Ameriprise Financial (NYSE:AMP) Given New $483.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley lowered Ameriprise Financial’s price target from $489 to $483 and maintained an “underweight” rating, implying 3.17% downside from the prior close. Despite this, the broader analyst consensus remains “Moderate Buy,” with an average target of $558.
• Ameriprise reported quarterly EPS of $11.07, beating estimates of $10.81, while revenue rose 11.6% year over year to $4.90 billion. The stock opened at $498.80 and was trading up 1.7%.
• The company authorized a $5.5 billion share-repurchase program, allowing it to buy back up to 12.3% of outstanding shares. Meanwhile, insiders sold nearly 30,000 shares worth $16.3 million over the past 90 days.

Ameriprise Financial (NYSE:AMP - Get Free Report) had its price target decreased by investment analysts at Morgan Stanley from $489.00 to $483.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm currently has an "underweight" rating on the financial services provider's stock. Morgan Stanley's price target suggests a potential downside of 3.17% from the stock's previous close.

Several other brokerages have also recently weighed in on AMP. Piper Sandler raised their price target on shares of Ameriprise Financial from $471.00 to $518.00 and gave the stock a "neutral" rating in a research note on Monday, July 13th. BMO Capital Markets reduced their target price on shares of Ameriprise Financial from $560.00 to $520.00 and set a "market perform" rating for the company in a report on Tuesday. Keefe, Bruyette & Woods increased their target price on shares of Ameriprise Financial from $515.00 to $545.00 and gave the stock a "market perform" rating in a report on Friday, July 24th. Weiss Ratings raised shares of Ameriprise Financial from a "buy (b-)" rating to a "buy (b)" rating in a research report on Thursday, September 3rd. Finally, Bank of America reiterated a "buy" rating and issued a $570.00 price target on shares of Ameriprise Financial in a research note on Monday. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Ameriprise Financial currently has a consensus rating of "Moderate Buy" and an average target price of $558.00.

Ameriprise Financial Trading Up 1.7%

NYSE:AMP opened at $498.80 on Friday. The company has a debt-to-equity ratio of 0.99, a current ratio of 0.71 and a quick ratio of 0.71. The business's 50-day simple moving average is $540.34 and its 200-day simple moving average is $495.47. Ameriprise Financial has a fifty-two week low of $422.37 and a fifty-two week high of $572.56. The stock has a market capitalization of $44.84 billion, a PE ratio of 12.03, a price-to-earnings-growth ratio of 1.01 and a beta of 1.16.

Ameriprise Financial (NYSE:AMP - Get Free Report) last posted its earnings results on Thursday, July 23rd. The financial services provider reported $11.07 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $10.81 by $0.26. Ameriprise Financial had a return on equity of 64.19% and a net margin of 20.24%.The business had revenue of $4.90 billion during the quarter, compared to analysts' expectations of $4.87 billion. During the same period in the prior year, the business earned $9.11 EPS. Ameriprise Financial's revenue for the quarter was up 11.6% compared to the same quarter last year. Sell-side analysts expect that Ameriprise Financial will post 46.14 earnings per share for the current fiscal year.

Ameriprise Financial declared that its board has authorized a stock repurchase plan on Tuesday, September 29th that permits the company to repurchase $5.50 billion in shares. This repurchase authorization permits the financial services provider to repurchase up to 12.3% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's management believes its shares are undervalued.

Insider Activity

In other Ameriprise Financial news, CFO Walter Berman sold 11,012 shares of the company's stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $548.95, for a total transaction of $6,045,037.40. Following the sale, the chief financial officer directly owned 5,609 shares of the company's stock, valued at approximately $3,079,060.55. This represents a 66.25% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Deirdre Mcgraw sold 2,400 shares of the stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $558.28, for a total transaction of $1,339,872.00. Following the completion of the sale, the executive vice president owned 3,373 shares of the company's stock, valued at approximately $1,883,078.44. This represents a 41.57% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 29,988 shares of company stock valued at $16,316,497 in the last ninety days. Corporate insiders own 0.60% of the company's stock.

Institutional Investors Weigh In On Ameriprise Financial

Several hedge funds have recently bought and sold shares of the company. State Street Corp raised its stake in Ameriprise Financial by 1,279.7% in the second quarter. State Street Corp now owns 63,365,362 shares of the financial services provider's stock valued at $29,069,493,000 after buying an additional 58,772,775 shares during the period. Envestnet Asset Management Inc. lifted its position in shares of Ameriprise Financial by 960.8% in the second quarter. Envestnet Asset Management Inc. now owns 3,352,117 shares of the financial services provider's stock valued at $1,537,817,000 after buying an additional 3,036,128 shares during the last quarter. Artemis Investment Management LLP bought a new position in shares of Ameriprise Financial during the 3rd quarter worth approximately $925,211,000. Bank of America Corp DE bought a new position in shares of Ameriprise Financial during the 2nd quarter worth approximately $320,948,000. Finally, Legal & General Group Plc acquired a new position in shares of Ameriprise Financial during the 2nd quarter worth approximately $262,687,000. 83.95% of the stock is currently owned by institutional investors and hedge funds.

About Ameriprise Financial

Ameriprise Financial, Inc is a diversified financial services company headquartered in Minneapolis, Minnesota. The company provides financial planning, investment advice, wealth management, retirement planning and insurance solutions to individuals, families, business owners and institutional clients.

Ameriprise serves clients primarily through a network of financial advisors and offers products and services that include brokerage and advisory accounts, mutual funds and other investments, retirement accounts, annuities, life and long-term-care insurance, banking products and personalized financial planning.

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