Analysts Forecast Q4 EPS and Revenue Growth for T. Rowe Price on Feb. 4
T. Rowe Price is set to report Q4 results on February 4, with analysts projecting EPS gains and revenue increases driven by higher assets under management. Forecasts indicate these improvements will occur despite recent net outflows and elevated expense pressures.
1. Transcend Capital Enters T. Rowe Price Group
In the third quarter, Transcend Capital Advisors LLC established a new position in T. Rowe Price Group by acquiring 5,961 shares of the asset manager, representing an investment of approximately $612,000 according to its latest 13F filing with the SEC. This marks Transcend’s first reported stake in the firm and highlights growing interest from boutique advisory firms in T. Rowe Price’s diversified product lineup and research‐driven active management strategies.
2. Major Institutions Adjust Stakes
Several large institutional investors significantly altered their holdings in T. Rowe Price during the second quarter. First Trust Advisors LP more than doubled its exposure, increasing its stake by 137.7% to hold over 3.44 million shares valued at about $332.1 million. Norges Bank initiated a new position valued near $82.8 million, while ARGA Investment Management LP expanded its ownership by 3,807.3% to 477,161 shares, committing roughly $46.0 million. Collectively, institutional investors now own over 73% of the company’s outstanding shares, underscoring confidence in its fee‐based revenue streams despite recent net outflows.
3. Recent Analyst Rating Changes
Research firms have issued a mix of target price revisions and ratings on T. Rowe Price in the past two months. Evercore ISI raised its target from $115 to $116, citing resilient revenue growth and margin expansion. BMO Capital Markets upgraded its view to “market perform” with a new target of $110 based on improved expense discipline. In contrast, JPMorgan Chase & Co. downgraded the stock to “underweight” and cut its objective from $111 to $108, pointing to heightened redemptions in certain equity and fixed‐income funds. Overall sentiment remains cautious, with a consensus rating of “Reduce” and an average price objective of $107.31.
4. Insider Transactions and Recent Earnings
Vice President Arif Husain reduced his personal holding by selling 4,260 shares in early December, decreasing his position by 8.29% and realizing just over $434,000 in proceeds. Insiders collectively hold about 2% of shares outstanding. On October 31, T. Rowe Price reported third‐quarter earnings per share of $2.81, beating consensus estimates by $0.26, while revenue of $1.89 billion slightly exceeded expectations. The firm achieved a net margin close to 29% and a return on equity near 20%, with assets under management up modestly despite market volatility.