AllianceBernstein Holding L.P. (AB) has a high distribution yield, with tax advantaged limited partner structure. The company is expanding through private markets, international opportunities, and capturing growth in high-fee segments, driving AUM and fee base growth. Risks include market volatility from political factors and potential trade barriers with China, but the overall outlook remains positive with strong growth strategies.
Market volatility has spiked since the beginning of April, due largely to uncertainty about inflation, interest rates, upcoming quarterly reports, and mostly the impact of tariffs and a global trade war on the U.S.
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My analysis shows AllianceBernstein as a "Buy" with potential for better entry points; long-term investors should accumulate on corrections. AB's recent performance is robust, yet remains fairly valued with upside, with a generous dividend yield. Revenue growth may stagnate due to shifts in product subscriptions, with institutional outflows and subdued equity and fixed income performance impacting fees.
AllianceBernstein shares have outperformed the S&P 500, delivering a 32% total return since my initial Buy recommendation was published in December 2023. Equitable Holdings announced a tender offer to repurchase up to 46 million AB units at $38.50 per unit, which would significantly increase its ownership interest. Despite some negative analyst opinions, I view the tender offer as a positive as it suggests Equitable may be interested in taking full ownership of AB.
Investors interested in stocks from the Financial - Investment Management sector have probably already heard of AllianceBernstein (AB) and Carlyle Group (CG). But which of these two stocks presents investors with the better value opportunity right now?
If you are looking for stocks that have gained strong momentum recently but are still trading at reasonable prices, AllianceBernstein (AB) could be a great choice. It is one of the several stocks that passed through our 'Fast-Paced Momentum at a Bargain' screen.
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AllianceBernstein Holding L.P. Limited Partnership Units (NYSE:AB ) Q4 2024 Earnings Conference Call February 6, 2025 11:00 AM ET Company Participants Ioanis Jorgali - Vice President of Investor Relations Seth Bernstein - President and Chief Executive Officer Jackie Marks - Chief Financial Officer Onur Erzan - Head of Global Client Group and Private Wealth Conference Call Participants Craig Siegenthaler - Bank of America Merrill Lynch Alexander Blostein - Goldman Sachs Group, Inc. William Katz - TD Cowen John Dunn - Evercore ISI Daniel Fannon - Jefferies Benjamin Budish - Barclays Operator Thank you for standing by, and welcome to the AllianceBernstein Fourth Quarter 2024 Earnings Review.
Shares of AllianceBernstein Holding L.P. have delivered a 28% total return since my Buy recommendation on December 20, 2023. The strong returns have been driven by solid earnings momentum due to margin expansion. AB recently raised its dividend and the stock now offers an 8% dividend, which is attractive relative to other high-yield equities.
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