Analysts Predict Growth At Ameriprise Financial After Tokio Marine Asset Management Increases Its Stake

According to Tokio Marine Asset Management Co. Ltd.'s recent disclosure to the Securities and Exchange Commission (SEC), the company has increased its stake in Ameriprise Financial, Inc. by 23.0%. It was recently disclosed by the Japanese institutional investor that it had purchased an additional 362 shares of the financial services provider's stock during the fourth quarter of last year, increasing the total number of shares owned by the Japanese institutional investor by 1,938 shares. On April 7th, 2023, Tokio Marine Asset Management made its most recent filing with the Securities and Exchange Commission (SEC) in which it stated that its shareholding in Ameriprise Financial was worth $603,000 at that time.

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Last January, Ameriprise Financial reported impressive earnings data for the fourth quarter, outperforming analyst expectations by a margin of around $0.59, recording 6.94 earnings per share (EPS) in Q4 2022, exceeding consensus estimates by about $0.59. As a result of significant changes in the financial landscape during that period, revenues for the company for that same quarter were down by around 3.8% YoY compared to expectations of $3.46 billion USD. However, revenue for that same quarter declined by around 3.8% YoY.

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Although these fluctuations are present in Ameriprise Financial, sell-side analysts are expecting the company to post an EPS in the range of $30.5 to $30.5 in this current financial year, and several analysts have been issuing reports on the company recently as well.

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It is important to note that Keefe Bruyette & Woods raised Ameriprise Financial’s price target from $350 to $375 in their research note dated January 31st, and assigned it a market-perform rating. On January 9th of this year, UBS Group upgraded the target price for Ameriprise Financial from $355 to $370 by rating the company a “buy.”

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Trade Algo data notes indicate that AMP's stock has one sell rating, four holds ratings, and six buy ratings based on which it might suggest AMP has consistent holds despite some mixed sentiments in recent months among brokerages. It appears that the stock has one sell rating, four holds ratings, and six buy ratings in accordance with Trade Algo data notes.

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It has been shown that Tokio Marine Asset Management believes that Ameriprise Financial's growth prospects are promising, which is why its investment in the company is so significant. With the gradual return to normal financial conditions after the pandemic, it is hoped that this large investment will generate significant returns. Therefore, I am looking forward to seeing how the situation evolves over the next few months.

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An industry such as the financial services sector is highly competitive and dynamic, characterised by a constant fluctuation in the market trends and investor opinions, which is a constant feature of this sector. Several institutions and hedge funds have recently increased or reduced their stakes in Ameriprise Financial, a leading provider of financial services, perhaps reflecting this volatility. A number of investors have taken part in the transaction, including Trifecta Capital Advisors LLC, Guardian Wealth Advisors LLC, Vigilant Capital Management LLC, Migdal Insurance & Financial Holdings Ltd. and Brown Brothers Harriman & Co.

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In the 4th quarter, Trifecta Capital Advisors LLC owned approximately $33,000 worth of shares of Ameriprise Financial, while Guardian Wealth Advisors LLC owned approximately $35,000. It is worth mentioning that Trifecta Capital Advisors LLC purchased a new stake in Ameriprise Financial during the third quarter. While Viglant Capital Management LLC increased its shareholding in Ameriprise Financial by 120.3% over the same period, Migdal Insurance & Financial Holdings Ltd. also increased its position by 120.3% during the same period. During the fourth quarter, Ameriprise Financial acquired a new stake in the company valued at $38,000, valued at $38,000. Brown Brothers Harriman & Co. also increased its holdings of Ameriprise Financial by 106.6% during the first quarter of this year.

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Amidst a volatile market environment, Ameriprise Financial Inc. has reported positive numbers, beating Wall Street estimates for its quarterly earnings, as recurring revenues and profits from repeat customers drove the company's profitability margins to new heights.

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During trading on Friday, the company opened at $297.32 per share, indicating growth potential, as reflected by its upward trend over the year-to-date, whereas the company's 1-year high was $357.46 per share, while its 1-year low was $219.99 per share.

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Researchers have drawn attention to this positive outlook with a price target of $350 and a recommendation that Ameriprise Financial be rated as a "market perform" by Keefe Bruyette & Woods who raised the price target from $350 to $375. In the same vein, UBS upgraded Ameriprise Financial's rating to a “buy” and increased its target price to $370 in hope that the firm's high operating earnings will drive the firm’s growth in the future. Argus has further cemented the company’s position as a prominent player in the financial services industry by upgrading it from a “hold” position with a price target of $345 to a “buy” rating with a price target of $392 in January after Morgan Stanley upgraded the company to a “hold” with a price target of $345.

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Even so, Ameriprise Financial remains a dividend-paying company with a dividend payout ratio (DPR) hovering around 22.27%, with recent quarterly dividend payouts of $1.25, representing an annualized dividend payment of $5.00 per share while annualized dividend yield returns are currently 1.68%, proving to stockholders a yield return of 1.68%.

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The CEO of Ameriprise Financial has been selling 11,483 shares of the company's stock through two separate transactions this year. Truscott unloaded the shares at prices which were close to previous peaks in the early months of this year. Some analysts have speculated that based on speculation among some analysts, there could be short-term headwinds for the company.

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There is only one way to deal with these developments going forward and to remain vigilant and keep an eye on the potential impact these developments may have on their investment portfolios over time.