Arrowstreet Capital Limited Partnership Invests $10.73 Million in Ameriprise Financial, Inc. $AMP

Key Points

• Arrowstreet Capital bought a new $10.73 million stake in Ameriprise Financial, purchasing 24,141 shares in the first quarter. Institutional investors collectively own 83.95% of AMP’s outstanding stock.
• Ameriprise reported strong quarterly results, with adjusted EPS of $11.07 beating estimates of $10.81 and revenue rising 11.6% year over year to $4.90 billion. The company also declared a $1.70 quarterly dividend, equivalent to a 1.2% annualized yield.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $555.33. However, insiders have sold $18.23 million of stock over the past 90 days, while AMP trades near its 52-week high.

Arrowstreet Capital Limited Partnership purchased a new stake in Ameriprise Financial, Inc. (NYSE:AMP - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 24,141 shares of the financial services provider's stock, valued at approximately $10,728,000.

Several other hedge funds also recently modified their holdings of the company. SouthState Bank Corp raised its stake in shares of Ameriprise Financial by 78.6% during the fourth quarter. SouthState Bank Corp now owns 50 shares of the financial services provider's stock valued at $25,000 after acquiring an additional 22 shares during the last quarter. Cassaday & Co Wealth Management LLC bought a new stake in shares of Ameriprise Financial in the first quarter worth $28,000. Ares Financial Consulting LLC acquired a new stake in Ameriprise Financial in the fourth quarter valued at $32,000. WFA of San Diego LLC acquired a new stake in Ameriprise Financial in the second quarter valued at $36,000. Finally, Prosperity Bancshares Inc bought a new position in Ameriprise Financial during the 4th quarter worth $33,000. Institutional investors and hedge funds own 83.95% of the company's stock.

Insider Buying and Selling

In other news, insider William Jerryl Williams sold 8,210 shares of the firm's stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $539.35, for a total value of $4,428,063.50. Following the transaction, the insider owned 6,780 shares in the company, valued at $3,656,793. This trade represents a 54.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Robert Francis Sharpe, Jr. sold 1,200 shares of the company's stock in a transaction on Friday, May 8th. The stock was sold at an average price of $465.83, for a total value of $558,996.00. Following the sale, the director owned 6,300 shares of the company's stock, valued at $2,934,729. This trade represents a 16.00% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 34,571 shares of company stock worth $18,227,419 over the last 90 days. Company insiders own 0.60% of the company's stock.

Analysts Set New Price Targets

AMP has been the topic of several recent research reports. Weiss Ratings raised Ameriprise Financial from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, July 17th. BMO Capital Markets increased their price target on Ameriprise Financial from $470.00 to $490.00 and gave the company a "market perform" rating in a research note on Friday, April 24th. 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 report on Friday, July 24th. Zacks Research raised Ameriprise Financial from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 27th. Finally, Morgan Stanley upped their target price on Ameriprise Financial from $467.00 to $489.00 and gave the company an "underweight" rating in a report on Friday, July 10th. Two research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Ameriprise Financial has a consensus rating of "Moderate Buy" and an average target price of $555.33.

Key Headlines Impacting Ameriprise Financial

Here are the key news stories impacting Ameriprise Financial this week:

• Positive Sentiment: Ameriprise’s latest quarterly results exceeded expectations: adjusted earnings were $11.07 per share versus the $10.81 consensus, while revenue increased 11.6% year over year to $4.90 billion. Analysts expect approximately $45.84 in full-year EPS, reinforcing the company’s growth outlook. Earnings and dividend analysis
• Positive Sentiment: The company declared a quarterly dividend of $1.70 per share, or $6.80 annualized, with a payout ratio of about 16.4%. The relatively low payout ratio supports the potential for continued shareholder returns if earnings remain strong. Ameriprise dividend information
• Positive Sentiment: Brokerage coverage remains broadly favorable. Ameriprise has an overall “Moderate Buy” consensus rating, and some firms have issued bullish upgrades or price-target increases, including a reported $645 target from Jefferies. Analyst recommendation coverage
• Neutral Sentiment: The consensus price target is approximately $555.33, only modestly above recent trading levels. This suggests analysts remain constructive but see limited near-term upside after the stock’s strong advance.
• Negative Sentiment: CFO Walter Stanley Berman sold 11,012 shares for approximately $6.05 million, reducing his direct ownership by 66.25%. Insider William Jerryl Williams also sold 16,104 shares across two transactions for about $8.67 million. The sales could pressure investor sentiment, particularly with AMP near its 52-week high, although they do not necessarily indicate deteriorating fundamentals. SEC insider transaction filing

Ameriprise Financial Trading Up 0.5%

NYSE AMP opened at $547.28 on Friday. The company has a market cap of $49.20 billion, a price-to-earnings ratio of 13.20, a P/E/G ratio of 0.74 and a beta of 1.16. Ameriprise Financial, Inc. has a 52 week low of $422.37 and a 52 week high of $553.46. The business has a 50 day moving average price of $484.62 and a 200-day moving average price of $476.35. The company has a quick ratio of 0.66, 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 earnings per share for the quarter, topping analysts' consensus estimates of $10.81 by $0.26. The company had revenue of $4.90 billion for the quarter, compared to analyst estimates of $4.87 billion. Ameriprise Financial had a return on equity of 64.19% and a net margin of 20.24%.Ameriprise Financial's revenue for the quarter was up 11.6% on a year-over-year basis. During the same period in the prior year, the firm earned $9.11 earnings per share. As a group, equities analysts expect that Ameriprise Financial, Inc. will post 45.84 earnings per share for the current fiscal year.

Ameriprise Financial Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 21st. Investors of record on Monday, August 3rd will be given a $1.70 dividend. The ex-dividend date of this dividend is Monday, August 3rd. This represents a $6.80 annualized dividend and a yield of 1.2%. Ameriprise Financial's dividend payout ratio (DPR) is presently 16.40%.

Ameriprise Financial Profile

Ameriprise Financial, Inc is a diversified financial services company headquartered in Minneapolis, Minnesota. The firm provides a range of advice-based wealth management, asset management and insurance products to individual and institutional clients. Its business model centers on delivering financial planning and investment advice through a network of financial advisors alongside proprietary product offerings designed to meet retirement, protection and accumulation needs.

Core products and services include comprehensive financial planning and advisory services, managed investment portfolios, retirement planning solutions, annuities and life insurance products.

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