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BALTIMORE - T. Rowe Price Group, Inc. (NASDAQ:TROW), a global asset management firm with a market capitalization of $21.4 billion, disclosed its preliminary month-end assets under management (AUM) totaling $1.63 trillion as of February 28, 2025. The company, which maintains an "GOOD" Financial Health score according to InvestingPro, noted preliminary net outflows of $4.7 billion for the month of February 2025.
The firm’s AUM saw a slight decrease from $1.65 trillion at the end of January 2025 to $1.63 trillion at the end of February. Despite this month-over-month dip, the latest figures represent an increase from the $1.607 trillion reported at the end of the previous year, December 31, 2024. According to InvestingPro analysis, the company appears undervalued at current levels, with 8 additional real-time insights available to subscribers.
In terms of asset classes, equity AUM decreased from $854 billion at the end of January to $827 billion at the end of February. Fixed income, including money market funds, increased slightly from $190 billion to $192 billion. Multi-asset class investments saw a modest rise from $553 billion to $555 billion, while alternative investments remained steady at $53 billion.
Target date retirement portfolios, which are a significant portion of T. Rowe Price’s offerings, increased from $492 billion at the end of January to $494 billion at the end of February, continuing an upward trend from $476 billion at the end of 2024.
T. Rowe Price, founded in 1937, is known for its retirement expertise and active management across various investment capabilities including equity, fixed income, alternatives, and multi-asset classes. Approximately two-thirds of the firm’s AUM are retirement-related.
This financial update is based on a press release statement from T. Rowe Price Group. The firm’s AUM figures are preliminary and subject to adjustment.
In other recent news, T. Rowe Price Group reported fourth-quarter 2024 results that did not meet analyst expectations. The firm posted adjusted earnings per share of $2.12, falling short of the projected $2.21, and revenue was $1.82 billion, below the expected $1.88 billion. Despite these challenges, the company has continued its long-standing tradition of dividend increases, declaring a quarterly dividend of $1.27 per share, marking a 2.42% increase. This marks the 39th consecutive year of dividend growth for T. Rowe Price.
In terms of strategic developments, T. Rowe Price is collaborating with Aspida and considering a potential product collaboration with Ares. Analysts from Keefe, Bruyette & Woods have adjusted their price target for the company to $113, maintaining a Market Perform rating. This adjustment comes in light of higher-than-expected compensation costs and projected operating expense increases of 4-6% in 2025. The firm reported net client outflows of $19.3 billion for the quarter, with assets under management totaling $1.61 trillion as of December 31, 2024. Despite these outflows, the company has made significant progress in reducing its organic decay, with annual outflows nearly halved compared to the previous year.
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