AllianceBernstein (NYSE:AB) Share Price Passes Above 50-Day Moving Average - Should You Sell?

Key Points

• AllianceBernstein shares rose above the 50-day moving average, reaching $37.39 and last trading near $37.16, while remaining below the 200-day average of $38.27.
• Analysts maintain a consensus “Hold” rating with an average price target of $39.50; recent targets range from $38 to $39, with two Buy ratings and five Holds.
• Quarterly results slightly missed expectations, with EPS of $0.82 versus $0.83 forecast and revenue of $887.55 million versus $907.67 million expected. The company announced a $0.82 quarterly dividend, representing an 8.8% yield and a 98.22% payout ratio.

Shares of AllianceBernstein Holding L.P. (NYSE:AB - Get Free Report) crossed above its fifty day moving average during trading on Tuesday . The stock has a fifty day moving average of $36.76 and traded as high as $37.39. AllianceBernstein shares last traded at $37.1570, with a volume of 240,784 shares traded.

Analysts Set New Price Targets

Several research firms have recently weighed in on AB. TD Cowen lifted their price objective on shares of AllianceBernstein from $37.00 to $38.00 and gave the company a "hold" rating in a research note on Monday, July 20th. Zacks Research raised shares of AllianceBernstein from a "strong sell" rating to a "hold" rating in a research note on Monday, June 29th. Evercore set a $39.00 price target on shares of AllianceBernstein in a report on Friday, July 10th. Barclays decreased their price target on shares of AllianceBernstein from $40.00 to $39.00 and set an "equal weight" rating for the company in a research note on Wednesday, April 29th. Finally, Sanford C. Bernstein reiterated an "outperform" rating on shares of AllianceBernstein in a report on Friday, July 10th. Two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $39.50.

AllianceBernstein Stock Up 0.5%

The company has a 50-day moving average of $36.76 and a 200-day moving average of $38.27. The company has a market cap of $3.47 billion, a PE ratio of 10.99, a PEG ratio of 1.19 and a beta of 0.80.

AllianceBernstein (NYSE:AB - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The asset manager reported $0.82 EPS for the quarter, missing analysts' consensus estimates of $0.83 by ($0.01). The company had revenue of $887.55 million during the quarter, compared to analysts' expectations of $907.67 million. AllianceBernstein had a net margin of 6.60% and a return on equity of 25.94%. The company's quarterly revenue was up 7.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.76 earnings per share. As a group, equities analysts predict that AllianceBernstein Holding L.P. will post 3.5 EPS for the current year.

AllianceBernstein Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 27th. Stockholders of record on Wednesday, August 12th will be issued a $0.82 dividend. The ex-dividend date is Wednesday, August 12th. This represents a $3.28 annualized dividend and a dividend yield of 8.8%. AllianceBernstein's dividend payout ratio is currently 98.22%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Northwestern Mutual Wealth Management Co. grew its position in AllianceBernstein by 17,664.8% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,640,896 shares of the asset manager's stock worth $140,102,000 after purchasing an additional 3,620,401 shares in the last quarter. Morgan Stanley grew its holdings in shares of AllianceBernstein by 79.2% in the fourth quarter. Morgan Stanley now owns 1,412,548 shares of the asset manager's stock valued at $54,355,000 after acquiring an additional 624,270 shares in the last quarter. Goldman Sachs Group Inc. increased its position in shares of AllianceBernstein by 51.8% during the first quarter. Goldman Sachs Group Inc. now owns 916,574 shares of the asset manager's stock valued at $35,114,000 after acquiring an additional 312,878 shares during the last quarter. Focus Partners Wealth increased its position in shares of AllianceBernstein by 1,154.2% during the third quarter. Focus Partners Wealth now owns 336,502 shares of the asset manager's stock valued at $12,861,000 after acquiring an additional 309,673 shares during the last quarter. Finally, Crestwood Advisors Group LLC lifted its holdings in AllianceBernstein by 1,243.9% during the fourth quarter. Crestwood Advisors Group LLC now owns 218,727 shares of the asset manager's stock worth $8,417,000 after acquiring an additional 202,451 shares during the period. 19.25% of the stock is currently owned by hedge funds and other institutional investors.

About AllianceBernstein

AllianceBernstein is a global investment management firm that offers a broad range of research-driven strategies across equities, fixed income, multi-asset solutions and alternative investments. The firm provides active and quantitative portfolio management, drawing on in-house research capabilities to serve the needs of institutional clients, private wealth investors and intermediaries. Its product lineup encompasses mutual funds, separately managed accounts and customized investment vehicles designed to meet diverse risk-return objectives.

The firm's roots date back to 1967 with the founding of Sanford C.

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