T. Rowe Price Group (NASDAQ:TROW) Announces Earnings Results

T. Rowe Price Group (NASDAQ:TROW) released its quarterly earnings data on Thursday. The asset manager reported $2.86 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.63 by $0.23, FiscalAI reports. The business had revenue of $2 billion during the quarter, compared to analyst estimates of $1.98 billion. T. Rowe Price Group had a return on equity of 20.91% and a net margin of 29.26%. The business’s revenue for the quarter was up 5.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.81 EPS.

Here are the key takeaways from T. Rowe Price Group’s conference call:

• Net outflows remained elevated at $28.3 billion in Q3, driven by equity strategies, mutual funds, and a $7.6 billion multi-asset outflow that included a large target-date plan redemption. Management expects Q4 flows to improve sequentially, but still remain pressured by active equity and mutual fund trends.
• Investment performance improved across several areas, with more than 50% of fund assets outperforming peers over one-, three-, and 10-year periods. Fixed income remained particularly strong, with 74% to 85% of assets outperforming over the reported time horizons.
• The ETF franchise continued to gain momentum, generating $3.8 billion of Q3 inflows and reaching $33.8 billion in AUM, up from $6.9 billion two years ago. The planned acquisition of F/m Investments is expected to further strengthen T. Rowe Price’s fixed-income, ETF, and SMA capabilities.
• Earnings benefited from higher average AUM, with adjusted diluted EPS increasing to $2.86 from $2.57 in Q2 and $2.81 a year earlier. Adjusted net revenue rose 5.3% year over year to $2.0 billion, while carried interest increased substantially to $63.1 million.
• Management is investing in longer-term growth through SMAs, customized models, retirement solutions, strategic partnerships, and AI-enabled workflows. Executives expect AI to improve investment research and operational efficiency over the next 12–24 months, but acknowledged that measurable benefits will take time to emerge.

T. Rowe Price Group Stock Down 0.7%

Shares of TROW opened at $105.91 on Friday. The stock’s 50-day moving average price is $105.82 and its 200 day moving average price is $103.72. The firm has a market capitalization of $22.59 billion, a price-to-earnings ratio of 10.67, a P/E/G ratio of 3.04 and a beta of 1.45. T. Rowe Price Group has a 12-month low of $85.22 and a 12-month high of $122.00.

T. Rowe Price Group Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 29th. Stockholders of record on Tuesday, September 15th were issued a dividend of $1.30 per share. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $5.20 dividend on an annualized basis and a dividend yield of 4.9%. T. Rowe Price Group’s dividend payout ratio is currently 52.16%.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. Morgan Stanley boosted their price target on shares of T. Rowe Price Group from $110.00 to $112.00 and gave the stock an “equal weight” rating in a research report on Friday, October 23rd. Evercore set a $109.00 price objective on shares of T. Rowe Price Group in a research note on Friday, October 9th. TD Cowen dropped their target price on shares of T. Rowe Price Group from $110.00 to $109.00 and set a “hold” rating on the stock in a report on Monday, October 12th. Zacks Research cut shares of T. Rowe Price Group from a “strong-buy” rating to a “hold” rating in a report on Thursday, August 13th. Finally, UBS Group began coverage on shares of T. Rowe Price Group in a research report on Wednesday, October 7th. They issued a “neutral” rating and a $107.00 price target on the stock. One research analyst has rated the stock with a Buy rating, ten have issued a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Reduce” and an average target price of $104.23.

Insider Activity at T. Rowe Price Group

In other news, VP Joshua Nelson sold 10,000 shares of the company’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $111.82, for a total transaction of $1,118,200.00. Following the transaction, the vice president owned 71,328 shares of the company’s stock, valued at $7,975,896.96. This represents a 12.30% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 1.60% of the company’s stock.

Trending Headlines about T. Rowe Price Group

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

• Positive Sentiment: Quarterly earnings beat estimates: T. Rowe Price reported adjusted earnings of $2.86 per share, above consensus estimates ranging from $2.58 to $2.63 and up from $2.81 a year earlier. T. Rowe Price Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Revenue and fee income were stronger than expected: Quarterly revenue reached approximately $2.0 billion, exceeding the $1.98 billion consensus estimate and increasing 5.9% year over year. Higher advisory fees helped support results. T. Rowe Price Group Reports Third-Quarter Results
• Positive Sentiment: Assets under management benefited from market levels: AUM was higher year over year, supporting management fees and profitability, even though assets declined from the prior quarter. TROW Stock Gains as Q3 Earnings Beat
• Neutral Sentiment: Wealth-management expansion continues: The company is adding more than 50 wealth-management positions, signaling investment in distribution and client-service capabilities but also implying higher near-term operating costs. T. Rowe Price Adds Over 50 Wealth Management Roles
• Negative Sentiment: Client outflows remain a key risk: Substantial net redemptions and the sequential AUM decline highlight continued pressure on organic growth and could constrain future fee revenue. Reports also described a retreat in the quarterly bottom line despite the adjusted EPS beat. T. Rowe Price Q3 Earnings, Revenue Beat Even as AUM Dips

About T. Rowe Price Group

T. Rowe Price Group, Inc is a global investment management firm headquartered in Baltimore, Maryland. Founded in 1937 by Thomas Rowe Price Jr., the company provides investment strategies and advisory services to individual investors, retirement plans, financial intermediaries, institutions and other clients.

The company offers a range of actively managed and multi-asset investment products, including mutual funds, exchange-traded funds, separately managed accounts and other portfolio solutions.