AllianceBernstein (NYSE:AB) Share Price Passes Below 200-Day Moving Average - Here's Why

Key Points

• AllianceBernstein shares fell below their 200-day moving average in Tuesday trading, dipping as low as $37.27 before last trading around $37.60.
• Analyst sentiment remains cautious: the stock has a Hold consensus rating, with a consensus price target of $39.70 after several firms trimmed targets or downgraded the shares.
• The company recently reported earnings and revenue below expectations for the quarter, while also paying an $0.83 quarterly dividend that implies an 8.8% yield but carries a payout ratio above 100%.

AllianceBernstein Holding L.P. (NYSE:AB - Get Free Report) crossed below its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $38.42 and traded as low as $37.27. AllianceBernstein shares last traded at $37.5990, with a volume of 208,834 shares changing hands.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the company. TD Cowen reduced their price objective on AllianceBernstein from $39.50 to $39.00 and set a "hold" rating on the stock in a research note on Wednesday, April 29th. Weiss Ratings downgraded AllianceBernstein from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, June 29th. Zacks Research upgraded AllianceBernstein from a "strong sell" rating to a "hold" rating in a research note on Monday, June 29th. Sanford C. Bernstein reiterated an "outperform" rating on shares of AllianceBernstein in a report on Friday. Finally, Barclays reduced their price target on AllianceBernstein from $40.00 to $39.00 and set an "equal weight" rating on the stock in a research report on Wednesday, April 29th. Two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $39.70.

AllianceBernstein Trading Up 0.7%

The stock has a market cap of $3.51 billion, a PE ratio of 11.57, a P/E/G ratio of 1.24 and a beta of 0.81. The company's 50 day moving average is $37.08 and its 200-day moving average is $38.42.

AllianceBernstein (NYSE:AB - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The asset manager reported $0.83 EPS for the quarter, missing analysts' consensus estimates of $0.87 by ($0.04). The firm had revenue of $871.13 million during the quarter, compared to analyst estimates of $894.70 million. AllianceBernstein had a return on equity of 23.11% and a net margin of 6.69%.The business's quarterly revenue was up 3.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.80 EPS. As a group, analysts forecast that AllianceBernstein Holding L.P. will post 3.49 EPS for the current year.

AllianceBernstein Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, May 21st. Investors of record on Friday, May 8th were paid a $0.83 dividend. The ex-dividend date was Friday, May 8th. This represents a $3.32 annualized dividend and a dividend yield of 8.8%. AllianceBernstein's payout ratio is 102.15%.

Institutional Investors Weigh In On AllianceBernstein

Hedge funds have recently bought and sold shares of the business. NewEdge Advisors LLC grew its holdings in AllianceBernstein by 2.5% during the fourth quarter. NewEdge Advisors LLC now owns 10,849 shares of the asset manager's stock worth $417,000 after acquiring an additional 264 shares during the period. Fortis Capital Advisors LLC boosted its position in shares of AllianceBernstein by 3.6% during the 4th quarter. Fortis Capital Advisors LLC now owns 7,836 shares of the asset manager's stock valued at $302,000 after purchasing an additional 272 shares in the last quarter. Allworth Financial LP grew its stake in shares of AllianceBernstein by 4.5% in the 3rd quarter. Allworth Financial LP now owns 6,915 shares of the asset manager's stock worth $264,000 after purchasing an additional 300 shares during the last quarter. Mallini Complete Financial Planning LLC raised its holdings in shares of AllianceBernstein by 3.6% in the 4th quarter. Mallini Complete Financial Planning LLC now owns 9,692 shares of the asset manager's stock worth $373,000 after purchasing an additional 339 shares in the last quarter. Finally, Canton Hathaway LLC raised its holdings in shares of AllianceBernstein by 3.2% in the 4th quarter. Canton Hathaway LLC now owns 12,800 shares of the asset manager's stock worth $493,000 after purchasing an additional 400 shares in the last quarter. Institutional investors and hedge funds own 19.25% of the company's stock.

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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