BALTIMORE - T. Rowe Price Group, Inc. (NASDAQ:TROW), a global asset management firm, announced its month-end assets under management (AUM) totaling $1.61 trillion as of August 31, 2024. Despite experiencing preliminary net outflows of $5.3 billion in August, the company's AUM saw an increase from the previous months and year-end figures.
The firm's equity assets rose to $825 billion, up from $814 billion at the end of July and $810 billion at the end of the second quarter. This also marked a significant increase from $744 billion at the year-end of 2023. Fixed income, including money market assets, stood at $183 billion, while multi-asset class investments accounted for $553 billion, and alternative investments totaled $51 billion.
T. Rowe Price's target date retirement portfolios reported an AUM of $474 billion, which represents an increase from $464 billion in July and $453 billion at the end of June. At the end of the previous year, these portfolios had an AUM of $408 billion.
Founded in 1937, T. Rowe Price serves individual and institutional investors globally, with a focus on achieving long-term investment goals. The firm is recognized for its retirement leadership and active management across various asset classes including equity, fixed income, alternatives, and multi-asset investments. Approximately two-thirds of the AUM are retirement-related.
The reported figures are preliminary and subject to adjustment. This information is based on a press release statement from T. Rowe Price Group.
In other recent news, T. Rowe Price reported its fiscal second-quarter 2024 performance, posting an adjusted EBITDA of $161 million. This falls slightly below the Bloomberg consensus of $167 million but within the company's own guidance range of $160 million to $180 million. Despite ongoing elevated costs due to challenges at the pigment plant, the company anticipates the second half of the year's EBITDA to surpass that of the first half.
T. Rowe Price also reported significant growth in its Exchange-Traded Funds (ETF) business, with assets under management reaching $1.57 trillion. This included the ETF business growing to $5.3 billion, a considerable increase from $1.2 billion in the previous year.
In recent developments, Goldman Sachs (NYSE:GS) updated its outlook on T. Rowe Price, increasing the price target to $21.00 from the previous $18.00, while maintaining a Buy rating. Meanwhile, Barclays (LON:BARC) initiated coverage on the company's shares with an Underweight rating and a price target of $99.00, highlighting growth challenges. TD Cowen also maintained a Hold rating but reduced the 12-month price target for the company from $123 to $118.
These recent developments indicate a complex path towards achieving net inflows by 2025, as highlighted by TD Cowen. Despite these challenges, T. Rowe Price is diversifying its ETF offerings and has launched its first interval fund among other strategic initiatives, while also expecting ongoing fee compression.
InvestingPro Insights
As T. Rowe Price Group (NASDAQ:TROW) continues to manage a growing asset base, the company's financial health appears robust, underpinned by strong fundamental metrics. With a market capitalization of $23.17 billion, T. Rowe Price is trading at a P/E ratio of 12.2, which is modest compared to near-term earnings growth, suggesting that the stock may be undervalued relative to its earnings potential. This is further bolstered by a PEG ratio of 0.46 for the last twelve months as of Q2 2024, indicating that the company's earnings growth rate is outpacing its P/E ratio—a positive sign for investors looking for growth at a reasonable price.
InvestingPro Tips highlight that T. Rowe Price has a perfect Piotroski Score of 9, reflecting high financial strength across various measures. Moreover, the company's dedication to shareholder returns is evident with its impressive track record of maintaining dividend payments for 39 consecutive years, coupled with a healthy dividend yield of 4.76% as of the last recorded date in 2024. This demonstrates T. Rowe Price's commitment to providing consistent income to its investors.
For those seeking further insights, there are additional InvestingPro Tips available on T. Rowe Price, including analyst predictions and profitability assessments, which can be found at https://www.investing.com/pro/TROW. These tips can provide investors with a more comprehensive understanding of the company's financial outlook and performance dynamics.
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