Equitable Holdings, Inc. (NYSE:EQH) has recently acquired a significant stake in AllianceBernstein Holding L.P. (NYSE:NYSE:AB). According to a Form 4 filing with the Securities and Exchange Commission, Equitable Holdings purchased 700,000 units of AllianceBernstein in a privately-negotiated transaction on November 4, 2024, at a price of $35.117 per unit. This transaction amounts to a total value of approximately $24.6 million.
Following this purchase, Equitable Holdings directly owns 3,766,838 units, while indirectly holding an additional 1,444,356 units through its wholly-owned subsidiary, Alpha Units Holding, LLC. The acquisition further consolidates Equitable Holdings' position in AllianceBernstein, reflecting its ongoing investment strategy in the financial services sector.
In other recent news, AllianceBernstein Holding L.P. has been making waves with its third-quarter performance. TD Cowen has maintained a Buy rating on AllianceBernstein, setting a price target of $41.00, following the company's better-than-expected results. The financial analyst firm emphasized AllianceBernstein's long-term net new assets growth outlook and its resilient fee rate as positive indicators.
AllianceBernstein also reported a significant milestone in its Third Quarter 2024 Earnings Review, with assets under management surpassing $800 billion. This achievement was bolstered by three consecutive quarters of consistent net inflows and substantial growth in the private markets platform. The company also reported an increase in adjusted earnings per unit.
Furthermore, the investment firm's private markets platform expanded to $68 billion AUM, with a future target of $100 billion. Despite some redemptions in active equity strategies, AllianceBernstein achieved its highest quarterly retail inflows since 2021. These recent developments underscore AllianceBernstein's continued focus on its growth strategy, particularly in private markets and active ETFs.
InvestingPro Insights
AllianceBernstein Holding L.P. (NYSE:AB) presents an intriguing investment profile that complements Equitable Holdings' recent acquisition. According to InvestingPro data, AB's market capitalization stands at $4.34 billion, with a P/E ratio of 10.89, suggesting a potentially undervalued position relative to its earnings.
The company's financial health appears robust, with a notable dividend yield of 8.44% as of the latest data. This aligns with an InvestingPro Tip highlighting that AB "pays a significant dividend to shareholders." Furthermore, the company has maintained dividend payments for an impressive 37 consecutive years, demonstrating a strong commitment to shareholder returns.
AB's recent performance has been strong, with a one-year price total return of 40.57%. This upward trajectory is reflected in another InvestingPro Tip, which notes that AB is "trading near its 52-week high," with its current price at 98.13% of its 52-week peak.
For investors seeking more comprehensive insights, InvestingPro offers additional tips and metrics beyond those mentioned here. In fact, there are 7 more tips available for AB on the InvestingPro platform, providing a deeper analysis of the company's financial position and market outlook.
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