T. Rowe Price Group Inc. (TROW) expanding its growth trajectory ahead

T. Rowe Price Group Inc. (NASDAQ: TROW) stock fell -1.56% on Friday to $110.05 against a previous-day closing price of $111.79. With 1.37 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.62 million shares. During the session, the Asset Management company that operates in wider Financial sector, reached to the highest price of $114.23 whereas the lowest price it dropped to was $110.02. The 52-week range on TROW shows that it touched its highest point at $223.36 and its lowest point at $104.72 during that stretch. It currently has a 1-year price target of $109.78. With its current market cap of 25.28 billion, TROW has annualized dividend of $4.80 while the current yield stands at 4.36%. Beta for the stock currently stands at 1.31.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TROW was down-trending over the past week, with a drop of -3.82%, but this was down by -11.09% over a month. Three-month performance dropped to -1.15% while six-month performance fell -26.36%. The stock lost -45.95% in the past year, while it has lost -44.03% so far this year. A look at the trailing 12-month EPS for TROW yields 10.36 with Next year EPS estimates of 8.48. For the next quarter, that number is 2.00. This implies an EPS growth rate of 31.50% for this year and 1.17% for next year. EPS is expected to grow by 12.60% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 22.50%.

Float and Shares Shorts:

At present, 226.70 million TROW shares are outstanding with a float of 221.32 million shares on hand for trading. On Jul 14, 2022, short shares totaled 16.59 million, which was 7.30% higher than short shares on Jun 14, 2022. In addition to Mr. Robert W. Sharps C.F.A., CPA, CFA, CPA as the firm’s CEO, Pres & Director, Ms. Jennifer Benson Dardis serves as its VP, CFO & Treasurer.

Institutional Ownership:

Through their ownership of 75.30% of TROW’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 39.28% of TROW, in contrast to 37.10% held by mutual funds. Shares owned by individuals account for 13.29%. As the largest shareholder in TROW with 8.55% of the stake, The Vanguard Group, Inc. holds 19,433,709 shares worth 19,433,709. A second-largest stockholder of TROW, BlackRock Fund Advisors, holds 13,410,986 shares, controlling over 5.90% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in TROW, holding 12,811,683 shares or 5.64% stake. With a 2.96% stake in TROW, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 6,730,461 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.23% of TROW stock, is the second-largest Mutual Fund holder. It holds 5,071,681 shares valued at 608.6 million. Schwab US Dividend Equity ETF holds 1.32% of the stake in TROW, owning 3,007,437 shares worth 360.89 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TROW since 13 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 4 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With TROW analysts setting a high price target of $138.00 and a low target of $84.00, the average target price over the next 12 months is $107.80. Based on these targets, TROW could surge 25.4% to reach the target high and fall by -23.67% to reach the target low. Reaching the average price target will result in a decline of -2.04% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. TROW will report FY 2022 earnings on 01/26/2023. Analysts have provided yearly estimates in a range of $8.72 being high and $8.00 being low. For TROW, this leads to a yearly average estimate of $8.33. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. T. Rowe Price Group Inc. surprised analysts by -$0.35 when it reported $1.79 EPS against a consensus estimate of $2.14. The surprise factor in the prior quarter was -$0.17. Based on analyst estimates, the high estimate for the next quarter is $2.17 and the low estimate is $1.83. The average estimate for the next quarter is thus $2.00.

Dividends & Yield:

In terms of dividends, TROW has a current ratio of $4.8, which is $4.8 over the trailing 12-months, while a dividend of $3.28 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and TROW currently yields $4.25. In the past year, TROW’s dividend yield has been $4.25, but when looking at the stock over the past five years, its yield has been $2.54. Accordingly, TROW has a current buyback yield of $5.39. This was $5.39 for the TTM, and it was $3.05 for the past five years.

Summary of Insider Activity:

Insiders traded TROW stock several times over the past three months with 19 Buys and 6 Sells. In these transactions, 19,325 shares were bought while 15,173 shares were sold. The number of buy transactions has increased to 97 while that of sell transactions has risen to 50 over the past year. The total number of shares bought during that period was 286,236 while 260,277 shares were sold.

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