Affiliated Managers Group (AMG) Shares Soar 1.52% Ahead of Q1 Earnings

Affiliated Managers Group (AMG) shares surged 1.52% today, reaching their highest level since February 2025 with an intraday gain of 2.62%.

The strategy of buying AMG shares after they reached a recent high and holding for 1 week yielded moderate returns over the past five years. The Affiliated Managers Group (AMG) share price fell by 14% over the five-year period, but the company's underlying performance was strong, with a compound earnings per share (EPS) growth of 125% per year. The yearly share price gained 20% during the same period, indicating that the market's sentiment towards the stock was cautious, reflected in its relatively low P/E ratio of 9.18.

The strategy's focus on holding the stock for only one week resulted in a total return of 2.7% over the year, which was below the market average. This suggests that the strategy missed out on some of the longer-term gains that could have been achieved by holding onto the stock for a longer period. However, the portfolio generated a return of 9.16% per year, with 66.88% of months positive, indicating that the strategy had some positive returns, albeit with higher volatility.

In conclusion, while the strategy of buying AMG shares after they reached a recent high and holding for 1 week provided some positive returns, the overall performance over the past five years was modest, primarily due to the relatively short holding period and the volatility in the market's sentiment towards the stock. Investors interested in AMG may consider a longer investment horizon to potentially capture the full benefits of the company's strong underlying performance.

Affiliated Managers Group (AMG) is scheduled to release its Q1 2025 earnings report on May 8, which has been a significant factor influencing its stock price. Analysts project an earnings per share (EPS) of $5.09, with expectations of a year-over-year decrease in earnings but an increase in revenues. This earnings report is crucial as it will provide insights into the company's financial health and future prospects, potentially driving further stock price movements.

In addition to the upcoming earnings report, AMG has recently sold its minority stake in Peppertree Capital Management to TPG for $240 million, which includes $102 million in cash and 2.9 million TPG shares. This transaction is expected to impact AMG's financial position and investor perception, potentially contributing to stock price movements. The sale of this stake could provide AMG with additional liquidity and flexibility, which may be viewed positively by investors.