Analysts at the Royal Bank of Canada have revised their price target for Ameriprise Financial (NYSE: AMP) from $601.00 to $550.00. This adjustment was detailed in a research report issued on October 30, 2023. The firm maintains an “outperform” rating on the financial services provider, suggesting that the stock has the potential to rise by 22.62% from its current price.
Several other analysts have also recently provided insights into Ameriprise Financial’s stock performance. On October 3rd, BMO Capital Markets initiated coverage with a “market perform” rating and set a price target of $525.00. Additionally, Raymond James Financial increased their target from $518.00 to $582.00 while assigning a “strong-buy” rating in a report dated July 25th. Evercore ISI adjusted their target from $587.00 to $570.00, maintaining an “in-line” rating.
According to MarketBeat.com, consensus ratings reflect a mix of opinions among analysts: one has rated the stock as a “strong buy,” two as “buy,” five as “hold,” and two as “sell.” The average target price across analysts stands at $533.13.
Recent Financial Performance
Ameriprise Financial reported its quarterly earnings on October 30, 2023, posting earnings per share (EPS) of $9.92. This exceeded the consensus estimate of $9.76 by $0.16. The firm generated revenue of $4.89 billion during the quarter, outpacing analysts’ expectations of $4.51 billion. Year-over-year, revenue increased by 9.0%, with a net margin of 18.30% and a return on equity of 65.90%. In the same quarter last year, the firm reported an EPS of $9.02.
Analysts anticipate that Ameriprise Financial will achieve an EPS of $38.64 for the current year.
Insider Trading Activity
In related news, CEO William F. Truscott sold 9,929 shares of the company’s stock on August 19th, realizing approximately $5.03 million from the transaction at an average price of $506.89. Following this sale, Truscott holds 11,047 shares, valued at around $5.60 million, reflecting a 47.34% decrease in his stake.
Similarly, Executive Vice President Heather J. Melloh sold 1,500 shares on September 4th for a total of $768,510. After this transaction, Melloh owns 2,562 shares, worth approximately $1.31 million, marking a 36.93% reduction in her ownership.
Corporate insiders currently hold 0.73% of the company’s stock.
Institutional Trading Overview
Recent trading activity among institutional investors shows a significant interest in Ameriprise Financial. Notably, Norges Bank acquired a new position valued at approximately $693.74 million in the second quarter. Furthermore, JPMorgan Chase & Co. increased its holdings by 21.3%, now owning 5,824,915 shares worth around $2.82 billion after purchasing an additional 1,023,002 shares.
Nuveen LLC and UBS Asset Management also expanded their positions, with UBS increasing its holdings by 55.0%, amounting to 2,244,788 shares valued at $1.09 billion.
Overall, institutional investors own 83.95% of Ameriprise Financial’s stock, indicating strong confidence in the company’s long-term prospects.
