Ameriprise Financial (NYSE:AMP) Shares Gap Up Following Better-Than-Expected Earnings

Ameriprise Financial, Inc. (NYSE:AMP)’s stock price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $499.67, but opened at $537.78. Ameriprise Financial shares last traded at $521.6540, with a volume of 337,502 shares trading hands.

The financial services provider reported $10.83 EPS for the quarter, beating the consensus estimate of $10.33 by $0.50. Ameriprise Financial had a net margin of 20.12% and a return on equity of 64.97%. The business had revenue of $4.90 billion during the quarter, compared to the consensus estimate of $4.75 billion. During the same quarter in the prior year, the firm earned $9.54 EPS. The firm’s quarterly revenue was up 10.2% on a year-over-year basis.

Ameriprise Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Monday, February 9th will be given a $1.60 dividend. This represents a $6.40 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Monday, February 9th. Ameriprise Financial’s dividend payout ratio (DPR) is 17.55%.

Key Ameriprise Financial News

Here are the key news stories impacting Ameriprise Financial this week:

• Positive Sentiment: Q4 earnings beat: Adjusted operating EPS of $10.83 topped consensus and rose ~16% year-over-year; revenue of $4.90B also exceeded estimates — a core catalyst for the stock move. Ameriprise Stock Gains on Q4 Earnings Beat
• Positive Sentiment: Record client assets: Fee-generating assets/AUM reached all-time highs (reported $1.7T), which supports recurring fee revenue and scale economics for wealth management. Ameriprise profit rises as client assets hit record $1.7 trillion
• Positive Sentiment: Profitability and efficiency: High return on equity and strong net margins were highlighted in the results, reinforcing the quality of earnings and management’s expense discipline. Ameriprise press release / slide deck
• Positive Sentiment: Dividend maintained/increased cash return: Board declared a quarterly cash dividend of $1.60 per share payable Feb. 27 (record Feb. 9), which supports income-focused ownership. Dividend press release
• Neutral Sentiment: Investor materials and transparency: The company posted its earnings press release, slide deck and the earnings call transcript — useful for digging into segment trends and AUM composition but not immediate catalysts. Conference call / slide deck Earnings call transcript
• Negative Sentiment: Modest dividend yield and valuation context: The declared dividend implies a ~1.2% yield, which may disappoint income-focused investors; the stock is trading near its 12‑month highs, so some upside is already priced in and valuation (mid‑teens P/E) could limit near-term gains for value-sensitive buyers. Market data / valuation

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the company. Argus reduced their price objective on Ameriprise Financial from $568.00 to $554.00 and set a “buy” rating for the company in a research note on Thursday, November 13th. Weiss Ratings reiterated a “buy (b-)” rating on shares of Ameriprise Financial in a report on Monday, December 29th. Royal Bank Of Canada reduced their price target on shares of Ameriprise Financial from $601.00 to $550.00 and set an “outperform” rating for the company in a research report on Monday, November 3rd. Keefe, Bruyette & Woods lowered their price objective on shares of Ameriprise Financial from $550.00 to $530.00 and set a “market perform” rating on the stock in a research report on Monday, November 3rd. Finally, Morgan Stanley upped their price objective on shares of Ameriprise Financial from $484.00 to $485.00 and gave the company an “underweight” rating in a research note on Monday, December 22nd. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, four have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Ameriprise Financial presently has a consensus rating of “Hold” and an average target price of $528.75.

Insider Buying and Selling

In related news, Director Robert Francis Sharpe, Jr. sold 1,500 shares of the firm’s stock in a transaction that occurred on Friday, November 21st. The shares were sold at an average price of $450.94, for a total transaction of $676,410.00. Following the transaction, the director owned 7,500 shares of the company’s stock, valued at approximately $3,382,050. This trade represents a 16.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.73% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Knights of Columbus Asset Advisors LLC increased its holdings in Ameriprise Financial by 4.2% during the 2nd quarter. Knights of Columbus Asset Advisors LLC now owns 16,735 shares of the financial services provider’s stock valued at $8,932,000 after purchasing an additional 667 shares in the last quarter. First Horizon Corp bought a new stake in shares of Ameriprise Financial during the third quarter worth $1,454,000. NorthRock Partners LLC increased its stake in shares of Ameriprise Financial by 8.9% in the second quarter. NorthRock Partners LLC now owns 10,955 shares of the financial services provider’s stock valued at $5,847,000 after buying an additional 897 shares in the last quarter. Asset Management One Co. Ltd. raised its holdings in shares of Ameriprise Financial by 9.4% in the third quarter. Asset Management One Co. Ltd. now owns 46,084 shares of the financial services provider’s stock valued at $22,639,000 after buying an additional 3,974 shares during the last quarter. Finally, Mitsubishi UFJ Trust & Banking Corp lifted its position in Ameriprise Financial by 52.2% during the 3rd quarter. Mitsubishi UFJ Trust & Banking Corp now owns 100,138 shares of the financial services provider’s stock worth $49,193,000 after buying an additional 34,347 shares in the last quarter. Institutional investors and hedge funds own 83.95% of the company’s stock.

Ameriprise Financial Trading Up 4.1%

The company has a current ratio of 0.68, a quick ratio of 0.68 and a debt-to-equity ratio of 0.88. The stock has a market cap of $48.33 billion, a P/E ratio of 14.26, a price-to-earnings-growth ratio of 1.29 and a beta of 1.26. The business’s fifty day simple moving average is $489.58 and its 200 day simple moving average is $492.28.

Ameriprise Financial Company Profile

Ameriprise Financial, Inc is a diversified financial services company headquartered in Minneapolis, Minnesota. The firm provides a range of advice-based wealth management, asset management and insurance products to individual and institutional clients. Its business model centers on delivering financial planning and investment advice through a network of financial advisors alongside proprietary product offerings designed to meet retirement, protection and accumulation needs.

Core products and services include comprehensive financial planning and advisory services, managed investment portfolios, retirement planning solutions, annuities and life insurance products.