Affiliated Managers (AMG) Received its Third Buy in a Row


After Deutsche Bank and Citigroup gave Affiliated Managers (NYSE: AMG) a Buy rating last month, the company received another Buy, this time from Barrington. Analyst Alexander Paris reiterated a Buy rating on Affiliated Managers today and set a price target of $150. The company’s shares opened today at $119.96, close to its 52-week low of $112.54.

Paris observed:

“We believe a premium valuation is warranted given the likelihood of additional meaningful (accretive) investments (AMG is more active in this regard in down markets), the increased (and ongoing) share repurchase program and a recently initiated dividend growing faster than earnings. As such, we are reiterating our OUTPERFORM rating. Our 12‐month price target, however, goes to $150 (from $200) to reflect the lower earnings assumptions, suggesting more than 30% upside.”

According to TipRanks.com, Paris is a 4-star analyst with an average return of 5.5% and a 49.4% success rate. Paris covers the Services sector, focusing on stocks such as Adtalem Global Education Inc, American Public Education, and Franklin Covey Company.

Affiliated Managers has an analyst consensus of Strong Buy, with a price target consensus of $190.83.

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Based on Affiliated Managers’ latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $117 million. In comparison, last year the company had a net profit of $125 million.

Based on the recent corporate insider activity of 26 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AMG in relation to earlier this year. Most recently, in August 2018, Samuel Byrne, a Director at AMG bought 2,034 shares for a total of $183,507.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Affiliated Managers Group, Inc. is an asset management company with equity investments in a diverse group of growing, boutique investment management firms. The company provides assistance to investment management firms in strategic matters, marketing, distribution, product development and operations.

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