Stock of the Day

August 3, 2022

Ameriprise Financial (AMP)

$543.06
+$0.62 (+0.1%)
Market Cap: $51.73B

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 around $543, which reflects a strong performance in the market.
  • Ameriprise Financial, Inc. recently reported earnings per share of $9.50, exceeding analysts' expectations, indicating robust financial health.
  • The company has a high return on equity of 68.93%, suggesting effective management and profitability in generating returns for shareholders.
  • Ameriprise Financial, Inc. has initiated a significant share buyback program, which can signal to investors that the company believes its shares are undervalued and can enhance shareholder value.
  • The firm has increased its quarterly dividend to $1.60 per share, demonstrating a commitment to returning capital to shareholders and providing a yield of 1.18%.

Ameriprise Financial Bear Case

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

  • One research analyst has rated the stock with a sell rating, which may indicate potential concerns about future performance.
  • The company has a debt-to-equity ratio of 1.10, suggesting a relatively high level of debt compared to equity, which could pose risks in a rising interest rate environment.
  • Ameriprise Financial, Inc. reported revenue of $4.35 billion, which was below analysts' expectations, indicating potential challenges in meeting growth targets.
  • The stock has shown volatility with a beta of 1.23, meaning it may be more sensitive to market fluctuations compared to the overall market.
  • Despite a strong performance, the consensus rating remains a "Hold," which may suggest that investors should be cautious before making new investments.
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