T. Rowe Price Group (TROW) Shares Soar 7.80% in Five Days Amid AUM Decline

T. Rowe Price Group (TROW) shares rose 0.10% today, marking the fifth consecutive day of gains, with a 7.80% increase over the past five days. The share price reached its highest level since March 2025, with an intraday gain of 1.08%.

The strategy of buying TROW shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 5-year CAGR of 6.74%. While the strategy captured some of the subsequent gains, it also experienced notable volatility and underperformance at times, particularly during market downturns. The recent high-valuation concern and market sentiment suggest a cautious approach, aligning with a "Hold" consensus rating from analysts.

The recent decline in assets under management (AUM) is the primary factor influencing the stock price of T. Rowe Price Group. As of April 2025, the company reported a preliminary AUM of $1.56 trillion, showing a slight decrease from the previous month. This decline, coupled with net outflows of $3.5 billion in April, has negatively impacted investor sentiment and contributed to the stock's recent performance.

Over the past six months, T. Rowe Price's shares have experienced a significant decline of 17%, outperforming the industry's 9.4% decrease. This underperformance has raised concerns among investors and analysts, leading to a Zacks Rank #4 (Sell) rating for the company. The overreliance on investment advisory fees as a primary revenue source has also been a point of concern, as it exposes the company to potential fluctuations in market conditions and client behavior.