BALTIMORE - T. Rowe Price Group, Inc. (NASDAQ:TROW), a global asset management firm, reported preliminary assets under management (AUM) of $1.57 trillion as of the end of June 2024. The company experienced preliminary net outflows of $2.6 billion in June and $3.7 billion for the quarter ending on that date. Included in the quarterly figures were $1.1 billion of manager-driven distributions.
The firm's AUM increased from $1.542 trillion at the end of May 2024 to $1.569 trillion by June 30, 2024. This uptick is reflected across several asset classes, with equity assets rising from $790 billion in May to $810 billion in June. Fixed income, including money market assets, remained stable at $180 billion, while multi-asset holdings grew from $524 billion to $529 billion. Alternatives saw a slight increase from $48 billion to $50 billion.
The firm's target date retirement products also grew, reaching $453 billion in AUM, up from $447 billion the previous month.
The company, founded in 1937, is recognized for its investment expertise, particularly in retirement leadership and active management across equity, fixed income, alternatives, and multi-asset classes. With a client-first culture, T. Rowe Price serves millions of individual and institutional clients worldwide.
The information is based on a press release statement from T. Rowe Price.
In other recent news, T. Rowe Price has been making headlines with a series of financial developments. The company reported an increase in its assets under management (AUM) to $1.54 trillion in May, bolstered by significant institutional fixed-income investments. Despite outflows from the Equity Franchise and Alternatives category, T. Rowe Price saw firm-wide inflows of $6.7 billion in May, a testament to its strong financial performance.
Analysts' notes reveal that Goldman Sachs has maintained its Sell rating on T. Rowe Price with a steady price target of $113.00. Meanwhile, both Keefe, Bruyette & Woods and Evercore ISI maintained their ratings, with Evercore ISI revising the stock price target to $107.00, down from $110.00. These ratings come in the wake of T. Rowe Price's robust Q1 2024 results, which saw a 40% rise in earnings per share and a 15% increase in AUM.
InvestingPro Insights
As T. Rowe Price Group, Inc. (NASDAQ:TROW) prepares to release its second-quarter earnings, investors are closely watching the firm's financial health and market performance. According to InvestingPro data, T. Rowe Price boasts a market capitalization of $25.92 billion, underscoring its significant presence in the asset management sector. With a P/E ratio of 13.72 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at 13.88, the company trades at a valuation that is attractive relative to its near-term earnings growth. This is complemented by a PEG ratio of 0.36 for the same period, suggesting that the stock may be undervalued based on its earnings growth rate.
InvestingPro Tips highlight the confidence of financial analysts in T. Rowe Price's performance. Notably, five analysts have revised their earnings estimates upwards for the upcoming period, indicating a positive outlook on the company's profitability. Furthermore, T. Rowe Price has shown a strong commitment to its shareholders by maintaining dividend payments for an impressive 39 consecutive years, with a current dividend yield of 4.27%. This steady track record of dividend payments is a testament to the firm's financial stability and prudent capital management.
With the next earnings date slated for July 25, 2024, investors have access to additional insights on T. Rowe Price through InvestingPro. There are six more InvestingPro Tips available, offering a deeper dive into the company's financial metrics and market position. For those looking to make informed investment decisions, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.
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