Stock of the Day

August 3, 2022

Ameriprise Financial (AMP)

$530.18
-$10.83 (-2.0%)
Market Cap: $52.49B

About Ameriprise Financial

Ameriprise Financial, Inc., together with its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. It operates through four segments: Advice & Wealth Management, Asset Management, Retirement & Protection Solutions, and Corporate & Other. The Advice & Wealth Management segment provides financial planning and advice; brokerage products and services for retail and institutional clients; discretionary and non-discretionary investment advisory accounts; mutual funds; insurance and annuities products; cash management and banking products; and face-amount certificates. The Asset Management segment offers investment management, advice, and products to retail, high net worth, and institutional clients through third-party financial institutions, advisor networks, direct retail, and its institutional sales force under the Columbia Threadneedle Investments brand name. This segment products include U.S. mutual funds and their non-U.S. equivalents, exchange-traded funds, variable product funds underlying insurance, and annuity separate accounts; and institutional asset management products, such as traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds, collective funds, and property and infrastructure funds. The Retirement & Protection Solutions segment provides variable annuity products, as well as life and disability income insurance products to retail clients. The company was formerly known as American Express Financial Corporation and changed its name to Ameriprise Financial, Inc. in September 2005. Ameriprise Financial, Inc. was founded in 1894 and is headquartered in Minneapolis, Minnesota.

Ameriprise Financial Bull Case

Here are some ways that investors could benefit from investing in Ameriprise Financial, Inc.:

  • The current stock price is $548.84, reflecting a recent increase of 0.3%, indicating positive market sentiment and potential for further growth.
  • Ameriprise Financial, Inc. reported earnings per share of $9.36, surpassing analysts' expectations of $9.16, showcasing strong financial performance and effective management.
  • The company has a robust return on equity of 69.35%, which suggests that it is highly efficient in generating profits from its equity investments, making it an attractive option for investors seeking high returns.
  • With a market capitalization of $53.24 billion, Ameriprise Financial, Inc. is well-established, providing stability and confidence for investors looking for a reliable investment.
  • The firm has declared a quarterly dividend of $1.48, translating to an annualized dividend yield of 1.08%, which can provide a steady income stream for investors.

Ameriprise Financial Bear Case

Investors should be bearish about investing in Ameriprise Financial, Inc. for these reasons:

  • The company has a debt-to-equity ratio of 1.01, indicating that it has a significant amount of debt compared to its equity, which could pose risks in times of economic downturns.
  • Ameriprise Financial, Inc. has a quick ratio of 0.65 and a current ratio of 0.59, suggesting potential liquidity issues, as these ratios indicate that the company may struggle to meet short-term obligations.
  • Insider ownership is relatively low at 0.96%, which may indicate a lack of confidence from those closest to the company, potentially raising concerns for outside investors.
  • The stock has a price-to-earnings (PE) ratio of 16.60, which, while not excessively high, may suggest that the stock is fairly valued, limiting potential upside for investors looking for undervalued opportunities.
  • Market volatility, as indicated by a beta of 1.36, suggests that the stock may experience larger price fluctuations compared to the overall market, which could be a concern for risk-averse investors.

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