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In a challenging market environment, T. Rowe Price Group Inc. (TROW) stock has touched a 52-week low, dipping to $79.56. According to InvestingPro analysis, the stock appears undervalued at these levels, with technical indicators suggesting oversold conditions. The investment management firm’s shares have faced significant headwinds over the past year, reflecting a broader trend in the financial sector. Investors have witnessed a notable decline in the company’s stock value, with TROW experiencing a 1-year change of -29.73%. Despite these challenges, the company maintains strong fundamentals with a P/E ratio of 9.18 and offers a substantial 6.15% dividend yield, supported by an impressive 40-year track record of consecutive dividend payments. This downturn has raised concerns among shareholders and market analysts alike, as they weigh the company’s performance against ongoing economic pressures and shifting investor sentiment. InvestingPro subscribers can access 10+ additional ProTips and a comprehensive analysis of TROW’s valuation metrics through the Pro Research Report.
In other recent news, T. Rowe Price Group reported fourth-quarter 2024 results that did not meet analyst expectations, with adjusted earnings per share of $2.12 falling short of the projected $2.21. The company’s revenue for the quarter was $1.82 billion, below the anticipated $1.88 billion. T. Rowe Price also experienced net client outflows of $19.3 billion during the quarter, with assets under management (AUM) standing at $1.61 trillion as of December 31, 2024. In February 2025, the company announced its preliminary month-end AUM at $1.63 trillion, indicating a slight decrease from January’s $1.65 trillion but an increase from December’s $1.607 trillion.
The company declared a quarterly dividend of $1.27 per share, marking a 2.42% increase and continuing a 39-year streak of annual dividend growth. Additionally, Keefe, Bruyette & Woods raised their price target for T. Rowe Price to $113, maintaining a Market Perform rating, despite noting increased operating expenses and a miss in capital allocation-based income. The firm’s collaboration with Aspida and potential product collaboration with Ares were acknowledged as positive developments, although their impact is not yet substantial. T. Rowe Price returned $355 million to stockholders in the fourth quarter through dividends and share repurchases, totaling $1.5 billion for the full year 2024.
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