Ameriprise Financial (NYSE:AMP) Shares Cross Above 200 Day Moving Average After Earnings Miss

Key Points

• Ameriprise shares rose above their 200-day moving average, reaching $498.84 after the company reported quarterly revenue of $5.08 billion, up 6.8% year over year.
• Reported GAAP earnings of $11.26 per share fell short of the $11.77 consensus estimate, though adjusted earnings were reportedly above expectations; rising expenses contributed to the earnings miss.
• The board authorized a $5.5 billion share-repurchase program, allowing the company to buy back up to 12.3% of outstanding shares through September 2028, while analysts maintain an average “Hold” rating and a $557 price target.

Shares of Ameriprise Financial, Inc. (NYSE:AMP - Get Free Report) passed above its 200-day moving average during trading on Thursday following a better than expected earnings announcement. The stock has a 200-day moving average of $493.07 and traded as high as $498.84. Ameriprise Financial shares last traded at $498.6050, with a volume of 826,034 shares changing hands.

The financial services provider reported $11.26 earnings per share for the quarter, missing the consensus estimate of $11.77 by ($0.51). Ameriprise Financial had a net margin of 20.24% and a return on equity of 64.19%. The company had revenue of $5.08 billion during the quarter, compared to the consensus estimate of $5.10 billion. During the same quarter in the previous year, the business posted $9.92 EPS. The firm's quarterly revenue was up 6.8% on a year-over-year basis.

Ameriprise Financial declared that its board has approved a stock repurchase plan on Tuesday, September 29th that permits the company to repurchase $5.50 billion in outstanding shares. This repurchase authorization permits the financial services provider to reacquire up to 12.3% of its stock through open market purchases. Share repurchase plans are typically an indication that the company's management believes its stock is undervalued.

Key Ameriprise Financial News

Here are the key news stories impacting Ameriprise Financial this week:

• Positive Sentiment: Ameriprise authorized a new $5.5 billion share-repurchase program running through September 30, 2028. The buyback, combined with return on equity above 56%—reported at 64.19% in one earnings release—signals management’s confidence and could support per-share earnings. Ameriprise outlines $5.5B buyback authorization
• Positive Sentiment: The company declared its regular $1.70 quarterly dividend, payable November 27 to shareholders of record November 9. Revenue also rose 6.8% year over year, while assets under management and related business metrics showed growth. Ameriprise Financial declares regular quarterly dividend
• Neutral Sentiment: Third-quarter results were reported differently depending on the earnings measure used. Zacks cited adjusted earnings of $12.07 per share, above its $11.60 consensus estimate, while MarketBeat reported GAAP EPS of $11.26, below the $11.77 consensus. Revenue was approximately $5.08 billion versus a $5.10 billion estimate, making the quality of earnings and expense trends important for investors. Ameriprise Q3 earnings and revenue
• Negative Sentiment: Rising expenses weighed on reported results and contributed to the GAAP earnings miss. Investors may also remain cautious about artificial-intelligence disruption risks affecting financial advice and asset management, although one analysis argues those concerns have created a valuation opportunity. Ameriprise Q3 earnings miss

Wall Street Analysts Forecast Growth

AMP has been the topic of several recent research reports. Evercore decreased their price objective on Ameriprise Financial from $625.00 to $623.00 in a report on Friday, July 24th. Piper Sandler upped their target price on Ameriprise Financial from $518.00 to $561.00 in a research note on Thursday, July 23rd. Argus raised their target price on Ameriprise Financial from $534.00 to $590.00 and gave the stock a "buy" rating in a research report on Friday, July 31st. Keefe, Bruyette & Woods lifted 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 note on Friday, July 24th. Finally, Jefferies Financial Group decreased their price target on shares of Ameriprise Financial from $645.00 to $638.00 in a research note on Monday, October 12th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $557.00.

Insider Activity

In other news, EVP Deirdre Mcgraw sold 2,400 shares of the business's stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $558.28, for a total value of $1,339,872.00. Following the transaction, the executive vice president directly owned 3,373 shares of the company's stock, valued at $1,883,078.44. The trade was a 41.57% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Dawn Brockman sold 472 shares of the business's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $558.93, for a total value of $263,814.96. Following the completion of the transaction, the senior vice president directly owned 713 shares in the company, valued at approximately $398,517.09. This represents a 39.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.60% of the stock is currently owned by corporate insiders.

Institutional Trading of Ameriprise Financial

A number of institutional investors have recently bought and sold shares of the business. Twin Lakes Capital Management LLC acquired a new position in shares of Ameriprise Financial in the 2nd quarter valued at $25,000. Balance Wealth Partners LLC acquired a new stake in shares of Ameriprise Financial during the third quarter worth $27,000. University of Texas Texas AM Investment Management Co. acquired a new stake in shares of Ameriprise Financial during the second quarter worth $28,000. City State Bank grew its stake in shares of Ameriprise Financial by 264.7% during the third quarter. City State Bank now owns 62 shares of the financial services provider's stock worth $31,000 after purchasing an additional 45 shares during the period. Finally, Cassaday & Co Wealth Management LLC bought a new stake in Ameriprise Financial in the first quarter valued at about $28,000. Institutional investors and hedge funds own 83.95% of the company's stock.

Ameriprise Financial Stock Up 1.8%

The business has a fifty day moving average of $520.69 and a 200 day moving average of $493.07. 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 firm has a market cap of $44.82 billion, a P/E ratio of 12.03, a P/E/G ratio of 1.05 and a beta of 1.16.

Ameriprise Financial Company Profile

Ameriprise Financial, Inc NYSE: AMP is a diversified financial services company that provides advice, wealth management, asset management, insurance and retirement solutions. Through its network of financial advisors and digital platforms, the company serves individuals, families, businesses and institutions with financial planning, investment management and related services.

Its products and services include brokerage and advisory accounts, mutual funds and exchange-traded funds, retirement plans, annuities, life and long-term care insurance, banking services and financial planning.

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