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Valued at a market cap of $26.6 billion, T. Rowe Price Group, Inc. (TROW) is a global investment management firm. The Baltimore, Maryland-based company provides a wide range of services, including mutual funds, sub-advisory services, and separate account management for individual and institutional clients.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and T. Rowe Price Group fits this criterion perfectly. Known for its disciplined, risk-aware approach, T. Rowe Price emphasizes diversification, style consistency, and fundamental research in its investment strategies. With a strong focus on socially responsible investing and a global presence across major financial hubs, the firm leverages both in-house and external research to deliver value to its clients.
Despite a nearly 5% decline from its 52-week high of $125.81 reached on Dec. 6, the asset manager's shares have increased 12.9% over the past three months, outperforming the 5.9% rise seen in the broader Dow Jones Industrials Average ($DOWI) during the same period.
However, longer term, TROW is up 11% on a YTD basis, lagging behind DOWI's 16.3% gains. Moreover, shares of TROW have surged 12.5% over the past 52 weeks, compared to DOWI’s 18.2% return over the same time frame.
Yet, TROW has shifted to a bullish pattern, trading above its 50-day moving average since early October. Additionally, the stock has remained above its 200-day moving average since November.
Despite reporting weaker-than-expected Q3 revenue of $1.8 billion, shares of T. Rowe Price rose 2% on Nov. 1 due to its adjusted EPS of $2.57, surpassing the consensus estimate. The company's assets under management (AUM) reached a record $1.6 trillion, up sequentially and driven by strength in U.S. equities, which boosted investment advisory fees by 11.5% year-over-year. Additionally, market optimism fueled by positive U.S. economic data and potential Federal Reserve interest rate cuts further supported investor confidence in asset management firms like T. Rowe Price.
Nevertheless, the stock's rival, TPG Inc. (TPG), has outperformed TROW with a 72.2% increase over the past 52 weeks and a 54.9% YTD gain.
Due to its weak price action over the past year, TROW has a consensus “Moderate Sell” rating from the 14 analysts covering the stock. As of writing, TROW is trading above the mean price target of $111.78.
