As we approach Q2 of 2023, T. Rowe Price Group, Inc. has been assigned an average recommendation of “Hold” from the fourteen research firms that are covering the company, according to Bloomberg.com reports. The company’s shares have received mixed reviews with five analysts rating it as a sell and six analysts assigning it a hold rating. But what does this all mean for investors?
The average twelve-month price target among analysts that have updated their coverage on the stock in the last year is $93.30, indicating modest future growth potential. In addition, the company recently disclosed its quarterly dividend which will be paid on Thursday, June 29th to investors of record on Thursday, June 15th. This represents a $4.88 dividend on an annualized basis and a yield of 4.60%. T. Rowe Price Group’s payout ratio is currently 79.87%, indicating sound financials.
It is interesting to note that large institutional investors such as Vanguard Group Inc., State Street Corp, Geode Capital Management LLC, Charles Schwab Investment Management Inc., and American Century Companies Inc., have recently added to or reduced their stakes in the stock.
Vanguard Group Inc., one of the largest investors in T.Rowe Price Group, grew its stake by acquiring an additional 3,786,970 shares during Q3 of 2022 resulting in over $2 billion worth of holdings at present time.
State Street Corp also increased their stake significantly by snapping up another 1,458,948 shares during Q3 of last year alone resulting in current holdings valued at almost $1.5 billion today.
Geode Capital Management LLC added even more shares during Q4 of last year with an increase by over 32k positions.
Charles Schwab Investment Management Inc., not far behind, increased their stake in T.Rowe Price Group by over 10% during Q4 of last year bringing them to just under $524 million in holdings today.
Finally, American Century Companies Inc. grew by 2.4% during Q4 of 2022 while still maintaining an exceptional position with almost $379 million worth of T.Rowe Price Group stock.
What we can deduce from all of this is that institutional investors are confident in the future prospects of T.Rowe Price Group, appreciating its dividend payouts and sound financials. In conclusion, while there may be numerical inconsistencies in the rating and analysis among analysts, a vast growth in institutional interest may reassure investors who are considering buying stake in the company for long-term profitability goals.
Mixed Reviews for T. Rowe Price Group Amidst Turbulent Stock Market
T. Rowe Price Group, a leading asset management company, has not been immune to the recent turbulence in the stock market. Several analysts have released reports on the group offering some mixed reviews on its trading future. While some have downgraded TROW shares and cut their target price, others continue to maintain a bullish view of their prospects.
JPMorgan Chase & Co., BMO Capital Markets, and Deutsche Bank Aktiengesellschaft reduced their target prices on T. Rowe Price Group from $96.00 to $95.00, $105.00 to $90.00, and $121.00 to $113.00 respectively while VNET Group reaffirmed a “maintains” rating and Evercore ISI cut its price objective from $101.00 to $98.00.
The sale of insider Jessica M. Hiebler’s 1,881 shares of the business stock occurred on Wednesday, May 3rd at an average price of $106.66 for a total value of $200,627.46 with the buyer receiving around 11% discount compared to market rates.
T.Rowe Price recently announced that it would pay out a quarterly dividend on Thursday, June 29th at a rate of $1.22 per share with ex-dividend date being June 14th and represent an annualized yield of roughly 4.60%.
Although TROW’s P/E ratio is currently at 17:36 and it has seen some volatility in recent months following lows or highs in share price due to industry challenges or performances including decreasing revenue during Q2 2022 and beating analysts’ consensus estimates during Q1 yielding earnings per share (EPS) returns above predictions alongside returns on equity of approximately 17% for shareholders who own stocks as insiders within T.Rowe Price Group accounting for about two percent (2%) ownership stake in the equities.
With the investment in T.Rowe Price Group, investors are holding stocks in a business with a solid reputation on Wall Street and will depend on the stock to recover from recent challenges. Industry watchers urge caution to small investors while assuring them of its sustainability in the long term. The 50-day moving average price for TROW is currently $109.75 whilst their 200-day average rests at approximately $113.99, making it an intriguing opportunity for value investing enthusiast looking for new opportunities in the asset management sector.
