/T_%20Rowe%20Price%20Group%20Inc_%20logo%20and%20data-by%20Piotr%20Swat%20via%20Shutterstock.jpg)
Baltimore, Maryland-based T. Rowe Price Group, Inc. (TROW), a global investment management firm with a market cap of $24.5 billion, provides comprehensive financial services, including mutual funds and investment planning across international markets.
Shares of this asset management company have underperformed the broader market over the past year. TROW has declined marginally over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27%. In 2024, TROW stock soared 1.8% compared to SPX's 18.1% return on a YTD basis.
Zooming in further, TROW also trails behind the Financial Select Sector SPDR Fund (XLF), which has returned 30.9% over the past year.
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.
For the current fiscal year, ending in December 2024, analysts expect T. Rowe Price Group’s EPS to grow 18.6% annually to $9 on a diluted basis. The company's earnings surprise history is solid. It beat the consensus estimate in each of the last four quarters.
Among the 14 analysts covering TROW stock, the consensus rating is a “Moderate Sell.” That’s based on eight “Hold” ratings, one “Moderate Sell,” and five “Strong Sells.”
This configuration is slightly more bearish than a month before when four analysts were recommending a “Strong Buy.”
On Jul. 29, TD Cowen lowered its price target for T. Rowe Price Group from $123 to $118 while maintaining a “Hold” rating on the stock. The analyst expressed caution regarding the company's near-term outlook despite management's confidence in achieving net inflows by 2025. While the company plans to diversify its ETF offerings and has introduced its first interval fund, it continues to face fee compression and net outflows.
The mean price target of $112.92 represents a 3% premium compared to T. Rowe Price Group’s current price levels. The Street-high price target of $125 suggests an upside potential of 14%.
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.
