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Artisan Partners (APAM)
NYSE:APAM
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Artisan Partners (APAM) AI Stock Analysis

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APAM

Artisan Partners

(NYSE:APAM)

Rating:69Neutral
Price Target:
$49.00
▲(4.28% Upside)
Artisan Partners Asset Management shows solid financial performance with strong profitability and revenue growth. The valuation is attractive with a low P/E ratio and high dividend yield. Technical indicators suggest a neutral trend with potential for upward movement. The earnings call presents a balanced outlook with both positive developments and challenges. Overall, the stock is positioned well, but attention to cash flow growth and client inflows is necessary.

Artisan Partners (APAM) vs. SPDR S&P 500 ETF (SPY)

Artisan Partners Business Overview & Revenue Model

Company DescriptionArtisan Partners (APAM) is a global investment management firm that specializes in active investment strategies across various asset classes, including equity, fixed income, and alternative investments. The company is focused on delivering long-term value to its clients through a diverse range of investment solutions tailored to meet the needs of institutional and individual investors. Artisan Partners operates through multiple investment teams, each with distinct investment philosophies, allowing for a broad array of investment opportunities across different sectors and geographies.
How the Company Makes MoneyArtisan Partners generates revenue primarily through investment management fees charged to its clients based on the assets under management (AUM). The firm typically earns a percentage of AUM as a management fee, which can vary depending on the specific investment strategy and client agreements. In addition to management fees, Artisan may also earn performance fees based on the investment performance of its funds, incentivizing the firm to achieve strong returns for its clients. The company serves a diverse client base, including institutional investors, mutual funds, and private wealth clients, which helps stabilize its revenue streams. Strategic partnerships with financial advisors and platforms also enhance Artisan's distribution capabilities, further contributing to its earnings.

Artisan Partners Earnings Call Summary

Earnings Call Date:Aug 01, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant positive developments, including leadership transition, recognition for investment excellence, strong performance in credit and emerging market strategies, and increased AUM. However, these were balanced by challenges such as net client cash outflows, closure of a strategy, and muted gross flow levels. Overall, the positive performance and strategic milestones were offset by notable challenges, creating a balanced outlook.
Q2-2025 Updates
Positive Updates
Successful Leadership Transition
Eric Colson transitioned to Executive Chair, while Jason Gottlieb took over as CEO, marking a smooth leadership change for Artisan Partners Asset Management.
Recognition of Investment Excellence
Bryan Krug received Morningstar's 2025 Investment Excellence Award for Outstanding Fixed Income Portfolio Manager, and David Samra was a finalist for the 2025 U.S. Morningstar Award for Investing Excellence: Outstanding Equity Portfolio Manager.
Strong Performance in Credit Strategies
The Credit team's High Income strategy outperformed its benchmark by 170 basis points annually, and the Credit Opportunity strategy has generated 10.23% annual returns net of fees since inception.
Developing World Strategy Milestone
The Developing World strategy reached a 10-year track record with a capital compounding rate of 11.59% annually, beating its index by 678 basis points after fees.
Positive Emerging Markets Flows
Artisan Partners raised a net $700 million across emerging market strategies, with each showing positive year-to-date net flows.
Increased Assets Under Management
The firm's ending AUM reached $176 billion, an 8% increase compared to the previous quarter.
12th Consecutive Quarter of Positive Fixed Income Flows
The firm reported continued positive flows in its fixed income business for the 12th consecutive quarter.
Dividend Increase
A quarterly dividend of $0.73 per share was declared, representing a 7% increase over the prior quarter.
Negative Updates
Net Client Cash Outflows
The firm experienced net client cash outflows of $1.9 billion during the June quarter, driven by lower gross equity inflows and outflows.
Closure of China Post-Venture Strategy
A $1.2 million charge was recorded in connection with the closure of the China Post-Venture strategy.
Muted Gross Flow
The quarter saw muted gross flow levels, signaling a cautious risk-aware environment among clients.
Company Guidance
During the second quarter of 2025 earnings call, Artisan Partners Asset Management provided several key guidance metrics. The firm reported an ending AUM of $176 billion, reflecting an 8% increase from the previous quarter, driven by strong equity market returns. However, there were net client cash outflows of $1.9 billion, influenced by lower gross equity inflows and outflows. Despite this, the firm's fixed income business marked its 12th consecutive quarter of positive flows. Revenue for the quarter rose by 2% from the previous quarter and by 4% year-over-year, with a weighted average recurring fee rate of 68 basis points. Adjusted operating expenses increased by 3% from the first quarter of 2025 and by 5% from the same quarter last year, mainly due to higher incentive compensation. The firm also announced an increase in its quarterly dividend to $0.73 per share, a 7% rise from the prior quarter. Looking ahead, the third quarter is expected to benefit from the absence of $2.4 million in costs associated with the closure of the China Post-Venture strategy.

Artisan Partners Financial Statement Overview

Summary
Artisan Partners demonstrates strong financial performance with consistent revenue growth and robust profitability margins. The company has improved its leverage position, although the equity ratio remains low. Cash flow generation is efficient, but the recent decline in free cash flow growth warrants attention. Overall, the financial health of the company is solid, with room for improvement in cost management and equity financing.
Income Statement
75
Positive
Artisan Partners shows a solid income statement with a consistent revenue growth rate of 9.6% in the TTM period. The company maintains healthy margins, including a gross profit margin of 44.4% and a net profit margin of 24.1%. EBIT and EBITDA margins are also strong at 41.2% and 42.1%, respectively. However, the gross profit margin has slightly decreased from the previous year, indicating some pressure on cost management.
Balance Sheet
70
Positive
The balance sheet reflects a moderate debt-to-equity ratio of 0.70, which is an improvement from previous years, indicating better leverage management. The return on equity is robust at 70.6%, showcasing effective use of equity to generate profits. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing.
Cash Flow
65
Positive
Cash flow analysis reveals a slight decline in free cash flow growth by 7.25% in the TTM period, which could be a concern. The operating cash flow to net income ratio is healthy at 0.76, and the free cash flow to net income ratio is nearly 1, indicating efficient cash generation relative to net income. Despite the decline in free cash flow growth, cash flow metrics remain stable overall.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.13B1.11B975.13M993.28M1.23B899.57M
Gross Profit499.90M517.68M445.74M482.88M664.18M463.75M
EBITDA473.93M449.41M395.31M329.54M569.29M386.73M
Net Income271.39M259.75M222.29M206.75M336.52M212.62M
Balance Sheet
Total Assets1.44B1.62B1.41B1.23B1.21B1.15B
Cash, Cash Equivalents and Short-Term Investments493.00M268.22M178.47M143.25M200.14M198.82M
Total Debt295.18M300.71M312.66M319.90M299.75M291.95M
Total Liabilities840.40M868.84M802.10M819.97M801.05M867.17M
Stockholders Equity419.10M388.92M324.15M262.22M276.20M180.48M
Cash Flow
Free Cash Flow357.69M368.09M244.40M293.05M392.58M315.58M
Operating Cash Flow358.75M372.84M253.03M312.61M398.55M318.68M
Investing Cash Flow-5.76M-24.87M-38.17M-63.73M-26.97M18.75M
Financing Cash Flow-237.35M-254.22M-174.96M-306.40M-335.43M-282.23M

Artisan Partners Technical Analysis

Technical Analysis Sentiment
Positive
Last Price46.99
Price Trends
50DMA
45.72
Positive
100DMA
42.49
Positive
200DMA
41.82
Positive
Market Momentum
MACD
0.38
Positive
RSI
55.95
Neutral
STOCH
60.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APAM, the sentiment is Positive. The current price of 46.99 is above the 20-day moving average (MA) of 46.32, above the 50-day MA of 45.72, and above the 200-day MA of 41.82, indicating a bullish trend. The MACD of 0.38 indicates Positive momentum. The RSI at 55.95 is Neutral, neither overbought nor oversold. The STOCH value of 60.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for APAM.

Artisan Partners Risk Analysis

Artisan Partners disclosed 39 risk factors in its most recent earnings report. Artisan Partners reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Artisan Partners Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$4.83B17.4215.59%2.50%19.81%12.83%
81
Outperform
$6.53B17.3113.47%0.02%-5.87%-21.51%
80
Outperform
$1.14B7.2717.31%12.60%31.43%30.85%
78
Outperform
$4.10B11.7432.69%2.43%5.92%54.93%
76
Outperform
$4.35B11.7218.55%8.57%16.78%
69
Neutral
$3.74B12.5667.97%7.76%9.98%12.97%
68
Neutral
$18.05B11.7310.24%3.73%9.66%1.70%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
APAM
Artisan Partners
46.99
10.06
27.24%
AMG
Affiliated Managers
233.05
64.93
38.62%
AB
AllianceBernstein
39.44
8.68
28.22%
FHI
Federated Hermes
53.55
20.07
59.95%
VCTR
Victory Capital Holdings
72.31
21.88
43.39%
TRIN
Trinity Capital
16.19
4.02
33.03%

Artisan Partners Corporate Events

Financial Disclosures
Artisan Partners Reports July 2025 Assets Under Management
Positive
Aug 11, 2025

On August 11, 2025, Artisan Partners Asset Management Inc. reported its preliminary assets under management as of July 31, 2025, totaling $175 billion. The Artisan Funds and Artisan Global Funds contributed $85.3 billion, while separate accounts and other assets accounted for $89.7 billion. This announcement reflects the company’s robust asset management capabilities and its strong position in the investment management industry.

Financial Disclosures
Artisan Partners Reports June 2025 AUM Totals
Positive
Jul 10, 2025

On July 10, 2025, Artisan Partners Asset Management Inc. announced its preliminary assets under management (AUM) as of June 30, 2025, totaling $175.5 billion. The Artisan Funds and Artisan Global Funds contributed $85.6 billion, while separate accounts and other AUM accounted for $89.9 billion. This report highlights the firm’s robust asset management capabilities and its strong positioning in the investment management industry.

Executive/Board Changes
Artisan Partners Appoints Peter Crawford to Board
Neutral
Jul 2, 2025

On July 2, 2025, Artisan Partners appointed Peter Crawford to its Board of Directors and Audit Committee. Crawford, with extensive experience at Charles Schwab, including roles as Managing Director and Chief Financial Officer, is expected to bring valuable financial expertise to Artisan Partners.

Financial Disclosures
Artisan Partners Announces May 2025 AUM Figures
Neutral
Jun 10, 2025

On June 10, 2025, Artisan Partners Asset Management Inc. announced its preliminary assets under management (AUM) as of May 31, 2025, totaling $170.9 billion. This figure includes $83.4 billion from Artisan Funds and Artisan Global Funds, and $87.5 billion from separate accounts and other assets. The announcement highlights the firm’s strong market position and diverse investment strategies, potentially impacting stakeholders by showcasing its robust asset management capabilities.

Private Placements and FinancingShareholder Meetings
Artisan Partners Holds 2025 Annual Stockholders Meeting
Neutral
Jun 5, 2025

On June 3, 2025, Artisan Partners Holdings LP entered into a Note Purchase Agreement to issue $50 million of Series G Senior Notes in a private placement on August 15, 2025, to repay the Series D notes maturing in August 2025. The Series G Notes, maturing on August 16, 2030, will bear an interest rate of 5.43% and include financial covenants such as a leverage ratio not exceeding 3.00 to 1.00 and an interest coverage ratio not less than 4.00 to 1.00. Additionally, the 2025 annual meeting of stockholders was held on June 4, 2025, where all seven director nominees were elected, executive compensation was approved, and PricewaterhouseCoopers LLP was ratified as the independent auditor for the fiscal year ending December 31, 2025.

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 22, 2025