T. Rowe Price Group (TROW) Rating Lowered to Hold at Zacks Investment Research
T. Rowe Price Group (NASDAQ:TROW) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Wednesday.
According to Zacks, “Shares of T. Rowe Price have outperformed the industry over the last six months. The company's earnings surprise history is decent. It has surpassed the Zacks Consensus Estimate for earnings in two of the trailing four quarters. 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, it remains debt-free with sufficient liquidity and is focused on boosting shareholders’ confidence through steady capital deployment activities. However, given the strategic initiatives, management estimates operating expenses to flare up 11% for 2017. Also, the regulatory pressure across the investment management industry remains another key concern.”
Other research analysts also recently issued reports about the stock. Goldman Sachs Group upgraded shares of T. Rowe Price Group from a “neutral” rating to a “buy” rating and increased their price objective for the company from $85.00 to $100.00 in a research note on Thursday, September 28th. Jefferies Group reiterated a “buy” rating and set a $96.00 price objective on shares of T. Rowe Price Group in a research note on Sunday, August 20th. Morgan Stanley upgraded shares of T. Rowe Price Group from an “underweight” rating to an “equal” rating and increased their price objective for the company from $77.00 to $93.00 in a research note on Thursday, October 5th. Citigroup increased their price objective on shares of T. Rowe Price Group from $94.00 to $95.00 and gave the company a “neutral” rating in a research note on Friday, October 27th. Finally, UBS increased their price objective on shares of T. Rowe Price Group from $69.00 to $72.00 and gave the company a “sell” rating in a research note on Friday, October 27th. Three equities research analysts have rated the stock with a sell rating, six have issued a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the stock. T. Rowe Price Group currently has an average rating of “Hold” and an average target price of $89.50.
T. Rowe Price Group (NASDAQ:TROW) last announced its earnings results on Thursday, October 26th. The asset manager reported $1.56 earnings per share for the quarter, beating the consensus estimate of $1.36 by $0.20. The business had revenue of $1.22 billion during the quarter, compared to the consensus estimate of $1.22 billion. T. Rowe Price Group had a net margin of 33.10% and a return on equity of 24.76%. The business’s quarterly revenue was up 11.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.17 earnings per share. analysts forecast that T. Rowe Price Group will post 5.29 EPS for the current fiscal year.
In other T. Rowe Price Group news, Director Anne M. Whittemore sold 4,163 shares of the stock in a transaction on Friday, September 29th. The shares were sold at an average price of $90.64, for a total transaction of $377,334.32. Following the sale, the director now directly owns 29,070 shares of the company’s stock, valued at $2,634,904.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO William J. Stromberg sold 30,000 shares of the stock in a transaction on Wednesday, November 22nd. The stock was sold at an average price of $97.09, for a total transaction of $2,912,700.00. Following the sale, the chief executive officer now directly owns 534,077 shares in the company, valued at $51,853,535.93. The disclosure for this sale can be found here. Insiders have sold 81,705 shares of company stock worth $7,861,938 over the last three months. 3.60% of the stock is owned by corporate insiders.
Several hedge funds have recently added to or reduced their stakes in the stock. Steward Partners Investment Advisory LLC acquired a new stake in shares of T. Rowe Price Group in the 3rd quarter worth about $774,000. Public Employees Retirement System of Ohio increased its holdings in shares of T. Rowe Price Group by 36.0% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 141,323 shares of the asset manager’s stock worth $12,811,000 after acquiring an additional 37,411 shares during the period. Smith Shellnut Wilson LLC ADV acquired a new stake in shares of T. Rowe Price Group in the 3rd quarter worth about $273,000. Belpointe Asset Management LLC acquired a new stake in shares of T. Rowe Price Group in the 3rd quarter worth about $612,000. Finally, IFM Investors Pty Ltd acquired a new stake in shares of T. Rowe Price Group in the 3rd quarter worth about $627,000. 72.21% of the stock is currently owned by institutional investors and hedge funds.
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About T. Rowe Price Group
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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