Zacks Investment Research downgraded shares of T. Rowe Price Group (NASDAQ:TROW) from a buy rating to a hold rating in a research report released on Monday morning.
According to Zacks, “Shares of T. Rowe Price have outperformed the industry over the past six months. This price performance was backed by the company's impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in three out of the trailing four quarters. The company’s planned strategic initiatives, including investment in technology and advisory services, strengthening distribution platform, introduction of products, will likely stoke long-term growth. Further, it remains debt free with sufficient liquidity and is focused on raising shareholders’ confidence through steady capital deployment activities. Escalating expenses and the regulatory pressure across the investment management industry remains another key concern. Nevertheless, robust organic growth and diverse business model keep the company well poised for growth.”
TROW has been the subject of a number of other research reports. Morgan Stanley set a $113.00 price objective on shares of T. Rowe Price Group and gave the stock a hold rating in a research report on Thursday, February 22nd. TheStreet upgraded shares of T. Rowe Price Group from a c+ rating to a b+ rating in a research report on Monday, March 5th. UBS Group upgraded shares of T. Rowe Price Group from a sell rating to a neutral rating and upped their price objective for the stock from $75.00 to $110.00 in a research report on Tuesday, January 9th. Credit Suisse Group reiterated a neutral rating and issued a $123.00 price objective (up previously from $121.00) on shares of T. Rowe Price Group in a research report on Thursday, February 22nd. Finally, Deutsche Bank upped their price objective on shares of T. Rowe Price Group from $115.00 to $116.00 and gave the stock a hold rating in a research report on Tuesday, March 6th. One research analyst has rated the stock with a sell rating, eight have issued a hold rating, four have assigned a buy rating and one has given a strong buy rating to the stock. The company has an average rating of Hold and an average price target of $110.50.
T. Rowe Price Group (NASDAQ:TROW) last issued its quarterly earnings data on Tuesday, January 30th. The asset manager reported $1.52 earnings per share for the quarter, topping analysts’ consensus estimates of $1.48 by $0.04. The business had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.27 billion. T. Rowe Price Group had a net margin of 31.07% and a return on equity of 25.30%. The company’s revenue was up 17.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.21 earnings per share. research analysts expect that T. Rowe Price Group will post 7.13 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Thursday, March 29th. Investors of record on Thursday, March 15th will be given a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a dividend yield of 2.39%. The ex-dividend date of this dividend is Wednesday, March 14th. This is an increase from T. Rowe Price Group’s previous quarterly dividend of $0.57. T. Rowe Price Group’s dividend payout ratio is 36.42%.
In related news, Director Freeman A. Hrabowski III sold 4,000 shares of the company’s stock in a transaction dated Thursday, December 14th. The shares were sold at an average price of $101.59, for a total transaction of $406,360.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Kenneth V. Moreland sold 8,066 shares of the company’s stock in a transaction dated Tuesday, January 2nd. The stock was sold at an average price of $104.12, for a total transaction of $839,831.92. Following the transaction, the chief financial officer now owns 100,796 shares of the company’s stock, valued at approximately $10,494,879.52. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 133,671 shares of company stock valued at $13,771,356. Insiders own 3.60% of the company’s stock.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Signature Estate & Investment Advisors LLC purchased a new stake in T. Rowe Price Group during the 3rd quarter valued at about $118,000. Grove Bank & Trust grew its stake in T. Rowe Price Group by 178.7% during the 3rd quarter. Grove Bank & Trust now owns 1,310 shares of the asset manager’s stock valued at $119,000 after acquiring an additional 840 shares in the last quarter. Tower Research Capital LLC TRC grew its stake in T. Rowe Price Group by 50.1% during the 4th quarter. Tower Research Capital LLC TRC now owns 1,472 shares of the asset manager’s stock valued at $155,000 after acquiring an additional 491 shares in the last quarter. Calton & Associates Inc. purchased a new stake in T. Rowe Price Group during the 4th quarter valued at about $224,000. Finally, Stock Yards Bank & Trust Co. purchased a new stake in T. Rowe Price Group during the 4th quarter valued at about $205,000. 72.88% of the stock is owned by institutional investors.
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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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