Trade Report: Today, T. Rowe Price Group Inc. (TROW) Cut to Hold at Zacks Investment Research

Today, T. Rowe Price Group Inc. (TROW) Cut to Hold at Zacks Investment Research

T. Rowe Price Group Inc. (NASDAQ:TROW) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Tuesday.

According to Zacks, “T. Rowe Price’s estimates have been increasing lately ahead of its third-quarter 2016 earnings release. It’s planned strategic initiatives like investment in technology and advisory services, along with introduction of new products, should boost long-term growth. Further, the company is likely to benefit from growth opportunities in the domestic and global assets under management (AUM). Also, it remains debt-free with ample liquidity and is focused on boosting shareholders’ confidence via strong capital deployment activities. However, due to several strategic initiatives, management expects the company’s operating expenses growth rate in 2017 to exceed 2016 level, which will hurt bottom-line growth.”

TROW has been the subject of a number of other reports. Jefferies Group cut their price objective on shares of T. Rowe Price Group from $83.00 to $80.00 and set a “buy” rating for the company in a research report on Tuesday, October 11th. Keefe, Bruyette & Woods cut their price objective on shares of T. Rowe Price Group from $81.00 to $75.00 and set a “market perform” rating for the company in a research report on Wednesday, July 27th. TheStreet lowered shares of T. Rowe Price Group from a “buy” rating to a “hold” rating in a research report on Tuesday, July 26th. Barclays PLC cut their price objective on shares of T. Rowe Price Group from $72.00 to $68.00 and set an “equal weight” rating for the company in a research report on Thursday, October 13th. Finally, Citigroup Inc. cut their price objective on shares of T. Rowe Price Group from $78.00 to $72.00 and set a “neutral” rating for the company in a research report on Wednesday, July 27th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and four have assigned a buy rating to the stock. T. Rowe Price Group presently has an average rating of “Hold” and an average target price of $75.21.

Shares of T. Rowe Price Group (NASDAQ:TROW) remained flat at $65.05 during trading on Tuesday. 596,444 shares of the company were exchanged. T. Rowe Price Group has a one year low of $63.57 and a one year high of $79.00. The stock’s 50-day moving average price is $67.17 and its 200-day moving average price is $71.62. The company has a market cap of $16.17 billion, a P/E ratio of 15.67 and a beta of 1.17.

T. Rowe Price Group (NASDAQ:TROW) last posted its earnings results on Tuesday, July 26th. The company reported $0.76 earnings per share for the quarter, topping the consensus estimate of $0.72 by $0.04. The firm earned $1,000 million during 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 company’s revenue was down 2.6% on a year-over-year basis. During the same quarter last year, the company earned $1.24 earnings per share. On average, equities analysts predict that T. Rowe Price Group will post $4.24 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 29th. Shareholders of record on Thursday, September 15th were paid a dividend of $0.54 per share. This represents a $2.16 annualized dividend and a dividend yield of 3.32%. The ex-dividend date was Tuesday, September 13th. T. Rowe Price Group’s dividend payout ratio (DPR) is presently 52.17%.

Hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. increased its position in T. Rowe Price Group by 2.2% in the second quarter. Vanguard Group Inc. now owns 16,984,709 shares of the company’s stock valued at $1,239,376,000 after buying an additional 362,416 shares during the period. JPMorgan Chase & Co. increased its position in shares of T. Rowe Price Group by 1.3% in the second quarter. JPMorgan Chase & Co. now owns 11,341,487 shares of the company’s stock valued at $827,589,000 after buying an additional 141,941 shares during the last quarter. BlackRock Institutional Trust Company N.A. increased its position in shares of T. Rowe Price Group by 1.9% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 6,649,826 shares of the company’s stock valued at $485,238,000 after buying an additional 126,349 shares during the last quarter. Ameriprise Financial Inc. increased its position in shares of T. Rowe Price Group by 4.2% in the second quarter. Ameriprise Financial Inc. now owns 4,608,429 shares of the company’s stock valued at $336,259,000 after buying an additional 186,943 shares during the last quarter. Finally, Generation Investment Management LLP increased its position in shares of T. Rowe Price Group by 4.3% in the second quarter. Generation Investment Management LLP now owns 3,887,714 shares of the company’s stock valued at $283,686,000 after buying an additional 161,664 shares during the last quarter. 69.61% of the stock is currently owned by hedge funds and other institutional investors.

T. Rowe Price Group Company Profile

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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