AMG announces board member Reuben Jeffery III’s retirement

Affiliated Managers Group, Inc. (NYSE:AMG), a company specializing in investment advice with a market capitalization of $5.6 billion, reported today the immediate retirement of Reuben Jeffery III from its Board of Directors. The announcement comes at a time when AMG’s stock trades at $183.73, with InvestingPro analysis suggesting the company is slightly undervalued. The announcement was made following a notification by Jeffery on January 30, 2025, detailing his decision to step down.

Dwight D. Churchill, the newly appointed Chair of the Board, expressed gratitude on behalf of AMG’s Board and management team for Jeffery’s contributions during his tenure. Churchill highlighted Jeffery’s strategic insights and valuable guidance to the company. The transition comes as AMG maintains strong financial health, with InvestingPro data showing management actively buying back shares and maintaining profitable operations with a P/E ratio of 10.8. While wishing him well for his future endeavors, Churchill acknowledged the instrumental role Jeffery played in the company’s strategic development.

The departure of Jeffery marks a significant transition for AMG’s Board, as the company continues to navigate the investment advisory landscape. With the company’s next earnings report due on February 6, 2025, investors will be watching closely for any updates on board composition. The company has not yet announced a successor to fill Jeffery’s position on the Board.

AMG, incorporated in Delaware and headquartered in West Palm Beach, Florida, is known for its diverse affiliates that operate independently to deliver a range of investment strategies to clients worldwide. The company maintains strong liquidity with assets exceeding short-term obligations, as highlighted in InvestingPro’s comprehensive analysis, which includes detailed financial health metrics and growth projections available to subscribers. The company’s securities, including common stock and various classes of junior subordinated notes, are traded on the New York Stock Exchange under the symbols AMG, MGR, MGRB, MGRD, and MGRE, respectively.

This news is based on a press release statement and reflects the latest changes in the leadership dynamics of Affiliated Managers Group, Inc. as the company prepares to move forward without one of its long-serving board members.

In other recent news, Affiliated Managers Group (AMG) has been in the spotlight due to a series of developments. Goldman Sachs downgraded AMG from Buy to Neutral, citing concerns about the company’s organic EBITDA growth, which is expected to decline to -3% in 2025. This change in rating was largely attributed to the underperformance of AMG’s Active Equity affiliates and the high acquisition costs in the Alternatives space.

AMG also secured a $1.25 billion senior unsecured multicurrency revolving credit facility, which replaces the existing credit agreement and is intended for various corporate purposes. This financing agreement underlines AMG’s efforts to maintain flexible capital resources for its operations and growth initiatives.

Moreover, AMG reported an 18% increase in its third-quarter economic earnings per share (EPS), reaching $4.82, with assets under management (AUM) soaring to approximately $730 billion. Despite these strong results, TD Cowen downgraded AMG’s stock from Buy to Hold, citing concerns about the long-term flow trajectory for 2025.

Simultaneously, Deutsche Bank (ETR:DBKGn) maintained its Buy rating on AMG but reduced the price target to $204.00 due to a more cautious stance on the company’s organic growth and performance fee outlook. These are the recent developments for Affiliated Managers Group.

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