Varma Mutual Pension Insurance Co Lowers Position in Ameriprise Financial, Inc. $AMP

Key Points

• Varma Mutual Pension Insurance Co cut its stake in Ameriprise by 89.2% in Q4, selling 20,562 shares and leaving 2,500 shares valued at $1.226 million.
• Ameriprise beat EPS at $11.26 versus a $10.21 estimate, with revenue of $4.77 billion (up 9.7% YoY) and strong profitability metrics (ROE 62.88%, net margin 20.57%).
• Dividend increased to $1.70 quarterly (annualized $6.80, 1.4% yield; ex-dividend May 4), while analysts hold an average "Hold" rating with a consensus price target of $543.22.

Varma Mutual Pension Insurance Co cut its holdings in Ameriprise Financial, Inc. (NYSE:AMP - Free Report) by 89.2% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 2,500 shares of the financial services provider's stock after selling 20,562 shares during the quarter. Varma Mutual Pension Insurance Co's holdings in Ameriprise Financial were worth $1,226,000 as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in AMP. Holos Integrated Wealth LLC purchased a new stake in Ameriprise Financial in the fourth quarter worth about $30,000. Redmont Wealth Advisors LLC purchased a new stake in Ameriprise Financial during the third quarter worth $32,000. Ares Financial Consulting LLC purchased a new stake in Ameriprise Financial during the fourth quarter worth $32,000. WFA of San Diego LLC purchased a new stake in Ameriprise Financial during the second quarter worth $36,000. Finally, Activest Wealth Management lifted its holdings in Ameriprise Financial by 777.8% during the fourth quarter. Activest Wealth Management now owns 79 shares of the financial services provider's stock worth $39,000 after buying an additional 70 shares during the period. 83.95% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. Keefe, Bruyette & Woods assumed coverage on Ameriprise Financial in a report on Friday, April 10th. They set a "hold" rating for the company. Royal Bank Of Canada restated an "outperform" rating and set a $605.00 target price (up from $580.00) on shares of Ameriprise Financial in a report on Monday, February 2nd. BMO Capital Markets upped their target price on Ameriprise Financial from $470.00 to $490.00 and gave the stock a "market perform" rating in a report on Friday, April 24th. Jefferies Financial Group increased their price target on shares of Ameriprise Financial from $600.00 to $620.00 and gave the company a "buy" rating in a research report on Monday, February 2nd. Finally, Morgan Stanley increased their price target on shares of Ameriprise Financial from $452.00 to $467.00 and gave the company an "underweight" rating in a research report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $543.22.

Ameriprise Financial Stock Performance

Shares of AMP opened at $474.81 on Wednesday. Ameriprise Financial, Inc. has a 12 month low of $422.37 and a 12 month high of $550.18. The stock has a fifty day moving average price of $454.86 and a 200-day moving average price of $474.01. The company has a current ratio of 0.66, a quick ratio of 0.68 and a debt-to-equity ratio of 0.90. The firm has a market cap of $43.29 billion, a PE ratio of 11.81, a P/E/G ratio of 1.12 and a beta of 1.20.

Ameriprise Financial (NYSE:AMP - Get Free Report) last issued its quarterly earnings data on Thursday, April 23rd. The financial services provider reported $11.26 EPS for the quarter, beating the consensus estimate of $10.21 by $1.05. Ameriprise Financial had a return on equity of 62.88% and a net margin of 20.57%.The firm had revenue of $4.77 billion during the quarter, compared to analyst estimates of $4.82 billion. During the same quarter in the prior year, the business posted $9.50 EPS. The business's revenue for the quarter was up 9.7% compared to the same quarter last year. Equities research analysts predict that Ameriprise Financial, Inc. will post 42.15 earnings per share for the current fiscal year.

Ameriprise Financial Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 22nd. Investors of record on Monday, May 4th will be given a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend is Monday, May 4th. This is an increase from Ameriprise Financial's previous quarterly dividend of $1.60. Ameriprise Financial's payout ratio is 16.91%.

Insider Activity at Ameriprise Financial

In related news, insider Gumer Alvero sold 4,658 shares of the stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $542.88, for a total value of $2,528,735.04. Following the completion of the transaction, the insider directly owned 4,621 shares of the company's stock, valued at $2,508,648.48. This trade represents a 50.20% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO William F. Truscott sold 5,000 shares of the stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $532.08, for a total transaction of $2,660,400.00. Following the completion of the transaction, the chief executive officer directly owned 12,149 shares of the company's stock, valued at $6,464,239.92. The trade was a 29.16% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 16,658 shares of company stock valued at $8,998,675 in the last three months. 0.60% of the stock is owned by insiders.

About Ameriprise Financial

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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