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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 $55.5 billion, Ameriprise operates through Advice & Wealth Management, Asset Management, Retirement & Protection Solutions, and Corporate & Other segments.
The asset management giant has significantly outperformed the broader market over the past year. AMP stock prices have soared 50.6% on a YTD basis and 63.7% over the past 52-week period, outpacing the S&P 500 Index’s ($SPX) 25.8% gains in 2024 and 31.8% returns over the past year.
Narrowing the focus, AMP has also outperformed the Financial Select Sector SPDR Fund’s (XLF) surge of 36.3% in 2024 and 45.4% over the past 52 weeks.
Ameriprise Financial’s stock prices dropped 3.1% after the release of its Q3 earnings on Oct. 23 as the company’s adjusted operating EPS of $8.83 missed analysts’ estimates. However, Ameriprise’s overall performance has remained robust. Driven by strong client net inflows and asset appreciation, its assets under management and administration surged 22.2% year-over-year, reaching $1.5 trillion. The company has also continued to generate strong revenues and growth in earnings. AMP’s total net revenues grew over 12% year-over-year to $4.4 billion. Meanwhile, its adjusted operating earnings grew over 11.1% year-over-year to $828 million.
Additionally, Ameriprise has continued to report strong free cash flow generation, enabling the company to navigate market cycles, consistently generate strong results, and return capital to shareholders. During the quarter, the company returned $713 million of capital to investors through share repurchases and dividends, demonstrating its commitment to shareholders.
For the current fiscal year, ending in December, analysts expect AMP to report a 12.5% year-over-year growth in adjusted EPS to $34.26. The company’s earnings surprise history is mixed. It surpassed analysts’ bottom-line estimates in three of the past four quarters while missing on another occasion.
AMP stock has a consensus “Moderate Buy” rating overall. Out of the 13 analysts covering the stock, five recommend “Strong Buy,” one advises “Moderate Buy,” six suggest “Hold,” and one advocates a “Strong Sell” rating.
This configuration is slightly less bullish than a month ago when six analysts recommended “Strong Buy” ratings.
On Nov. 14, 2024, Evercore ISI analyst Thomas Gallagher raised Ameriprise's price target to $613, maintaining an “In-Line” rating, citing a strong case for a higher re-rating of the life insurance sector. The firm expects the life insurance sector to benefit from increased interest from
As of writing, AMP is trading above its mean price target of $552. Meanwhile, the Street-high price target of $653 represents a 14.2% premium to current price levels.
