Affiliated Managers Group (AMG) Downgraded to “Sell” at Zacks Investment Research
Affiliated Managers Group (NYSE:AMG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Monday.
According to Zacks, “Affiliated Managers’ shares have underperformed the industry over the past year. Yet, the company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. Estimates have been going down lately ahead of the company's fourth-quarter 2018 results. The use of high debt by the company remains a major concern and might restrict it from procuring additional finance for working capital and other purposes. While the company remains well positioned for growth, based on successful partnerships, diverse product mix, focus on strengthening its retail market operations and improving assets under management (AUM), the presence of substantial intangible assets on the company's balance sheet might hamper financials.”
Other equities research analysts have also recently issued reports about the stock. Deutsche Bank decreased their price objective on shares of Affiliated Managers Group from $187.00 to $172.00 and set a “buy” rating for the company in a research report on Thursday, October 11th. Barrington Research reduced their price target on shares of Affiliated Managers Group from $200.00 to $150.00 and set an “outperform” rating for the company in a report on Monday, October 29th. Citigroup reduced their price target on shares of Affiliated Managers Group from $195.00 to $140.00 and set a “buy” rating for the company in a report on Tuesday, October 30th. Bank of America restated a “buy” rating and issued a $130.00 price target (down from $155.00) on shares of Affiliated Managers Group in a report on Thursday, December 6th. Finally, Credit Suisse Group restated a “neutral” rating and issued a $123.00 price target (down from $162.00) on shares of Affiliated Managers Group in a report on Monday. Two research analysts have rated the stock with a sell rating, three have assigned a hold rating and four have given a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and a consensus price target of $148.71.
Affiliated Managers Group (NYSE:AMG) last released its quarterly earnings results on Monday, October 29th. The asset manager reported $3.45 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $3.42 by $0.03. The firm had revenue of $601.30 million during the quarter, compared to the consensus estimate of $604.82 million. Affiliated Managers Group had a net margin of 29.38% and a return on equity of 19.37%. The company’s revenue for the quarter was up 2.7% on a year-over-year basis. During the same quarter last year, the firm earned $3.41 earnings per share. As a group, sell-side analysts forecast that Affiliated Managers Group will post 14.72 earnings per share for the current fiscal year.
In other Affiliated Managers Group news, Director Patrick T. Ryan sold 2,034 shares of the firm’s stock in a transaction on Friday, November 16th. The shares were sold at an average price of $112.78, for a total value of $229,394.52. Following the completion of the sale, the director now directly owns 14,821 shares in the company, valued at $1,671,512.38. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Hugh Cutler purchased 1,564 shares of Affiliated Managers Group stock in a transaction on Wednesday, October 31st. The stock was bought at an average price of $115.48 per share, with a total value of $180,610.72. Following the completion of the acquisition, the executive vice president now directly owns 7,087 shares of the company’s stock, valued at approximately $818,406.76. The disclosure for this purchase can be found here. Company insiders own 0.91% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of the company. Lyrical Asset Management LP grew its holdings in shares of Affiliated Managers Group by 1.1% during the third quarter. Lyrical Asset Management LP now owns 1,272,609 shares of the asset manager’s stock valued at $173,991,000 after buying an additional 13,536 shares during the last quarter. Schroder Investment Management Group raised its position in Affiliated Managers Group by 8.1% in the third quarter. Schroder Investment Management Group now owns 957,620 shares of the asset manager’s stock worth $130,926,000 after acquiring an additional 72,162 shares during the period. Ceredex Value Advisors LLC raised its position in Affiliated Managers Group by 61.4% in the third quarter. Ceredex Value Advisors LLC now owns 658,050 shares of the asset manager’s stock worth $89,969,000 after acquiring an additional 250,225 shares during the period. Clearbridge Investments LLC raised its position in Affiliated Managers Group by 1.8% in the third quarter. Clearbridge Investments LLC now owns 640,913 shares of the asset manager’s stock worth $87,626,000 after acquiring an additional 11,222 shares during the period. Finally, Alliancebernstein L.P. raised its position in Affiliated Managers Group by 1.7% in the third quarter. Alliancebernstein L.P. now owns 635,817 shares of the asset manager’s stock worth $86,929,000 after acquiring an additional 10,925 shares during the period. Hedge funds and other institutional investors own 92.13% of the company’s stock.
Affiliated Managers Group Company Profile
Affiliated Managers Group, Inc, through its affiliates, operates as an asset management company providing investment management services to mutual funds, institutional clients, and high net worth individuals in the United States. It provides advisory or subadvisory services to mutual funds. These funds are distributed to retail and institutional clients directly and through intermediaries, including independent investment advisors, retirement plan sponsors, broker-dealers, major fund marketplaces, and bank trust departments.
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