T. Rowe Price reported fourth-quarter earnings of $2.44 per share, narrowly missing the consensus estimate of $2.47 and up from $2.12 in the same period a year ago. Revenue rose 6.0% year-over-year to $1.89 billion, slightly above the $1.88 billion analysts had forecast. The company cited modest fee growth and spread revenue as drivers of the top-line gain but noted that market volatility and net outflows in certain equity strategies weighed on margin expansion.

The asset manager delivered a net margin of 28.89% for the quarter, reflecting disciplined expense management and a focus on higher-margin active strategies. Return on equity improved to 19.95%, up from 18.3% a year earlier, driven by both retained earnings and share repurchase activity. Operating expenses grew at a lower rate than revenue, underpinned by continued investment in technology platforms that enhance trading efficiency and client reporting capabilities.

Institutional investors hold 73.39% of T. Rowe Price’s outstanding shares. In the most recent 13F filings, Transcend Capital Advisors established a new position of 5,961 shares valued at approximately $612,000. First Trust Advisors LP increased its stake by 137.7%, now owning 3.44 million shares valued at $332.1 million, while Norges Bank entered with an $82.8 million position. ARGA Investment Management boosted its holding to 477,161 shares, and the Virginia Retirement System added a $37.7 million allocation. These moves underscore growing institutional appetite for the firm’s active management platform.

Eleven research firms maintain a Hold rating on T. Rowe Price, with four recommending Sell, resulting in a consensus recommendation of Reduce. Evercore ISI raised its target to 116, while BMO Capital Markets lifted its objective to 110. In contrast, JPMorgan Chase & Co. trimmed its target to 108 and reaffirmed an Underweight stance. Zacks Investment Research downgraded the stock from Strong Buy to Hold, noting that fee pressure and challenging equity markets may limit near-term upside.