th. Jefferies Group reaffirmed a buy rating and set a $104.00 target price (up from $96.00) on shares of T. Rowe Price Group in a report on Tuesday, October 10th. Morgan Stanley raised T. Rowe Price Group from an underweight rating to an equal rating and upped their target price for the company from $77.00 to $93.00 in a report on Thursday, October 5th. Citigroup upped their target price on T. Rowe Price Group from $94.00 to $95.00 and gave the company a neutral rating in a report on Friday, October 27th. Finally, UBS Group upped their target price on T. Rowe Price Group from $69.00 to $72.00 and gave the company a sell rating in a report on Friday, October 27th. Three equities research analysts have rated the stock with a sell rating, six have issued a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The company presently has an average rating of Hold and an average target price of $91.56.
Shares of T. Rowe Price Group (NASDAQ TROW) opened at $107.23 on Friday. T. Rowe Price Group has a one year low of $65.33 and a one year high of $107.42. The stock has a market capitalization of $25,517.67, a P/E ratio of 17.58, a price-to-earnings-growth ratio of 1.69 and a beta of 1.32.
T. Rowe Price Group (NASDAQ:TROW) last announced its quarterly earnings data on Thursday, October 26th. The asset manager reported $1.56 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.36 by $0.20. T. Rowe Price Group had a return on equity of 24.76% and a net margin of 33.10%. The firm had revenue of $1.22 billion for the quarter, compared to analysts’ expectations of $1.22 billion. During the same quarter in the prior year, the firm posted $1.17 earnings per share. T. Rowe Price Group’s revenue for the quarter was up 11.8% compared to the same quarter last year. research analysts forecast that T. Rowe Price Group will post 5.29 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which was paid on Thursday, December 28th. Stockholders of record on Thursday, December 14th were issued a dividend of $0.57 per share. This represents a $2.28 annualized dividend and a dividend yield of 2.13%. The ex-dividend date was Wednesday, December 13th. T. Rowe Price Group’s dividend payout ratio (DPR) is presently 37.38%.
In related news, CFO Kenneth V. Moreland sold 8,066 shares of the stock in a transaction that occurred on Tuesday, January 2nd. The stock was sold at an average price of $104.12, for a total value of $839,831.92. Following the completion of the transaction, the chief financial officer now directly owns 100,796 shares of the company’s stock, valued at approximately $10,494,879.52. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Kenneth V. Moreland sold 14,419 shares of the stock in a transaction that occurred on Tuesday, November 21st. The stock was sold at an average price of $97.07, for a total value of $1,399,652.33. Following the completion of the transaction, the chief financial officer now directly owns 125,264 shares of the company’s stock, valued at $12,159,376.48. The disclosure for this sale can be found here. Insiders have sold 204,980 shares of company stock valued at $20,776,729 over the last ninety days. Corporate insiders own 3.60% of the company’s stock.
A number of hedge funds have recently modified their holdings of TROW. Pacer Advisors Inc. grew its holdings in T. Rowe Price Group by 1.5% in the 2nd quarter. Pacer Advisors Inc. now owns 5,259 shares of the asset manager’s stock worth $390,000 after buying an additional 77 shares in the last quarter. Principal Financial Group Inc. grew its holdings in T. Rowe Price Group by 0.7% in the 2nd quarter. Principal Financial Group Inc. now owns 371,989 shares of the asset manager’s stock worth $27,605,000 after buying an additional 2,514 shares in the last quarter. Bronfman E.L. Rothschild L.P. grew its holdings in T. Rowe Price Group by 6.9% in the 2nd quarter. Bronfman E.L. Rothschild L.P. now owns 1,593 shares of the asset manager’s stock worth $118,000 after buying an additional 103 shares in the last quarter. Oppenheimer Asset Management Inc. bought a new position in T. Rowe Price Group in the 2nd quarter worth approximately $1,403,000. Finally, Kennedy Capital Management Inc. grew its holdings in T. Rowe Price Group by 0.8% in the 2nd quarter. Kennedy Capital Management Inc. now owns 54,557 shares of the asset manager’s stock worth $4,049,000 after buying an additional 458 shares in the last quarter. 72.13% of the stock is owned by institutional investors and hedge funds.
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About T. Rowe Price Group
T. Rowe Price Group, Inc is a financial services holding company. The Company provides global investment management services through its subsidiaries to investors across the world. The Company provides an array of Company sponsored the United States mutual funds, other sponsored pooled investment vehicles, sub advisory services, separate account management, recordkeeping, and related services to individuals, advisors, institutions, financial intermediaries and retirement plan sponsors.
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