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Minneapolis, Minnesota-based Ameriprise Financial, Inc. (AMP) provides various financial products and services to individual and institutional clients in the U.S. and internationally. With a market cap of $46.7 billion, Ameriprise operates through Advice & Wealth Management, Asset Management, Retirement & Protection Solutions, and Corporate & Other segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Ameriprise fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the asset management industry. The company has a nationwide network of approximately 10,000 financial advisors with expertise to serve the full range of individual and institutional investors' financial needs.
Despite its notable strengths, AMP stock has plunged 16.5% from its all-time high of $582.05 touched on Jan. 30. AMP has dropped 11.6% over the past three months, underperforming the Dow Jones Industrials Average’s ($DOWI) 5.3% decline during the same time frame.
Despite the recent downturn, Ameriprise’s performance looks much more impressive over the longer term. AMP stock has gained 10.3% over the past six months and 17.4% over the past 52 weeks, significantly outperforming Dow’s 23 bps uptick over the past six months and 6.6% gains over the past year.
To confirm the overall bullish trend and recent downturn, AMP has traded mostly above its 200-day moving average over the past year with some fluctuations and dropped below its 50-day moving average in late January.
Despite delivering better-than-expected results, Ameriprise Financial’s stock prices dropped 4.8% in the trading session after the release of its Q4 results on Jan. 29. Driven by solid growth in management and financial advice fees and distribution fees, the company’s non-GAAP topline increased 13% year-over-year to approximately $4.5 billion, exceeding the Street’s expectations. Meanwhile, its adjusted operating earnings increased 24.4% year-over-year to $947 million and its adjusted EPS of $9.36 surpassed the consensus estimates by 4.7%.
Furthermore, Ameriprise’s AUM increased 8.3% year-over-year to approximately $1.2 trillion. However, on a quarter-on-quarter basis, AUM dropped by 178 bps, marking the first quarter-on-quarter drop in AUM in fiscal 2024, which likely unsettled investor confidence.
Meanwhile, Ameriprise has notably lagged behind its peer Raymond James Financial, Inc.’s (RJF) 20.8% surge over the past six months and 18.7% returns over the past 52-week period.
Among the 24 analysts covering the AMP stock, the consensus rating is a “Moderate Buy.” Its mean price target of $581.73 suggests a 19.7% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
