Zacks Investment Research Upgrades T. Rowe Price Group Inc. (TROW) to “Hold”
T. Rowe Price Group Inc. (NASDAQ:TROW) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued 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.”
A number of other research analysts have also recently issued reports on TROW. Morgan Stanley cut their price target on T. Rowe Price Group from $74.00 to $71.00 and set an “equal weight” rating for the company in a report on Thursday, July 28th. JPMorgan Chase & Co. dropped their price objective on T. Rowe Price Group from $75.00 to $65.00 and set an “underweight” rating for the company in a report on Wednesday, July 27th. Deutsche Bank AG dropped their price objective on T. Rowe Price Group from $86.00 to $82.00 and set a “buy” rating for the company in a report on Thursday, June 16th. Citigroup Inc. dropped their price objective on T. Rowe Price Group from $78.00 to $72.00 and set a “neutral” rating for the company in a report on Wednesday, July 27th. Finally, TheStreet cut T. Rowe Price Group from a “buy” rating to a “hold” rating in a report on Tuesday, July 26th. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and four have assigned a buy rating to the stock. T. Rowe Price Group presently has a consensus rating of “Hold” and an average price target of $75.27.
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T. Rowe Price Group (NASDAQ:TROW) traded down 1.43% during mid-day trading on Friday, reaching $66.38. 697,186 shares of the company traded hands. The company has a market capitalization of $16.50 billion, a P/E ratio of 15.99 and a beta of 1.17. The stock has a 50 day moving average price of $67.77 and a 200-day moving average price of $72.00. T. Rowe Price Group has a 52-week low of $63.57 and a 52-week high of $79.00.
T. Rowe Price Group (NASDAQ:TROW) last released its quarterly earnings results on Tuesday, July 26th. The company reported $0.76 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.72 by $0.04. T. Rowe Price Group had a return on equity of 22.25% and a net margin of 25.77%. The business earned $1,000 million during the quarter, compared to analysts’ expectations of $1.03 billion. During the same period in the previous year, the business posted $1.24 earnings per share. The firm’s revenue for the quarter was down 2.6% compared to the same quarter last year. Analysts expect that T. Rowe Price Group will post $4.24 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 29th. Investors of record on Thursday, September 15th were given a $0.54 dividend. The ex-dividend date of this dividend was Tuesday, September 13th. This represents a $2.16 annualized dividend and a dividend yield of 3.21%. T. Rowe Price Group’s dividend payout ratio is presently 52.17%.
Several institutional investors have recently modified their holdings of the stock. Quadrant Capital Group LLC raised its position in shares of T. Rowe Price Group by 2.5% in the second quarter. Quadrant Capital Group LLC now owns 1,711 shares of the company’s stock valued at $119,000 after buying an additional 42 shares in the last quarter. Euclid Advisors LLC acquired a new position in shares of T. Rowe Price Group during the second quarter valued at about $123,000. Societe Generale acquired a new position in shares of T. Rowe Price Group during the second quarter valued at about $126,000. WFG Advisors LP raised its position in shares of T. Rowe Price Group by 22.2% in the second quarter. WFG Advisors LP now owns 1,870 shares of the company’s stock valued at $136,000 after buying an additional 340 shares in the last quarter. Finally, Checchi Capital Advisers LLC raised its position in shares of T. Rowe Price Group by 0.9% in the second quarter. Checchi Capital Advisers LLC now owns 1,958 shares of the company’s stock valued at $143,000 after buying an additional 18 shares in the last quarter. Institutional investors and hedge funds own 69.64% of the company’s stock.
T. Rowe Price Group Company Profile
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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