The Baltimore-based company, founded in 1937, serves millions of clients worldwide, with about two-thirds of its managed assets being retirement-related. T. Rowe Price emphasizes its commitment to investment excellence, retirement leadership, and proprietary research, underpinned by a culture of integrity prioritizing client interests. The company maintains strong financial health with liquid assets exceeding short-term obligations, as highlighted in the detailed Pro Research Report available on InvestingPro. The company maintains strong financial health with liquid assets exceeding short-term obligations, as highlighted in the detailed Pro Research Report available on InvestingPro.
The firm's equity assets decreased to $830 billion at the end of December from $859 billion at the end of November. Fixed income and money market assets saw a slight increase to $188 billion, while multi-asset class funds decreased from $568 billion to $536 billion. Alternative investment assets remained stable at $53 billion. T. Rowe Price's target date retirement portfolios reported AUM of $476 billion, down from $491 billion the previous month. Despite market fluctuations, the company maintains strong fundamentals with a healthy dividend yield of 4.57% and has maintained dividend payments for 39 consecutive years.
The quarterly net flows include nearly all of the previously announced subadvisory redemption plus $0.8 billion in Manager-driven distributions. The year-end AUM reflects a growth from $1.445 trillion reported at the end of the previous year.
T. Rowe Price will announce its fourth-quarter earnings for 2024 on February 5, 2025, followed by an earnings call scheduled from 8:00 to 8:45 AM ET on the same day. These figures and forthcoming events are based on a press release statement from the company. InvestingPro subscribers can access exclusive insights, including 6 recent analyst earnings revisions and comprehensive financial analysis. The company currently trades at an attractive P/E ratio of 11.83, suggesting potential value opportunity.
The Baltimore-based company, founded in 1937, serves millions of clients worldwide, with about two-thirds of its managed assets being retirement-related. T. Rowe Price emphasizes its commitment to investment excellence, retirement leadership, and proprietary research, underpinned by a culture of integrity prioritizing client interests.
In other recent news, T. Rowe Price has expanded its stock repurchase program, a move reflecting the firm's confidence in its financial strength and future prospects. The company has also reported a rise in its third-quarter 2024 financial results, with assets under management (AUM) reaching $1.63 trillion, marking a 3.9% increase from the previous quarter. Despite a net outflow of $12.2 billion, T. Rowe Price reported an 18% rise in adjusted earnings per share (EPS) to $2.57.
TD Cowen and Deutsche Bank (ETR:DBKGn) recently adjusted their outlooks on T. Rowe Price, with TD Cowen lowering the price target to $116 from $120, and Deutsche Bank raising the price target to $115 from $113. Both firms maintained a hold rating on the company's stock.
The company has declared a quarterly dividend of $1.24 per share, demonstrating its ongoing commitment to returning capital to shareholders. Despite facing challenges with third-quarter net outflows, T. Rowe Price reported robust net inflows in the target date franchise totaling $3.6 billion and nearly $1 billion in inflows in the ETF business. Amid these developments, T. Rowe Price remains confident in the strength of their research strategy, with anticipation of positive trends in active equities and mutual funds, and further improvements expected in 2025.
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