Barclays Lowers AllianceBernstein (NYSE:AB) Price Target to $39.00

Key Points

• Barclays cut AllianceBernstein's price target to $39 and kept an "equal weight" rating, implying roughly a 0.74% downside from the current share price.
• Q1 results missed estimates—EPS $0.83 vs. $0.87 and revenue $871.1M vs. $914.5M—though return on equity was strong (~21.2%) and the firm declared a $0.83 cash distribution (about an 8.6% annualized yield).
• Market consensus remains a "Hold" with an average price target of $41.25, based on 3 Buys, 4 Holds and 1 Sell.

AllianceBernstein (NYSE:AB - Get Free Report) had its target price dropped by equities research analysts at Barclays from $40.00 to $39.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm presently has an "equal weight" rating on the asset manager's stock. Barclays's price objective suggests a potential downside of 0.74% from the company's current price.

AB has been the topic of several other research reports. Zacks Research cut AllianceBernstein from a "hold" rating to a "strong sell" rating in a report on Tuesday, April 21st. Sanford C. Bernstein restated a "negative" rating on shares of AllianceBernstein in a research report on Friday, April 17th. TD Cowen restated a "hold" rating on shares of AllianceBernstein in a research report on Wednesday, January 14th. Finally, Weiss Ratings upgraded shares of AllianceBernstein from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, February 17th. Three analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $41.25.

AllianceBernstein Trading Up 2.2%

NYSE:AB traded up $0.86 during midday trading on Wednesday, hitting $39.29. 101,993 shares of the stock were exchanged, compared to its average volume of 388,106. AllianceBernstein has a one year low of $35.59 and a one year high of $44.11. The company has a market capitalization of $3.63 billion, a price-to-earnings ratio of 13.09, a P/E/G ratio of 1.82 and a beta of 0.86. The business has a 50-day moving average price of $38.38 and a two-hundred day moving average price of $39.44.

AllianceBernstein (NYSE:AB - Get Free Report) last announced its earnings results on Tuesday, April 28th. The asset manager reported $0.83 EPS for the quarter, missing the consensus estimate of $0.87 by ($0.04). AllianceBernstein had a return on equity of 21.17% and a net margin of 6.62%.The firm had revenue of $871.14 million for the quarter, compared to the consensus estimate of $914.51 million. During the same period in the previous year, the firm earned $0.80 EPS. AllianceBernstein's revenue for the quarter was up 3.9% on a year-over-year basis. Sell-side analysts forecast that AllianceBernstein will post 3.5 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in AllianceBernstein in the fourth quarter worth approximately $28,000. Ascentis Independent Advisors purchased a new position in AllianceBernstein during the 1st quarter worth approximately $30,000. Garton & Associates Financial Advisors LLC purchased a new position in AllianceBernstein during the 4th quarter worth approximately $35,000. Motiv8 Investments LLC purchased a new position in AllianceBernstein during the 4th quarter worth approximately $36,000. Finally, Elyxium Wealth LLC purchased a new position in AllianceBernstein during the 4th quarter worth approximately $51,000. Institutional investors and hedge funds own 19.25% of the company's stock.

Key Stories Impacting AllianceBernstein

Here are the key news stories impacting AllianceBernstein this week:

• Positive Sentiment: AB declared a quarterly cash distribution of $0.83 per unit (cash distribution / dividend), implying a high annualized yield (~8.6%) that supports income-focused investors and helps cushion sell pressure. Read More.
• Positive Sentiment: Underlying profitability is strong: Q1 adjusted EPS of $0.83 (GAAP net income $0.92/unit) with a reported return on equity of ~21.2% and revenue up ~3.9% year-over-year — data points that support the stock’s valuation relative to peers. Read More.
• Neutral Sentiment: Management held the Q1 earnings call and published a slide deck and transcript that provide detail on segment performance, M&A integration progress and flow outlook; investors should review the deck for portfolio- and flows-level color. Read More. • Read More.
• Neutral Sentiment: Analyst and press pieces summarize management’s strategy of balancing growth engines (alternatives, institutional) against equity-market headwinds — useful for longer-term thesis but not an immediate catalyst. Read More.
• Negative Sentiment: Q1 missed consensus: EPS $0.83 vs. $0.87 expected and revenue $871.1M vs. $914.5M expected — the misses are the primary near-term driver of the share decline as they raise near-term earnings uncertainty. Read More.
• Negative Sentiment: Net flows and M&A-related growth have not yet fully translated into stronger organic inflows, and commentary suggested equity-market headwinds that could pressure fee revenue and AUM growth. Read More.
• Negative Sentiment: Some analysts note the distribution has declined vs. prior levels (or been adjusted), which could be viewed negatively by income investors focused on consistency. Read More.

AllianceBernstein Company Profile

AllianceBernstein is a global investment management firm that offers a broad range of research-driven strategies across equities, fixed income, multi-asset solutions and alternative investments. The firm provides active and quantitative portfolio management, drawing on in-house research capabilities to serve the needs of institutional clients, private wealth investors and intermediaries. Its product lineup encompasses mutual funds, separately managed accounts and customized investment vehicles designed to meet diverse risk-return objectives.

The firm's roots date back to 1967 with the founding of Sanford C.

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.