T. Rowe Price’s AUM Decline in November; Shares Fall

T. Rowe Price Group (TROW) has announced that its assets under management (AUM) during the month ended November 30 declined 2.4% to $1.63 trillion. Following the news, shares of the Baltimore-based global investment manager dipped 1.6% to close at $196.17 on Friday.

T. Rowe Price’s client transfers from mutual funds to other portfolios, including trusts and separate accounts, were $1.1 billion in November.

AUM in Detail

November-end total assets in the U.S. mutual funds portfolio came in at $869 billion, down 2.6% from the prior month. Equity assets make up 64% of the portfolio, 26% are multi-assets, and the remaining 10% are fixed income and money market assets. Notably, equity assets fell 3.1% in November from the prior month.

Total assets from other investment portfolios were $759 billion, declining 2.6% from the previous month. Overall, equity and fixed income, including the money market, accounted for $518 billion or 68% of other investment portfolios, while multi-assets were $241 billion, or 32%.

T. Rowe Price recorded $384 billion in target date retirement portfolios, down 2.3% from the $393 billion reported in October. (See T. Rowe Price stock charts on TipRanks)

Wall Street’s Take

Following the AUM update, Jefferies (JEF) analyst Daniel Fannon maintained a Buy rating and a price target of $245 (24.9% upside potential) on the stock.

Overall, the stock has a Hold consensus rating based on 1 Buy, 5 Holds, and 1 Sell. The average T. Rowe Price pri ce target of $219.29 implies 11.8% upside potential to current levels. Shares have increased 32.7% over the past year.

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Risk Analysis

According to the new TipRanks Risk Factors tool, T. Rowe Price stock is at risk mainly from three factors: Finance and Corporate, Legal and Regulatory, and Macro & Political, which contribute 32%, 20%, and 16%, respectively to the total 25 risks identified for the stock.