Jay Horgen, President and CEO of Affiliated Managers Group, Inc. (NYSE:AMG), a company specializing in investment advice, has recently engaged in significant trading activity involving the company's stock. On two separate occasions, Horgen sold a total of 18,300 shares for over $3 million, with individual sales prices ranging from $169.93 to $171.98.
The transactions, which took place on August 19 and 20, were part of a series of trades that included both the acquisition and disposal of AMG shares. On August 19, Horgen exercised options to acquire 200,000 shares at a price of $74.49, amounting to nearly $15 million in total value. The same day, he sold 9,000 shares at an average price of $171.98, with a price range provided in the footnotes indicating that individual shares were sold for between $171.62 and $172.73. The following day, an additional 9,300 shares were sold at an average price of $169.93, with individual transaction prices varying from $169.15 to $171.72.
The sales on August 19 and 20 resulted in a total of $3,128,169 being received from the disposal of shares. Additionally, on August 19, Horgen disposed of 132,728 shares at a price of $172.00 per share to cover tax liabilities, a transaction totaling over $22 million.
Following these transactions, Horgen's direct holdings in AMG have been adjusted to 367,976 shares. Moreover, the SEC filing also indicates that Horgen has indirect ownership of 20,058 shares held by family trusts.
Investors and market watchers closely follow the buying and selling activities of company insiders like Horgen, as these can signal their confidence in the firm's prospects. The recent sales by the CEO of AMG provide a glimpse into such insider transactions, which are regularly disclosed to the SEC and the investing public.
In other recent news, Affiliated Managers Group (AMG) has reported robust financial growth with its Q2 results for 2024, showcasing an impressive adjusted EBITDA of $218 million and an EPS of $4.67. AMG's success has been attributed to the organic growth of private markets affiliates, solid performance in liquid alternatives, and effective capital allocation. The company has repurchased $477 million of its shares in H1 2024 and plans to repurchase at least $700 million for the full year.
In addition, AMG announced the upcoming retirement of Rizwan M. Jamal, Head of Affiliate Investments, effective January 3, 2025. Despite his retirement, Mr. Jamal will continue his association with AMG as Managing Director, Affiliate Partnerships.
Moreover, Deutsche Bank and TD Cowen have updated their stock price targets for AMG. Deutsche Bank raised its price target for AMG to $202, maintaining a Buy rating, while TD Cowen reduced its target to $198, also retaining a Buy rating.
These recent developments underscore AMG's commitment to its investors and its focus on sustaining growth. AMG's strategic collaborations with its affiliates have led to new product launches and strong fundraising in private markets, positioning it well in the market.
InvestingPro Insights
Amidst the trading activity by Jay Horgen, President and CEO of Affiliated Managers Group, Inc. (NYSE:AMG), InvestingPro data and tips offer further insights into the company's financial health and future outlook. With a market capitalization of approximately $5.07 billion and a P/E ratio standing at 8.84, AMG appears to be valued by the market at a level that could be attractive to value-oriented investors. The adjusted P/E ratio for the last twelve months as of Q2 2024 is slightly higher at 9.53, suggesting a modest increase in earnings valuation over the period.
The company's revenue for the last twelve months as of Q2 2024 was reported at $2.028 billion, with a gross profit margin of 55.03%, indicating a strong ability to manage its cost of goods sold and retain earnings from sales. However, it's noteworthy that revenue growth during the same period contracted by 5.58%, which may warrant attention from investors looking for growth potential.
Two InvestingPro Tips highlight AMG's robust financial position and strategic management decisions. Firstly, management has been actively engaged in share buybacks, a move that can signal confidence in the company's future and often aims to increase shareholder value. Secondly, AMG boasts a high shareholder yield, which combines dividends and share repurchases to give a fuller picture of the cash being returned to investors. For those interested in a deeper dive, InvestingPro provides additional tips, including four analysts who have revised their earnings upwards for the upcoming period, suggesting a positive outlook on the company's profitability.
For investors who follow insider trading activity as a gauge of confidence in a company, the recent sales by Horgen may be balanced by these financial metrics and analyst sentiments. As part of a comprehensive investment strategy, these insights from InvestingPro, including the full list of six additional tips available on the platform, can help investors make more informed decisions regarding AMG.
For those looking to explore further, additional information and insights on Affiliated Managers Group are available at InvestingPro.
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