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Equitable Holdings, Inc. (NYSE:EQH) has made a significant acquisition of units in AllianceBernstein Holding L.P. (NYSE:AB), purchasing 19,682,946 units at $38.50 each. The total transaction value amounts to approximately $757.8 million. AllianceBernstein, currently trading at a P/E ratio of 9.76 and offering an impressive 11% dividend yield, shows strong financial fundamentals with an InvestingPro Financial Health Score of 3.36 (rated as "GREAT"). This purchase was part of a tender offer that concluded on April 1, 2025. Following this transaction, Equitable Holdings directly owns 19,682,946 units of AllianceBernstein. The acquisition aligns with a Master Exchange Agreement, allowing Equitable Holdings to exchange a portion of these units for limited partnership interests in AllianceBernstein L.P. until December 19, 2026. According to InvestingPro analysis, AB appears undervalued at current levels, with additional insights available in the comprehensive Pro Research Report covering this and 1,400+ other top US stocks.
In other recent news, AllianceBernstein reported fourth-quarter earnings that exceeded analyst expectations, with adjusted diluted net income reaching $1.05 per unit, surpassing the projected $0.87. The company’s revenue for the quarter was $1.26 billion, significantly higher than the anticipated $901.07 million. In a strategic move, Equitable Holdings completed a $757.8 million tender offer for AllianceBernstein units, acquiring approximately 17.8% of the outstanding units and increasing its economic interest in the company to about 68.6%.
Meanwhile, BofA Securities downgraded AllianceBernstein’s stock rating from Buy to Neutral, lowering the price target to $38.00 from $42.00. This downgrade reflects concerns over challenging market conditions and a deceleration in organic growth. BofA Securities also noted the impact of the CFO’s resignation and the decision against a corporate structure change as factors affecting investor sentiment.
Equitable Holdings’ acquisition of AllianceBernstein units, totaling approximately $761 million, is set to further solidify its stake in the company. Despite net outflows of $4.8 billion in the fourth quarter, AllianceBernstein’s retail channel showed strength with net inflows of $1.1 billion. The firm’s assets under management stood at $725 billion at the end of 2024, highlighting its resilience in the asset management sector.
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