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Baltimore, Maryland-based T. Rowe Price Group, Inc. (TROW), a global investment management firm with a market cap of $24.1 billion, provides comprehensive financial services, including mutual funds and investment planning across international markets.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and T. Rowe Price Group fits this criterion perfectly. The company's strong brand reputation for quality and trust supports client retention and acquisition. TROW's diverse asset portfolio—spanning equity, balanced, fixed-income, and alternative offerings, along with its focus on retirement accounts provides stability and resilience.
However, shares of the asset management have slipped 9.6% from its 52-week high of $122.27, achieved on Mar. 28. Moreover, shares of T. Rowe Price Group have dropped 6% over the past three months, underperforming the broader Nasdaq Composite's ($NASX) marginal gain over the same time frame.
In the longer term, TROW stock has soared 2.7% on a YTD basis but dipped marginally over the past 52 weeks, lagging behind NASX's 31.7% gains over the past year and 20% returns in 2024.
While TROW has been trading below its 200-day moving average since early August, it currently trades above its 50-day moving average.
TROW slumped 3% on Jul. 26 after the company released its Q2 earnings. T. Rowe Price Group reported second-quarter earnings of $2.26 per share, slightly above analysts' expectations of $2.25 per share. However, the company's revenue of $1.73 billion fell short of the expected $1.79 billion.
T. Rowe Price Group has faced challenges due to the rising popularity of low-cost, passively managed funds, which has eroded market share for active managers like TROW. As a result, the company has experienced 13 consecutive quarters of net outflows.
To further highlight T. Rowe Price Group's underperformance, its competitor, Blackstone Inc. (BX), has outperformed the stock. Over the past 52 weeks, Blackstone's shares have surged 38.7% and are up 22% on a YTD basis.
Considering its underperformance in the broader market, analysts remain reasonably bearish about TROW stock’s prospects. Among the 15 analysts covering the stock, there is a consensus rating of “Moderate Sell,” and the mean price target of $111.50 reflects a marginal premium to current market prices.
On the date of publication, Kritika Sarmah 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.
