T. Rowe Price Group (NASDAQ:TROW) Price Target Raised to $107.00

Key Points

• JPMorgan raised T. Rowe Price’s price target to $107 from $106 but maintained an “underweight” rating, implying roughly 3% upside. MarketBeat’s analyst consensus remains “Reduce,” with an average target of $103.15.
• T. Rowe Price reported quarterly EPS of $2.86, beating the $2.63 estimate, while revenue rose 5.9% year over year to approximately $2 billion.
• Despite the earnings beat, client outflows and declining assets under management remain concerns because they could reduce fee-generating assets and constrain future revenue growth.

T. Rowe Price Group (NASDAQ:TROW - Get Free Report) had its price target hoisted by analysts at JPMorgan Chase & Co. from $106.00 to $107.00 in a research note issued on Friday, Benzinga reports. The brokerage presently has an "underweight" rating on the asset manager's stock. JPMorgan Chase & Co.'s price target suggests a potential upside of 2.98% from the company's current price.

A number of other equities analysts have also recently issued reports on TROW. BMO Capital Markets lowered their target price on T. Rowe Price Group from $120.00 to $110.00 and set a "market perform" rating for the company in a report on Tuesday, October 13th. Zacks Research lowered shares of T. Rowe Price Group from a "strong-buy" rating to a "hold" rating in a research report on Thursday, August 13th. Weiss Ratings upgraded T. Rowe Price Group from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, September 4th. Keefe, Bruyette & Woods reaffirmed a "market perform" rating and issued a $113.00 target price (up from $112.00) on shares of T. Rowe Price Group in a research note on Friday. Finally, Evercore set a $109.00 target price on T. Rowe Price Group in a report on Friday, October 9th. One analyst has rated the stock with a Buy rating, ten have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, T. Rowe Price Group presently has an average rating of "Reduce" and an average target price of $103.15.

T. Rowe Price Group Price Performance

Shares of T. Rowe Price Group stock traded down $2.73 during midday trading on Friday, hitting $103.90. 3,549,886 shares of the company were exchanged, compared to its average volume of 2,079,941. T. Rowe Price Group has a 52 week low of $85.22 and a 52 week high of $122.00. The firm has a 50 day simple moving average of $105.65 and a 200-day simple moving average of $103.70. The firm has a market cap of $22.16 billion, a P/E ratio of 10.42, a PEG ratio of 3.04 and a beta of 1.45.

T. Rowe Price Group (NASDAQ:TROW - Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The asset manager reported $2.86 EPS for the quarter, beating analysts' consensus estimates of $2.63 by $0.23. T. Rowe Price Group had a return on equity of 20.91% and a net margin of 29.26%. The company had revenue of $2 billion during the quarter, compared to analysts' expectations of $1.98 billion. During the same period in the prior year, the business posted $2.81 EPS. T. Rowe Price Group's revenue was up 5.9% on a year-over-year basis. Equities research analysts expect that T. Rowe Price Group will post 10.08 earnings per share for the current year.

Insider Buying and Selling at T. Rowe Price Group

In other news, VP Joshua Nelson sold 10,000 shares of the firm's stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $111.82, for a total transaction of $1,118,200.00. Following the sale, the vice president owned 71,328 shares of the company's stock, valued at approximately $7,975,896.96. This trade represents a 12.30% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 1.60% of the company's stock.

Institutional Investors Weigh In On T. Rowe Price Group

A number of institutional investors have recently bought and sold shares of TROW. Twin Tree Management LP acquired a new position in shares of T. Rowe Price Group during the second quarter valued at about $2,989,000. Envestnet Portfolio Solutions Inc. raised its stake in T. Rowe Price Group by 6.1% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 174,047 shares of the asset manager's stock valued at $19,787,000 after buying an additional 10,077 shares during the last quarter. BlackRock Inc. bought a new position in shares of T. Rowe Price Group in the second quarter worth about $2,728,119,000. Louisiana State Employees Retirement System purchased a new position in T. Rowe Price Group during the first quarter worth $1,001,000. Finally, Sanctuary Advisors LLC bought a new stake in shares of T. Rowe Price Group in the second quarter valued at about $1,668,000. 73.39% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting T. Rowe Price Group

Here are the key news stories impacting T. Rowe Price Group this week:

• Positive Sentiment: Third-quarter adjusted earnings of $2.86 per share exceeded the $2.63 consensus estimate, while revenue reached approximately $2.0 billion versus expectations of $1.98 billion. Revenue increased 5.9% year over year, supported by higher advisory fees. T. Rowe Price Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Keefe, Bruyette & Woods reaffirmed its “market perform” rating but raised its price target to $113 from $112, implying approximately 8.8% potential upside based on the referenced price. Keefe, Bruyette & Woods Ratings
• Neutral Sentiment: T. Rowe Price is expanding its wealth-management operation with more than 50 new roles. The initiative could diversify growth and strengthen distribution over time, although added staffing costs may weigh on near-term efficiency. T. Rowe Price Adds Over 50 Wealth Management Roles
• Negative Sentiment: The earnings beat was offset by substantial client outflows and a decline in AUM during the quarter. Persistent redemptions are a key concern for an asset manager because they reduce fee-generating assets and could limit future revenue growth. T. Rowe Price Q3 Earnings, Revenue Beat Even as AUM Dips

About T. Rowe Price Group

T. Rowe Price Group, Inc is a global investment management firm headquartered in Baltimore, Maryland. Founded in 1937 by Thomas Rowe Price Jr., the company provides investment strategies and advisory services to individual investors, retirement plans, financial intermediaries, institutions and other clients.

The company offers a range of actively managed and multi-asset investment products, including mutual funds, exchange-traded funds, separately managed accounts and other portfolio solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.