T Rowe Price (TROW – Research Report), the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Michael Brown from Wells Fargo maintained a Hold rating on the stock and has a $116.00 price target.
Michael Brown has given his Hold rating due to a combination of factors affecting T Rowe Price. The company’s assets under management (AUM) decreased by 1.4% in February 2025, primarily due to a decline in the U.S. equity market and net outflows totaling $4.7 billion. This decline in AUM was exacerbated by negative market actions, with mixed performance across indices, and a significant portion of the outflows coming from U.S. mutual funds, which represent a substantial part of TROW’s business.
Despite some positive trends, such as strong inflows into ETFs and target date funds, T Rowe Price faces ongoing challenges. The company’s high exposure to equities, particularly growth-oriented funds, has been a headwind amid recent market weakness. While there is optimism for future improvements in net flows, the expectation remains that 2025 will not see a return to net inflows. These mixed signals and market conditions underpin Michael Brown’s decision to maintain a Hold rating for T Rowe Price.
Based on the recent corporate insider activity of 110 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TROW in relation to earlier this year.