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Ameriprise Financial, Inc. (AMP), headquartered in Minneapolis, Minnesota, operates as a financial planning and services firm. Valued at $49.4 billion by market cap, the company provides financial planning and products and services that are designed to be utilized as solutions for its clients' cash and liquidity, asset accumulation, income, protection, and estate and wealth transfer needs under the Columbia Threadneedle Investments brand.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and AMP perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the asset management industry. AMP excels in asset and wealth management, driven by its large network of 10,000 advisors and strong brand reputation for personalized financial advice, fostering a resilient revenue stream that benefits from market appreciation and client asset accumulation.
Despite its notable strength, AMP slipped 11% from its 52-week high of $582.05, achieved on Jan. 30. Over the past three months, AMP stock gained 3.8%, in-line with the Financial Select Sector SPDR Fund’s (XLF) 3.8% gains during the same time frame.
In the longer term, shares of AMP dipped 2.7% on a YTD basis but climbed 21.4% over the past 52 weeks, underperforming XLF’s YTD gains of 5.5% and 23% returns over the last year.
To confirm the bullish trend, AMP is trading above its 200-day moving average since mid-May with slight fluctuations. The stock has been trading above its 50-day moving average since early May.
On Apr. 24, AMP shares closed up marginally after reporting its Q1 results. Its adjusted EPS of $9.50 topped Wall Street expectations of $9.12. The company’s adjusted revenue was $4.3 billion, falling short of Wall Street forecasts of $4.4 billion.
In the competitive arena of asset management, Raymond James Financial, Inc. (RJF) has taken the lead over AMP, showing resilience with a 22.4% uptick over the past 52 weeks but lagged behind the stock with a 5.4% loss on a YTD basis.
Wall Street analysts are moderately bullish on AMP’s prospects. The stock has a consensus “Moderate Buy” rating from the 14 analysts covering it, and the mean price target of $532 suggests a potential upside of 2.7% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
