T. Rowe Price Group (NASDAQ:TROW) Stock Gets Price Target Cut from TD Cowen

Key Points

• TD Cowen cut T. Rowe Price’s price target to $96 from $109 and maintained a “hold” rating, implying 7.6% downside from the prior close.
• Analyst sentiment remains cautious: TROW has a consensus “Reduce” rating, with one Buy, ten Hold, and three Sell ratings; the average price target is $103.08.
• The company exceeded quarterly earnings and revenue estimates, reporting $2.86 in EPS and approximately $2.0 billion in revenue, but client outflows and declining assets under management remain key concerns.

T. Rowe Price Group (NASDAQ:TROW - Get Free Report) had its price target reduced by stock analysts at TD Cowen from $109.00 to $96.00 in a research note issued to investors on Friday, Benzinga reports. The brokerage presently has a "hold" rating on the asset manager's stock. TD Cowen's price target would suggest a potential downside of 7.60% from the company's previous close.

Several other research firms have also issued reports on TROW. Weiss Ratings raised shares of T. Rowe Price Group from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, September 4th. UBS Group began coverage on shares of T. Rowe Price Group in a report on Wednesday, October 7th. They issued a "neutral" rating and a $107.00 price objective on the stock. JPMorgan Chase & Co. dropped their target price on T. Rowe Price Group from $107.00 to $106.00 and set an "underweight" rating for the company in a research report on Tuesday, October 13th. Keefe, Bruyette & Woods restated a "market perform" rating and set a $113.00 target price (up from $112.00) on shares of T. Rowe Price Group in a research note on Friday. Finally, Morgan Stanley increased their price objective on T. Rowe Price Group from $110.00 to $112.00 and gave the company an "equal weight" rating in a report on Friday, October 23rd. One research analyst has rated the stock with a Buy rating, ten have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Reduce" and an average price target of $103.08.

T. Rowe Price Group Price Performance

Shares of NASDAQ:TROW traded down $2.73 during trading hours on Friday, hitting $103.90. The company's stock had a trading volume of 3,548,870 shares, compared to its average volume of 2,071,218. T. Rowe Price Group has a 52 week low of $85.22 and a 52 week high of $122.00. The company has a market capitalization of $22.16 billion, a price-to-earnings ratio of 10.42, a P/E/G ratio of 3.04 and a beta of 1.45. The firm's fifty day moving average price is $105.82 and its 200 day moving average price is $103.72.

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

Insiders Place Their Bets

In other news, VP Joshua Nelson sold 10,000 shares of T. Rowe Price Group stock in a transaction on 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 completion of the transaction, the vice president owned 71,328 shares of the company's stock, valued at $7,975,896.96. The trade was a 12.30% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Company insiders own 1.60% of the company's stock.

Hedge Funds Weigh In On T. Rowe Price Group

A number of institutional investors have recently modified their holdings of TROW. BlackRock Inc. acquired a new position in T. Rowe Price Group during the 2nd quarter worth $2,728,119,000. Legal & General Group Plc bought a new stake in shares of T. Rowe Price Group during the second quarter valued at approximately $183,130,000. Bank of America Corp DE bought a new stake in shares of T. Rowe Price Group during the second quarter worth approximately $170,572,000. Bank of New York Mellon Corp bought a new stake in shares of T. Rowe Price Group in the 2nd quarter valued at $167,984,000. Finally, Caisse de depot et placement du Quebec bought a new stake in shares of T. Rowe Price Group in the second quarter valued at about $132,649,000. Institutional investors and hedge funds own 73.39% of the company's stock.

More T. Rowe Price Group News

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

T. Rowe Price Group Company Profile

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.

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