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Minneapolis, Minnesota-based Ameriprise Financial, Inc. (AMP) provides various financial products and services to individual and institutional clients in the United States and internationally. With a market cap of $43.2 billion, Ameriprise Financial 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 Financial 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 financial services company touched its 52-week high of $450.35 on Aug. 30 and is now trading 3.3% below that peak. AMP gained 1.7% over the past three months, underperforming the S&P 500 Index’s ($SPX) 3.2% gains during the same time frame.
In 2024, AMP has increased 14.6%, lagging behind SPX’s 17.3% returns on a YTD basis. However, over the past year, Ameriprise stock has risen 25.4%, matching SPX’s gains during the same time frame.
To confirm the bullish trend, AMP has mostly traded above its 50-day and 200-day moving averages since November last year with few recent fluctuations.
Shares of Ameriprise Financial surged 4.1% following the release of its impressive Q2 earnings on Jul. 24, with an adjusted profit of $8.53 per share, beating analyst expectations. The growth was fueled by higher fee-based income from its wealth management business and increased net investment income. Positive market performance and client inflows also contributed to the boost in assets under management, further supporting investor confidence.
The stock’s competitor, Raymond James Financial, Inc. (RJF), has underperformed AMP. RFG gained 8.4% over the past year and 4.9% in 2024.
Despite AMP’s performance aligning with the SPX over the past year, analysts remain cautiously optimistic about its prospects. Among the 12 analysts covering the AMP stock, the consensus rating is a “Moderate Buy.” The mean price target of $472.33 represents a potential upside of only 8.5% 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.
