T. Rowe Price Group Inc

On Monday, Rivian announced that it completed a $1.3 billion investment round led by asset manager T. Rowe Price (TROW).

If you’re looking to diversify your portfolio, asset management stocks are worth a look. Here’s how to pick the right asset management stock to invest in.

The Vanguard Group added more than 1.5 million shares and raised its stake in Southern Company (SO) to 7.5% on June 30.

Invesco (IVZ) reported its second-quarter results today, posting EPS of $0.66.

On July 20, State Street (STT) reported its second-quarter earnings. The company’s EPS was $2.05, which surpassed analysts’ expectations by $0.04.

T. Rowe Price’s (TROW) NTM (next-12-month) PE ratio is 15.19x, higher than peers’ average of 10.08x.

Of T. Rowe Price’s (TROW) total assets under management in the first quarter, $579.3 billion comprised equity, $135.8 billion comprised fixed income and money market assets, and $299.1 billion were multi-asset funds.

Donald Trump’s imposition of additional tariffs on $200 billion in Chinese imports has increased trade tension, which could impact the global economy and business.

In the first quarter, BlackRock (BLK) saw inflows of $35.0 billion in its ETF offerings.

In the first quarter, State Street’s Investment Servicing division garnered net interest income of $663.0 million for a YoY increase of 30.0%.

State Street (STT) plans to release its Q2 2018 earnings on July 20. It expects to report EPS of $2.01, a year-over-year increase of 20.35%.

Analysts gave BlackRock a price target of $613.15 on an NTM basis.

In the first quarter, BlackRock managed ~$1.9 trillion in fixed income offerings, up from ~$1.6 trillion in the first quarter of 2017.

BlackRock’s Retail segment manages $638.4 billion in assets, which comprises 10.0% of the company’s total AUM.

At the end of the first quarter, Invesco (IVZ) had total AUM (assets under management) of $934.2 billion.

Of Invesco’s (IVZ) total first-quarter operating revenue of $1.4 billion, the company’s investment management fees contributed $1.0 billion.

In this series, we’ll study the factors that could drive Invesco’s performance, valuations, and analyst ratings.

State Street’s (STT) investment management division garners fee revenue from trading services, management and processing fees, and other revenue.

In the first quarter, State Street’s (STT) fee revenue made up a significant portion of its investment servicing revenue.

T. Rowe Price released its AUM for May on June 12. The company’s AUM was $1.04 trillion—compared to $1.02 trillion in April.

On May 20, T. Rowe Price had an enterprise value of ~$26.9 billion.

T. Rowe Price Group (TROW) exceeded analysts’ expectations on earnings per share and revenues in the first quarter.

At the end of April, T. Rowe Price had total AUM of ~$1.0 trillion.

T. Rowe Price Group reported earnings today for the quarter that ended in March.

State Street beat analysts’ expectations for earnings per share as well as revenues for 1Q18.

On January 31, 2018, Invesco Limited (IVZ) reported its total assets under management (or AUM) of $972.6 billion.

Invesco garnered service and distribution fees of $852.8 million in 2017, compared to $823.6 million in 2016.

On March 31, 2018, Invesco Limited’s (IVZ) total assets under management totaled $934.2 billion, which implies a 1.2% fall compared to February.

State Street Corporation’s (STT) investment management business generated revenues of $1.6 billion in 2017, up from $1.3 billion in 2016.

BlackRock’s (BLK) Retail segment saw a reversal of fund flows in 1Q17, and it increased throughout the year.

Ratings for T. Rowe Price Of the 16 analysts covering T. Rowe Price (TROW) in February and March 2018, two have recommended “strong buy,” three have recommended “buy,” nine have recommended “hold,” and two have recommended “strong sell.” In January 2018, two recommended “strong buy,” two recommended “buy,” nine recommended “hold,” one recommended “sell,” and two recommended “strong sell.” Ratings for peers Of the six analysts covering […]

Price-to-earnings ratio T. Rowe Price (TROW) has an NTM ( next-12-month) PE (price-to-earnings) ratio of 15.0x. Competitors are valued lower, with an average ratio of 15.7x. Peers Franklin Resources (BEN), Financial Engines (FNGN), and BlackRock (BLK) have NTM PE ratios of 11.7x, 17.3x, and 18.2x, respectively. T. Rowe Price’s valuation could fall further, as the company’s […]

Strong outlook T. Rowe Price (TROW) expects global markets to be positive in 2018, in both emerging and developed economies. Economies’ movement towards digitization and innovation is expected to help businesses. In 2018, T. Rowe Price expects global equity markets to be supported by improving business models, technological developments, and shifting consumer preferences. Technology giants’ valuation is increasing […]

Ways to tackle hurdles While T. Rowe Price (TROW) expects to encounter certain long-term challenges, it has identified some measures it may take to tackle them. The company plans to focus on pricing as well as long-term goals. T. Rowe Price has extended its investment strategies, receiving a positive response from clients. To streamline processes, […]

Outlook Based on its investor presentation on February 21, 2018, T. Rowe Price’s (TROW) current vision is more or less the same as its vision in 2017. The company continues to focus on becoming a leader in active investment management. It also plans to generate and deliver long-term value to customers. T. Rowe Price is […]

Total assets under management As of December 31, 2017, T. Rowe Price (TROW) had total AUM (assets under management) of $991.1 billion, of which the company’s US mutual funds contributed $606.3 billion and other investment products contributed $384.8 billion. In 2017, the company’s total AUM appreciated by $180.3 billion. In 2017, T. Rowe Price’s US mutual funds appreciated […]

Favorable outlook T. Rowe Price (TROW) believes that emerging markets may offer significant investment opportunities after their strong momentum in 2017. Because of improving political and economic situations in some developing countries, many global emerging markets can be looked upon for investments. In 2017, emerging markets saw higher economic growth than developed markets. This trend is expected […]

Operating expenses Between 2016 and 2017, T. Rowe Price’s (TROW) operating expenses rose 7.8% to $2.7 billion from $2.5 billion in 2016, and its compensation and related costs rose 11.4% to $1.7 billion from $1.5 billion. The increase was mainly due to higher salaries and related benefits and hiring employees. The company incurred compensation and related costs of $446.3 million […]

Components T. Rowe Price’s (TROW) net revenue comprises three components: investment advisory fees, distribution and servicing fees, and administrative fees. The company’s net revenue rose 13.5% to $4.8 billion in 2017 from $4.2 billion in 2016. Between 2016 and 2017, the company’s investment advisory fees rose 15% from $3.7 billion to $4.3 billion, due to its average […]

Assets under management as of January 2018 T. Rowe Price (TROW) had total AUM (assets under management) of $1.1 trillion as of January 31, 2018, compared with $991 billion in December 2017. Of the $1.1 trillion, the company’s sponsored US mutual funds contributed $637 billion, and other investment portfolios contributed $410 billion. Of the sponsored mutual […]

Asset classes In its investor presentation on February 21, 2018, T. Rowe Price (TROW) stated that its core business is helped by the allocation of its AUM (assets under management) in different asset classes and its strong client base. However, the company also believes that targeting new opportunities is crucial for its core business. Of its total AUM, […]

In this series, we’ll look at T. Rowe Price’s outlook on emerging and global markets, 4Q17 numbers, and future strategies.

The recent fall in stocks globally is expected to put some pressure on asset managers’ (VFH) operating performances in 1Q18.

Asset managers (VFH) are seeking stability in order to attract funds toward either equity or debt offerings.

Wall Street analysts are expecting a limited upside for asset managers (VFH) as well as broader indexes in 2018.

BlackRock (BLK) stock has risen 27.6% over the past six months and 39.0% over the past year.

BlackRock is currently trading at a forward price-to-earnings ratio of 17.6x, compared with the industry average of 18.6x.

Among the major asset managers, BlackRock (BLK) is expected to post sequential and year-over-year growth in earnings per share to $6.38 in 1Q18 and $6.83 in 2Q18.

Analysts gave BlackRock a price target of $614.92 on a next-12-month basis.

BlackRock managed assets worth ~$1.9 trillion on December 31, 2017, compared with ~$1.6 trillion during the previous year.

BlackRock’s (BLK) Retail division attracted $11.0 billion in new flows in 4Q17, compared to outflows of $2.0 billion in 4Q16.

BlackRock’s (BLK) outperformance, estimate beats, and new assets have helped the company command premium valuations.

Asset managers (VFH) have had “buy” to “hold” ratings in recent months since equities are expected to be upbeat in the next few quarters.

Out of the 16 analysts tracking T. Rowe Price Group (TROW) in November 2017, one gave it a “sell” rating, and two analysts have given it a “strong sell” rating.

T. Rowe Price Group’s (TROW) one-year forward price-to-earnings ratio stood at 17.69x, which implies a premium valuation.

T. Rowe Price Group (TROW) witnessed an 11.8% YoY rise in its net revenues in 3Q17.

T. Rowe Price Group’s (TROW) reported earnings per share (or EPS) exceeded Wall Street analyst estimates in 3Q17.

Moat company Polaris Industries (PII) has been doing well this year, returning ~30.0% year-to-date as of October 23, 2017.

BlackRock commands a premium over industry peers and alternative asset managers due to its strong performance across the regions and offerings.

Translating into pricing BlackRock (BLK) commands a premium valuation in the asset management industry, mainly due to its stable and strong inflow, diversified offerings, global asset allocation, fund growth, and consistent earnings. The company is now trading at a forward PE (price-to-earnings) ratio of 17.9x, compared with the industry average of 14.5x. Overall, BlackRock’s valuation has improved in recent weeks, with […]

In 2017, T. Rowe Price Group (TROW) is expected to witness a marginal rise of 4.2% in its dividend distribution as compared to 2016.

T. Rowe Price Group’s (TROW) facility and occupancy costs stood at $83.1 million in 2Q17, which includes depreciation costs of $36.3 million.

The S&P 500 Dividend Aristocrat Index is made up of 51 S&P 500 (SPY) (SPX-INDEX) companies that have increased their dividends for 25 successive years.

BlackRock (BLK) continues to command a premium valuation on stable and strong inflows, the performance of funds, global asset allocation, and consistent earnings.

Asset managers (XLF) are expected to see marginal or no growth in 3Q17 and 2H17, mainly due to lower expected returns from markets that could translate into lower performance income…

Mercury General (MCY) has consistently recorded revenue growth since fiscal 2011, except for a minor decline in fiscal 2015

BlackRock continues to command a premium valuation among other traditional and alternative asset managers—thanks to its diversified offerings.

So far in June 2017, ten of the 14 analysts covering BlackRock (BLK) have rated the stock as a “strong buy” or “buy.” Four analysts have rated it as “hold.”

J.P. Morgan’s Commercial Banking division garnered $2.02 billion in revenues and $799 million in net profits in 1Q17, representing rises of 12% and 61%, respectively, YoY.

T. Rowe (TROW) stock rose 8% over the past three months mainly due to a strong operating performance in 3Q16.

T. Rowe Price (TROW) posted growth of $36.3 billion in its AUM (assets under management) in 3Q16, totaling $812.9 billion.

T. Rowe’s mutual funds’ net cash flows after client transfers accounted for net outflows of $0.2 billion from the stocks and blended asset funds in 3Q16.

In 2Q16, T. Rowe Price Group’s (TROW) funds performance, led by market appreciation, contributed to its assets under management growth of $12 billion.

Affiliated Managers Group (AMG) has been consistently adding assets in spite of highly uncertain global markets.

Affiliated Managers Group (AMG) is expected to post revenues of $567 million in the September quarter. That’s higher than the June quarter but a 7.5% decline YoY.

Affiliated Managers Group’s discount widened due to weak performance. Earnings for other asset managers have started to pick up at a decent pace.

On August 1, Affiliated Managers Group (AMG) reported net 2Q16 profits of $107.4 million—compared to $128.7 million for 2Q15.

Janus Capital Group’s net income last fiscal year stood at $156 million.

OLGAX fell 6.4% in 1Q16. OLGAX fell 3.7% in the one-year period ended March 2016 and ranked ninth among its peer group.

In 2015, T. Rowe Price Group invested $151 million in capitalized technology and facilities. The company’s revenues increased in 4Q15, but expenses rose at a faster pace.

Affiliated Managers Group (AMG) reported that its economic EPS (earnings per share) expanded by 1.6% on a year-over-year basis in 4Q15.

Affiliated Managers Group’s (AMG) senior debt declined, and total stockholder equity, senior notes, and cash and equivalents rose in 4Q15 compared to 4Q14.

T. Rowe Price Group’s (TROW) investment advisory fees increased by 4% to $926 million in 4Q15.

T. Rowe Price Group’s (TROW) total assets under management stood at $763.1 billion, an increase of $37.6 billion from September 30, 2015.

US equities rose 1.4% for the week ended January 22, 2016, mainly due to macroeconomic factors. Oil rebounded steeply on short coverings by hedge funds.

Kapstream contributed $4.9 million in revenues and $2.1 million in operating income to Janus Capital. The company will bring in additional assets totaling $6.6 billion.

Janus Capital (JNS) is focusing on attracting capital outside the United States. Its 20% assets under management are currently from international investors compared to just 8% in 2010.

Janus Capital didn’t perform as well as expected in the first half of 2015, and it was revalued accordingly by the market. But it has focused on innovative offerings such as debt funds to attract capital.

In this article, we’ll compare Eaton Vance with its peers. Peers include Franklin Resources, T. Rowe Price, Legg Mason, and Waddell & Reed Financial.

Eaton Vance reported fiscal 4Q15 revenue of $341.4 million, a fall of 7.3% when compared to the company’s revenue of $368.4 million in fiscal 4Q14.

WisdomTree stock is currently trading at 29x on a one-year forward earnings basis. In comparison, its peers are trading at 16.2x.

Asset managers reported lower profitability for the third quarter of 2015, resulting in falling prices. In turn, this led to lower valuations.

Affiliated Managers announced the addition of new affiliates. The boutique firms included Systematica Investments, Abax Investments, and Ivory Investment.

On November 9, Affiliated Managers Group reported net 3Q15 profits of $109 million compared to $103.2 million in the third quarter of 2014.

In the week ended September 4, 2015, US equities saw total outflows of $1.6 billion compared to $1.4 billion the previous week. The rate rose due to investors pulling out funds on slowing global growth.

In the week ending August 21, US equities saw total outflows of $2.1 billion, compared to outflows of $1.0 billion in the previous week.

Janus Capital Group provides investment management services to financial advisors, individuals, and institutional clients. The company’s 2Q15 revenues topped Wall Street estimates.

In the week ended July 17, US equities saw total outflows of $2.9 billion versus inflows of $0.2 billion in the previous week.

The Investment Banking division provides advice on fund-raising, mergers and acquisitions, and restructuring to corporate, institutional, and wealth management clients.

Legg Mason (LM) announced on May 1 that its assets under management were down by 1% to $702.7 billion when compared with the previous quarter.