Ameriprise Financial (NYSE:AMP) Cut to Market Perform at William Blair

Key Points

• Ameriprise Financial was downgraded from "outperform" to "market perform" by William Blair, indicating a less favorable outlook on the stock.
• Despite the downgrade, other brokerages have shown mixed signals, with upgrades from Wall Street Zen and Raymond James Financial suggesting varying opinions on the company’s potential.
• Ameriprise reported a quarterly earnings per share (EPS) of $9.11, surpassing the consensus estimate and demonstrating a year-over-year revenue increase of 2.2%.
• The company has authorized a $4.50 billion share buyback program, which typically signals that management believes the stock is undervalued.

Ameriprise Financial (NYSE:AMP - Get Free Report) was downgraded by stock analysts at William Blair from an "outperform" rating to a "market perform" rating in a research report issued on Friday, MarketBeat.com reports.

Several other brokerages also recently weighed in on AMP. Wall Street Zen upgraded Ameriprise Financial from a "sell" rating to a "hold" rating in a report on Friday, May 30th. Raymond James Financial upgraded Ameriprise Financial from a "market perform" rating to a "strong-buy" rating and set a $518.00 price target on the stock in a research note on Monday, April 7th. Piper Sandler raised their price target on Ameriprise Financial from $423.00 to $434.00 and gave the stock an "underweight" rating in a research note on Thursday, July 3rd. Royal Bank Of Canada increased their price objective on Ameriprise Financial from $565.00 to $595.00 and gave the stock an "outperform" rating in a research report on Thursday, July 10th. Finally, Keefe, Bruyette & Woods increased their price objective on Ameriprise Financial from $520.00 to $550.00 and gave the stock a "market perform" rating in a research report on Wednesday, July 9th. Two equities research analysts have rated the stock with a sell rating, five have assigned a hold rating, one has assigned a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $524.71.

Ameriprise Financial Stock Performance

Shares of Ameriprise Financial stock opened at $522.06 on Friday. Ameriprise Financial has a 52 week low of $385.74 and a 52 week high of $582.05. The business's fifty day simple moving average is $522.30 and its 200-day simple moving average is $511.49. The firm has a market cap of $49.71 billion, a PE ratio of 17.74, a price-to-earnings-growth ratio of 1.15 and a beta of 1.23. The company has a quick ratio of 0.60, a current ratio of 0.60 and a debt-to-equity ratio of 1.10.

Ameriprise Financial (NYSE:AMP - Get Free Report) last announced its quarterly earnings results on Thursday, July 24th. The financial services provider reported $9.11 EPS for the quarter, beating the consensus estimate of $9.00 by $0.11. Ameriprise Financial had a return on equity of 68.93% and a net margin of 17.14%. The business had revenue of $4.49 billion for the quarter, compared to analyst estimates of $4.33 billion. During the same quarter in the prior year, the company posted $8.72 EPS. The company's quarterly revenue was up 2.2% on a year-over-year basis. Equities analysts forecast that Ameriprise Financial will post 38.64 earnings per share for the current year.

Ameriprise Financial declared that its board has authorized a share buyback program on Thursday, April 24th that authorizes the company to repurchase $4.50 billion in shares. This repurchase authorization authorizes the financial services provider to repurchase up to 9.9% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.

Institutional Trading of Ameriprise Financial

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Brighton Jones LLC raised its position in shares of Ameriprise Financial by 6.9% in the fourth quarter. Brighton Jones LLC now owns 777 shares of the financial services provider's stock valued at $413,000 after buying an additional 50 shares during the last quarter. LPL Financial LLC raised its position in shares of Ameriprise Financial by 33.2% in the fourth quarter. LPL Financial LLC now owns 71,685 shares of the financial services provider's stock valued at $38,167,000 after buying an additional 17,875 shares during the last quarter. Ausdal Financial Partners Inc. acquired a new position in shares of Ameriprise Financial in the fourth quarter valued at approximately $475,000. Mitsubishi UFJ Asset Management Co. Ltd. raised its position in shares of Ameriprise Financial by 7.8% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 155,093 shares of the financial services provider's stock valued at $83,105,000 after buying an additional 11,161 shares during the last quarter. Finally, Elo Mutual Pension Insurance Co acquired a new position in shares of Ameriprise Financial in the fourth quarter valued at approximately $5,543,000. Hedge funds and other institutional investors own 83.95% of the company's stock.

Ameriprise Financial Company Profile

Ameriprise Financial, Inc, together with its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. It operates through four segments: Advice & Wealth Management, Asset Management, Retirement & Protection Solutions, and Corporate & Other.

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