T. Rowe Price’s March AUM Rise On Higher Equity Assets; Shares Drop

T. Rowe Price Group announced that its preliminary assets under management (AUM) during the month ended March 31 rose 1.3% to $1.52 trillion from the prior month mainly driven by a rise in equity assets. However, shares of the Baltimore-based global investment manager dipped 3.1% to close at $176.93 on April 13.

T. Rowe Price’s (TROW) client transfers from mutual funds to other portfolios, including trusts and separate accounts were $1.7 billion in March.

March-end total assets in the U.S. mutual funds portfolio came in at $816 billion, almost 1% up from the prior month. Equity assets make up 63% of the portfolio, 27% are multi-assets and the remaining 10% are fixed income and money market assets.

Total assets from other investment portfolios were $702 billion, increasing 1.4% from the previous month. Overall, equity and fixed income, including the money market accounted for $496 billion or 71% of other investment portfolios, while multi-assets were $206 billion or 29%.

T. Rowe Price recorded $352 billion in target date-retirement portfolios, up 2.3% from the $344 billion reported in February. (See T. Rowe Price stock analysis on TipRanks)

Following the release, Citigroup analyst William Katz downgraded the stock to Sell from Hold and maintained a price target of $157 (11.3% downside potential).

In a note to investors, Katz said that the “flow story remains disappointing” with “mixed” lead indicators. Furthermore, given the company’s “inability to meaningfully improve” its growth path, the analyst foresees risk to T. Rowe Price’s multiple.

Overall, the stock has a Hold consensus rating based on 1 Buy, 3 Holds, and 2 Sells. The average analyst price target of $174.33 implies 1.5% downside potential from current levels. Shares have increased 19.8% so far this year.

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