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Spotlight on the Asset Management Subsector

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Updated

Analysts’ recommendations

Among the 209 analysts following the ten stocks in the asset management subsector, 92 have given it a “buy” rating. Fourteen analysts have a negative view on the industry and have given it a “sell” rating. The majority, 103 analysts, have rated it a “hold.”

Within the sector, analysts are extremely upbeat about Invesco, as the stock has received a “buy” rating from 19 analysts and a “hold” rating from five. There are currently no “sell” ratings on this stock.

In contrast, Wall Street (SPY) analysts have negative expectations for Northern Trust stock, which has received only four “buy” ratings. Five analysts believe the stock should be sold, and 15 have rated it “hold.”

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Price targets

Northern Trust has surpassed the analysts’ price target of $77.33 by 1.2%. All other asset management stocks trade below analyst’s price estimates.

Comparatively, Invesco is trading at a discount of 16.3% to its target of $46.12. On average, the asset management subsector trades 9.5% below analysts’ price targets.

During the week, BlackRock (BLK), State Street (STT), and Northern Trust (NTRS) declared their second-quarter earnings. While BlackRock and Northern Trust beat analysts’ estimates, State Street reported in line results. In later parts of this series, we’ll take a closer look at the earnings for these stocks.

Moving average trends

Northern Trust has broken out from its 100-day moving average of $73.70 and closed 5.4% above at $79 on July 23.

Legg Mason (LM) trades 10% below its 100-day moving average of $54.10 and is also below its 20-day and 50-day moving averages of $50.80 and $52.60, respectively.

Invesco is trading above its 20-day moving average of $37.90 but below its 100-day and 50-day moving averages of $39.80 and $39.20, respectively. The stock closed at $38 on July 23.

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