Equitable Holdings (NYSE:EQH), Inc. has made a significant purchase of AllianceBernstein Holding L.P. (NYSE:NYSE:AB) units, investing approximately $17 million in the investment management firm. On September 20, 2024, Equitable Holdings acquired 500,000 units at a price of $34.1834 each.
This transaction increases Equitable Holdings' direct beneficial ownership to 3,066,838 units. Additionally, through its wholly-owned subsidiary Alpha Units Holding, LLC, Equitable Holdings indirectly owns 1,444,356 units. The recent purchase reflects Equitable Holdings' continued investment in AllianceBernstein, showcasing confidence in the firm's value and prospects.
Investors should note that Equitable Holdings and its affiliates also own a substantial number of AB Capital Units in AllianceBernstein L.P., details of which are disclosed in separate filings. The transaction of the Holding Units was conducted in a privately-negotiated deal, as mentioned in the footnotes of the SEC filing.
Equitable Holdings, with a history of name changes from AXA Equitable Holdings, Inc. and AXA AMERICA HOLDINGS, INC., has a broad presence in the insurance and financial services industry. The purchase of AllianceBernstein units represents a strategic alignment with the investment advisory sector, potentially diversifying Equitable Holdings' portfolio and revenue streams.
The units, referred to as "Units representing Assignments of Beneficial Ownership of Limited Partnership Interests," signify Equitable Holdings' stake in AllianceBernstein. With this latest acquisition, Equitable Holdings reinforces its position as a significant investor in the partnership.
For detailed information on the transaction and Equitable Holdings' ownership structure, interested parties can refer to the full SEC Form 4 filing.
In other recent news, AllianceBernstein reported an 11% year-over-year increase in assets under management (AUM), reaching $770 billion. The firm also saw a 42% surge in gross sales, totaling $31.9 billion. Despite a $28 million investment loss from a joint venture, the company noted increases in GAAP operating income and earnings per share, up by 6% and 87% respectively. TD Cowen raised AllianceBernstein's price target to $39.00 from $36.00, maintaining a Buy rating, while Barclays (LON:BARC) initiated coverage with an Equalweight rating. Evercore ISI also maintained its Outperform rating on the firm. These ratings come amid AllianceBernstein's plans to expand its capabilities in the U.S. retail market, accelerate growth in separately managed accounts, and launch tax-efficient products. These recent developments underline the firm's commitment to growth and investor return.
InvestingPro Insights
As Equitable Holdings, Inc. strengthens its investment in AllianceBernstein Holding L.P. (NYSE:AB), it's essential to consider the current financial landscape of AB. With a market capitalization of approximately $3.99 billion, AB's valuation metrics offer a mixed picture for investors. The company's P/E ratio stands at 12.12, which suggests that it is trading at a relatively low price compared to its near-term earnings growth. This aligns with one of the InvestingPro Tips, indicating that AB could be an attractive option for value investors.
Additionally, AB's commitment to shareholder returns is evident through its significant dividend yield of 8.17% and a history of maintaining dividend payments for 37 consecutive years. These dividends have grown by 7.58% over the last twelve months, as of Q2 2024. The company's profitability is also highlighted by a robust return on assets of 15.83% for the same period, which is an encouraging sign for potential investors.
For those considering adding AB to their portfolios, it's worth noting that the company is trading near its 52-week high, with the price at 97.84% of this peak. This could suggest that the market is recognizing the firm's value and prospects, as Equitable Holdings' recent purchase appears to reflect. Investors looking for more insights into AB's performance and future outlook can find additional InvestingPro Tips on the dedicated page for AllianceBernstein Holding L.P. (https://www.investing.com/pro/AB), offering in-depth analysis and data to inform their investment decisions.
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