BlackRock Inc. Invests $2.73 Billion in T. Rowe Price Group, Inc. $TROW

Key Points

• BlackRock acquired 23.996 million shares of T. Rowe Price Group in the second quarter, worth approximately $2.73 billion and representing an 11.25% stake. Institutional investors and hedge funds collectively own 73.39% of the company.
• T. Rowe Price exceeded quarterly expectations, reporting $2.57 in EPS on $1.91 billion in revenue, with revenue up 10.7% year over year.
• The company declared a quarterly dividend of $1.30 per share, or $5.20 annualized, yielding about 4.6%. Analysts remain cautious, with a consensus “Reduce” rating and an average price target of $105.67.

BlackRock Inc. acquired a new stake in T. Rowe Price Group, Inc. (NASDAQ:TROW - Free Report) in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 23,996,119 shares of the asset manager's stock, valued at approximately $2,728,119,000. BlackRock Inc. owned 11.25% of T. Rowe Price Group as of its most recent SEC filing.

Other institutional investors have also recently added to or reduced their stakes in the company. TD Private Client Wealth LLC lifted its position in T. Rowe Price Group by 91.8% during the fourth quarter. TD Private Client Wealth LLC now owns 257 shares of the asset manager's stock worth $26,000 after buying an additional 123 shares during the period. DV Equities LLC purchased a new stake in T. Rowe Price Group in the 4th quarter valued at about $32,000. Motiv8 Investments LLC purchased a new stake in T. Rowe Price Group in the 4th quarter valued at about $35,000. Bank & Trust Co increased its stake in shares of T. Rowe Price Group by 52.4% during the 2nd quarter. Bank & Trust Co now owns 314 shares of the asset manager's stock valued at $36,000 after acquiring an additional 108 shares during the last quarter. Finally, TD Waterhouse Canada Inc. increased its stake in shares of T. Rowe Price Group by 92.0% during the 4th quarter. TD Waterhouse Canada Inc. now owns 386 shares of the asset manager's stock valued at $40,000 after acquiring an additional 185 shares during the last quarter. 73.39% of the stock is currently owned by institutional investors and hedge funds.

T. Rowe Price Group Price Performance

NASDAQ TROW opened at $112.23 on Thursday. The firm has a market capitalization of $23.94 billion, a P/E ratio of 11.26, a P/E/G ratio of 4.29 and a beta of 1.47. T. Rowe Price Group, Inc. 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 $113.83 and its 200-day simple moving average is $102.76.

T. Rowe Price Group (NASDAQ:TROW - Get Free Report) last issued its earnings results on Friday, July 31st. The asset manager reported $2.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.52 by $0.05. The business 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 revenue for the quarter was up 10.7% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.24 EPS. On average, equities research analysts expect that T. Rowe Price Group, Inc. will post 10.13 EPS for the current fiscal year.

T. Rowe Price Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 15th will be paid a dividend of $1.30 per share. This represents a $5.20 annualized dividend and a yield of 4.6%. The ex-dividend date is Tuesday, September 15th. T. Rowe Price Group's payout ratio is currently 52.16%.

Analyst Ratings Changes

TROW has been the topic of several research analyst reports. BMO Capital Markets raised their target price on shares of T. Rowe Price Group from $110.00 to $120.00 and gave the stock a "market perform" rating in a research report on Monday, August 3rd. Zacks Research lowered shares of T. Rowe Price Group from a "strong-buy" rating to a "hold" rating in a research report on Thursday, August 13th. Barclays cut their price target on shares of T. Rowe Price Group from $108.00 to $103.00 and set an "underweight" rating on the stock in a research note on Monday, August 3rd. Evercore set a $118.00 price target on shares of T. Rowe Price Group in a report on Monday, August 10th. Finally, The Goldman Sachs Group boosted their price objective on shares of T. Rowe Price Group from $90.00 to $92.00 and gave the company a "sell" rating in a research note on Tuesday, June 30th. Ten investment analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, T. Rowe Price Group presently has an average rating of "Reduce" and a consensus target price of $105.67.

T. Rowe Price Group Company Profile

T. Rowe Price Group, Inc is a global investment management firm headquartered in Baltimore, Maryland, founded by Thomas Rowe Price Jr. in 1937. The company provides a broad range of investment products and services for individual investors, financial intermediaries, retirement plan sponsors and institutional clients. Its offerings are built around active investment management and in-house research across equity, fixed income and multi-asset strategies, reflecting a long history as a research-driven asset manager.

The firm's product lineup includes mutual funds, separate accounts, collective investment trusts, target-date and target-risk funds, and managed account solutions, as well as services for defined contribution and defined benefit retirement plans.

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