T. Rowe Price’s Feb. AUM Rise On Higher Equity Assets


T. Rowe Price Group announced that its preliminary assets under management (AUM) during the month ended Feb. 28 rose 2.7% to $1.5 trillion from the prior month, mainly driven by a rise in equity assets.

T. Rowe Price’s (TROW) client transfers from mutual funds to other portfolios, including trusts and separate accounts, were $1.1 billion in February.

February-end total assets in U.S. mutual funds portfolio came in at $809 billion, up 2.4% from the prior month. Equity assets make up 63% of the portfolio, 27% is multi-assets, and the remaining 10% is fixed income assets, including the money market.

Total assets from other investment portfolios were $692 billion, increasing 2.7% from the previous month. Overall, equity and fixed income, including the money market, accounted for $492 billion or 71% of other investment portfolios, while multi-assets were $200 billion or 29%.

T. Rowe Price recorded $344 billion in target date-retirement portfolios, up 3.3% from the $333 billion reported in January. (See T. Rowe Price stock analysis on TipRanks)

In January, T. Rowe Price reported 4Q results. The company’s 4Q adjusted earnings climbed 42.4% year-over-year to $2.89 per share and outpaced Street estimates of $2.64. Revenues increased 18% to $1.73 billion and exceeded analysts’ expectations of $1.68 billion. As for 2021, the company expects non-GAAP operating expenses to increase 8-12%.

On Feb. 1, Citigroup analyst William Katz trimmed the stock’s price target to $153 (12.9% downside potential) from $159.50 and maintained a Hold rating. Despite the company’s “strong” 4Q earnings beat, the analyst was disappointed with the company’s reduced buyback program.

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 3 analysts suggesting a Buy, 4 analysts recommending a Hold, and 1 analyst suggesting a Sell. The average analyst price target of $171.63 implies a 2.3% downside potential to current levels. Shares have appreciated 66.4% over the past year.

T. Rowe Price scores an 8 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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