Alvero Gumer, President of Insurance and Annuities at Ameriprise Financial Inc. (NYSE:AMP (OTC:AMLTF)), recently executed a significant transaction involving the company's common stock. According to a filing with the Securities and Exchange Commission, Gumer sold 2,325 shares on October 31, 2024, at a weighted average price of $516.0483 per share. The total value of the transaction amounted to approximately $1.2 million. Following this sale, Gumer retains direct ownership of 4,669 shares in the company. Additionally, Gumer holds an estimated 1,050.78 shares indirectly through the Ameriprise Financial 401(k) plan.
In other recent news, Ameriprise Financial has shown significant growth in its recent financial performance. The company reported a notable 22% increase in its assets under management and administration, reaching a commendable $1.5 trillion. Adjusted operating net revenue also rose by 11% to $4.4 billion. Furthermore, Ameriprise's earnings per share grew by 17%, excluding severance expenses, and return on equity was robust at 50.7%, marking an increase from the previous year.
Regarding analyst perspectives, Morgan Stanley (NYSE:MS) adjusted its outlook on Ameriprise Financial, raising the price target to $509.00 from the previous target of $502.00, while maintaining an Equalweight rating. This adjustment follows Ameriprise's third-quarter 2024 earnings and a revision of future earnings per share estimates. Similarly, CFRA, another analyst firm, raised the price target for Ameriprise Financial to $575, reflecting the firm's strong financial results and growth prospects.
In addition to these financial developments, Ameriprise Financial plans to introduce new savings and lending products. The company aims to return 80% of capital to shareholders in 2024, with similar expectations for 2025. Despite experiencing net outflows of $2.4 billion in the Asset Management segment, the Wealth Management segment achieved record client assets, with net inflows over the past year totaling $46 billion. These are some of the recent developments shaping the future of Ameriprise Financial.
InvestingPro Insights
The recent stock sale by Alvero Gumer comes at a time when Ameriprise Financial Inc. (NYSE:AMP) is showing strong market performance and financial health. According to InvestingPro data, AMP's stock is trading near its 52-week high, with a robust 52.69% price total return over the past year. This aligns with the company's strong financial metrics, including a revenue growth of 11.4% in the last twelve months as of Q3 2024, and an impressive operating income margin of 34.03%.
InvestingPro Tips highlight AMP's consistent dividend growth, having raised its dividend for 20 consecutive years. This commitment to shareholder returns is further underscored by the company's current dividend yield of 1.17% and a dividend growth rate of 9.63% over the last twelve months. These factors may contribute to investor confidence in the stock, despite the insider sale.
Moreover, AMP is trading at a P/E ratio of 18.08, which is relatively low compared to its near-term earnings growth potential, as indicated by another InvestingPro Tip. This suggests that the stock may still have room for appreciation, even after its recent strong performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for AMP, providing a deeper understanding of the company's financial position and market outlook.
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