Waddell & Reed Financial Inc. (WDR) Upgraded at Zacks Investment Research
Waddell & Reed Financial Inc. (NYSE:WDR) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Thursday. The firm presently has a $20.00 target price on the stock. Zacks Investment Research’s price objective indicates a potential upside of 12.30% from the company’s current price.
According to Zacks, “Waddell & Reed has a positive record of earnings surprises in recent quarters. Notably, estimates have been stable lately ahead of the company’s third-quarter 2016 earnings release. The initiatives through Project E will help improve profitability and will result in significant enhancements in the company’s investment advisory programs. Additionally, the company continues to invest in Retail Broker-Dealer, which is expected to boost revenues, inflows and AUM in the future. However, a rise in redemption rates, significant volatility in the equity markets and declining trend in AUM remain major near-term concerns. Also, expenses are expected to remain elevated due to the company’s increased investment in technology initiatives.”
Other equities research analysts have also recently issued research reports about the stock. Jefferies Group raised their target price on shares of Waddell & Reed Financial from $18.00 to $19.00 and gave the stock a “hold” rating in a report on Tuesday. Citigroup Inc. upgraded shares of Waddell & Reed Financial from a “sell” rating to a “neutral” rating and set a $16.00 target price on the stock in a report on Tuesday, July 12th. RBC Capital Markets set a $26.00 target price on shares of Waddell & Reed Financial and gave the stock a “buy” rating in a report on Wednesday, July 27th. Royal Bank Of Canada dropped their target price on shares of Waddell & Reed Financial from $29.00 to $26.00 and set an “outperform” rating on the stock in a report on Wednesday, July 27th. Finally, Morgan Stanley restated a “sell” rating and issued a $17.00 target price on shares of Waddell & Reed Financial in a report on Thursday, July 28th. Three equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and three have given a buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus target price of $22.64.
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Waddell & Reed Financial (NYSE:WDR) traded down 1.24% on Thursday, hitting $17.59. 518,400 shares of the stock were exchanged. Waddell & Reed Financial has a 12 month low of $15.70 and a 12 month high of $38.85. The company has a 50-day moving average of $18.10 and a 200 day moving average of $19.35. The firm has a market cap of $1.46 billion, a P/E ratio of 8.02 and a beta of 1.78.
Waddell & Reed Financial (NYSE:WDR) last posted its quarterly earnings results on Tuesday, July 26th. The company reported $0.59 EPS for the quarter, beating the Zacks’ consensus estimate of $0.48 by $0.11. Waddell & Reed Financial had a net margin of 13.16% and a return on equity of 26.65%. The firm had revenue of $319.20 million for the quarter, compared to analysts’ expectations of $312.82 million. During the same quarter in the prior year, the company posted $0.80 earnings per share. The business’s revenue for the quarter was down 19.0% on a year-over-year basis. Equities research analysts expect that Waddell & Reed Financial will post $1.86 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 1st. Stockholders of record on Tuesday, October 11th will be given a dividend of $0.46 per share. The ex-dividend date of this dividend is Thursday, October 6th. This represents a $1.84 annualized dividend and a dividend yield of 10.33%. Waddell & Reed Financial’s payout ratio is 83.64%.
Hedge funds have recently made changes to their positions in the stock. MSI Financial Services Inc increased its stake in shares of Waddell & Reed Financial by 1.5% in the third quarter. MSI Financial Services Inc now owns 5,837 shares of the company’s stock valued at $106,000 after buying an additional 89 shares during the last quarter. Bellwether Investment Group LLC purchased a new stake in shares of Waddell & Reed Financial during the second quarter valued at approximately $115,000. Americafirst Capital Management LLC purchased a new stake in shares of Waddell & Reed Financial during the second quarter valued at approximately $168,000. Wrapmanager Inc. purchased a new stake in shares of Waddell & Reed Financial during the second quarter valued at approximately $180,000. Finally, CIBC World Markets Inc. purchased a new stake in shares of Waddell & Reed Financial during the second quarter valued at approximately $182,000. Hedge funds and other institutional investors own 83.13% of the company’s stock.
Waddell & Reed Financial Company Profile
Waddell & Reed Financial, Inc is a mutual fund and asset management company. The Company provides investment management, investment advisory, investment product underwriting and distribution and shareholder services administration to Waddell & Reed Advisors group of mutual funds, Ivy Funds, Ivy Funds Variable Insurance Portfolios, InvestEd Portfolios and 529 college savings plan (collectively, the Funds), and the Ivy Global Investors Fund SICAV and its Ivy Global Investors sub-funds (the IGI Funds), and institutional and separately managed accounts.
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