Zacks Investment Research lowered shares of Affiliated Managers Group (NYSE:AMG) from a buy rating to a hold rating in a report released on Monday, March 12th.
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 subject of several other reports. Barrington Research raised their target price on Affiliated Managers Group to $240.00 and gave the stock an outperform rating in a research report on Tuesday, January 30th. They noted that the move was a valuation call. Credit Suisse Group reiterated a hold rating and set a $215.00 price objective on shares of Affiliated Managers Group in a research note on Friday, January 12th. Goldman Sachs lowered Affiliated Managers Group from a buy rating to a neutral rating and set a $216.00 price objective for the company. in a research note on Tuesday, January 9th. Citigroup upgraded Affiliated Managers Group from a neutral rating to a buy rating in a research note on Friday, January 19th. Finally, Deutsche Bank dropped their price objective on Affiliated Managers Group from $215.00 to $213.00 and set a buy rating for the company in a research note on Tuesday, March 6th. Three equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. Affiliated Managers Group presently has a consensus rating of Buy and an average target price of $228.00.
Shares of AMG stock opened at $190.66 on Monday. The firm has a market capitalization of $10,485.07, a P/E ratio of 15.80, a PEG ratio of 0.69 and a beta of 1.55. Affiliated Managers Group has a 12-month low of $148.81 and a 12-month high of $216.99. The company has a debt-to-equity ratio of 0.23, a current ratio of 0.59 and a quick ratio of 0.59.
Affiliated Managers Group (NYSE:AMG) last issued its earnings results on Monday, January 29th. The asset manager reported $4.68 EPS for the quarter, topping the consensus estimate of $4.55 by $0.13. The firm had revenue of $604.10 million during the quarter, compared to analysts’ expectations of $608.51 million. Affiliated Managers Group had a return on equity of 18.61% and a net margin of 29.92%. Affiliated Managers Group’s quarterly revenue was up 9.8% compared to the same quarter last year. During the same period last year, the business earned $3.80 earnings per share. sell-side analysts anticipate that Affiliated Managers Group will post 17.55 EPS for the current fiscal year.
Affiliated Managers Group announced that its Board of Directors has authorized a share buyback plan on Monday, January 29th that allows the company to repurchase 3,400,000 shares. This repurchase authorization allows the asset manager to purchase shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board believes its stock is undervalued.
The firm 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. The ex-dividend date of this dividend was Wednesday, February 7th. This is a positive change from Affiliated Managers Group’s previous quarterly dividend of $0.20. This represents a $1.20 dividend on an annualized basis and a dividend yield of 0.63%. Affiliated Managers Group’s dividend payout ratio (DPR) is 9.94%.
In other news, CFO Jay C. Horgen sold 30,000 shares of the firm’s stock in a transaction on Thursday, March 8th. The stock was sold at an average price of $189.59, for a total value of $5,687,700.00. Following the completion of the sale, the chief financial officer now directly owns 114,039 shares in the company, valued at $21,620,654.01. The sale was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 1.40% of the company’s stock.
Large investors have recently made changes to their positions in the company. Forte Capital LLC ADV increased its stake in shares of Affiliated Managers Group by 2.7% in the fourth quarter. Forte Capital LLC ADV now owns 18,512 shares of the asset manager’s stock valued at $3,799,000 after buying an additional 495 shares in the last quarter. BNP Paribas Arbitrage SA increased its stake in shares of Affiliated Managers Group by 31.6% in the third quarter. BNP Paribas Arbitrage SA now owns 35,948 shares of the asset manager’s stock valued at $6,824,000 after buying an additional 8,641 shares in the last quarter. Candriam Luxembourg S.C.A. acquired a new stake in shares of Affiliated Managers Group in the fourth quarter valued at $222,000. Rhumbline Advisers increased its stake in shares of Affiliated Managers Group by 2.1% in the third quarter. Rhumbline Advisers now owns 103,393 shares of the asset manager’s stock valued at $19,627,000 after buying an additional 2,148 shares in the last quarter. Finally, JPMorgan Chase & Co. increased its stake in shares of Affiliated Managers Group by 16.3% in the third quarter. JPMorgan Chase & Co. now owns 593,301 shares of the asset manager’s stock valued at $112,364,000 after buying an additional 83,018 shares in the last quarter. Institutional investors own 96.63% of the company’s stock.
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Affiliated Managers Group Company Profile
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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