T. Rowe Price Group, Inc. (TROW) Downgraded by Zacks Investment Research to Hold
T. Rowe Price Group, Inc. (NASDAQ:TROW) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Monday.
According to Zacks, “T. Rowe Price’s shares outperformed the industry over the last six months. The company’s second-quarter 2017 adjusted earnings outpaced the Zacks Consensus Estimate. Higher revenues and assets under management (AUM) were positives. However, elevated expenses were a concern. Given the strategic initiatives, management estimates operating expenses to grow 10% for 2017. Also, the regulatory pressure across the investment management industry remains another key concern. However, 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, the company remains debt-free with sufficient liquidity and is focused on boosting shareholders’ confidence through steady capital deployment activities. Recently, the company recorded improved AUM for July 2017.”
TROW has been the topic of a number of other reports. UBS AG reiterated a “sell” rating and set a $63.00 price objective (up from $62.00) on shares of T. Rowe Price Group in a research note on Friday, July 14th. Citigroup Inc. increased their price objective on shares of T. Rowe Price Group from $73.50 to $90.00 and gave the company a “neutral” rating in a research note on Wednesday, July 26th. TheStreet upgraded shares of T. Rowe Price Group from a “c+” rating to a “b-” rating in a research note on Friday, April 28th. BidaskClub downgraded shares of T. Rowe Price Group from a “strong-buy” rating to a “buy” rating in a research note on Tuesday, August 1st. Finally, Credit Suisse Group raised their price target on shares of T. Rowe Price Group from $70.00 to $90.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 26th. Three investment analysts have rated the stock with a sell rating, eight have issued a hold rating, two have issued a buy rating and one has issued a strong buy rating to the stock. T. Rowe Price Group has an average rating of “Hold” and a consensus price target of $79.20.
T. Rowe Price Group (TROW) traded up 0.18% during midday trading on Monday, hitting $82.45. 328,517 shares of the stock traded hands. T. Rowe Price Group has a one year low of $62.97 and a one year high of $85.42. The company has a market cap of $19.82 billion, a P/E ratio of 14.16 and a beta of 1.24. The company’s 50 day moving average is $80.75 and its 200-day moving average is $73.28.
T. Rowe Price Group (NASDAQ:TROW) last posted its quarterly earnings data on Tuesday, July 25th. The asset manager reported $1.28 EPS for the quarter, beating the Zacks’ consensus estimate of $1.27 by $0.01. T. Rowe Price Group had a net margin of 32.64% and a return on equity of 24.38%. The firm had revenue of $1.17 billion for the quarter, compared to the consensus estimate of $1.16 billion. During the same period in the prior year, the firm posted $0.76 EPS. The firm’s revenue was up 12.1% compared to the same quarter last year. On average, equities research analysts forecast that T. Rowe Price Group will post $5.66 EPS for the current fiscal year.
In other T. Rowe Price Group news, insider David Oestreicher sold 10,394 shares of the firm’s stock in a transaction dated Thursday, July 27th. The shares were sold at an average price of $83.07, for a total transaction of $863,429.58. Following the transaction, the insider now owns 82,299 shares of the company’s stock, valued at approximately $6,836,577.93. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Anne M. Whittemore sold 8,326 shares of the firm’s stock in a transaction dated Thursday, July 27th. The shares were sold at an average price of $82.03, for a total transaction of $682,981.78. Following the transaction, the director now directly owns 28,982 shares in the company, valued at approximately $2,377,393.46. The disclosure for this sale can be found here. 3.60% of the stock is owned by company insiders.
A number of institutional investors have recently added to or reduced their stakes in TROW. Vanguard Group Inc. raised its position in T. Rowe Price Group by 1.7% in the second quarter. Vanguard Group Inc. now owns 16,576,728 shares of the asset manager’s stock valued at $1,230,159,000 after buying an additional 282,162 shares during the period. BlackRock Inc. raised its position in T. Rowe Price Group by 0.4% in the second quarter. BlackRock Inc. now owns 16,440,056 shares of the asset manager’s stock valued at $1,220,017,000 after buying an additional 61,269 shares during the period. State Street Corp raised its position in T. Rowe Price Group by 1.9% in the second quarter. State Street Corp now owns 14,511,636 shares of the asset manager’s stock valued at $1,076,913,000 after buying an additional 273,036 shares during the period. JPMorgan Chase & Co. raised its position in T. Rowe Price Group by 1.3% in the second quarter. JPMorgan Chase & Co. now owns 11,756,348 shares of the asset manager’s stock valued at $872,439,000 after buying an additional 156,326 shares during the period. Finally, Capital World Investors raised its position in T. Rowe Price Group by 235.0% in the second quarter. Capital World Investors now owns 10,512,236 shares of the asset manager’s stock valued at $780,113,000 after buying an additional 7,373,953 shares during the period. 72.10% of the stock is currently owned by hedge funds and other institutional investors.
T. Rowe Price Group Company Profile
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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