T. Rowe Price: A Dividend Aristocrat Primed for Recovery

T. Rowe Price Group, a financial services company, has fallen 60% from its peak due to the pandemic and low interest rates. The company generates most of its revenue from investment advisory fees for its equity funds. Despite being a Dividend Aristocrat, it has been unfairly punished and is expected to recover as the market improves.

T. Rowe Price Group (TROW), a leading financial services company, has experienced a significant drop of over 60% from its peak due to the pandemic and low interest rates. The company, known for its investment advisory fees from equity funds, has been unfairly punished despite being a Dividend Aristocrat. Analysts and institutional investors are now optimistic about the company's recovery as market conditions improve.

Financial Performance and Market Interest

T. Rowe Price Group reported a quarterly earnings per share (EPS) of $2.24, surpassing the consensus estimate of $2.15. However, revenue was down by 0.6% compared to the previous year [2]. Institutional investors and hedge funds own approximately 73.39% of T. Rowe Price Group’s stock, indicating strong institutional interest in the company [2]. Several large investors, including PARK CIRCLE Co, Exchange Traded Concepts LLC, Wealthfront Advisers LLC, Mather Group LLC, GAMMA Investing LLC, and Mirae Asset Global Investments Co. Ltd., increased their stakes in the company during the first quarter of 2025 [2].

Analyst Ratings and Price Targets

Analysts have provided mixed ratings for T. Rowe Price Group. Goldman Sachs Group, Cowen, Barclays, Morgan Stanley, and TD Cowen have issued various ratings and price targets for the company. While some have a "sell" or "hold" rating, others have an "equal weight" or "buy" rating, reflecting differing opinions on the company's future prospects [2]. The current consensus rating is "Hold" with an average target price of $101.09 [2].

Dividend and Insider Activity

T. Rowe Price Group recently announced a quarterly dividend of $1.27, which represents a $5.08 annualized dividend and a dividend yield of 4.8%. The dividend payout ratio is 56.76% [2]. Insiders have also been active in the stock. Jessica M. Hiebler and Dorothy C. Sawyer sold shares of the company's stock, but their ownership percentages decreased by 6.64% and 4.27%, respectively [2]. Company insiders own approximately 2.00% of the company's stock [2].

Market Outlook

Despite the recent setbacks, T. Rowe Price Group remains a significant player in the financial services industry. The company's strong balance sheet, experienced management, and diversified client base position it well for recovery as market conditions improve. Analysts and institutional investors are closely monitoring the company's performance, and any positive developments could lead to a rebound in its stock price.

References

[1] https://seekingalpha.com/article/4812518-t-rowe-price-the-unjustly-punished-dividend-aristocrat-ready-to-recover
[2] https://www.marketbeat.com/instant-alerts/filing-t-rowe-price-group-inc-nasdaqtrow-holdings-lifted-by-park-circle-co-2025-08-07/