T. Rowe Price Group Inc. (TROW) Raised to Hold at Zacks Investment Research
T. Rowe Price Group Inc. (NASDAQ:TROW) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Friday.
According to Zacks, “T. Rowe Price’s estimates have been stable lately ahead of its third-quarter 2016 earnings release. It’s planned strategic initiatives like investment in technology and advisory services, along with introduction of new products, should boost long-term growth. Further, the company is likely to benefit from growth opportunities in the domestic and global assets under management (AUM). Also, it remains debt-free with ample liquidity and is focused on boosting shareholders’ confidence via strong capital deployment activities. However, due to several strategic initiatives, management expects the company’s operating expenses growth rate in 2017 to exceed 2016 level, which will hurt bottom-line growth. Further, amid the low rate environment, the company continues to waive fees in its money market mutual funds, thereby deterring top-line growth.”
Several other brokerages also recently issued reports on TROW. Deutsche Bank AG downgraded shares of T. Rowe Price Group from a “buy” rating to a “hold” rating and lowered their price objective for the company from $79.00 to $75.00 in a research report on Wednesday, July 20th. TheStreet downgraded shares of T. Rowe Price Group from a “buy” rating to a “hold” rating in a research report on Tuesday, July 26th. Barclays PLC lowered their price objective on shares of T. Rowe Price Group from $78.00 to $76.00 and set an “equal weight” rating for the company in a research report on Tuesday, August 9th. Keefe, Bruyette & Woods lowered their price objective on shares of T. Rowe Price Group from $81.00 to $75.00 and set a “market perform” rating for the company in a research report on Wednesday, July 27th. Finally, Citigroup Inc. lowered their price objective on shares of T. Rowe Price Group from $78.00 to $72.00 and set a “neutral” rating for the company in a research report on Wednesday, July 27th. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating and four have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average target price of $75.27.
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T. Rowe Price Group (NASDAQ:TROW) traded down 1.38% during midday trading on Friday, reaching $66.41. 704,634 shares of the company were exchanged. T. Rowe Price Group has a 52 week low of $63.57 and a 52 week high of $79.00. The company has a market capitalization of $16.51 billion, a PE ratio of 16.00 and a beta of 1.17. The firm has a 50-day moving average price of $67.77 and a 200-day moving average price of $72.00.
T. Rowe Price Group (NASDAQ:TROW) last issued its quarterly earnings data on Tuesday, July 26th. The company reported $0.76 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.72 by $0.04. T. Rowe Price Group had a net margin of 25.77% and a return on equity of 22.25%. The company earned $1,000 million during the quarter, compared to the consensus estimate of $1.03 billion. During the same quarter last year, the company earned $1.24 earnings per share. T. Rowe Price Group’s revenue for the quarter was down 2.6% on a year-over-year basis. Equities research analysts anticipate that T. Rowe Price Group will post $4.24 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which was paid on Thursday, September 29th. Shareholders of record on Thursday, September 15th were paid a $0.54 dividend. This represents a $2.16 dividend on an annualized basis and a yield of 3.21%. The ex-dividend date was Tuesday, September 13th. T. Rowe Price Group’s payout ratio is 52.17%.
A number of large investors have recently bought and sold shares of the stock. Legal & General Group Plc boosted its stake in T. Rowe Price Group by 2.4% in the first quarter. Legal & General Group Plc now owns 1,050,614 shares of the company’s stock worth $77,179,000 after buying an additional 25,005 shares during the last quarter. Schroder Investment Management Group boosted its stake in T. Rowe Price Group by 28.6% in the second quarter. Schroder Investment Management Group now owns 1,023,736 shares of the company’s stock worth $74,702,000 after buying an additional 227,458 shares during the last quarter. Dean Investment Associates LLC boosted its stake in T. Rowe Price Group by 94.3% in the second quarter. Dean Investment Associates LLC now owns 17,555 shares of the company’s stock worth $1,281,000 after buying an additional 8,521 shares during the last quarter. Pictet Asset Management Ltd. boosted its stake in T. Rowe Price Group by 2.6% in the first quarter. Pictet Asset Management Ltd. now owns 235,738 shares of the company’s stock worth $16,292,000 after buying an additional 5,900 shares during the last quarter. Finally, First Manhattan Co. boosted its stake in T. Rowe Price Group by 219.9% in the second quarter. First Manhattan Co. now owns 110,673 shares of the company’s stock worth $8,075,000 after buying an additional 76,073 shares during the last quarter. Institutional investors own 69.64% of the company’s stock.
About T. Rowe Price Group
T. Rowe Price Group, Inc is a financial services holding company. The Company provides global investment management services to individual and institutional investors in the sponsored T. Rowe Price mutual funds distributed in the United States and other investment portfolios. It operates through investment advisory business segment.
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