Westwood Holdings Group (NYSE:WHG) Releases Earnings Results

Westwood Holdings Group (NYSE:WHG) announced its quarterly earnings data on Thursday. The asset manager reported $0.48 EPS for the quarter, FiscalAI reports. The company had revenue of $26.57 million during the quarter. Westwood Holdings Group had a return on equity of 8.10% and a net margin of 7.73%.

Here are the key takeaways from Westwood Holdings Group’s conference call:

• Revenue rose to $26.6 million from $24.3 million a year earlier, supported by ETF and private energy fund growth and higher private capital distributions. ETFs reached $430 million at quarter-end and about $460 million shortly afterward; private fundraising brought in nearly $200 million year to date.
• Assets under management had $300 million in net outflows and $600 million in market depreciation during the quarter. Mutual funds and ETFs recorded $87 million in net outflows, despite positive ETF flows within that channel.
• Net income declined to $3.1 million from $3.7 million a year earlier, while non-GAAP Economic Earnings fell to $4.4 million from $5.7 million. The company attributed the declines in part to $1.7 million in severance-related expenses, higher professional services costs, and higher taxes.
• Westwood launched PowerX, the first ETF listed on the Texas Stock Exchange, and reported about $30 million in new private capital commitments for the quarter. Management also highlighted funding of a large Fortune 50 defined-contribution mandate in its SMidCap strategy.
• Management cited competitive long-term results across several strategies, including outperformance by all U.S. value strategies since inception, while noting that results varied across other strategy groups. The board approved a regular dividend of $0.15 per share.

Westwood Holdings Group Trading Down 3.2%

Shares of WHG traded down $0.62 during midday trading on Thursday, hitting $18.62. The stock had a trading volume of 9,523 shares, compared to its average volume of 16,069. The business has a 50-day simple moving average of $18.96 and a two-hundred day simple moving average of $17.91. The firm has a market cap of $176.71 million, a P/E ratio of 21.16 and a beta of 0.57. Westwood Holdings Group has a fifty-two week low of $14.70 and a fifty-two week high of $20.97.

Analyst Ratings Changes

Separately, Weiss Ratings raised Westwood Holdings Group from a “buy (b)” rating to a “buy (b+)” rating in a research report on Thursday, October 8th. One research analyst has rated the stock with a Buy rating. Based on data from MarketBeat, the stock currently has a consensus rating of “Buy”.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of WHG. Allspring Global Investments Holdings LLC increased its holdings in shares of Westwood Holdings Group by 1.2% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 599,542 shares of the asset manager’s stock valued at $11,637,000 after purchasing an additional 6,975 shares during the period. Empowered Funds LLC purchased a new stake in shares of Westwood Holdings Group in the second quarter worth approximately $843,000. Bank of America Corp DE purchased a new stake in shares of Westwood Holdings Group in the second quarter worth approximately $887,000. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of Westwood Holdings Group during the second quarter worth approximately $264,000. Finally, De Lisle Partners LLP acquired a new stake in shares of Westwood Holdings Group during the second quarter worth approximately $960,000. Hedge funds and other institutional investors own 56.64% of the company’s stock.

Westwood Holdings Group Company Profile

Westwood Holdings Group, Inc is an investment management firm headquartered in Dallas, Texas. Through its subsidiaries, the company provides investment advisory and asset management services to institutional investors, private wealth clients, family offices and investment vehicles.

Westwood manages a range of investment strategies, including equity, income, multi-asset and alternative offerings. Its products and services are designed to address the needs of pension plans, endowments, foundations, corporations, high-net-worth individuals and other investors seeking professionally managed portfolios.

Founded in 1983, Westwood serves clients primarily in the United States and has expanded its capabilities through internal investment teams and strategic acquisitions.