Zacks Investment Research Downgrades Affiliated Managers Group (NYSE:AMG) to Hold

Affiliated Managers Group (NYSE:AMG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Monday, Zacks.com reports. They currently have a $75.00 price target on the asset manager’s stock. Zacks Investment Research‘s target price points to a potential upside of 0.59% from the stock’s current price.

According to Zacks, “Shares of Affiliated Managers have underperformed the industry over the past year. The company's earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The company remains well positioned for growth, backed by successful partnerships, diverse product mix, strong balance sheet position and focus on strengthening the retail market operations. Additionally, the BlueMountain stake sale is likely to be accretive to earnings. Given a solid capital position, its capital deployment activities look sustainable. Nevertheless, declining assets under management (AUM) balance owing to outflows and pressure on revenues are major concerns. These are expected to hurt the company’s profitability in the quarters ahead. Moreover, the presence of substantial intangible assets on its balance sheet might hamper financials.”

Several other analysts have also recently commented on AMG. ValuEngine raised Affiliated Managers Group from a “strong sell” rating to a “sell” rating in a research report on Monday, June 1st. Citigroup decreased their target price on Affiliated Managers Group from $70.00 to $66.50 and set a “neutral” rating for the company in a research report on Tuesday, April 28th. Deutsche Bank reduced their price objective on Affiliated Managers Group from $67.00 to $64.00 and set a “hold” rating for the company in a research report on Friday, May 15th. Bank of America reduced their price objective on Affiliated Managers Group from $63.00 to $48.00 and set an “underperform” rating for the company in a research report on Monday, March 23rd. Finally, Barrington Research reissued an “outperform” rating and set a $75.00 price objective (up previously from $70.00) on shares of Affiliated Managers Group in a research report on Monday, April 27th. They noted that the move was a valuation call. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and two have given a buy rating to the company. The stock presently has an average rating of “Hold” and a consensus price target of $65.79.

Shares of Affiliated Managers Group stock opened at $74.56 on Monday. The stock has a market cap of $3.37 billion, a PE ratio of 18.88, a price-to-earnings-growth ratio of 0.51 and a beta of 1.55. The business has a fifty day simple moving average of $70.36 and a 200-day simple moving average of $72.79. Affiliated Managers Group has a 12 month low of $44.37 and a 12 month high of $94.07.

Affiliated Managers Group (NYSE:AMG) last issued its earnings results on Monday, April 27th. The asset manager reported $3.16 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $3.08 by $0.08. The business had revenue of $543.10 million during the quarter, compared to analysts’ expectations of $496.33 million. Affiliated Managers Group had a return on equity of 19.43% and a net margin of 9.12%. Affiliated Managers Group’s revenue was up 7.1% compared to the same quarter last year. During the same quarter last year, the firm posted $3.26 earnings per share. As a group, research analysts anticipate that Affiliated Managers Group will post 11.75 earnings per share for the current fiscal year.

In related news, CEO Jay C. Horgen bought 10,000 shares of the business’s stock in a transaction on Wednesday, May 13th. The shares were bought at an average cost of $59.26 per share, for a total transaction of $592,600.00. Following the completion of the acquisition, the chief executive officer now directly owns 137,667 shares in the company, valued at $8,158,146.42. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Dwight D. Churchill bought 1,000 shares of the business’s stock in a transaction on Wednesday, June 10th. The shares were bought at an average price of $71.83 per share, for a total transaction of $71,830.00. Following the completion of the acquisition, the director now owns 10,069 shares of the company’s stock, valued at $723,256.27. The disclosure for this purchase can be found here. In the last three months, insiders have purchased 21,000 shares of company stock valued at $1,316,530. Insiders own 1.69% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Hi Line Capital Management LLC raised its holdings in Affiliated Managers Group by 0.3% during the fourth quarter. Hi Line Capital Management LLC now owns 45,235 shares of the asset manager’s stock valued at $3,833,000 after buying an additional 151 shares in the last quarter. Long Road Investment Counsel LLC increased its stake in shares of Affiliated Managers Group by 1.7% in the first quarter. Long Road Investment Counsel LLC now owns 15,245 shares of the asset manager’s stock worth $902,000 after purchasing an additional 260 shares during the period. ETF Managers Group LLC increased its stake in shares of Affiliated Managers Group by 11.4% in the first quarter. ETF Managers Group LLC now owns 2,583 shares of the asset manager’s stock worth $156,000 after purchasing an additional 264 shares during the period. Natixis Advisors L.P. increased its stake in shares of Affiliated Managers Group by 0.5% in the first quarter. Natixis Advisors L.P. now owns 54,373 shares of the asset manager’s stock worth $3,216,000 after purchasing an additional 285 shares during the period. Finally, Zurcher Kantonalbank Zurich Cantonalbank increased its stake in shares of Affiliated Managers Group by 9.0% in the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 3,927 shares of the asset manager’s stock worth $232,000 after purchasing an additional 323 shares during the period. Institutional investors own 97.91% of the company’s stock.

About Affiliated Managers Group

Affiliated Managers Group, Inc, through its affiliates, operates as an asset management company providing investment management services to mutual funds, institutional clients, and high net worth individuals in the United States. It provides advisory or subadvisory services to mutual funds. These funds are distributed to retail and institutional clients directly and through intermediaries, including independent investment advisors, retirement plan sponsors, broker-dealers, major fund marketplaces, and bank trust departments.

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