Ameriprise Financial, Inc. $AMP Stock: Sumitomo Mitsui Trust Group Inc. Lowers Holdings

Key Points

• Sumitomo Mitsui Trust Group reduced its Ameriprise Financial stake by 4.7% in the third quarter, selling 9,934 shares and retaining 202,243 shares worth approximately $99.6 million. Institutional investors collectively own 83.95% of AMP.
• Ameriprise reported quarterly earnings of $11.26 per share, below the $11.77 consensus estimate, while revenue rose 6.8% year over year to $5.08 billion. Analysts have a consensus “Hold” rating and a $557 price target.
• The company declared a quarterly dividend of $1.70 per share and authorized a $5.5 billion share repurchase program, allowing buybacks of up to 12.3% of outstanding shares.

Sumitomo Mitsui Trust Group Inc. reduced its position in shares of Ameriprise Financial, Inc. (NYSE:AMP - Free Report) by 4.7% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 202,243 shares of the financial services provider's stock after selling 9,934 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned 0.22% of Ameriprise Financial worth $99,574,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of Ameriprise Financial during the 3rd quarter worth about $11,989,000. Profund Advisors LLC raised its holdings in shares of Ameriprise Financial by 8.9% in the 3rd quarter. Profund Advisors LLC now owns 822 shares of the financial services provider's stock valued at $405,000 after purchasing an additional 67 shares during the period. Vise Technologies Inc. lifted its stake in Ameriprise Financial by 5.5% in the 3rd quarter. Vise Technologies Inc. now owns 12,293 shares of the financial services provider's stock valued at $6,052,000 after purchasing an additional 644 shares during the last quarter. Cidel Asset Management Inc. lifted its stake in Ameriprise Financial by 4.9% in the 3rd quarter. Cidel Asset Management Inc. now owns 767 shares of the financial services provider's stock valued at $378,000 after purchasing an additional 36 shares during the last quarter. Finally, MGO One Seven LLC lifted its stake in Ameriprise Financial by 4.4% in the 3rd quarter. MGO One Seven LLC now owns 2,571 shares of the financial services provider's stock valued at $1,266,000 after purchasing an additional 108 shares during the last quarter. 83.95% of the stock is owned by institutional investors.

Ameriprise Financial Price Performance

Ameriprise Financial stock opened at $504.10 on Tuesday. The company has a market capitalization of $45.32 billion, a price-to-earnings ratio of 11.34, a PEG ratio of 1.05 and a beta of 1.16. The company has a current ratio of 0.71, a quick ratio of 0.71 and a debt-to-equity ratio of 0.99. Ameriprise Financial, Inc. has a 12 month low of $422.37 and a 12 month high of $572.56. The stock's 50 day moving average is $518.52 and its 200-day moving average is $493.02.

Ameriprise Financial (NYSE:AMP - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The financial services provider reported $11.26 earnings per share for the quarter, missing the consensus estimate of $11.77 by ($0.51). The firm had revenue of $5.08 billion for the quarter, compared to analyst estimates of $5.10 billion. Ameriprise Financial had a return on equity of 64.19% and a net margin of 20.24%. The business's revenue for the quarter was up 6.8% on a year-over-year basis. During the same period in the previous year, the business posted $9.92 earnings per share. Equities research analysts expect that Ameriprise Financial, Inc. will post 46.08 EPS for the current year.

Ameriprise Financial Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 27th. Shareholders of record on Monday, November 9th will be given a dividend of $1.70 per share. The ex-dividend date is Monday, November 9th. This represents a $6.80 annualized dividend and a yield of 1.3%. Ameriprise Financial's dividend payout ratio (DPR) is presently 15.30%.

Ameriprise Financial announced that its board has initiated a share buyback plan on Tuesday, September 29th that allows the company to repurchase $5.50 billion in outstanding shares. This repurchase authorization allows the financial services provider to purchase up to 12.3% of its stock through open market purchases. Share repurchase plans are typically an indication that the company's board believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the company. Morgan Stanley lowered their price target on Ameriprise Financial from $489.00 to $483.00 and set an "underweight" rating on the stock in a research report on Friday, October 9th. Evercore decreased their target price on Ameriprise Financial from $625.00 to $623.00 in a report on Friday, July 24th. Raymond James Financial raised their price target on Ameriprise Financial from $582.00 to $638.00 and gave the company a "strong-buy" rating in a report on Friday, August 21st. BMO Capital Markets reduced their price objective on shares of Ameriprise Financial from $560.00 to $520.00 and set a "market perform" rating for the company in a research report on Tuesday, October 6th. Finally, Zacks Research cut shares of Ameriprise Financial from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 21st. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $557.00.

Insider Buying and Selling at Ameriprise Financial

In other news, SVP Dawn Brockman sold 472 shares of Ameriprise Financial stock in a transaction on Monday, August 10th. The stock was sold at an average price of $558.93, for a total transaction of $263,814.96. Following the completion of the sale, the senior vice president owned 713 shares of the company's stock, valued at approximately $398,517.09. This trade represents a 39.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Deirdre Mcgraw sold 2,400 shares of the business's stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $558.28, for a total transaction of $1,339,872.00. Following the completion of the sale, the executive vice president directly owned 3,373 shares of the company's stock, valued at approximately $1,883,078.44. The trade was a 41.57% decrease in their position. The SEC filing for this sale provides additional information. 0.60% of the stock is owned by company insiders.

Ameriprise Financial Company Profile

Ameriprise Financial, Inc NYSE: AMP is a diversified financial services company that provides advice, wealth management, asset management, insurance and retirement solutions. Through its network of financial advisors and digital platforms, the company serves individuals, families, businesses and institutions with financial planning, investment management and related services.

Its products and services include brokerage and advisory accounts, mutual funds and exchange-traded funds, retirement plans, annuities, life and long-term care insurance, banking services and financial planning.

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