Initiate TROW at buy with $125 PT, citing margin discipline, capital return, and undervalued multiples relative to peers and history. Expense growth narrowed to 1%–3% and stepped-up buybacks drive above-consensus EPS, offsetting fee compression and outflows. Fortress balance sheet, zero long-term debt, and >5% dividend yield provide downside protection and capital deployment flexibility.
T. Rowe Price (TROW) closed the most recent trading day at $93.21, moving +1.78% from the previous trading session.
T. Rowe Price is undervalued, trading at under 12x earnings, despite a strong long-term track record and very high margins. The company boasts a fortress balance sheet with zero long-term debt, supporting financial stability and resilience. Investors benefit from a 5% dividend yield, which is historically high and adds to the stock's appeal.
T. Rowe has been under-performing it's peers and the market in recent years. The company faces serious headwinds, battling outflows and the increasing adoption of ETFs. Despite these headwinds the company could currently offers upside potential due to it's compressed valuation.
TROW's April AUM balance decreases marginally to $1.56 trillion, adversely impacted by a $3.5 billion net outflows.
The headline numbers for T. Rowe (TROW) give insight into how the company performed in the quarter ended March 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
A rise in revenues and higher AUM balance support TROW's Q1 earnings, driving the stock higher in pre-market trading.
T. Rowe Price Group, Inc. (NASDAQ:TROW ) Q1 2025 Earnings Conference Call May 2, 2025 8:00 AM ET Company Participants Linsley Carruth - Director of IR Rob Sharps - Chair, CEO and President Jen Dardis - CFO Eric Veiel - Head of Global Investments Conference Call Participants Michael Cyprys - Morgan Stanley Benjamin Budish - Barclays Capital Craig Seigenthaler - Bank of America Dan Fannon - Jefferies Bill Katz - TD Cowen Alexander Blostein - Goldman Sachs Ken Worthington - JPMorgan Mike Brown - Wells Fargo Securities Operator Good morning. My name is Daniel and I will be your conference facilitator today.
T. Rowe Price (TROW) came out with quarterly earnings of $2.23 per share, beating the Zacks Consensus Estimate of $2.09 per share. This compares to earnings of $2.38 per share a year ago.
Beyond analysts' top -and-bottom-line estimates for T. Rowe (TROW), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended March 2025.
T. Rowe Price Group has faced significant challenges, including declining AUM and net outflows for 13 quarters, impacting investor confidence and market sentiment. Despite these headwinds, TROW offers a compelling investment opportunity with a 5.67% dividend yield and a low payout ratio, suggesting potential for future dividend growth. TROW is actively addressing its challenges by expanding its ETF offerings, entering the insurance asset management space, and leveraging technology to drive organic growth.
T. Rowe Price (TROW) closed at $88.44 in the latest trading session, marking a -1.21% move from the prior day.