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Acadian Asset Management (AAMI)
NYSE:AAMI
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Acadian Asset Management (AAMI) AI Stock Analysis

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AAMI

Acadian Asset Management

(NYSE:AAMI)

Rating:63Neutral
Price Target:
$51.00
▼(-0.35% Downside)
The overall stock score of 63 reflects a mix of strong technical momentum and positive earnings call sentiment, offset by financial performance challenges. The company's robust revenue growth and record AUM are significant positives, but high leverage and declining profitability weigh on the score. The stock's valuation is reasonable, and the high dividend yield adds appeal.
Positive Factors
EPS Growth
A significant increase in EPS is expected due to higher average assets under management resulting from a large mandate win.
Price Target Increase
The price target for AAMI has been raised by 33%, reflecting confidence in the company's future performance.
Revenue and Buybacks
Acadian Asset Management Inc. is experiencing better revenues and more buybacks.
Negative Factors
Bear Case Risks
Bear case risks are raised due to tariffs-induced drawdowns.
Price Target Downside
The new price target suggests a potential downside of 5%.

Acadian Asset Management (AAMI) vs. SPDR S&P 500 ETF (SPY)

Acadian Asset Management Business Overview & Revenue Model

Company DescriptionAcadian Asset Management, Inc. is a holding company, which engages in the provision of asset management services. It operates through the Quant and Solutions segment. The Quant and Solutions segment involves leveraging data and technology in a computational, factor-based investment process across a range of asset classes and geographies, including Global, non-U.S., emerging markets, and managed volatility equities, as well as multi-asset products. The company was founded in 1980 and is headquartered in Boston, MA.
How the Company Makes MoneyAcadian Asset Management generates revenue primarily through management fees charged to its clients based on the assets under management (AUM). The firm typically earns a percentage of AUM for managing investment portfolios, which can vary by client type and agreement. Additionally, AAMI may earn performance fees when it surpasses certain investment benchmarks or targets, thus incentivizing superior performance. The company also benefits from strategic partnerships with financial institutions, allowing for enhanced distribution of its products and services, which can contribute to overall revenue growth. Key factors influencing its earnings include market conditions, client retention rates, and the firm's ability to innovate its investment strategies to meet evolving client needs.

Acadian Asset Management Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements such as record AUM, strong investment performance, and robust revenue growth, with positive net client cash flow and global distribution expansion. However, the call also noted a decline in GAAP net income and the presence of outstanding debt. Despite these challenges, the overall sentiment of the call is positive due to the strong performance metrics and growth prospects.
Q2-2025 Updates
Positive Updates
Record AUM and Net Client Cash Flow
Acadian Asset Management reported an AUM of $151.1 billion as of June 30, 2025, the highest in the firm's history, along with a record $13.8 billion in positive net client cash flow in Q2 2025.
Strong Performance Across Investment Strategies
95% of Acadian's strategies by revenue outperformed benchmarks over 5-year periods with a 4.5% annualized excess return, showcasing the firm's competitive advantage in systematic investing.
Significant Revenue Growth and Margin Expansion
ENI diluted EPS increased by 42% and adjusted EBITDA increased by 22%, driven by significant revenue growth. The ENI operating margin expanded by 360 basis points to 30.7%.
Robust Global Distribution and Sales
Acadian achieved $28 billion of gross sales in the first half of 2025, surpassing the previous annual record. The firm has a strong global presence with offices in Boston, London, Sydney, and Singapore.
Negative Updates
Decline in GAAP Net Income
U.S. GAAP net income attributable to controlling interest was down 8% and EPS was down 3% compared to the prior year, largely due to increased non-cash expenses related to employee equity plan revaluations.
Outstanding Debt and Capital Allocation
The firm reported an outstanding balance of $20 million on its revolving credit facility, reflecting draws to support first-quarter seasonal bonus payments, although this is expected to be paid down by year-end.
Company Guidance
During the Acadian Asset Management, Inc. earnings call for Q2 2025, several key metrics and guidance were discussed. The company reported a record high in assets under management (AUM) of $151.1 billion as of June 30, 2025, driven by $13.8 billion in positive net client cash flow, marking the highest quarterly net flows in the company's history. Acadian's revenue-weighted 5-year annualized return in excess of benchmark was 4.5%, with over 94% of strategies by revenue outperforming their respective benchmarks across 3-, 5-, and 10-year periods. Despite a decrease in U.S. GAAP net income attributable to controlling interest by 8% and EPS by 3% from the prior year due to higher employee equity plan revaluations, the company saw a 42% increase in ENI diluted EPS and a 22% rise in adjusted EBITDA. The ENI operating margin expanded by 360 basis points to 30.7%, while the operating expense ratio improved by falling to 44.6% from 48.8% in Q2 2024. These results were bolstered by substantial growth in management fees, which increased by 16% year-over-year, reflecting a 20% rise in average AUM. The company also achieved record gross sales of $28 billion in the first half of 2025, surpassing the previous record of $21 billion in 2024. Acadian's focus on enhanced equity strategies and a robust global distribution platform, with over 90 professionals serving more than 1,000 client accounts in 40 countries, were highlighted as key contributors to this performance.

Acadian Asset Management Financial Statement Overview

Summary
Acadian Asset Management faces financial challenges with declining profitability and revenue growth. High leverage and negative equity raise solvency concerns, while cash flow performance is weakening. The company must address these issues to improve financial stability and growth prospects.
Income Statement
56
Neutral
The gross profit margin is moderate at around 48.3% for TTM, indicating decent cost control. However, net profit margin declined from 39.9% in 2020 to 17.5% in TTM, suggesting increased expenses or reduced revenue efficiency. Revenue growth is slowing, with a 2.4% increase in TTM compared to 18.5% in 2023, reflecting market challenges or competitive pressures.
Balance Sheet
32
Negative
The company shows high leverage with a debt-to-equity ratio of 19.35 in TTM, indicating significant reliance on debt financing. The negative equity ratio of 3.2% in TTM is concerning, suggesting potential solvency issues. Return on equity is not meaningful due to negative equity, further highlighting financial instability.
Cash Flow
45
Neutral
Operating cash flow in TTM is positive but has decreased from the previous year, indicating weakened cash generation capacity. Free cash flow to net income ratio is 0.41, showing limited conversion of earnings into cash. Free cash flow growth is negative, suggesting potential liquidity challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue519.80M505.60M426.60M417.20M523.80M499.50M
Gross Profit250.10M239.20M213.20M257.60M239.20M256.20M
EBITDA173.30M163.60M133.40M183.90M225.10M393.40M
Net Income90.50M85.00M65.80M100.60M828.40M286.70M
Balance Sheet
Total Assets677.30M703.20M611.40M518.70M714.80M1.38B
Cash, Cash Equivalents and Short-Term Investments119.60M94.80M146.80M108.40M252.10M371.30M
Total Debt419.90M341.60M346.30M349.30M472.50M489.10M
Total Liabilities584.80M616.10M561.90M540.30M732.40M994.80M
Stockholders Equity21.70M20.00M40.20M-21.60M-17.60M302.40M
Cash Flow
Free Cash Flow37.40M45.90M54.50M100.70M-26.60M64.60M
Operating Cash Flow47.40M55.80M68.30M116.80M-11.50M90.50M
Investing Cash Flow-36.90M-50.10M-43.90M-13.00M1.04B270.00M
Financing Cash Flow9.80M-54.40M1.80M-233.70M-1.18B-77.40M

Acadian Asset Management Technical Analysis

Technical Analysis Sentiment
Positive
Last Price51.18
Price Trends
50DMA
40.47
Positive
100DMA
34.43
Positive
200DMA
30.64
Positive
Market Momentum
MACD
2.74
Negative
RSI
77.54
Negative
STOCH
91.60
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AAMI, the sentiment is Positive. The current price of 51.18 is above the 20-day moving average (MA) of 45.77, above the 50-day MA of 40.47, and above the 200-day MA of 30.64, indicating a bullish trend. The MACD of 2.74 indicates Negative momentum. The RSI at 77.54 is Negative, neither overbought nor oversold. The STOCH value of 91.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AAMI.

Acadian Asset Management Risk Analysis

Acadian Asset Management disclosed 1 risk factors in its most recent earnings report. Acadian Asset Management reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Acadian Asset Management Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$1.26B14.079.74%10.15%12.82%-5.37%
74
Outperform
$1.11B7.0817.31%12.77%31.43%30.85%
74
Outperform
$1.35B9.6516.46%4.50%0.66%36.96%
70
Outperform
$1.12B1.4811.11%
68
Neutral
$17.69B11.8210.30%3.73%9.66%0.42%
65
Neutral
$1.11B13.666.18%12.57%39.05%-32.62%
63
Neutral
$1.83B20.96282.39%0.08%21.14%42.83%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AAMI
Acadian Asset Management
51.18
27.05
112.10%
CSWC
Capital Southwest
22.62
0.78
3.57%
NMFC
New Mountain Finance
10.42
-0.48
-4.40%
VRTS
Virtus Investment Partners
200.11
1.83
0.92%
AMTD
AMTD IDEA Group
1.04
-0.32
-23.53%
TRIN
Trinity Capital
15.97
3.79
31.12%

Acadian Asset Management Corporate Events

Executive/Board ChangesShareholder Meetings
Acadian Asset Management Appoints New CFO Scott Hynes
Neutral
May 16, 2025

On May 13, 2025, Acadian Asset Management‘s Board of Directors appointed Scott Hynes as Senior Vice President and Chief Financial Officer, effective May 19, 2025. Hynes, with a background in finance leadership roles at KeyCorp and State Street Corporation, will also serve as the principal financial officer. His compensation package includes a base salary of $450,000, a target bonus of $1.05 million, and participation in company benefit programs. Additionally, the Board approved the Amended and Restated Bylaws to reflect the company’s name change and held its 2025 Annual Meeting of Stockholders, where directors were elected, KPMG was ratified as the accounting firm, and executive compensation was approved.

The most recent analyst rating on (AAMI) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Acadian Asset Management stock, see the AAMI Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025