Ameriprise Financial, Inc. (NYSE:AMP) Stock Rated "Moderate Buy" by Wall Street Brokerages

Key Points

• Ameriprise Financial has a “Moderate Buy” consensus rating from 12 analysts, with an average 12-month price target of $572.55. Ratings include five buys, five holds, one strong buy and one sell.
• The company reported quarterly EPS of $11.07, beating estimates of $10.81, while revenue rose 11.6% year over year to $4.90 billion. Ameriprise also pays a $1.70 quarterly dividend and has a 1.4% yield.
• Ameriprise approved a $5.5 billion share-repurchase program, authorizing buybacks of up to 12.3% of its outstanding stock; meanwhile, insiders have sold nearly $16.3 million in shares over the past 90 days.

Ameriprise Financial, Inc. (NYSE:AMP - Get Free Report) has earned an average rating of "Moderate Buy" from the twelve ratings firms that are currently covering the company, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, five have given a hold recommendation, five have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year target price among brokerages that have updated their coverage on the stock in the last year is $572.55.

Several analysts recently issued reports on AMP shares. Piper Sandler increased their price target on Ameriprise Financial from $518.00 to $561.00 in a report on Thursday, July 23rd. Zacks Research cut Ameriprise Financial from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 21st. Royal Bank Of Canada boosted their price objective on Ameriprise Financial from $560.00 to $595.00 in a research note on Friday, July 24th. Jefferies Financial Group decreased their target price on Ameriprise Financial from $645.00 to $638.00 in a research report on Monday. Finally, Evercore lowered their target price on Ameriprise Financial from $625.00 to $623.00 in a research note on Friday, July 24th.

Insider Buying and Selling

In other Ameriprise Financial news, SVP Dawn Brockman sold 472 shares of the 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 completion of the sale, the senior vice president owned 713 shares of the company's stock, valued at $398,517.09. This trade represents a 39.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Walter Berman sold 11,012 shares of Ameriprise Financial stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $548.95, for a total transaction of $6,045,037.40. Following the sale, the chief financial officer owned 5,609 shares in the company, valued at $3,079,060.55. This represents a 66.25% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 29,988 shares of company stock worth $16,316,497 in the last 90 days. 0.60% of the stock is owned by insiders.

Institutional Investors Weigh In On Ameriprise Financial

A number of large investors have recently added to or reduced their stakes in the company. Rexford Capital Inc. raised its position in Ameriprise Financial by 19.5% during the 1st quarter. Rexford Capital Inc. now owns 147 shares of the financial services provider's stock valued at $65,000 after purchasing an additional 24 shares during the last quarter. North Dakota State Investment Board lifted its holdings in Ameriprise Financial by 0.9% in the 2nd quarter. North Dakota State Investment Board now owns 2,716 shares of the financial services provider's stock worth $1,246,000 after buying an additional 24 shares during the period. HBK Sorce Advisory LLC grew its position in shares of Ameriprise Financial by 2.8% in the 2nd quarter. HBK Sorce Advisory LLC now owns 892 shares of the financial services provider's stock worth $409,000 after buying an additional 24 shares during the last quarter. Revolve Wealth Partners LLC grew its position in shares of Ameriprise Financial by 5.0% in the 2nd quarter. Revolve Wealth Partners LLC now owns 529 shares of the financial services provider's stock worth $243,000 after buying an additional 25 shares during the last quarter. Finally, Fulton Bank N.A. grew its position in shares of Ameriprise Financial by 0.4% in the 2nd quarter. Fulton Bank N.A. now owns 6,688 shares of the financial services provider's stock worth $3,068,000 after buying an additional 25 shares during the last quarter. 83.95% of the stock is owned by institutional investors and hedge funds.

Ameriprise Financial Price Performance

Ameriprise Financial stock opened at $493.03 on Wednesday. Ameriprise Financial has a 52-week low of $422.37 and a 52-week high of $572.56. The firm has a fifty day moving average of $537.16 and a 200-day moving average of $496.54. The firm has a market capitalization of $44.32 billion, a P/E ratio of 11.89, a PEG ratio of 1.03 and a beta of 1.16. The company has a quick ratio of 0.71, a current ratio of 0.71 and a debt-to-equity ratio of 0.99.

Ameriprise Financial (NYSE:AMP - Get Free Report) last issued its earnings results on Thursday, July 23rd. The financial services provider reported $11.07 EPS for the quarter, beating analysts' consensus estimates of $10.81 by $0.26. Ameriprise Financial had a net margin of 20.24% and a return on equity of 64.19%. The business had revenue of $4.90 billion for the quarter, compared to the consensus estimate of $4.87 billion. During the same quarter last year, the firm posted $9.11 EPS. The business's revenue for the quarter was up 11.6% compared to the same quarter last year. As a group, analysts predict that Ameriprise Financial will post 46.14 EPS for the current year.

Ameriprise Financial Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 21st. Investors of record on Monday, August 3rd were given a dividend of $1.70 per share. The ex-dividend date of this dividend was Monday, August 3rd. This represents a $6.80 annualized dividend and a yield of 1.4%. Ameriprise Financial's payout ratio is 16.40%.

Ameriprise Financial declared that its board has approved a stock repurchase program on Tuesday, September 29th that authorizes the company to buy back $5.50 billion in shares. This buyback authorization authorizes the financial services provider to purchase up to 12.3% of its stock through open market purchases. Share buyback programs are generally an indication that the company's board of directors believes its stock is undervalued.

About Ameriprise Financial

Ameriprise Financial, Inc is a diversified financial services company headquartered in Minneapolis, Minnesota. The company provides financial planning, investment advice, wealth management, retirement planning and insurance solutions to individuals, families, business owners and institutional clients.

Ameriprise serves clients primarily through a network of financial advisors and offers products and services that include brokerage and advisory accounts, mutual funds and other investments, retirement accounts, annuities, life and long-term-care insurance, banking products and personalized financial planning.

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