T. Rowe Price Group (NASDAQ:TROW) Announces Earnings Results

T. Rowe Price Group (NASDAQ:TROW) announced its quarterly earnings results on Thursday. The asset manager reported $2.86 earnings per share for the quarter, beating analysts’ consensus estimates of $2.63 by $0.23, FiscalAI reports. The firm had revenue of $2 billion for the quarter, compared to analyst estimates of $1.98 billion. T. Rowe Price Group had a net margin of 28.40% and a return on equity of 20.71%. The business’s revenue was up 5.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.81 earnings per share.

Here are the key takeaways from T. Rowe Price Group’s conference call:

• Net outflows remained elevated at $28.3 billion in Q3, driven by equity strategies, mutual funds, and a $7.6 billion multi-asset outflow that included a large target-date plan redemption. Management expects Q4 flows to improve sequentially, but still remain pressured by active equity and mutual fund trends.
• Investment performance improved across several areas, with more than 50% of fund assets outperforming peers over one-, three-, and 10-year periods. Fixed income remained particularly strong, with 74% to 85% of assets outperforming over the reported time horizons.
• The ETF franchise continued to gain momentum, generating $3.8 billion of Q3 inflows and reaching $33.8 billion in AUM, up from $6.9 billion two years ago. The planned acquisition of F/m Investments is expected to further strengthen T. Rowe Price’s fixed-income, ETF, and SMA capabilities.
• Earnings benefited from higher average AUM, with adjusted diluted EPS increasing to $2.86 from $2.57 in Q2 and $2.81 a year earlier. Adjusted net revenue rose 5.3% year over year to $2.0 billion, while carried interest increased substantially to $63.1 million.
• Management is investing in longer-term growth through SMAs, customized models, retirement solutions, strategic partnerships, and AI-enabled workflows. Executives expect AI to improve investment research and operational efficiency over the next 12–24 months, but acknowledged that measurable benefits will take time to emerge.

T. Rowe Price Group Stock Performance

TROW opened at $103.90 on Friday. T. Rowe Price Group has a 52-week low of $85.22 and a 52-week high of $122.00. The firm has a market capitalization of $22.16 billion, a PE ratio of 10.51, a PEG ratio of 3.12 and a beta of 1.45. The business’s 50-day simple moving average is $105.65 and its 200 day simple moving average is $103.70.

T. Rowe Price Group Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 29th. Investors of record on Tuesday, September 15th were given a $1.30 dividend. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $5.20 dividend on an annualized basis and a dividend yield of 5.0%. T. Rowe Price Group’s payout ratio is currently 52.58%.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on TROW. Evercore set a $109.00 price objective on shares of T. Rowe Price Group in a research report on Friday, October 9th. TD Cowen cut their price objective on shares of T. Rowe Price Group from $109.00 to $96.00 and set a “hold” rating on the stock in a research report on Friday. UBS Group started coverage on shares of T. Rowe Price Group in a research note on Wednesday, October 7th. They issued a “neutral” rating and a $107.00 target price for the company. Morgan Stanley increased their target price on T. Rowe Price Group from $110.00 to $112.00 and gave the stock an “equal weight” rating in a report on Friday, October 23rd. Finally, Barclays dropped their price target on T. Rowe Price Group from $103.00 to $102.00 and set an “underweight” rating on the stock in a research note on Wednesday, October 14th. One investment analyst has rated the stock with a Buy rating, ten have given a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, T. Rowe Price Group has a consensus rating of “Reduce” and a consensus target price of $103.15.

Insider Buying and Selling

In other T. Rowe Price Group news, VP Joshua Nelson sold 10,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $111.82, for a total value of $1,118,200.00. Following the completion of the transaction, the vice president directly owned 71,328 shares in the company, valued at $7,975,896.96. This trade represents a 12.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 1.60% of the company’s stock.

Key Stories Impacting T. Rowe Price Group

Here are the key news stories impacting T. Rowe Price Group this week:

• Positive Sentiment: Third-quarter adjusted earnings of $2.86 per share exceeded the $2.63 consensus estimate, while revenue reached approximately $2.0 billion versus expectations of $1.98 billion. Revenue increased 5.9% year over year, supported by higher advisory fees. T. Rowe Price Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Keefe, Bruyette & Woods reaffirmed its “market perform” rating but raised its price target to $113 from $112, implying approximately 8.8% potential upside based on the referenced price. Keefe, Bruyette & Woods Ratings
• Neutral Sentiment: T. Rowe Price is expanding its wealth-management operation with more than 50 new roles. The initiative could diversify growth and strengthen distribution over time, although added staffing costs may weigh on near-term efficiency. T. Rowe Price Adds Over 50 Wealth Management Roles
• Negative Sentiment: The earnings beat was offset by substantial client outflows and a decline in AUM during the quarter. Persistent redemptions are a key concern for an asset manager because they reduce fee-generating assets and could limit future revenue growth. T. Rowe Price Q3 Earnings, Revenue Beat Even as AUM Dips

T. Rowe Price Group Company Profile

T. Rowe Price Group, Inc is a global investment management firm headquartered in Baltimore, Maryland. Founded in 1937 by Thomas Rowe Price Jr., the company provides investment strategies and advisory services to individual investors, retirement plans, financial intermediaries, institutions and other clients.

The company offers a range of actively managed and multi-asset investment products, including mutual funds, exchange-traded funds, separately managed accounts and other portfolio solutions.