T. Rowe Price Group, Inc. (TROW) Downgraded by Zacks Investment Research
T. Rowe Price Group, Inc. (NASDAQ:TROW) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “T. Rowe Price’s shares outperformed the industry over the last six months. However, the company's earnings surprise history is not that impressive. The company has surpassed the Zacks Consensus Estimate for earnings in only one of the trailing four quarters. 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.”
Several other equities research analysts have also issued reports on TROW. UBS AG reiterated a “sell” rating and set a $61.00 price target (down from $77.00) on shares of T. Rowe Price Group in a report on Wednesday, May 24th. ValuEngine lowered T. Rowe Price Group from a “buy” rating to a “hold” rating in a report on Friday, June 2nd. BidaskClub upgraded T. Rowe Price Group from a “buy” rating to a “strong-buy” rating in a report on Wednesday, June 14th. Jefferies Group LLC set a $83.00 price target on T. Rowe Price Group and gave the company a “buy” rating in a report on Tuesday, June 20th. Finally, Morgan Stanley reiterated an “underweight” rating and set a $70.00 price target (up from $64.00) on shares of T. Rowe Price Group in a report on Monday, July 10th. Four analysts have rated the stock with a sell rating, seven have given a hold rating, two have issued a buy rating and one has issued a strong buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average price target of $81.30.
T. Rowe Price Group (NASDAQ:TROW) traded down 0.62% during mid-day trading on Wednesday, reaching $83.77. 270,120 shares of the company were exchanged. The stock’s 50-day moving average is $83.14 and its 200-day moving average is $74.87. T. Rowe Price Group has a 12 month low of $62.97 and a 12 month high of $85.42. The company has a market cap of $20.13 billion, a P/E ratio of 14.38 and a beta of 1.24.
T. Rowe Price Group (NASDAQ:TROW) last announced its quarterly earnings results on Tuesday, July 25th. The asset manager reported $1.28 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.27 by $0.01. The business had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.16 billion. T. Rowe Price Group had a return on equity of 24.38% and a net margin of 32.64%. The firm’s revenue was up 12.1% on a year-over-year basis. During the same period in the previous year, the company earned $0.76 EPS. Equities analysts expect that T. Rowe Price Group will post $5.66 earnings per share for the current year.
In related news, Director Anne M. Whittemore sold 8,326 shares of the firm’s stock in a transaction that occurred on Thursday, July 27th. The stock was sold at an average price of $82.03, for a total value of $682,981.78. Following the transaction, the director now directly owns 28,982 shares of the company’s stock, valued at approximately $2,377,393.46. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider David Oestreicher sold 10,394 shares of the firm’s stock in a transaction that occurred on Thursday, July 27th. The shares were sold at an average price of $83.07, for a total value of $863,429.58. Following the completion of the transaction, the insider now directly owns 82,299 shares in the company, valued at $6,836,577.93. The disclosure for this sale can be found here. Insiders sold a total of 19,720 shares of company stock worth $1,630,701 over the last three months. 3.60% of the stock is owned by company insiders.
Several hedge funds have recently modified their holdings of TROW. Profund Advisors LLC raised its stake in shares of T. Rowe Price Group by 5.1% in the 1st quarter. Profund Advisors LLC now owns 7,904 shares of the asset manager’s stock valued at $539,000 after acquiring an additional 383 shares in the last quarter. Russell Investments Group Ltd. increased its position in T. Rowe Price Group by 11.2% in the 1st quarter. Russell Investments Group Ltd. now owns 40,642 shares of the asset manager’s stock worth $2,771,000 after buying an additional 4,086 shares during the period. Chicago Equity Partners LLC increased its position in T. Rowe Price Group by 4.2% in the 1st quarter. Chicago Equity Partners LLC now owns 6,930 shares of the asset manager’s stock worth $472,000 after buying an additional 280 shares during the period. Daiwa Securities Group Inc. increased its position in T. Rowe Price Group by 6.3% in the 1st quarter. Daiwa Securities Group Inc. now owns 6,750 shares of the asset manager’s stock worth $460,000 after buying an additional 400 shares during the period. Finally, Boston Partners bought a new position in T. Rowe Price Group in the 1st quarter worth approximately $557,000. 74.20% of the stock is currently owned by institutional investors and hedge funds.
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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