T. Rowe Price Group Shows Resilience Amid Market Challenges

A Look at T. Rowe Price Group’s Current Performance and Future Outlook

With a market cap of $26.6 billion, T. Rowe Price Group, Inc. (TROW) operates as a global investment management firm based in Baltimore, Maryland. The company offers a variety of investment services, such as mutual funds, sub-advisory services, and separate account management tailored to individual and institutional clients.

T. Rowe Price is categorized as a “large-cap” stock due to its valuation exceeding $10 billion. The firm is recognized for its disciplined, risk-aware investment approach, emphasizing diversification, style consistency, and strong fundamental research. It has a commitment to socially responsible investing and operates from key financial hubs worldwide, utilizing both in-house and external research to create investor value.

Recently, T. Rowe Price’s shares experienced a decline of nearly 5% from a 52-week high of $125.81 set on December 6. However, over the past three months, the asset manager’s shares rose by 12.9%, outpacing the broader Dow Jones Industrials Average ($DOWI), which climbed 5.9% in the same timeframe.

Looking at a longer perspective, TROW has gained 11% year-to-date (YTD), falling short of the DOWI’s 16.3% return. Shares of TROW also advanced 12.5% over the past 52 weeks, compared to an 18.2% gain in the DOWI during the same period.

TROW’s stock has entered a bullish phase, trading above its 50-day moving average since early October and maintaining its position above the 200-day moving average since November.

Despite reporting Q3 revenue of $1.8 billion, which was below expectations, shares of T. Rowe Price increased by 2% on November 1. This was attributed to an adjusted earnings per share (EPS) of $2.57, surpassing analysts’ estimates. The company’s assets under management (AUM) reached a record $1.6 trillion, an increase driven by the strong performance of U.S. equities, leading to an 11.5% year-over-year increase in investment advisory fees. Additionally, positive U.S. economic data and discussions about potential Federal Reserve interest rate cuts have boosted investor confidence in firms like T. Rowe Price.

In contrast, TPG Inc. (TPG) outperformed TROW with a 72.2% increase over the past year and a 54.9% YTD gain.

Due to a lackluster price performance over the last year, TROW has received a “Moderate Sell” consensus rating from the 14 analysts tracking the stock. Currently, TROW is trading above the mean price target of $111.78.

On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is intended for informational purposes only. For further details, please view the Barchart Disclosure Policy here.

The views expressed herein are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.