Ameriprise Financial, Inc. (AMP) - What Are Analysts Thinking About This Stock?

Key Points

• Analysts rate AMP “Hold” overall: Among 12 analysts, four rate it Buy, one Strong Buy, five Hold, and two Sell; the average one-year price target is $557.
• Quarterly results fell short of estimates: Ameriprise reported EPS of $11.26 versus $11.77 expected and revenue of $5.08 billion versus $5.10 billion, although revenue rose 6.8% year over year.
• Shareholder returns include a major buyback and dividend: The company authorized up to $5.5 billion in share repurchases and declared a quarterly dividend of $1.70 per share.

Shares of Ameriprise Financial, Inc. (NYSE:AMP - Get Free Report) have been assigned a consensus rating of "Hold" from the twelve analysts that are currently covering the firm, Marketbeat.com reports. Two analysts have rated the stock with a sell rating, five have issued a hold rating, four have issued a buy rating and one has assigned a strong buy rating to the company. The average 1 year price target among brokerages that have covered the stock in the last year is $557.00.

AMP has been the topic of several research analyst reports. Keefe, Bruyette & Woods raised their price objective on Ameriprise Financial from $515.00 to $545.00 and gave the stock a "market perform" rating in a research note on Friday, July 24th. Weiss Ratings raised Ameriprise Financial from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, September 3rd. Zacks Research downgraded Ameriprise Financial from a "strong-buy" rating to a "hold" rating in a report on Monday, September 21st. Argus increased their price target on Ameriprise Financial from $534.00 to $590.00 and gave the stock a "buy" rating in a report on Friday, July 31st. Finally, Jefferies Financial Group dropped their price target on Ameriprise Financial from $645.00 to $638.00 in a research report on Monday, October 12th.

Ameriprise Financial Trading Down 1.4%

AMP opened at $502.44 on Friday. The firm's fifty day moving average is $514.63 and its two-hundred day moving average is $493.16. The company has a debt-to-equity ratio of 1.13, a quick ratio of 0.71 and a current ratio of 0.68. The firm has a market cap of $43.62 billion, a PE ratio of 11.30, a price-to-earnings-growth ratio of 1.06 and a beta of 1.13. Ameriprise Financial has a twelve month low of $422.37 and a twelve month high of $572.56.

Ameriprise Financial (NYSE:AMP - Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The financial services provider reported $11.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $11.77 by ($0.51). Ameriprise Financial had a net margin of 20.99% and a return on equity of 69.94%. The firm had revenue of $5.08 billion during the quarter, compared to analyst estimates of $5.10 billion. During the same period last year, the firm earned $9.92 EPS. Ameriprise Financial's quarterly revenue was up 6.8% on a year-over-year basis. Equities research analysts anticipate that Ameriprise Financial will post 46.24 EPS for the current year.

Ameriprise Financial announced that its board has initiated a share repurchase program on Tuesday, September 29th that allows the company to repurchase $5.50 billion in shares. This buyback authorization allows the financial services provider to buy up to 12.3% of its stock through open market purchases. Share buyback programs are generally a sign that the company's board of directors believes its shares are undervalued.

Ameriprise Financial Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 27th. Investors of record on Monday, November 9th will be given a $1.70 dividend. The ex-dividend date is Monday, November 9th. This represents a $6.80 annualized dividend and a dividend yield of 1.4%. Ameriprise Financial's payout ratio is currently 15.30%.

Insider Buying and Selling

In other Ameriprise Financial news, SVP Dawn Brockman sold 472 shares of Ameriprise Financial stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $558.93, for a total value of $263,814.96. Following the transaction, the senior vice president owned 713 shares of the company's stock, valued at approximately $398,517.09. The trade was a 39.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 0.60% of the company's stock.

Institutional Investors Weigh In On Ameriprise Financial

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Twin Lakes Capital Management LLC bought a new stake in shares of Ameriprise Financial in the 2nd quarter valued at about $25,000. Balance Wealth Partners LLC bought a new position in shares of Ameriprise Financial during the third quarter worth approximately $27,000. University of Texas Texas AM Investment Management Co. acquired a new stake in Ameriprise Financial during the 2nd quarter worth approximately $28,000. City State Bank lifted its holdings in Ameriprise Financial by 264.7% during the 3rd quarter. City State Bank now owns 62 shares of the financial services provider's stock worth $31,000 after purchasing an additional 45 shares during the last quarter. Finally, Cassaday & Co Wealth Management LLC acquired a new stake in Ameriprise Financial during the 1st quarter worth approximately $28,000. Institutional investors and hedge funds own 83.95% of the company's stock.

Ameriprise Financial Company Profile

Ameriprise Financial is a financial services company focused on helping individuals and institutions plan for and manage their finances. Its offerings include financial planning and investment advice, brokerage services, asset management, insurance and annuity products.

The company traces its roots to Investors Syndicate, founded in Minneapolis in 1894. It became an independent public company in 2005 after separating from American Express, and remains headquartered in Minneapolis.

Ameriprise serves clients primarily in the United States through its network of financial advisors.

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