T. Rowe Price Group Inc. (TROW) Stock Rating Lowered by Zacks Investment Research
T. Rowe Price Group Inc. (NASDAQ:TROW) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.
According to Zacks, “We believe that T. Rowe Price’s bottom-line growth may suffer as operating expenses continue to climb up. Notably, due to several strategic initiatives, management expects the company’s operating expenses growth rate in 2017 to be higher than 2016 level. Further, amid the low rate environment, the company continues to waive fees in its money market mutual funds, thereby impacting top-line growth. Also, stringent regulatory norms remain near-term headwind. However, organic growth, steady capital deployment activities and diverse business model remain key strengths for the company.”
TROW has been the topic of several other research reports. JPMorgan Chase & Co. lowered their target price on shares of T. Rowe Price Group from $75.00 to $65.00 and set an “underweight” rating on the stock in a report on Wednesday, July 27th. Deutsche Bank AG lowered their target price on shares of T. Rowe Price Group from $86.00 to $82.00 and set a “buy” rating on the stock in a report on Thursday, June 16th. Barclays PLC lowered their target price on shares of T. Rowe Price Group from $76.00 to $72.00 and set an “equal weight” rating on the stock in a report on Wednesday, August 24th. Morgan Stanley lowered their target price on shares of T. Rowe Price Group from $74.00 to $71.00 and set an “equal weight” rating on the stock in a report on Thursday, July 28th. Finally, Citigroup Inc. lowered their target price on shares of T. Rowe Price Group from $78.00 to $72.00 and set a “neutral” rating on the stock in a report on Wednesday, July 27th. Three research analysts have rated the stock with a sell rating, eight have given a hold rating and four have given a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average target price of $75.27.
Shares of T. Rowe Price Group (NASDAQ:TROW) opened at 66.35 on Tuesday. The firm has a 50-day moving average of $68.14 and a 200-day moving average of $72.23. T. Rowe Price Group has a 12-month low of $63.57 and a 12-month high of $79.00. The firm has a market cap of $16.49 billion, a P/E ratio of 15.98 and a beta of 1.18.
T. Rowe Price Group (NASDAQ:TROW) last issued its earnings results on Tuesday, July 26th. The company reported $0.76 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.72 by $0.04. The business had revenue of $1,000 million for the quarter, compared to the consensus estimate of $1.03 billion. T. Rowe Price Group had a net margin of 25.77% and a return on equity of 22.25%. The business’s quarterly revenue was down 2.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.24 earnings per share. On average, equities analysts forecast that T. Rowe Price Group will post $4.23 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 29th. Stockholders of record on Thursday, September 15th will be given a $0.54 dividend. This represents a $2.16 dividend on an annualized basis and a dividend yield of 3.26%. The ex-dividend date of this dividend is Tuesday, September 13th. T. Rowe Price Group’s dividend payout ratio is presently 52.17%.
Several institutional investors have recently bought and sold shares of TROW. Quadrant Capital Group LLC raised its position in T. Rowe Price Group by 2.5% in the second quarter. Quadrant Capital Group LLC now owns 1,711 shares of the company’s stock worth $119,000 after buying an additional 42 shares in the last quarter. Euclid Advisors LLC purchased a new position in T. Rowe Price Group during the second quarter worth $123,000. Societe Generale purchased a new position in T. Rowe Price Group during the second quarter worth $126,000. Dubuque Bank & Trust Co. raised its position in T. Rowe Price Group by 1,479.6% in the first quarter. Dubuque Bank & Trust Co. now owns 1,785 shares of the company’s stock worth $131,000 after buying an additional 1,672 shares in the last quarter. Finally, WFG Advisors LP raised its position in T. Rowe Price Group by 22.2% in the second quarter. WFG Advisors LP now owns 1,870 shares of the company’s stock worth $136,000 after buying an additional 340 shares in the last quarter. 69.64% of the stock is owned by institutional investors and hedge funds.
About T. Rowe Price Group
T. Rowe Price Group, Inc is a financial services holding company. The Company provides global investment management services to individual and institutional investors in the sponsored T. Rowe Price mutual funds distributed in the United States and other investment portfolios. It operates through investment advisory business segment.
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