Affiliated Managers Group (NYSE:AMG) Hits New 52-Week High After Earnings Beat

Key Points

• AMG’s shares reached a new 52-week high after quarterly EPS of $9.50 beat analysts’ $8.79 estimate and rose 56% year over year.
• Business momentum was strong, with record assets under management of $974 billion, $21 billion in net client cash flows, and $400 million in share repurchases during the quarter.
• Revenue was a weak spot: $595.2 million came in below the roughly $655 million consensus estimate and was flat year over year.

Affiliated Managers Group, Inc. (NYSE:AMG - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Tuesday following a better than expected earnings announcement. The company traded as high as $401.01 and last traded at $402.0420, with a volume of 105,376 shares. The stock had previously closed at $383.15.

The asset manager reported $9.50 EPS for the quarter, beating analysts' consensus estimates of $8.79 by $0.71. Affiliated Managers Group had a return on equity of 21.94% and a net margin of 37.72%. The business had revenue of $595.20 million during the quarter, compared to analyst estimates of $655.08 million. During the same quarter in the prior year, the company posted $6.10 EPS. Affiliated Managers Group's quarterly revenue was up .0% compared to the same quarter last year.

Affiliated Managers Group Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Thursday, November 19th will be issued a $0.01 dividend. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $0.04 annualized dividend and a yield of 0.0%. Affiliated Managers Group's payout ratio is 0.14%.

Key Headlines Impacting Affiliated Managers Group

Here are the key news stories impacting Affiliated Managers Group this week:

• Positive Sentiment: Third-quarter Economic EPS was $9.50, up 56% year over year and above analysts’ expectations of $8.79. Record AUM of $974 billion and $21 billion in net client cash flows—including record alternative inflows—also point to strong business momentum. AMG Q3 results
• Positive Sentiment: AMG repurchased $400 million of its shares during the quarter, bringing year-to-date repurchases to $775 million. Buybacks can support per-share earnings and signal the company’s confidence in its business. AMG Q3 results
• Neutral Sentiment: The company declared a quarterly dividend of $0.01 per share, payable December 3 to shareholders of record November 19. The stated annualized yield is approximately 0.0%, so the payout is unlikely to be a major driver for the stock. Dividend announcement
• Negative Sentiment: Quarterly revenue of $595.2 million fell short of the roughly $655 million analyst estimate and was flat year over year. That miss, alongside rising expenses, tempers the strong earnings and inflow results. Q3 revenue report

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on AMG shares. Zacks Research downgraded shares of Affiliated Managers Group from a "strong-buy" rating to a "hold" rating in a report on Tuesday, September 29th. Barrington Research set a $425.00 price objective on shares of Affiliated Managers Group in a report on Friday, July 31st. Wall Street Zen downgraded shares of Affiliated Managers Group from a "strong-buy" rating to a "buy" rating in a research report on Sunday, August 30th. Weiss Ratings upgraded shares of Affiliated Managers Group from a "buy (b)" rating to a "buy (b+)" rating in a report on Thursday, October 8th. Finally, TD Cowen lifted their target price on shares of Affiliated Managers Group from $512.00 to $523.00 and gave the stock a "buy" rating in a research report on Monday, October 12th. Five research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $438.25.

Institutional Investors Weigh In On Affiliated Managers Group

Institutional investors have recently added to or reduced their stakes in the stock. Danske Bank A S acquired a new position in Affiliated Managers Group during the second quarter worth about $622,000. Bank of America Corp DE acquired a new stake in shares of Affiliated Managers Group in the second quarter valued at approximately $146,331,000. Van ECK Associates Corp acquired a new stake in shares of Affiliated Managers Group in the second quarter valued at approximately $6,853,000. Secure Asset Management LLC acquired a new stake in shares of Affiliated Managers Group in the second quarter valued at approximately $208,000. Finally, Engineers Gate Manager LP increased its stake in shares of Affiliated Managers Group by 161.4% during the 2nd quarter. Engineers Gate Manager LP now owns 51,861 shares of the asset manager's stock worth $17,550,000 after purchasing an additional 32,023 shares in the last quarter. 95.30% of the stock is owned by hedge funds and other institutional investors.

Affiliated Managers Group Stock Performance

The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 0.76. The stock's 50 day moving average price is $371.95 and its two-hundred day moving average price is $334.16. The firm has a market capitalization of $10.37 billion, a PE ratio of 13.93, a PEG ratio of 0.47 and a beta of 1.05.

About Affiliated Managers Group

Affiliated Managers Group, Inc NYSE: AMG is a global asset management company that partners with independent investment firms. Founded in 1993, AMG provides its partner firms with strategic capital, distribution support and business resources while allowing them to retain substantial independence over their investment processes and operations.

Through its partner firms, AMG offers a range of investment strategies and services, including alternative investments, equities, fixed income, private markets and wealth management.

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