T. Rowe Price Group (NASDAQ:TROW) Stock Keeps "Market Perform" Rating at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods reiterated a “Market Perform” rating on T. Rowe Price and raised its price target slightly to $113 from $112, implying 7.78% potential upside.
• Analyst sentiment remains cautious overall: T. Rowe Price has a consensus “Reduce” rating and an average price target of $104.08, with one Buy, ten Hold, and three Sell ratings.
• The company beat quarterly expectations, reporting $2.86 in EPS and approximately $2 billion in revenue, but continued client outflows and a sequential decline in assets under management remain key risks.

T. Rowe Price Group (NASDAQ:TROW - Get Free Report)'s stock had its "market perform" rating reiterated by research analysts at Keefe, Bruyette & Woods in a research note issued to investors on Friday, Benzinga reports. They currently have a $113.00 target price on the asset manager's stock, up from their previous target price of $112.00. Keefe, Bruyette & Woods's price objective indicates a potential upside of 7.78% from the company's current price.

Several other equities research analysts have also commented on TROW. BMO Capital Markets lowered their price target on shares of T. Rowe Price Group from $120.00 to $110.00 and set a "market perform" rating on the stock in a report on Tuesday, October 13th. Zacks Research cut T. Rowe Price Group from a "strong-buy" rating to a "hold" rating in a report on Thursday, August 13th. UBS Group started coverage on shares of T. Rowe Price Group in a report on Wednesday, October 7th. They set a "neutral" rating and a $107.00 target price for the company. Barclays lowered their price target on shares of T. Rowe Price Group from $103.00 to $102.00 and set an "underweight" rating on the stock in a research report on Wednesday, October 14th. Finally, Weiss Ratings upgraded T. Rowe Price Group from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, September 4th. 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. Based on data from MarketBeat.com, T. Rowe Price Group has a consensus rating of "Reduce" and a consensus target price of $104.08.

T. Rowe Price Group Stock Performance

T. Rowe Price Group stock traded down $1.78 during midday trading on Friday, hitting $104.85. 399,321 shares of the company's stock were exchanged, compared to its average volume of 2,064,307. The firm has a 50-day moving average of $105.82 and a two-hundred day moving average of $103.72. T. Rowe Price Group has a 12 month low of $85.22 and a 12 month high of $122.00. The company has a market cap of $22.37 billion, a PE ratio of 10.52, a P/E/G ratio of 3.04 and a beta of 1.45.

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

Insider Activity at T. Rowe Price Group

In other news, VP Joshua Nelson sold 10,000 shares of the company's stock in a transaction dated Tuesday, August 25th. The shares were 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. This represents a 12.30% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 1.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On T. Rowe Price Group

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

T. Rowe Price Group News Roundup

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

• Positive Sentiment: Quarterly earnings beat estimates: T. Rowe Price reported adjusted earnings of $2.86 per share, above consensus estimates ranging from $2.58 to $2.63 and up from $2.81 a year earlier. T. Rowe Price Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Revenue and fee income were stronger than expected: Quarterly revenue reached approximately $2.0 billion, exceeding the $1.98 billion consensus estimate and increasing 5.9% year over year. Higher advisory fees helped support results. T. Rowe Price Group Reports Third-Quarter Results
• Positive Sentiment: Assets under management benefited from market levels: AUM was higher year over year, supporting management fees and profitability, even though assets declined from the prior quarter. TROW Stock Gains as Q3 Earnings Beat
• Neutral Sentiment: Wealth-management expansion continues: The company is adding more than 50 wealth-management positions, signaling investment in distribution and client-service capabilities but also implying higher near-term operating costs. T. Rowe Price Adds Over 50 Wealth Management Roles
• Negative Sentiment: Client outflows remain a key risk: Substantial net redemptions and the sequential AUM decline highlight continued pressure on organic growth and could constrain future fee revenue. Reports also described a retreat in the quarterly bottom line despite the adjusted EPS beat. 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.

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