T. Rowe Price Group (NASDAQ:TROW) Shares Gap Down on Disappointing Earnings

Shares of T. Rowe Price Group, Inc. (NASDAQ:TROW) gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $102.66, but opened at $97.85. T. Rowe Price Group shares last traded at $96.6690, with a volume of 2,174,360 shares.

The asset manager reported $2.44 earnings per share for the quarter, missing the consensus estimate of $2.47 by ($0.03). The firm had revenue of $1.93 billion during the quarter, compared to analysts’ expectations of $1.92 billion. T. Rowe Price Group had a net margin of 28.53% and a return on equity of 20.36%. The business’s revenue was up 6.0% compared to the same quarter last year. During the same quarter last year, the business earned $2.12 EPS.

Key Stories Impacting T. Rowe Price Group

Here are the key news stories impacting T. Rowe Price Group this week:

• Positive Sentiment: Higher AUM and advisory fees help revenue growth and partially support margins — firm reported revenue roughly in line with expectations and year-over-year AUM growth. Q4 highlights
• Positive Sentiment: Full press release and slide deck show overall revenue up ~6% YoY, useful for medium-term AUM-driven fee growth thesis. Press Release
• Neutral Sentiment: Q4 earnings call transcript and presentation are available for deeper detail on flows, margins and guidance — worth reviewing for investor takeaways. Earnings call transcript
• Neutral Sentiment: Analysts collectively trimmed targets (KBW, Evercore, JPMorgan, TD Cowen) — some cuts leave meaningful upside to current price but reflect increased caution on flows and margins. Analyst notes roundup
• Negative Sentiment: Q4 EPS missed by $0.03 (reported $2.44 vs. $2.47 estimate) and operating expenses rose year-over-year, pressuring near-term profitability. Earnings and expense coverage
• Negative Sentiment: Net outflows were highlighted in coverage and analysts cited persistent flow challenges as a reason for lower targets — a key risk for fee revenue and valuation. Net outflows article
• Negative Sentiment: Unusually large put option activity was recorded ahead of/after the print, indicating elevated bearish positioning by some traders. (Market option flow report)
• Negative Sentiment: Specific analyst moves: JPMorgan cut PT to $106 and set an “underweight”, TD Cowen cut to $97 (“hold”) — these more bearish actions likely amplified selling pressure. Analyst actions

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on TROW shares. Deutsche Bank Aktiengesellschaft dropped their target price on shares of T. Rowe Price Group from $113.00 to $106.00 and set a “hold” rating for the company in a report on Wednesday, December 17th. Weiss Ratings restated a “hold (c+)” rating on shares of T. Rowe Price Group in a research report on Monday, December 29th. BMO Capital Markets upped their price objective on shares of T. Rowe Price Group from $108.00 to $110.00 and gave the company a “market perform” rating in a research note on Tuesday, January 13th. Evercore ISI decreased their target price on shares of T. Rowe Price Group from $116.00 to $106.00 and set an “in-line” rating on the stock in a research note on Thursday. Finally, Morgan Stanley lowered their target price on T. Rowe Price Group from $128.00 to $123.00 and set an “equal weight” rating on the stock in a report on Monday. Eleven investment analysts have rated the stock with a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and an average price target of $104.15.

Insiders Place Their Bets

In other news, VP Arif Husain sold 4,260 shares of the stock in a transaction that occurred on Wednesday, December 10th. The shares were sold at an average price of $101.96, for a total value of $434,349.60. Following the completion of the sale, the vice president owned 47,102 shares of the company’s stock, valued at $4,802,519.92. This represents a 8.29% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 2.00% of the stock is owned by insiders.

Hedge Funds Weigh In On T. Rowe Price Group

Several large investors have recently modified their holdings of TROW. TD Waterhouse Canada Inc. increased its position in shares of T. Rowe Price Group by 66.7% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 250 shares of the asset manager’s stock worth $25,000 after purchasing an additional 100 shares during the last quarter. TD Private Client Wealth LLC lifted its holdings in shares of T. Rowe Price Group by 91.8% in the 4th quarter. TD Private Client Wealth LLC now owns 257 shares of the asset manager’s stock worth $26,000 after acquiring an additional 123 shares during the last quarter. Thurston Springer Miller Herd & Titak Inc. boosted its position in shares of T. Rowe Price Group by 540.9% during the 4th quarter. Thurston Springer Miller Herd & Titak Inc. now owns 282 shares of the asset manager’s stock worth $29,000 after purchasing an additional 238 shares during the period. Root Financial Partners LLC purchased a new stake in T. Rowe Price Group in the third quarter valued at approximately $30,000. Finally, Vermillion & White Wealth Management Group LLC lifted its stake in T. Rowe Price Group by 120.0% during the second quarter. Vermillion & White Wealth Management Group LLC now owns 319 shares of the asset manager’s stock worth $31,000 after purchasing an additional 174 shares in the last quarter. Institutional investors and hedge funds own 73.39% of the company’s stock.

T. Rowe Price Group Stock Down 5.2%

The firm has a 50-day moving average price of $104.53 and a 200 day moving average price of $104.53. The firm has a market capitalization of $20.08 billion, a PE ratio of 9.95, a price-to-earnings-growth ratio of 2.36 and a beta of 1.53.

T. Rowe Price Group Company Profile

T. Rowe Price Group, Inc is a global investment management firm headquartered in Baltimore, Maryland, founded by Thomas Rowe Price Jr. in 1937. The company provides a broad range of investment products and services for individual investors, financial intermediaries, retirement plan sponsors and institutional clients. Its offerings are built around active investment management and in-house research across equity, fixed income and multi-asset strategies, reflecting a long history as a research-driven asset manager.

The firm’s product lineup includes mutual funds, separate accounts, collective investment trusts, target-date and target-risk funds, and managed account solutions, as well as services for defined contribution and defined benefit retirement plans.