Analysts at the Royal Bank of Canada have reduced their price target for Ameriprise Financial (NYSE: AMP) from $601.00 to $550.00, as detailed in a research report released on Monday. Despite this adjustment, the brokerage maintains an “outperform” rating on the financial services provider’s stock. The new target suggests a potential upside of 22.62% from Ameriprise’s current price.
Several other analysts have also provided insights into Ameriprise’s stock performance. BMO Capital Markets began coverage on Ameriprise Financial on October 3, 2023, assigning a “market perform” rating with a price objective of $525.00. Meanwhile, Raymond James Financial upped their price target from $518.00 to $582.00, giving the company a “strong-buy” rating on July 25, 2023. Evercore ISI revised their price objective downward from $587.00 to $570.00, maintaining an “in-line” rating as of October 9, 2023. Additionally, Keefe, Bruyette & Woods raised their target from $520.00 to $550.00 on July 9, 2023.
Currently, one research analyst rates Ameriprise with a Strong Buy, two analysts give it a Buy rating, five assign a Hold rating, and two recommend selling. According to data from MarketBeat.com, the consensus rating for the stock stands at “Hold” with an average target price of $533.13.
Recent Financial Performance
Ameriprise Financial recently announced its quarterly earnings data on October 30, 2023. The company reported earnings of $9.92 per share (EPS), surpassing the consensus estimate of $9.76 by $0.16. Revenue for the quarter reached $4.89 billion, significantly above analyst expectations of $4.51 billion. The firm recorded a net margin of 18.30% and a return on equity of 65.90%, with revenues increasing by 9.0% year-over-year. In the same quarter last year, Ameriprise earned $9.02 per share.
Analysts project that Ameriprise Financial will achieve an EPS of $38.64 for the current fiscal year.
Insider Activity and Institutional Trading
In other developments, CEO William F. Truscott sold 9,929 shares of Ameriprise stock on August 19, 2023, at an average price of $506.89, totaling approximately $5.03 million. Following this transaction, Truscott owns 11,047 shares valued at around $5.60 million, indicating a 47.34% decrease in his holdings.
Executive Vice President Heather J. Melloh also sold 1,500 shares on September 4, 2023, at an average price of $512.34, amounting to $768,510. After this sale, Melloh holds 2,562 shares valued at approximately $1.31 million, reflecting a 36.93% reduction in her position. Insider ownership now stands at 0.73% of the company’s stock.
Institutional investors have been active, with Norges Bank purchasing a new position valued at approximately $693.74 million in the second quarter. JPMorgan Chase & Co. increased its stake by 21.3% in the first quarter, now holding 5.82 million shares worth about $2.82 billion. Nuveen LLC and Goldman Sachs Group Inc. also made significant investments, with institutional ownership comprising 83.95% of Ameriprise’s stock.
With these developments, Ameriprise Financial continues to attract attention from both analysts and institutional investors, reflecting a dynamic financial environment as the company navigates its growth and market challenges.
