T. Rowe Price stock soared at Thursday's stock market opening bell, making a breakout from a traditional buy point, after the company announced Goldman Sachs intends to make a $1 billion investment as part of a strategic collaboration aimed at delivering a range of diversified public and private market solutions for retirement and wealth investors.
Goldman Sachs plans to purchase up to $1 billion in T. Rowe Price stock, with the goal of building a 3.5% stake in the firm, according to the press release Thursday. That investment would place Goldman Sachs in the top five T. Rowe Price stakeholders behind Vanguard, BlackRock, State Street Funds Management and Charles Schwab, according to FactSet.
The two firms said Thursday that one of the main goals of the partnership is to provide a range of wealth and retirement offerings that incorporate access to private markets for individuals, financial advisors, plan sponsors and plan participants.
"With Goldman Sachs' decades of leadership innovating across public and private markets and T. Rowe Price's expertise in active investing, clients can invest confidently in the new opportunities for retirement savings and wealth creation," Goldman Sachs CEO David Solomon said in the press release Thursday.
T. Rowe Price stock jumped around 5.6% to 111.30 during Thursday's stock market. The stock is breaking out from a 107.92 buy point from a deep cup-with-handle base, according to MarketSurge charts.
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CFRA analyst Catherine Seifert wrote Thursday the firm is "encouraged" by the Goldman Sachs partnership "as it enhances TROW's diversification and product expansion efforts, though we note no financial metrics were disclosed."
Seifert maintains a forecast of flat to 5% revenue growth in 2025, but the view "remains tempered by chronic net asset outflows and secular industry shifts pressuring margin."
The base formed at the lows of a yearslong consolidation. The stock recovered in July to above both the 10-week and 40-week moving averages. But T. Rowe Price stock holds a very weak Composite Rating of 55 out of a best-possible 99. The stock also has a 48 Relative Strength Rating and a 38 EPS Rating.
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