Ameriprise Financial (NYSE:AMP) Stock Price Down 5.6% Following Insider Selling

Key Points

• Ameriprise stock fell 5.6% after an insider sale — CFO Walter Stanley Berman sold 7,000 shares on Feb 5 at an average $544.22 for about $3.81 million, reducing his holding by roughly 55.5%.
• Wall Street sentiment is mixed: the consensus rating is "Hold" with a $555.67 target, though Jefferies raised its target to $620 and Piper Sandler upgraded the stock to "neutral."
• Company fundamentals remain solid — Ameriprise beat quarterly estimates (EPS $10.83 vs $10.33; revenue $4.90B vs $4.75B), has a market cap of about $47.6B and pays a $1.60 quarterly dividend (≈1.3% yield).

Ameriprise Financial, Inc. (NYSE:AMP - Get Free Report)'s share price fell 5.6% on Tuesday after an insider sold shares in the company. The company traded as low as $514.17 and last traded at $508.8650. Approximately 235,360 shares changed hands during mid-day trading, a decline of 61% from the average session volume of 601,609 shares. The stock had previously closed at $539.11.

Specifically, CFO Walter Stanley Berman sold 7,000 shares of the business's stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $544.22, for a total transaction of $3,809,540.00. Following the completion of the sale, the chief financial officer owned 5,609 shares in the company, valued at $3,052,529.98. The trade was a 55.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on AMP shares. Jefferies Financial Group lifted their target price on shares of Ameriprise Financial from $600.00 to $620.00 and gave the company a "buy" rating in a report on Monday, February 2nd. Piper Sandler raised Ameriprise Financial from an "underweight" rating to a "neutral" rating and upped their price objective for the stock from $434.00 to $530.00 in a report on Friday, January 30th. Argus lowered their target price on shares of Ameriprise Financial from $568.00 to $554.00 and set a "buy" rating on the stock in a research report on Thursday, November 13th. Weiss Ratings restated a "buy (b-)" rating on shares of Ameriprise Financial in a research report on Monday, December 29th. Finally, Keefe, Bruyette & Woods cut their price objective on Ameriprise Financial from $550.00 to $530.00 and set a "market perform" rating for the company in a research report on Monday, November 3rd. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, five have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Ameriprise Financial presently has an average rating of "Hold" and a consensus target price of $555.67.

Ameriprise Financial Price Performance

The company has a debt-to-equity ratio of 0.86, a quick ratio of 0.68 and a current ratio of 0.68. The business's fifty day simple moving average is $501.31 and its 200 day simple moving average is $491.83. The stock has a market cap of $47.57 billion, a price-to-earnings ratio of 14.08, a price-to-earnings-growth ratio of 1.27 and a beta of 1.26.

Ameriprise Financial (NYSE:AMP - Get Free Report) last issued its quarterly earnings results on Thursday, January 29th. The financial services provider reported $10.83 EPS for the quarter, beating analysts' consensus estimates of $10.33 by $0.50. Ameriprise Financial had a return on equity of 63.04% and a net margin of 19.28%.The firm had revenue of $4.90 billion during the quarter, compared to the consensus estimate of $4.75 billion. During the same quarter in the prior year, the business posted $9.54 earnings per share. Ameriprise Financial's revenue for the quarter was up 10.2% on a year-over-year basis. Research analysts predict that Ameriprise Financial, Inc. will post 38.64 EPS for the current fiscal year.

Ameriprise Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, February 27th. Shareholders of record on Monday, February 9th will be issued a dividend of $1.60 per share. This represents a $6.40 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Monday, February 9th. Ameriprise Financial's dividend payout ratio (DPR) is currently 17.60%.

Institutional Investors Weigh In On Ameriprise Financial

A number of institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its stake in Ameriprise Financial by 0.9% during the second quarter. Vanguard Group Inc. now owns 12,432,261 shares of the financial services provider's stock valued at $6,635,471,000 after buying an additional 111,386 shares in the last quarter. JPMorgan Chase & Co. raised its position in shares of Ameriprise Financial by 7.7% during the 2nd quarter. JPMorgan Chase & Co. now owns 6,270,995 shares of the financial services provider's stock valued at $3,347,019,000 after acquiring an additional 446,080 shares in the last quarter. State Street Corp boosted its holdings in Ameriprise Financial by 0.4% in the third quarter. State Street Corp now owns 4,420,072 shares of the financial services provider's stock worth $2,171,360,000 after purchasing an additional 18,879 shares during the period. Geode Capital Management LLC increased its stake in Ameriprise Financial by 1.7% during the second quarter. Geode Capital Management LLC now owns 2,818,428 shares of the financial services provider's stock valued at $1,500,115,000 after purchasing an additional 47,584 shares during the last quarter. Finally, Norges Bank acquired a new stake in shares of Ameriprise Financial during the fourth quarter worth $742,438,000. Institutional investors and hedge funds own 83.95% of the company's stock.

About Ameriprise Financial

Ameriprise Financial, Inc is a diversified financial services company headquartered in Minneapolis, Minnesota. The firm provides a range of advice-based wealth management, asset management and insurance products to individual and institutional clients. Its business model centers on delivering financial planning and investment advice through a network of financial advisors alongside proprietary product offerings designed to meet retirement, protection and accumulation needs.

Core products and services include comprehensive financial planning and advisory services, managed investment portfolios, retirement planning solutions, annuities and life insurance products.

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