AllianceBernstein (NYSE:AB) Shares Gap Down - What's Next?

Key Points

• AllianceBernstein shares opened 3.5% lower at $35.71 after previously closing at $37.02, later trading near $36.03.
• Analysts maintain an overall “Hold” rating, with an average price target of $39.50; recent targets range from $38 to $39.
• The company slightly missed quarterly earnings and revenue expectations, while maintaining a $0.82 quarterly dividend, equating to a 9.0% annualized yield.

AllianceBernstein Holding L.P. (NYSE:AB - Get Free Report)'s share price gapped down before the market opened on Wednesday . The stock had previously closed at $37.02, but opened at $35.71. AllianceBernstein shares last traded at $36.0250, with a volume of 85,344 shares traded.

Analysts Set New Price Targets

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

AllianceBernstein Trading Down 2.0%

The firm has a market capitalization of $3.38 billion, a PE ratio of 10.73, a PEG ratio of 1.21 and a beta of 0.80. The business has a fifty day moving average price of $36.76 and a two-hundred day moving average price of $38.17.

AllianceBernstein (NYSE:AB - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The asset manager reported $0.82 earnings per share (EPS) for the quarter, missing the consensus estimate 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 firm's quarterly revenue was up 7.5% on a year-over-year basis. During the same quarter last year, the firm posted $0.76 earnings per share. On average, equities analysts forecast that AllianceBernstein Holding L.P. will post 3.48 earnings per share for the current fiscal year.

AllianceBernstein Cuts Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 27th. Shareholders of record on Wednesday, August 12th will be paid a dividend of $0.82 per share. This represents a $3.28 dividend on an annualized basis and a yield of 9.0%. The ex-dividend date is Wednesday, August 12th. AllianceBernstein's dividend payout ratio is 97.04%.

Insiders Place Their Bets

In other news, Director Charles G.T. Stonehill sold 5,000 shares of the stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $37.17, for a total transaction of $185,850.00. Following the sale, the director owned 24,573 shares of the company's stock, valued at approximately $913,378.41. This represents a 16.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On AllianceBernstein

A number of hedge funds have recently added to or reduced their stakes in AB. Axiom Investment Management LLC purchased a new stake in shares of AllianceBernstein during the first quarter worth $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in AllianceBernstein in the fourth quarter valued at $28,000. Russell Investments Group Ltd. acquired a new position in AllianceBernstein during the 2nd quarter worth $28,000. Ascentis Independent Advisors acquired a new position in AllianceBernstein during the 1st quarter worth $30,000. Finally, NFSG Corp increased its holdings in AllianceBernstein by 800.0% during the 1st quarter. NFSG Corp now owns 900 shares of the asset manager's stock worth $34,000 after purchasing an additional 800 shares during the period. 19.25% of the stock is currently owned by institutional investors and hedge funds.

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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