Affiliated Managers Group (NYSE:AMG) Shares Down 7.9% - Time to Sell?

Key Points

• Affiliated Managers Group (NYSE: AMG) shares fell 7.9% in intraday trading, dropping to as low as $338.25 after closing at $366.12 the prior day.
• Despite the pullback, analysts remain broadly positive: seven analysts rate the stock a Buy, one a Hold, and the consensus price target is $362.29.
• The company recently beat earnings expectations, posting $8.23 EPS versus $8.10 expected, while revenue rose 9.7% year over year to $544.9 million.

Affiliated Managers Group, Inc. (NYSE:AMG - Get Free Report)'s share price dropped 7.9% during mid-day trading on Tuesday . The company traded as low as $338.25 and last traded at $337.0470. Approximately 200,483 shares were traded during mid-day trading, a decline of 45% from the average session volume of 363,257 shares. The stock had previously closed at $366.12.

Analyst Upgrades and Downgrades

A number of brokerages have commented on AMG. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $400.00 price objective on shares of Affiliated Managers Group in a report on Monday, May 4th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Affiliated Managers Group in a report on Friday, June 26th. The Goldman Sachs Group reiterated a "buy" rating and issued a $405.00 price objective on shares of Affiliated Managers Group in a research report on Monday, May 4th. Wall Street Zen raised Affiliated Managers Group from a "hold" rating to a "buy" rating in a research note on Sunday, June 28th. Finally, Barrington Research reaffirmed an "outperform" rating and set a $365.00 price target on shares of Affiliated Managers Group in a research note on Monday, April 27th. Seven equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, Affiliated Managers Group has an average rating of "Moderate Buy" and a consensus price target of $362.29.

Affiliated Managers Group Price Performance

The company's fifty day moving average is $335.45 and its two-hundred day moving average is $311.43. The firm has a market capitalization of $8.97 billion, a price-to-earnings ratio of 13.40, a price-to-earnings-growth ratio of 0.57 and a beta of 1.12. The company has a quick ratio of 1.79, a current ratio of 1.79 and a debt-to-equity ratio of 0.73.

Affiliated Managers Group (NYSE:AMG - Get Free Report) last released its earnings results on Friday, May 1st. The asset manager reported $8.23 EPS for the quarter, topping analysts' consensus estimates of $8.10 by $0.13. The firm had revenue of $544.90 million during the quarter, compared to analyst estimates of $544.01 million. Affiliated Managers Group had a net margin of 35.55% and a return on equity of 20.17%. The business's quarterly revenue was up 9.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $5.37 EPS. Equities research analysts anticipate that Affiliated Managers Group, Inc. will post 35.48 earnings per share for the current fiscal year.

Affiliated Managers Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, May 26th. Investors of record on Monday, May 11th were issued a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a yield of 0.0%. The ex-dividend date was Monday, May 11th. Affiliated Managers Group's dividend payout ratio is currently 0.16%.

Insider Activity

In other news, Director Annette Franqui purchased 750 shares of the business's stock in a transaction that occurred on Monday, June 1st. The shares were acquired at an average cost of $304.88 per share, for a total transaction of $228,660.00. Following the transaction, the director directly owned 1,962 shares of the company's stock, valued at approximately $598,174.56. The trade was a 61.88% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this link. Also, Director David Christopher Ryan sold 3,402 shares of Affiliated Managers Group stock in a transaction that occurred on Wednesday, May 6th. The stock was sold at an average price of $305.06, for a total transaction of $1,037,814.12. Following the transaction, the director directly owned 1,092 shares in the company, valued at $333,125.52. The trade was a 75.70% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 21,902 shares of company stock valued at $7,257,719. Insiders own 2.90% of the company's stock.

Hedge Funds Weigh In On Affiliated Managers Group

Several institutional investors and hedge funds have recently made changes to their positions in AMG. Leonteq Securities AG bought a new position in Affiliated Managers Group during the fourth quarter worth about $30,000. Caitong International Asset Management Co. Ltd bought a new stake in shares of Affiliated Managers Group in the fourth quarter worth about $42,000. EverSource Wealth Advisors LLC increased its holdings in shares of Affiliated Managers Group by 45.5% in the first quarter. EverSource Wealth Advisors LLC now owns 179 shares of the asset manager's stock worth $50,000 after acquiring an additional 56 shares in the last quarter. Arax Advisory Partners raised its position in shares of Affiliated Managers Group by 94.1% during the fourth quarter. Arax Advisory Partners now owns 198 shares of the asset manager's stock worth $57,000 after purchasing an additional 96 shares during the period. Finally, WealthCollab LLC lifted its holdings in shares of Affiliated Managers Group by 40.5% during the 1st quarter. WealthCollab LLC now owns 229 shares of the asset manager's stock valued at $63,000 after purchasing an additional 66 shares in the last quarter. Institutional investors and hedge funds own 95.30% of the company's stock.

About Affiliated Managers Group

Affiliated Managers Group, Inc NYSE: AMG is a global asset management holding company that partners with boutique investment firms. Founded in 1993 and headquartered in West Palm Beach, Florida, AMG invests in and collaborates with independent investment managers to foster growth while preserving their entrepreneurial culture. Through equity stakes and strategic support, the company aims to enhance its affiliates' distribution capabilities, operational infrastructure and access to capital.

The company's core business activities include providing capital solutions, distribution services and operational support to affiliated investment firms.

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