Zacks Investment Research cut shares of Affiliated Managers Group (NYSE:AMG) from a buy rating to a hold rating in a report issued on Monday.
According to Zacks, “Affiliated Managers’ shares have underperformed the industry, over the past six months. Yet, the company has an impressive earnings surprise history, as it surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The company remains well positioned for growth based on successful partnerships, a diverse product mix and initiatives undertaken to strengthen its retail market operations. Also, inflows are expected to get an impetus with broad distribution across channels and product categories. However, pressure on revenues owing to significant market volatility remains a major concern for the company. Also, the company’s exposure toward high debt levels might limit its flexibility in terms of procuring additional finance for working capital, capital expenditures and other needs.”
AMG has been the topic of a number of other research reports. Barrington Research upped their price objective on shares of Affiliated Managers Group to $240.00 and gave the stock an outperform rating in a report on Tuesday, January 30th. They noted that the move was a valuation call. Credit Suisse Group restated a hold rating and issued a $215.00 price objective on shares of Affiliated Managers Group in a report on Friday, January 12th. Goldman Sachs Group cut shares of Affiliated Managers Group from a buy rating to a neutral rating and set a $216.00 price objective on the stock. in a report on Tuesday, January 9th. Citigroup upgraded shares of Affiliated Managers Group from a neutral rating to a buy rating in a report on Friday, January 19th. Finally, Deutsche Bank cut their price objective on shares of Affiliated Managers Group from $215.00 to $213.00 and set a buy rating on the stock in a report on Tuesday, March 6th. Three research analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. The stock has an average rating of Buy and an average price target of $228.00.
Affiliated Managers Group (NYSE AMG) opened at $194.73 on Monday. Affiliated Managers Group has a 52-week low of $148.81 and a 52-week high of $216.99. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.59 and a current ratio of 0.59. The stock has a market cap of $10,687.25, a PE ratio of 16.13, a P/E/G ratio of 0.70 and a beta of 1.55.
Affiliated Managers Group (NYSE:AMG) last announced its quarterly earnings data on Monday, January 29th. The asset manager reported $4.68 earnings per share for the quarter, topping the Zacks’ consensus estimate of $4.55 by $0.13. The business had revenue of $604.10 million for the quarter, compared to analysts’ expectations of $608.51 million. Affiliated Managers Group had a net margin of 29.92% and a return on equity of 18.61%. The business’s revenue was up 9.8% compared to the same quarter last year. During the same quarter in the prior year, the company earned $3.80 earnings per share. research analysts forecast that Affiliated Managers Group will post 17.55 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Friday, February 23rd. Stockholders of record on Thursday, February 8th were paid a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 0.62%. The ex-dividend date was Wednesday, February 7th. This is an increase from Affiliated Managers Group’s previous quarterly dividend of $0.20. Affiliated Managers Group’s dividend payout ratio is currently 9.94%.
Affiliated Managers Group declared that its Board of Directors has initiated a stock repurchase program on Monday, January 29th that permits the company to repurchase 3,400,000 outstanding shares. This repurchase authorization permits the asset manager to reacquire shares of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its stock is undervalued.
In other news, CFO Jay C. Horgen sold 30,000 shares of the company’s stock in a transaction that occurred on Thursday, March 8th. The shares were sold at an average price of $189.59, for a total value of $5,687,700.00. Following the transaction, the chief financial officer now owns 114,039 shares in the company, valued at $21,620,654.01. The sale was disclosed in a legal filing with the SEC, which is available at this link. Corporate insiders own 1.40% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of AMG. Amundi Pioneer Asset Management Inc. lifted its stake in shares of Affiliated Managers Group by 156.0% in the third quarter. Amundi Pioneer Asset Management Inc. now owns 714,516 shares of the asset manager’s stock worth $135,637,000 after buying an additional 435,440 shares in the last quarter. Schroder Investment Management Group lifted its stake in shares of Affiliated Managers Group by 95.2% in the fourth quarter. Schroder Investment Management Group now owns 820,584 shares of the asset manager’s stock worth $168,425,000 after buying an additional 400,122 shares in the last quarter. Jane Street Group LLC lifted its stake in shares of Affiliated Managers Group by 101.1% in the third quarter. Jane Street Group LLC now owns 3,939 shares of the asset manager’s stock worth $748,000 after buying an additional 366,268 shares in the last quarter. Deutsche Bank AG lifted its stake in shares of Affiliated Managers Group by 59.8% in the fourth quarter. Deutsche Bank AG now owns 663,082 shares of the asset manager’s stock worth $136,090,000 after buying an additional 248,112 shares in the last quarter. Finally, Atlanta Capital Management Co. L L C lifted its stake in shares of Affiliated Managers Group by 6.1% in the fourth quarter. Atlanta Capital Management Co. L L C now owns 2,052,330 shares of the asset manager’s stock worth $421,240,000 after buying an additional 117,377 shares in the last quarter. Hedge funds and other institutional investors own 96.62% of the company’s stock.
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About Affiliated Managers Group
Affiliated Managers Group, Inc is an asset management company with equity investments in boutique investment management firms. The Company operates in three segments, which represent its principal distribution channels: Institutional, Mutual Fund and High Net Worth. The equity method investments in the Institutional distribution channel are made in relationships with public and private client entities, including foundations, endowments, sovereign wealth funds and retirement plans for corporations and municipalities.
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