Stock of the Day

May 19, 2020

T. Rowe Price Group (TROW)

$106.27
-$2.22 (-2.0%)
Market Cap: $24.15B

About T. Rowe Price Group

T. Rowe Price Group, Inc. is a publicly owned investment manager. The firm provides its services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions. It launches and manages equity and fixed income mutual funds. The firm invests in the public equity and fixed income markets across the globe. It employs fundamental and quantitative analysis with a bottom-up approach. The firm utilizes in-house and external research to make its investments. It employs socially responsible investing with a focus on environmental, social, and governance issues. It makes investment in late-stage venture capital transactions and usually invests between $3 million and $5 million. The firm was previously known as T. Rowe Group, Inc. and T. Rowe Price Associates, Inc. T. Rowe Price Group, Inc. was founded in 1937 and is based in Baltimore, Maryland, with additional offices in Colorado Springs, Colorado; Owings Mills, Maryland; San Francisco, California; New York, New York; Philadelphia, Pennsylvania; Tampa, Florida; Toronto, Ontario; Hellerup, Denmark; Amsterdam, The Netherlands; Luxembourg, Grand Duchy of Luxembourg; Zurich, Switzerland; Dubai, United Arab Emirates; London, United Kingdom; Sydney, New South Wales; Hong Kong; Tokyo, Japan; Singapore; Frankfurt, Shanghai, China; Germany, Madrid, Spain, Milan, Italy, Stockholm, Sweden, Melbourne, Australia, Amsterdam, Netherlands and Washington, DC.

T. Rowe Price Group Bull Case

Here are some ways that investors could benefit from investing in T. Rowe Price Group, Inc.:

  • The current stock price is $107.24, which may present a buying opportunity for investors looking for value in the market.
  • T. Rowe Price Group, Inc. has recently increased its annualized dividend to $5.08, resulting in a yield of 4.69%. This can provide a steady income stream for investors.
  • The company has a relatively low P/E ratio of 11.71, indicating that it may be undervalued compared to its earnings, which could attract value-focused investors.
  • Analysts have a consensus target price of $115.09, suggesting potential upside from the current trading price, which could be appealing for growth-oriented investors.
  • Despite some recent downgrades, the stock has received multiple "hold" ratings, indicating that analysts believe it has stable prospects in the current market environment.

T. Rowe Price Group Bear Case

Investors should be bearish about investing in T. Rowe Price Group, Inc. for these reasons:

  • Several analysts have issued "underweight" ratings, including JPMorgan Chase & Co. and Barclays, which may indicate concerns about the company's future performance.
  • The stock has experienced insider selling, with key executives reducing their holdings, which could signal a lack of confidence in the company's near-term prospects.
  • The payout ratio is currently at 54.15%, which means that over half of the company's earnings are being paid out as dividends. This could limit the funds available for reinvestment in growth opportunities.
  • With a beta of 1.44, the stock is more volatile than the market, which could pose a risk for investors who prefer stability in their investments.
  • Recent price target reductions by analysts suggest that there may be downward pressure on the stock, which could deter potential investors.

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