Zacks Investment Research Lowers T. Rowe Price Group (TROW) to Hold

Zacks Investment Research lowered shares of T. Rowe Price Group (NASDAQ:TROW) from a buy rating to a hold rating in a research report released on Monday morning.

According to Zacks, “Shares of T. Rowe Price have outperformed the industry, year to date. Further, the company possesses a decent earnings surprise history, beating the Zacks Consensus Estimate in two of the trailing four quarters. The third-quarter 2018 results were driven by growth in revenues and AUM. However, higher expenses were an undermining factor. The company’s planned strategic initiatives, including investment in technology and advisory services, strengthening distribution platform, introduction of products, will likely stoke long-term growth. Further, it remains debt free with sufficient liquidity and is focused on raising shareholders’ confidence through steady capital-deployment activities. Though rising costs and the regulatory pressure across the investment management industry remain key concerns, robust organic growth and diverse business model keep the company well poised for growth.”

Several other research firms have also weighed in on TROW. Deutsche Bank increased their price target on T. Rowe Price Group from $118.00 to $119.00 and gave the company a hold rating in a report on Thursday, September 27th. BidaskClub lowered T. Rowe Price Group from a hold rating to a sell rating in a report on Saturday, August 18th. Wells Fargo & Co decreased their price target on T. Rowe Price Group from $115.00 to $106.00 and set a market perform rating on the stock in a report on Friday, October 26th. UBS Group decreased their price target on T. Rowe Price Group from $127.00 to $121.00 and set a neutral rating on the stock in a report on Monday, October 8th. Finally, Citigroup decreased their price target on T. Rowe Price Group from $113.00 to $105.00 and set a hold rating on the stock in a report on Monday. Two investment analysts have rated the stock with a sell rating, eight have given a hold rating and two have assigned a buy rating to the company. The stock has a consensus rating of Hold and a consensus target price of $114.11.

Shares of TROW traded down $1.08 during mid-day trading on Monday, hitting $96.94. 612,089 shares of the stock were exchanged, compared to its average volume of 1,867,128. The stock has a market capitalization of $23.16 billion, a price-to-earnings ratio of 17.85, a price-to-earnings-growth ratio of 1.18 and a beta of 1.19. T. Rowe Price Group has a 52-week low of $90.95 and a 52-week high of $127.43.

T. Rowe Price Group (NASDAQ:TROW) last issued its quarterly earnings data on Thursday, October 25th. The asset manager reported $2.30 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.93 by $0.37. The business had revenue of $1.39 billion for the quarter, compared to analysts’ expectations of $1.38 billion. T. Rowe Price Group had a return on equity of 29.52% and a net margin of 33.98%. During the same period in the prior year, the firm earned $1.56 EPS. As a group, analysts expect that T. Rowe Price Group will post 7.37 earnings per share for the current year.

The business also recently declared a quarterly dividend, which will be paid on Friday, December 28th. Investors of record on Friday, December 14th will be issued a dividend of $0.70 per share. The ex-dividend date is Thursday, December 13th. This represents a $2.80 annualized dividend and a yield of 2.89%. T. Rowe Price Group’s payout ratio is presently 51.57%.

A number of large investors have recently added to or reduced their stakes in the stock. Cubist Systematic Strategies LLC bought a new position in T. Rowe Price Group in the 1st quarter valued at $343,000. WINTON GROUP Ltd grew its position in T. Rowe Price Group by 101.9% in the 1st quarter. WINTON GROUP Ltd now owns 6,139 shares of the asset manager’s stock valued at $663,000 after acquiring an additional 3,099 shares during the last quarter. Summit Trail Advisors LLC grew its position in T. Rowe Price Group by 23,361.8% in the 1st quarter. Summit Trail Advisors LLC now owns 179,483 shares of the asset manager’s stock valued at $179,000 after acquiring an additional 178,718 shares during the last quarter. Principal Financial Group Inc. grew its position in T. Rowe Price Group by 2.0% in the 1st quarter. Principal Financial Group Inc. now owns 402,221 shares of the asset manager’s stock valued at $43,428,000 after acquiring an additional 7,746 shares during the last quarter. Finally, Gulf International Bank UK Ltd grew its position in T. Rowe Price Group by 3.0% in the 2nd quarter. Gulf International Bank UK Ltd now owns 78,082 shares of the asset manager’s stock valued at $9,064,000 after acquiring an additional 2,250 shares during the last quarter. Institutional investors own 70.27% of the company’s stock.

About T. Rowe Price Group

T. Rowe Price Group, Inc is a publicly owned investment manager. The firm provides its services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions. It launches and manages equity and fixed income mutual funds. The firm invests in the public equity and fixed income markets across the globe.

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