New England Research & Management Inc. Makes New $26.52 Million Investment in Ameriprise Financial, Inc. $AMP

Key Points

• New England Research & Management purchased 53,854 Ameriprise Financial shares worth approximately $26.52 million, making AMP its largest holding and representing about 10.1% of its portfolio.
• Ameriprise reported quarterly earnings of $11.07 per share, surpassing estimates, while revenue rose 11.6% year over year to $4.90 billion. The company also authorized a $5.50 billion share-buyback program and pays a $1.70 quarterly dividend.
• AMP traded at $500.91, below analysts’ average price target of $572.55; Wall Street’s consensus rating is “Moderate Buy.” However, insiders sold nearly 30,000 shares worth $16.3 million during the latest quarter.

New England Research & Management Inc. purchased a new stake in shares of Ameriprise Financial, Inc. (NYSE:AMP - Free Report) during the 3rd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor purchased 53,854 shares of the financial services provider's stock, valued at approximately $26,515,000. Ameriprise Financial accounts for about 10.1% of New England Research & Management Inc.'s holdings, making the stock its biggest holding. New England Research & Management Inc. owned 0.06% of Ameriprise Financial as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also recently modified their holdings of AMP. Twin Lakes Capital Management LLC purchased a new position in Ameriprise Financial in the second quarter worth about $25,000. University of Texas Texas AM Investment Management Co. purchased a new stake in shares of Ameriprise Financial during the 2nd quarter valued at about $28,000. Cassaday & Co Wealth Management LLC purchased a new stake in shares of Ameriprise Financial during the 1st quarter valued at about $28,000. Fiduciary Financial Advisors purchased a new stake in shares of Ameriprise Financial during the 2nd quarter valued at about $30,000. Finally, Daytona Street Capital LLC bought a new position in shares of Ameriprise Financial in the 3rd quarter worth approximately $33,000. 83.95% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other Ameriprise Financial news, SVP Dawn Brockman sold 472 shares of Ameriprise Financial stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $558.93, for a total transaction of $263,814.96. Following the transaction, the senior vice president owned 713 shares of the company's stock, valued at $398,517.09. The trade was a 39.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider William Williams sold 8,210 shares of Ameriprise Financial stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $539.35, for a total transaction of $4,428,063.50. Following the transaction, the insider directly owned 6,780 shares in the company, valued at $3,656,793. This represents a 54.77% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 29,988 shares of company stock worth $16,316,497 in the last quarter. 0.60% of the stock is currently owned by insiders.

Ameriprise Financial Stock Performance

Shares of NYSE AMP traded down $1.67 during trading on Friday, hitting $500.91. The company had a trading volume of 581,724 shares, compared to its average volume of 647,053. The stock has a 50 day simple moving average of $533.72 and a 200 day simple moving average of $497.36. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.71 and a current ratio of 0.71. Ameriprise Financial, Inc. has a 12 month low of $422.37 and a 12 month high of $572.56. The firm has a market capitalization of $45.03 billion, a P/E ratio of 12.08, a price-to-earnings-growth ratio of 1.03 and a beta of 1.16.

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

Ameriprise Financial announced that its Board of Directors has initiated a share buyback program 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 repurchase up to 12.3% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's board of directors believes its stock is undervalued.

Ameriprise Financial Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 21st. Shareholders of record on Monday, August 3rd were paid a dividend of $1.70 per share. The ex-dividend date was Monday, August 3rd. This represents a $6.80 dividend on an annualized basis and a yield of 1.4%. Ameriprise Financial's dividend payout ratio (DPR) is presently 16.40%.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the stock. Royal Bank Of Canada raised their price objective on shares of Ameriprise Financial from $560.00 to $595.00 in a report on Friday, July 24th. Raymond James Financial boosted their target price on shares of Ameriprise Financial from $582.00 to $638.00 and gave the company a "strong-buy" rating in a research report on Friday, August 21st. Argus upped their target price on shares of Ameriprise Financial from $534.00 to $590.00 and gave the company a "buy" rating in a report on Friday, July 31st. Keefe, Bruyette & Woods increased their price target on shares of Ameriprise Financial from $515.00 to $545.00 and gave the stock a "market perform" rating in a research report on Friday, July 24th. Finally, Piper Sandler increased their price target on shares of Ameriprise Financial from $518.00 to $561.00 in a research report on Thursday, July 23rd. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Ameriprise Financial presently has an average rating of "Moderate Buy" and an average target price of $572.55.

Ameriprise Financial Company Profile

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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