T. Rowe Price Group, Inc. (NASDAQ:TROW) Receives Average Recommendation of "Reduce" from Analysts

Key Points

• Analysts maintain a cautious view: T. Rowe Price Group has an average “Reduce” recommendation, with four sell ratings, nine holds and one buy. The average 12-month price target is $106.15, modestly above the reported share price of $102.84.
• Quarterly results exceeded expectations: The asset manager reported earnings of $2.57 per share versus the $2.52 consensus estimate, while revenue rose 10.7% year over year to $1.91 billion.
• Investors receive a sizable dividend: The company declared a quarterly dividend of $1.30 per share, or $5.20 annualized, representing a yield of approximately 5.1% and a payout ratio of 52.16%.

T. Rowe Price Group, Inc. (NASDAQ:TROW - Get Free Report) has been assigned an average recommendation of "Reduce" from the fourteen analysts that are currently covering the firm, MarketBeat.com reports. Four analysts have rated the stock with a sell rating, nine have issued a hold rating and one has given a buy rating to the company. The average twelve-month price objective among brokerages that have covered the stock in the last year is $106.1538.

TROW has been the subject of a number of analyst reports. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $109.00 price target on shares of T. Rowe Price Group in a research note on Monday, August 3rd. Zacks Research downgraded shares of T. Rowe Price Group from a "strong-buy" rating to a "hold" rating in a research note on Thursday, August 13th. Weiss Ratings raised shares of T. Rowe Price Group from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, September 4th. TD Cowen boosted their target price on shares of T. Rowe Price Group from $108.00 to $110.00 and gave the company a "hold" rating in a research report on Monday, August 31st. Finally, Morgan Stanley set a $116.00 price target on shares of T. Rowe Price Group in a report on Wednesday, July 29th.

Insiders Place Their Bets

In other T. Rowe Price Group news, VP Joshua Nelson sold 10,000 shares of the firm's stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $111.82, for a total value of $1,118,200.00. Following the sale, the vice president owned 71,328 shares of the company's stock, valued at approximately $7,975,896.96. This trade represents a 12.30% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 1.60% of the stock is owned by insiders.

Hedge Funds Weigh In On T. Rowe Price Group

A number of institutional investors have recently modified their holdings of the business. TD Private Client Wealth LLC grew its stake in shares of T. Rowe Price Group by 91.8% in the 4th quarter. TD Private Client Wealth LLC now owns 257 shares of the asset manager's stock worth $26,000 after acquiring an additional 123 shares in the last quarter. Motiv8 Investments LLC purchased a new position in T. Rowe Price Group during the fourth quarter worth about $35,000. Bank & Trust Co grew its position in T. Rowe Price Group by 52.4% in the 2nd quarter. Bank & Trust Co now owns 314 shares of the asset manager's stock worth $36,000 after purchasing an additional 108 shares in the last quarter. Keating Financial Advisory Services Inc. bought a new stake in T. Rowe Price Group in the 2nd quarter worth about $39,000. Finally, Curio Wealth LLC increased its stake in T. Rowe Price Group by 64.3% in the 4th quarter. Curio Wealth LLC now owns 386 shares of the asset manager's stock valued at $40,000 after buying an additional 151 shares during the last quarter. Institutional investors and hedge funds own 73.39% of the company's stock.

T. Rowe Price Group Price Performance

Shares of NASDAQ:TROW opened at $102.84 on Friday. The company has a market capitalization of $21.94 billion, a P/E ratio of 10.31, a P/E/G ratio of 3.39 and a beta of 1.46. T. Rowe Price Group has a 1 year low of $85.22 and a 1 year high of $122.00. The business's 50 day simple moving average is $112.65 and its 200 day simple moving average is $104.68.

T. Rowe Price Group (NASDAQ:TROW - Get Free Report) last announced its quarterly earnings data on Friday, July 31st. The asset manager reported $2.57 earnings per share for the quarter, beating the consensus estimate of $2.52 by $0.05. The firm had revenue of $1.91 billion during the quarter, compared to analysts' expectations of $1.89 billion. T. Rowe Price Group had a return on equity of 20.91% and a net margin of 29.26%.The company's quarterly revenue was up 10.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.24 EPS. On average, sell-side analysts anticipate that T. Rowe Price Group will post 10.16 EPS for the current fiscal year.

T. Rowe Price Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 15th will be given a dividend of $1.30 per share. This represents a $5.20 annualized dividend and a yield of 5.1%. The ex-dividend date is Tuesday, September 15th. T. Rowe Price Group's payout ratio is currently 52.16%.

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 management, advisory and related services to individual investors, retirement plans, institutions, financial intermediaries and other clients.

The company offers a broad range of investment products and strategies, including mutual funds, exchange-traded funds, separately managed accounts and institutional portfolios.

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