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With a market cap of around $24 billion, T. Rowe Price Group, Inc. (TROW) is a leading global asset management firm. Headquartered in Baltimore, Maryland, TROW specializes in investment management, retirement planning, and financial advisory services, offering a diverse range of mutual funds, ETFs, and institutional investment solutions to clients worldwide.
Shares of T. Rowe Price are marginally down over the past 52 weeks and have declined 4.6% on a YTD basis, trailing behind the broader S&P 500 Index’s ($SPX) 22.5% gain over the past year and a 4.2% return in 2025, respectively.
Narrowing the focus, TROW stock has also lagged behind the iShares U.S. Financial Services ETF (IYG). The exchange-traded fund has gained about 35.9% over the past year and a 9% rise on a YTD basis.
On Feb. 5, T. Rowe Price reported its lower-than-expected Q4 earnings results, causing a 4.2% drop in its stock price. Adjusted EPS of $2.12 and net revenue of $1.8 billion both missed the consensus estimates. Higher operating expenses and a significant decline in capital allocation-based income, which turned negative at $5.2 million, further weighed on investor sentiment. Additionally, net cash outflows of $8.2 billion in the quarter raised concerns.
For the current fiscal year, ending in December 2025, analysts expect T. Rowe Price’s EPS to decline marginally year-over-year to $9.29. The company's earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 14 analysts covering TROW stock, the consensus is a “Moderate Sell.” That’s based on eight “Hold” ratings, one “Moderate Sell,” and five “Strong Sells.”
On Feb. 6, TD Cowen lowered T. Rowe Price’s price target to $112, maintaining a “Hold” rating, citing improving long-term net new asset trends but concerns over declining fee rates impacting revenue growth and stock performance.
As of writing, TROW is trading below the mean price target of $109.28. The street-high target of $126 indicates a potential upside of 16.8%.
