Schroder Investment Management Group has decreased its holdings in Ameriprise Financial, Inc. (NYSE: AMP) by 10.9% during the second quarter of 2023. According to HoldingsChannel.com, the institutional investor sold 7,127 shares, bringing its total to 58,112 shares, valued at approximately $31 million as of the latest reporting period. This move is part of a broader trend among hedge funds adjusting their stakes in the financial services provider.
Several other institutional investors have also made significant adjustments to their positions in Ameriprise Financial. Notably, Mackenzie Financial Corp increased its holdings by 2.3% during the same period, acquiring an additional 259 shares to own a total of 11,679 shares valued at around $6.23 million. Similarly, Virtus Investment Advisers LLC raised its stake by 19.6%, now holding 2,973 shares valued at about $1.59 million after purchasing an extra 487 shares.
Norges Bank made a substantial entry, acquiring a new stake valued at $693.74 million, while HSBC Holdings PLC boosted its holdings by 29.8%, now owning 491,058 shares worth approximately $262.08 million. Institutional investors collectively control 83.95% of Ameriprise Financial’s stock, reflecting strong institutional confidence in the firm.
Ameriprise Financial’s Stock Performance
On November 21, 2023, shares of Ameriprise Financial opened at $454.98. The stock has recently experienced fluctuations, with a 50-day simple moving average of $470.87 and a 200-day simple moving average of $499.22. Over the past year, the stock reached a low of $396.14 and a high of $582.05. The company maintains a market capitalization of $42.27 billion and a price-to-earnings (P/E) ratio of 14.16.
In terms of liquidity, Ameriprise Financial has a debt-to-equity ratio of 0.95, a quick ratio of 0.62, and a current ratio of 0.62. These figures indicate a stable financial position within the competitive financial services sector.
Dividend Announcements and Analyst Ratings
Recently, Ameriprise Financial announced a quarterly dividend of $1.60 per share, payable on November 24, 2023. Shareholders recorded on November 10, 2023, will receive this dividend, translating to an annualized dividend of $6.40 and a dividend yield of 1.4%. The company’s dividend payout ratio currently stands at 17.55%, suggesting a commitment to returning value to shareholders.
Wall Street analysts have offered mixed forecasts regarding Ameriprise Financial’s future performance. Keefe, Bruyette & Woods recently adjusted their target price, reducing it from $550.00 to $530.00, while maintaining a “market perform” rating. BMO Capital Markets initiated coverage with a price objective of $525.00. Other firms, including Evercore ISI and Royal Bank of Canada, have also lowered their estimates, with Royal Bank reducing its target from $601.00 to $550.00.
MarketBeat reports that one analyst has rated the stock as a Strong Buy, three have rated it as a Buy, five have suggested a Hold rating, and two have issued Sell ratings. The average rating currently stands at “Hold,” with a target price of $533.22.
Insider transactions have also shaped recent activity at Ameriprise Financial. Executive Vice President Heather J. Melloh sold 1,500 shares on September 4, 2023, at an average price of $512.34, totaling around $768,510. This sale reduced her holdings by 36.93%. Additionally, Director Robert Francis Sharpe, Jr. sold 1,500 shares on November 21, 2023, at an average price of $450.94, amounting to $676,410, reflecting a decrease of 16.67% in his position.
With institutional investors holding the majority of shares and recent adjustments indicating active management strategies, Ameriprise Financial continues to be a focal point for market observers. As the company navigates the current economic landscape, its performance will be closely watched by investors and analysts alike.
