Affiliated Managers Group (NYSE:AMG) Shares Break Above Fifty Day Moving Average - Here's Why

Key Points

• AMG shares rose 5.4% and moved above their 50-day moving average, trading as high as $383.73 versus the average of $371.95.
• Third-quarter EPS was $9.50, up 56% year over year and above estimates; assets under management reached a record $974 billion, with $21 billion in net client cash flows.
• Revenue was a weak spot: $595.2 million fell short of analyst expectations of about $655.1 million and was flat year over year. Analysts’ consensus rating was “Moderate Buy,” with a $438.25 average price target.

Affiliated Managers Group, Inc. (NYSE:AMG - Get Free Report)'s share price crossed above its 50 day moving average during trading on Monday. The stock has a 50 day moving average of $371.95 and traded as high as $383.73. Affiliated Managers Group shares last traded at $382.4140, with a volume of 615,398 shares traded.

Key Affiliated Managers Group News

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 analyst estimates. AMG also reported record AUM of $974 billion and $21 billion in net client cash flows, including record alternative net inflows. AMG Q3 results
• Positive Sentiment: The company repurchased $400 million of its shares during the quarter, bringing year-to-date buybacks to $775 million—a meaningful capital return that may support per-share results. AMG Q3 results
• Neutral Sentiment: AMG declared a quarterly dividend of $0.01 per share. The payout is minimal, with an annualized yield near zero, so it is unlikely to be a major share-price driver.
• Negative Sentiment: Quarterly revenue of $595.2 million missed analyst expectations of about $655.1 million and was essentially flat year over year, limiting the strength of the earnings beat. AMG Q3 revenue report

Wall Street Analyst Weigh In

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

Affiliated Managers Group Trading Up 5.4%

The firm has a market cap of $9.89 billion, a P/E ratio of 13.25, a price-to-earnings-growth ratio of 0.47 and a beta of 1.05. 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 company's fifty day moving average price is $371.95 and its two-hundred day moving average price is $334.16.

Affiliated Managers Group (NYSE:AMG - Get Free Report) last announced its quarterly earnings results on Monday, November 9th. The asset manager reported $9.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $8.79 by $0.71. The firm had revenue of $595.20 million during the quarter, compared to the consensus estimate of $655.08 million. Affiliated Managers Group had a net margin of 37.72% and a return on equity of 21.94%. The firm's quarterly revenue was up .0% on a year-over-year basis. During the same period last year, the firm posted $6.10 EPS. As a group, sell-side analysts predict that Affiliated Managers Group, Inc. will post 36.87 EPS for the current fiscal year.

Affiliated Managers Group Dividend Announcement

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. bought a new position in Affiliated Managers Group in the 2nd quarter valued at $938,294,000. Dimensional Fund Advisors LP grew its holdings in shares of Affiliated Managers Group by 2.7% during the first quarter. Dimensional Fund Advisors LP now owns 718,313 shares of the asset manager's stock worth $198,746,000 after purchasing an additional 18,865 shares during the last quarter. Bank of America Corp DE bought a new stake in shares of Affiliated Managers Group during the second quarter worth $146,331,000. Bank of New York Mellon Corp grew its holdings in shares of Affiliated Managers Group by 21.5% during the first quarter. Bank of New York Mellon Corp now owns 300,265 shares of the asset manager's stock worth $83,083,000 after purchasing an additional 53,076 shares during the last quarter. Finally, Fisher Asset Management LLC raised its holdings in shares of Affiliated Managers Group by 7.6% in the third quarter. Fisher Asset Management LLC now owns 265,281 shares of the asset manager's stock valued at $96,989,000 after buying an additional 18,818 shares during the last quarter. 95.30% of the stock is owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.