Salem Investment Counselors Inc. Makes New $85.07 Million Investment in Ameriprise Financial, Inc. $AMP

Key Points

• Salem Investment Counselors initiated an approximately $85.1 million position in Ameriprise Financial during the third quarter, acquiring 172,787 shares and making AMP 2.1% of its portfolio. Institutional investors collectively own 83.95% of the company.
• Ameriprise exceeded quarterly expectations, reporting $11.07 in EPS and $4.90 billion in revenue, with revenue up 11.6% year over year. The board also approved a $5.5 billion share-repurchase program covering up to 12.3% of shares.
• Insiders sold nearly $16.3 million of stock over the past three months, while analysts maintain a consensus “Moderate Buy” rating with an average price target of $572.55.

Salem Investment Counselors Inc. purchased a new position in Ameriprise Financial, Inc. (NYSE:AMP - Free Report) in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 172,787 shares of the financial services provider's stock, valued at approximately $85,072,000. Ameriprise Financial comprises 2.1% of Salem Investment Counselors Inc.'s investment portfolio, making the stock its 14th biggest position. Salem Investment Counselors Inc. owned 0.19% of Ameriprise Financial as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also recently modified their holdings of the business. Neville Rodie & Shaw Inc. lifted its stake in Ameriprise Financial by 4,524.8% during the 3rd quarter. Neville Rodie & Shaw Inc. now owns 32,651 shares of the financial services provider's stock valued at $16,076,000 after acquiring an additional 31,945 shares during the period. Canandaigua National Bank & Trust Co. bought a new stake in shares of Ameriprise Financial in the third quarter worth approximately $4,162,000. EP Wealth Advisors LLC bought a new stake in shares of Ameriprise Financial in the second quarter worth approximately $1,704,000. Ballew Advisors Inc bought a new stake in shares of Ameriprise Financial in the third quarter worth approximately $4,112,000. Finally, Venture Visionary Partners LLC raised its holdings in shares of Ameriprise Financial by 701.7% during the third quarter. Venture Visionary Partners LLC now owns 123,789 shares of the financial services provider's stock valued at $60,948,000 after purchasing an additional 108,348 shares during the last quarter. Hedge funds and other institutional investors own 83.95% of the company's stock.

Insider Buying and Selling at Ameriprise Financial

In other news, insider William Williams sold 8,210 shares of Ameriprise Financial stock in a transaction 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 owned 6,780 shares in the company, valued at $3,656,793. This trade represents a 54.77% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Walter Berman sold 11,012 shares of Ameriprise Financial stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $548.95, for a total transaction of $6,045,037.40. Following the transaction, the chief financial officer owned 5,609 shares in the company, valued at $3,079,060.55. This represents a 66.25% 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 valued at $16,316,497 over the last three months. Insiders own 0.60% of the company's stock.

Ameriprise Financial Price Performance

Shares of NYSE:AMP opened at $493.03 on Wednesday. The firm's 50 day moving average price is $537.16 and its 200-day moving average price is $496.54. Ameriprise Financial, Inc. has a twelve month low of $422.37 and a twelve month high of $572.56. The company has a quick ratio of 0.71, a current ratio of 0.71 and a debt-to-equity ratio of 0.99. The stock has a market capitalization of $44.32 billion, a PE ratio of 11.89, 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 (EPS) 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 the consensus estimate of $4.87 billion. Ameriprise Financial had a net margin of 20.24% and a return on equity of 64.19%. The firm's revenue was up 11.6% compared to the same quarter last year. During the same quarter last year, the firm posted $9.11 earnings per share. Equities research analysts expect that Ameriprise Financial, Inc. will post 46.14 EPS for the current year.

Ameriprise Financial declared that its board has authorized a stock buyback plan on Tuesday, September 29th that authorizes the company to buy back $5.50 billion in shares. This buyback authorization authorizes the financial services provider to purchase up to 12.3% of its shares through open market purchases. Stock buyback plans are generally a sign that the company's board of directors believes its stock is undervalued.

Ameriprise Financial Dividend Announcement

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

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on AMP shares. Morgan Stanley lowered their price objective on shares of Ameriprise Financial from $489.00 to $483.00 and set an "underweight" rating on the stock in a research report on Friday, October 9th. Bank of America reaffirmed a "buy" rating and issued a $570.00 target price (down from $616.00) on shares of Ameriprise Financial in a research report on Monday, October 5th. Jefferies Financial Group lowered their price target on Ameriprise Financial from $645.00 to $638.00 in a report on Monday. Weiss Ratings upgraded Ameriprise Financial from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, September 3rd. Finally, Royal Bank Of Canada lifted their price objective on Ameriprise Financial from $560.00 to $595.00 in a report on Friday, July 24th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus 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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