Zacks Investment Research Lowers Affiliated Managers Group (AMG) to Sell

Zacks Investment Research cut shares of Affiliated Managers Group (NYSE:AMG) from a hold rating to a sell rating in a research note published on Tuesday morning.

According to Zacks, “Affiliated Managers’ shares have underperformed the industry over the past year. Yet, the company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. Estimates have been going down lately ahead of the company's fourth-quarter 2018 results. The use of high debt by the company remains a major concern and might restrict it from procuring additional finance for working capital and other purposes. Moreover, the presence of substantial intangible assets on the company's balance sheet might hamper financials. Nevertheless, the company remains well positioned for growth, based on successful partnerships, diverse product mix, focus on strengthening its retail market operations and improving assets under management (AUM).”

A number of other equities analysts have also recently issued reports on the company. Deutsche Bank decreased their target price on Affiliated Managers Group from $166.00 to $164.00 and set a buy rating on the stock in a report on Tuesday, October 30th. Bank of America restated a buy rating and issued a $130.00 target price (down from $155.00) on shares of Affiliated Managers Group in a report on Thursday, December 6th. Barrington Research decreased their target price on Affiliated Managers Group from $200.00 to $150.00 and set an outperform rating on the stock in a report on Monday, October 29th. Finally, Citigroup decreased their target price on Affiliated Managers Group from $195.00 to $140.00 and set a buy rating on the stock in a report on Tuesday, October 30th. Two equities research analysts have rated the stock with a sell rating, two have assigned a hold rating and five have given a buy rating to the company. The stock has a consensus rating of Hold and an average price target of $161.43.

AMG opened at $102.11 on Tuesday. Affiliated Managers Group has a one year low of $88.46 and a one year high of $216.99. The company has a debt-to-equity ratio of 0.07, a quick ratio of 0.42 and a current ratio of 0.49. The firm has a market capitalization of $5.45 billion, a PE ratio of 6.99, a PEG ratio of 0.66 and a beta of 1.45.

Affiliated Managers Group (NYSE:AMG) last issued its earnings results on Monday, October 29th. The asset manager reported $3.45 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $3.42 by $0.03. The business had revenue of $601.30 million for the quarter, compared to analysts’ expectations of $604.82 million. Affiliated Managers Group had a return on equity of 19.37% and a net margin of 29.38%. The company’s quarterly revenue was up 2.7% on a year-over-year basis. During the same period in the previous year, the firm posted $3.41 EPS. On average, research analysts forecast that Affiliated Managers Group will post 14.72 EPS for the current year.

In other Affiliated Managers Group news, EVP Hugh Cutler purchased 1,564 shares of the stock in a transaction dated Wednesday, October 31st. The shares were acquired at an average price of $115.48 per share, for a total transaction of $180,610.72. Following the completion of the acquisition, the executive vice president now owns 7,087 shares of the company’s stock, valued at approximately $818,406.76. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Dwight D. Churchill sold 2,034 shares of Affiliated Managers Group stock in a transaction on Wednesday, November 21st. The shares were sold at an average price of $110.53, for a total value of $224,818.02. Following the transaction, the director now owns 6,522 shares in the company, valued at approximately $720,876.66. The disclosure for this sale can be found here. Insiders own 0.91% of the company’s stock.

Several hedge funds have recently modified their holdings of the company. Lyrical Asset Management LP grew its holdings in shares of Affiliated Managers Group by 1.1% during the third quarter. Lyrical Asset Management LP now owns 1,272,609 shares of the asset manager’s stock valued at $173,991,000 after buying an additional 13,536 shares in the last quarter. Schroder Investment Management Group grew its holdings in shares of Affiliated Managers Group by 8.1% during the third quarter. Schroder Investment Management Group now owns 957,620 shares of the asset manager’s stock valued at $130,926,000 after buying an additional 72,162 shares in the last quarter. Ceredex Value Advisors LLC grew its holdings in shares of Affiliated Managers Group by 61.4% during the third quarter. Ceredex Value Advisors LLC now owns 658,050 shares of the asset manager’s stock valued at $89,969,000 after buying an additional 250,225 shares in the last quarter. Clearbridge Investments LLC grew its holdings in shares of Affiliated Managers Group by 1.8% during the third quarter. Clearbridge Investments LLC now owns 640,913 shares of the asset manager’s stock valued at $87,626,000 after buying an additional 11,222 shares in the last quarter. Finally, Alliancebernstein L.P. grew its holdings in shares of Affiliated Managers Group by 1.7% during the third quarter. Alliancebernstein L.P. now owns 635,817 shares of the asset manager’s stock valued at $86,929,000 after buying an additional 10,925 shares in the last quarter. Institutional investors and hedge funds own 92.13% of the company’s stock.

Affiliated Managers Group Company Profile

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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